C&C Management Nov 17 by Cash & Carry Management

SPOTLIGHT: KHALID IQBAL, UNITED WHOLESALE SCOTLAND

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

CCM Chefs Own-Brand Awards launched with Craft Guild of Chefs Exclusive!

Pat McGarry on how Henderson manages to punch above its weight

SINCE 1923

CATEGORY INSIGHT

4Savoury Snacks 4Cigars 4Breakfast 4Christmas Drinks

NOVEMBER 2017

WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH

Contents

November 2017

This month don’t miss... 06 6

Bestway rewards top retailers with £28,000 prize pot.

Dhamecha opens its ninth C&C, its second outside London.

Khalid Iqbal talks about the importance of his family.

ESSENTIALS 05 06 25

Editor’s Comment Industry News Products & Promotions

FEATURES 11 12

Special Report Behind the Scenes Henderson Wholesale is investing for its long-term future.

Spotlight Khalid Iqbal, senior buyer at United Wholesale (Scotland).

Supplier Strategy Featuring Thatchers Cider.

CCM Chefs Own-Brand Awards Cash & Carry Management launches an awards scheme to find the best foodservice own-brand products.

Endorsed by the Craft Guild of Chefs, the CCM Chefs Own-Brand Awards will determine the best private label products through blind tasting.

OPINION 15

Product of the month

Employment Law HR expert Cate Ritchie asks if drug testing at work is effective.

CATEGORY INSIGHT 16 26 36 38

Savoury Snacks Christmas Drinks Cigars Update Breakfast

Martin Thatcher on Thatchers’ growth in the wholesale trade.

Younger consumers are targeted by Mondelez with its latest NPD.

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November 2017

[ EDITOR’S COMMENT ]

Recognition for own-brand ood trade awards – indeed, any awards – recognise the vital part played by those at the forefront of the industries they represent. In most cases the recipients are the people who head the company. But how often are those behind the scenes, the names that don’t trip off the tongue, rewarded for the work they have done to make that business a success? The same question can be applied to food products. Leading brands are constantly in the limelight, but what about own-labels? Many businesses would struggle without them. That’s why we at Cash & Carry Management have decided to redress the balance. In doing so, we are combining with the Craft Guild of Chefs to launch the CCM Chefs Own-Brand Awards to honour the best foodservice in-house products. Prizes in a wide range of categories will go to own-brand foods marketed by cash & carries and delivered wholesalers. Competition entries can cover such categories as bakery, butchery, canned goods, ready meals, children’s food, fish, licensed drinks…the list is all-embracing. The closing date for entries is 4 April 2018 and those who want their products to be considered for one of the awards must deliver them to Westminster Kingsway College in central London. A blind tasting will follow and the winners will be announced at a lavish awards lunch on 24 May 2018.

SPOTLIGHT: KHALID IQBAL, UNITED WHOLESALE SCOTLAND

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We and the Craft Guild of Chefs are proud of this initiative. It defines our belief that the standard and quality of own-label food today bears little connection with those early ‘cheap and cheerful’ packs. Forget about the price you pay when eating out. Whether it’s at a swish hotel or a modest pub, it should always be an enjoyable experience. You won’t know which suppliers are responsible for the carrot & lentil soup or garlic mushroom starter, t-bone steak or sea bass main course and apple crumble or cheesecake dessert. And don’t forget that glass of wine to complement the food. But whereas years ago you would have spotted that a poor quality ownbrand had been substituted for a leading proprietary equivalent as soon as the food reached your tongue, nowadays you would be hard pressed to notice any difference. That reflects how far the trade has come to close the quality gap between branded and own-brand food and drink. And it’s why we, together with the Craft Guild of Chefs, are honoured to recognise the fact with our new awards scheme.

Mervyn Gilbert News Editor

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November 2017

[ INDUSTRY NEWS ]

New FWD member

Vegetarian and eco-friendly wholesaler Suma Wholefoods, with turnover of £50 million, has joined the Federation of Wholesale Distributors. Based in the Elland district of Leeds, it was formed 40 years ago as a worker cooperative and currently has 166 members dealing with around 7,000 product lines. Most are from a wide range of suppliers, with 1,500 marketed under the Suma and Ecoleaf brands. Suma specialises in ambient and chilled goods, but arrangements can also be made for those wanting frozen foods. Major product sectors include plant-based foods, gluten-free products and ‘healthy’ snacks and soft drinks. Deliveries are made throughout the UK, utilising 18 leased vehicles, ranging from 7.5-tonners to articulated lorries. Products are also exported to around 120 countries through Suma’s partner, Ramsden International (formerly operating as Nisa International). Suma national account manager Gary Scott told Cash & Carry Management: “We supply every major wholefood/organic/vegetarian wholesaler in the UK and Ireland. We are also increasingly supplying mainstream wholesalers and foodservice companies.” a Suma Wholefoods (01422) 313845 a FWD (01323) 724952 06

November 2017

Multiples and wholesalers Bestway Group chief executive Zameer Choudrey CBE used the occasion of his company’s 17th annual retail development awards presentation to spell out the C&C/wholesaler’s position in the wider market place. Avoiding any mention of Bestway’s supposed aim to take over Blakemore’s wholesale division or win the Costcutter contract, he focused on the stance taken by the retail multiples. “They are no longer happy to open up stores on the high street; they want to be wholesalers,” said Choudrey. “Tesco (siding

with Booker), Morrisons, the Co-op – they all want a piece of the action. The irony is that, for so long, independents, who have viewed the multiples as competitors, are now being asked to join forces with them. “Make no mistake, Bestway, as we have always done, will constantly champion the independent retail sector and we will be the last man standing. We are committed to being the ‘Best Way’ for customers and suppliers to grow their food and drink business.” Despite the trade being hit by tobacco regulations,

Bestway Wholesale has had a good year, said Choudrey. “In impulse, we grew by 2.4% against a 1.2% market decline; in symbol, best-one rose by over 20% versus 2.7% market growth; catering sales were up 9.1% and both pet and export were 8.5% higher.” The company’s retail multiple account division delivers to 300 sites covering 28 customers across the UK. Online sales were over £6 million a week, more than £1 million of which came through the Bestway Wholesale app. a Bestway Group 020-8453 1234

Best retailers reap the rewards At the Bestway a Wines & spirits: Wholesale retail develSanthosh Sundaresan, opment awards presBMP Star Supermarket, entation held in central Mottingham, southLondon, 18 of the most east London progressive independa Tobacco: Kanagaent traders were honsuntharam Parthipan, oured by the cash & Four Seasons, Liverpool carry/wholesaler, with a Chilled provisions & prize money totalling dairy: Syed Monawer £28,000. Hassan, Samz Trading, The top accolade of Canning Town, east Bestway Group chief executive Zameer national retailer of the London year went to best-one Choudrey CBE with overall winner Kuperan a Crisps & snacks: Murugesu, of QP Petroleum, Runcorn. forecourt operator QP Hitesh Karsan, HatherPetroleum, of Runcorn, shaw Mini Market, Cheshire, with owner Oldham to the following: Kuperan Murugesu receiving a Community: Bruce and a Grocery: Kiran Narula, JK Donna Morgan, Brownlie’s Supermarket, Hayling Island, a cheque for £10,000. best-one, Biggar Hants Regional awards (£2,000 a best-one: Gareth and a Confectionery: Saghir each) went to: Amjad Natalie Hooton, of Golborne, Hasham and Saqib Mahfooz, Mahmood, of Madina Foods, Wigan Mr Booze Express, Derby of Manor Park, east London a Soft drinks: Manish Hira, a Household, health & beauty: (south), Kalpesh Raja, of best-one, Sheffield Sinnathurai Baskaran, Four Parker Drive Service Station, Seasons, Liverpool a Water: Tharmalingam Leicester (north), and Umar Gnanachandran, of Fairways, a Pet food: Gareth Jones, Sher, of best-one 1st Stop to Kirkby, Merseyside JJs Convenience Store, Shop in Forfar (Scotland). Bargoed, South Wales a Beer & cider: Tanveer The 400-strong gathering Aslam, best-one Stechford a Baby food: Daljit Athwal, of retailers, suppliers and Supermarket, Stechford, Shop Around The Clock, Bestway Wholesale personnel Birmingham Tenterden, Kent. also saw awards presented

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[ INDUSTRY NEWS ]

Cash injection for P&H Troubled Palmer and Harvey has entered into an arrangement with financier The Carlyle Group with the aim of securing significant capital investment. The terms of the potential transaction will include Carlyle taking control of the equity of Palmer and Harvey McLane (Holdings). The deal, subject to ongoing due diligence, follows a period during which PriceWaterhouseCoopers has been acting as P&H’s financial adviser to explore all strategic options. A statement from P&H and Carlyle says: “Further announcements will be made as and when appropriate in due course.” A spokesman for P&H said that the company “looks forward to securing this potential transaction, which

Uninterrupted journey from now on?

will provide a strong financial platform from which to build upon our 90 years of experience in the wholesale industry, our strong customer relationships and unrivalled scale to take full advantage of the many opportunities across our markets.” The Hove-based wholesaler, with annual turnover of

more than £4 billion and over 4,000 staff, serves grocery multiples, convenience stores, forecourts and CTNs. It operates 13 regional depots, utilising more than 1,000 vehicles to deliver ambient, chilled and frozen products to every postcode in the UK. a Palmer and Harvey (01273) 222100

Birmingham makes it nine Dhamecha Group has opened its ninth cash & carry. The 70,000 sq ft Birmingham depot, with 12 checkouts, is also its second in the Midlands, joining the Leicester unit, which began trading two years ago. Chief executive of the Today’s Group member Pradip Dhamecha said: “Following the success of the Leicester branch, we are

delighted to be expanding our Midlands base into Birmingham and to be employing 60 staff in the area. “Our team joined us over two months ago and they have spent the last few weeks being trained in the Leicester branch.” Former general manager at Leicester, Richard Elphick, has switched to take charge

at Birmingham. Replacing him in the general manager role at Leicester is Siddarth Jani, who has been with Dhamecha for 10 years. Dhamecha commented: “As well as the brilliant contribution from our new and existing staff, I would like to give a big thank you to our hundreds of loyal suppliers for their incredible support in the build-up to the opening. “Over the past 40 years, we have built a reputation for good service, speed, competitive long-term pricing and excellent stock availability. We now look forward to developing close relationships with retailers and caterers in the Birmingham area.” a Dhamecha Group 0208903 8181

Forum on foodservice ‘Bridging the Gap’, an event held by the Scottish Wholesale Association’s Foodservice Group last month in Edinburgh, gave suppliers an opportunity to meet SWA members and discuss market opportunities. Julie Dunn, president of the SWA and operations director of Dunns Food and Drinks, said: “The primary aim of the Foodservice Group is to raise the profile of foodservice in wholesale. We are also working very hard to sell the wider wholesale industry as a clear career destination choice.”

Ross Brown, channel controller foodservice at Premier Foods and co-chair of the Foodservice Group, reminded suppliers of the benefits of SWA membership, including networking, brand visibility, access to insight, and sharing best practice, skills and knowledge. Scotland’s share of the UK’s £10.3 billion foodservice market is estimated at £1 billion, with 3,000 people employed directly and a further 30,000 indirectly. Speakers at ‘Bridging the Gap’ included Marc Crothall, of the Scottish Tourism Alliance, James Withers, of Scotland Food & Drink, and David Cochrane, of the charity HIT Scotland. Wholesalers that took to the rostrum included Jon Mack, of Bidfood Scotland, and Jim Rowan, of Dunns Food and Drinks. a SWA 0131-556 8753

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November 2017

[ INDUSTRY NEWS ]

Focus on flexible working

Winners John and Suzanne Bassett with three of the Boost Drinks team.

First of 12 winners The Today’s Express store in Belfast, run by John and Suzanne Bassett, customers of Today’s Group member wholesaler Savage & Whitten, won the first of 12 £1,000 prizes from Boost Drinks as part of the supplier’s latest promotion. The drinks company launched the initiative to drive sales of its 500ml PET bottles. The total prize fund of £25,000 includes cash and vouchers. a Boost Drinks (0113) 240 3666

A project supported by the Federation of Wholesale Distributors will look at ways of making employment in the cash & carry/wholesale industry more attractive to those who want to work on a part-time or flexible basis. Timewise, an employerfocused consultancy, will interview wholesalers’ human resources managers to assess current practice. A plan for a flexible job design programme will then be shared with all FWD members. Currently, 47% of staff in wholesale are female but the 2017 Women in Wholesale report suggests that less than 11% of senior management roles are filled by women. In April next year, all large employers will be required by the Government to report on their gender pay gap and actions being taken to address this, including improving access to flexible

James Bielby: ‘This important project will establish best practice.’

and part-time working. Timewise joint CEO Emma Stewart MBE said: “In coming years, wholesalers will be exposed to a looming supply shortage of workers, both as a result of Brexit and the changing workforce demographic as the population ages. “Flexibility in working hours is evidenced as one of the key drivers for women, and increasingly men, in making career choices. It is

starting to outrank pay as a determining factor for millennials in making decisions about potential job offers.” She added: “The UK wholesale sector has a significant opportunity to develop its approach to flexible working as a way to position wholesale as an industry where both women and men can develop and progress their careers, whilst balancing work with life.” FWD chief executive James Bielby commented: “A balanced workforce greatly benefits wholesale, and this important project will establish best practice for making the sector more attractive to a deeper talent pool.” Recent research published by Timewise indicates that more than 60% permanent full-time employees work flexibly in some way. Of those who don’t, some 64% would prefer to. a FWD (07545) 427831

Top award for Llandudno Bmorelocal store Blakemore Wholesale’s top customers were honoured at the company’s third annual retailer of the year awards evening and charity dinner. Held at St George’s Park, Burton, Staffs, the event recognised 12 regional winners plus five recipients of category awards (work in the community, promotional execution, own-brand compliance, core range and fresh foods retailer). There were also prizes for the best new store and overall retailer of the year, the latter award going to the first Bmorelocal store in North Wales, at Penrhyn Bay in Llandudno. 08

November 2017

Judges commended this store for its standards and service, including internal and external imagery, customer relationships, product range, up-to-date merchandising and local community involvement. Owners Roland Edwards and Beverley Williams were presented with a cheque for £11,000, and a charitable donation of £700 was made on their behalf. Blakemore Wholesale sales director Nick Rose said: “The continued commitment of our retailers to maintaining the high standards of our retail club has been nothing short of

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Left to right: comedian Russell Kane, Blakemore Wholesale director Tom Blakemore, winners Beverley Williams and Roland Edwards, and Blakemore sales director Nick Rose.

impressive. “The awards demonstrate how suppliers, wholesalers and retailers can work together to showcase the best of what independent local stores have to offer.”

The main event sponsors included Heineken, PepsiCo, Coca-Cola, KP Snacks, Imperial Tobacco and Molson Coors. a Blakemore Wholesale (01902) 371515

[ INDUSTRY NEWS ]

Today’s adds £364 million sales Website Two new members have swelled Today’s Group turnover by £364 million. Back after a two-year stint with Landmark Wholesale is Gilsons Foods, of Leicester, with annual turnover of £14 million, of which 85% is in cash & carry and 15% in delivered trade. Before breaking away from Today’s, it was a member of that group for 23 years. The company, in family control since its formation, has recently taken on a new director, Roger Haddrell, 44, an executive with S&S Wines in Luton. One of Haddrell’s previous jobs – between 1989 and 1999 – was business development manager for Booker. At Gilsons he joins existing director TS Gill. Today’s acting managing director John Schofield said: “We are absolutely delighted that the Gilson family has taken the decision to re-join the Today’s Group. “We were disappointed when, as a longstanding member, they decided to leave in 2015. We are looking forward to working with them to support them in growing and developing

redesign

The Leicester wholesaler returns to its former buying group.

their business into the future.” Also joining Today’s from another group – Sugro UK – is the ever-expanding Kitwave, with a turnover of £350 million. The official starting date is January 2018. The company has been with Sugro, which focuses on ambient and impulse foods, for 30 years, but because it has been expanding in grocery, frozen foods, exporting and the on-trade, it decided that Today’s would be a more appropriate fit. Kitwave commercial director Mike Young commented: “As a group, we have expanded dramatically in recent times and will continue to do so in the future. “To aid this strategic

growth, Today’s provides a perfect partnership for our needs.” Based in North Shields, Kitwave incorporates 11 companies operating 15 depots, including M&M Value in the north-east, Boltonbased Turner & Wrights, Eden Farm, of Peterlee, Co Durham, and Miller Foodservice, of York. Today’s Group, with purchasing power of £5.7 billion, operates across the retail, on-trade and foodservice sectors and has more than 150 wholesale members, plus 434 symbol group retailers and 1,600 retail club members in England, Scotland and Ireland. a Today’s Group (01302) 249909

Another Brakes departure Brakes UK chief executive officer Ton Christiaanse (pictured) has left the wholesaler after just nine months. He took over from Phil Wieland, who departed “to pursue other interests”. Christiaanse, who joined Brakes – now owned by Houston-based Sysco – from Scottish beef producer AK

Stoddart, where he was chairman, had also worked for Unilever and Dutch food businesses Farm Frites and Vion. On moving to the wholesaler, he reported to group chief executive officer Ken McMeikan, who himself left the company in April. A Brakes spokesman told

Cash & Carry Management: “Ajoy Karna, Sysco senior vice-president, international foodservice operations, Europe, is leading the Brakes UK business while it seeks an appropriate successor.” In a separate development, Sysco is buying Hawaii-based HFM Foodservice, which has an annual turnover of $290 million. a Brakes Group (01233) 206000

Confex has launched a new website, www.confex.ltd.uk, with a “sharp and modern” design. It also enables group members and suppliers to gain instant access to promotions and benefits. High-resolution images of all products can be downloaded instantly for members to use in their marketing material. There is also a ‘Central Distribution shop’, enabling affiliates to order online. “We are extremely pleased with the look of our new website,” said group managing director Nicky White. “Our last redesign was in 2012 and we feel this new version fully encapsulates how much we have moved on as a business since then.” At the three-quarter stage (January-September), Confex group turnover rose by 18% and its top 30 suppliers recorded an average 14.7% growth. a Confex (01608) 652333

Christmas pies Country Range Group has launched two ‘mini party’ pies for Christmas. Packed in an ovenproof tray and ready to eat in 18 minutes, they are available through the group’s 13 independent wholesalers. The two styles (both 6 x 10, 30g) are chicken, bacon & leek, and minced beef & ale. Country Range Group trading director Martin Ward said: “Our new pies are perfect for outlets looking to tap in to the Christmas party trade.” a Country Range Group (0845) 209 3777

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November 2017

[ INDUSTRY NEWS ]

‘Solid result’ for Blakemore

Abra picks O’Connor as new MD The new managing director of Abra Wholesale is Craig O’Connor (pictured), who until recently was doing consultancy work for the north London C&C/wholesaler. The appointment enables the company’s owner Dee Thaya to “step back and pursue other entrepreneurial activities”, according to an Abra spokesman. O’Connor, 51, worked for DB Ramsden in Grimsby for several years, becoming managing director. He later moved to Blakemore, where, for a year, he held the position of managing director of the cash & carry business, overseeing 14 sites and reporting to Sam Wilcox, head of the wholesale division. The Abra spokesman told Cash & Carry Management: “Craig has a structured way of working and he knows cash & carry/wholesale so well. His knowledge of the delivered side is also a big factor.” Landmark Wholesale member Abra has a turnover of around £50 million, of which 90% comes from cash & carry, although delivered trade is rapidly increasing its share of the total. a Abra Wholesale 020-887 9303 10

November 2017

Peter Blakemore, chairman of AF Blakemore & Son, said that trading for the financial year to 30 April represented a “good, solid result during a period of intense change across the food retail and wholesale markets”. Like-for-like profit was £7.4 million – little changed on the previous annual figure of £7.5 million, which was for 53 weeks. Sales rose by 1.4% to £1.3 billion. The SPAR operation performed well in terms of both company-owned and independent stores. Blakemore commented:

“Customer spending patterns are rapidly changing. Consumers are shopping more frequently for smaller quantities of food for immediate or same-day consumption. “We have placed great emphasis on our store operations to meet these growing

trends through changing our product range and developing our food-fornow and prepared food-togo offering.” Over the past year, the company invested £19.2 million in store and business improvements; a further £27.5 million is earmarked for the current period. Blakemore’s statement makes no mention of the 13 C&C/wholesale depots in membership of Landmark Wholesale or the foodservice business. a AF Blakemore & Son (01902) 366066

Fairway members splash out Deals worth a record £1.9 million were concluded at the two Fairway Foodservice ‘Meet the Member’ events this year. The previous best was £1.3 million. At the latest show, held at Drayton Manor theme park in Drayton Bassett, Staffs, group members spent £971,000 with the 44 suppliers who attended. This exceeded the previous

highest figure of £904,000. Among the wholesalers represented at the two-day show – in a speed-dating format – were the newest members of the 20-strong Huddersfield-based group, Miller Foodservice and Young’s Foods. Suppliers included D’Arta, Unilever and cake producer Kara Foodservice. Fairway Foodservice chief

executive Chris Binge said: “It’s great that members continue to surpass previous purchasing spends because it’s indicative that the process works for them. We know the event works well for suppliers too.” The next ‘Meet the Member’ event is being held on 13-14 March 2018. a Fairway Foodservice (01422) 319100

Polish confectionery range Hancocks is introducing a range of Polish confectionery under the Wawel brand name at its 20 cash & carries. The decision was made after a trial of six share bags (milk chocolate & peanut, white chocolate & peanut, truffle, chocolate & fruit, chocolate mints and creamy fudge) at six branches. Additionally, the C&C operator has launched a selection of Polish pick & mix

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sweets in 1kg weigh-out jars, including five new lines alongside six existing varieties. Because chocolate mints are such a big seller, the company has allocated double the space to this product in the pick & mix area than it

has to any of the others. The additional five lines are: chocolate-milk ‘tofflairs’, caramel-chocolate ‘tofflairs’, fresh & fruity multivitamin fruit jellies, tiramisu and coco & peanut. The price of the 1kg weigh-out pick & mix products is £3.25. When sold at an rsp of 99p per 100g, they will offer a margin of 60.6%. a Hancocks Confectionery (01509) 216644

[ SPECIAL REPORT ]

Time for a flexible approach

This year’s ‘Women in Wholesale’ event showed increased support from suppliers and wholesalers, proving that this is not an issue that is going quiet in the near future.

he second ‘Women in Wholesale’ conference could not have come at a more opportune time. As the media hones in on stories of women facing abuses of power and testosterone-laden dominance in their workplaces, it was heartening to hear just how seriously the wholesale sector is taking the need to encourage female recruitment and advancement in the more traditionally male parts of the wholesale channel. In a change to last year’s event, the conference was attended by both male and female industry representatives and seemed a fitting reflection of a bigger platform for the subject. The event itself took place in the British Library, with nearly 200 delegates turning up to hear speakers that included president of the Scottish Wholesale Association and operations director of Dunns Food and Drinks Julie Dunn; chief operating officer of JJ Food Service Mushtaque Ahmed; general manager at Parfetts Becky Webster; and HR director at Blakemore Ian Diment. During the conference, it was announced that the FWD is working with flexible working specialist Timewise to introduce a flexible job design programme (see page 8) “Organisations need to think more proactively to offer flexibility, rather than having it as the result of negotiation or a concession,” stated Timewise CEO Emma Stewart. Clare Bocking, director of Immediate Impact, chaired the morning’s session, while Country Range managing director Coral Rose took over afternoon duties. First up was a call for a more modern approach from wholesale by Julie Dunn. Having risen through the ranks of a family company and being no stranger to the casual sexism that has so often discouraged females and hindered their progress, her advice to employees, employers and suppliers was to think carefully about how to foster the next generation of motivated staff. With succession planning becoming a priority for Dunns, the business is actively looking to grow new talent. “Training has now become key,” she says. “We are trying to ensure that every young person in the business is undertaking some form of training.” While there is a male majority in the business – 80% of staff are male, and most are within warehouse distribution – Dunn notes that “technology should be allowing this ratio to change, but very few women apply for jobs in these areas”. Here is an interesting problem – how can inequality be addressed if there are simply not the applicants to redress the balance? “It’s incredibly Julie Dunn: Training has important that wholesale presnow become key.’ ents itself to both men and

Event co-chair Clare Bocking with (left to right): Dominic Flanagan (Costco), Samantha Howard (Nestlé), Becky Webster (Parfetts) and Sedat Kaan Hendekli (JJ Food Service).

women as an exciting, viable destination,” she says. The SWA is aiming to attract talent through its ‘Rising Stars of Wholesale’ programme, the creation of wholesale apprenticeships and graduate placements. One speaker evidencing progress in the workplace gender equality issue was Mushtaque Ahmed, who advocated “people, process and technology, in that order”. JJ Food Service has campaigned to recruit women into warehouse jobs, and the proportion has risen from 0% at the start of the year to 13% currently. He suggested that removing underlying discrimination and negative stereotypes, as well as improving facilities and flexibility, would improve the retention of quality female staff members. Blakemore’s Ian Diment also spoke of the measures being undertaken to bring more balance to the workforce, stemming from the company’s ‘Diversity Challenge’, introduced in 2015. Areas that have been looked into include the active encouragement of paternity leave, the role of job sharing and the implications of the language used within job descriptions. Blakemore’s ILM apprenticeship scheme has seen uptake by females soar, from 25% in 2015/16 to 50% in 2017. With wholesalers and suppliers showing commitment to encouraging more women into more roles, there was also advice from the conference presenters on advancement for those already in wholesale. Two major points cropped up – speaking up, and networking. A shining example of success using these tools came from Propercorn co-founder Cassandra Stavrou, an entrepreneur who, through tenacity, resilience and a strategic approach, has grown her idea into a multi-million-pound company. The event was rounded off by guest speaker Nikki King OBE, former managing director and honorary chairperson of truck company Isuzu. Successful, confident and supportive, she had the audience enrapt: a reminder to all that discouraging women from representing their industry at the top level is a great shame, and a great loss, for all involved. CCM www.cashandcarrymanagement.co.uk

November 2017

Henderson plans to keep growing

enderson Wholesale’s new £12.5 million 180,000 sq ft warehouse in Mallusk, County Antrim, is set to extend the reach of the ambient offering for the company, whose performance in the past 10 years has outstripped the industry as a whole. The Henderson Group is a family-run business that spans six areas: wholesale, foodservice, retail, property, print and technology. The wholesale division was founded by former retailer John Henderson back in 1923 and passed to son-in-law William Agnew upon his retirement, with the foodservice division created in 1978. In 1999, William’s son John Agnew handed the day-to-day running of the business to his own sons, Martin and Geoffrey, who continue as co-chairmen of the group. With Henderson Wholesale servicing its 450 franchise retail customers operating under the SPAR, EUROSPAR, ViVO, ViVOXtra and ViVO Essentials banners, Henderson Retail owning and operating around 80 SPAR and EUROSPAR stores, and Henderson Foodservice supplying around 6,000 customers in the catering industry, the group plays a major part in both the convenience retail and foodservice industries in Northern Ireland. The work being undertaken by the company is extensive: the first phase 12

November 2017

was building a new head office for £3.5 million and this opened in November 2016. The second phase was building the state-of-the-art Hydepark ambient warehouse in Mallusk, and phase three is refurbishing and extending the vacated premises, this time with foodservice customers front of mind. All in all, the group is budgeting £30 million on construction to ensure that Henderson is an industry heavyweight. Henderson Property’s role in the project ensured that the company was in a better position than most for its ambitious plans to be fulfilled within the brief and budget. Henderson Group has also been canny when considering its locations – the new ambient warehouse is on the old Marks and Spencer site,

Pat McGarry, logistics director

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handily opposite the previous Henderson depot that is now earmarked for the next round of work. For the recently completed part of the group’s activity, internal project manager Allen McInnes worked alongside logistics director Pat McGarry, logistics manager Alan Abraham and warehouse manager Stephen Branagh. They designed the warehouse, working closely with the property team, and brought on board lead contractor Tracy Brothers to create a building that “was not only completed on time, but also on budget”, according to McGarry. “We are planning the next phase, which is developing the site that we left for chilled distribution and foodservice. We hope to be in the position to move in the next two to three years, so we’ll be doing some extensive work to our existing buildings,” he says. “Our foodservice business has grown dramatically over the past 10 years so we’re finding ourselves pushed for space – we now need this extra space to continue the success of the company.” Meanwhile, the new Hydepark site incorporates technology to maximise accuracy and efficiency. Henderson prides itself on being up with the latest technology, while simultaneously focusing on the important role that person-toperson interaction plays in the in-depot experience.

[ BEHIND THE SCENES ] “We’ve invested heavily over the years in IT systems,” explains McGarry. “We have Infor as our main warehouse management system involved in optimising the movement of stock, voice picking in the warehouse, a transport management system (TranSend), and the tracking system Blue Tree. “We also have IT systems that are pretty leading-edge in terms of providing information on customer transactions,” he says. Add to this the HORIS Henderson online retailer information system for customer communication and it is clear that the company does not intend to be left behind by inadequate tech solutions.

‘We really had used all of the available space, so we’ve been planning this for a number of years now’ The implementation of such systems helped smooth the transition between buildings. Here, McGarry is quick to praise his team for embracing the move and getting up to speed so quickly. “Clearly, when you do these things, there are challenges, and one of the main KPIs (key performance indicators) is the service level,” he admits. “Sometimes you should be prepared for a slip in service level. However, ours went up by 0.25% compared to last year in the 12 weeks since the move.

“Our people have been fantastic during the relocation; we made sure we involved them at every stage with various communicative groups and we took their input about what they wanted to see in the new warehouse.” The success of McGarry’s team’s approach has been reflected in the performance recorded in the new depot, but the relocation itself also managed to avoid the difficulties that beset lesserplanned transitions, thanks to foresight. For instance, the potentially risky move of around 12,000 pallets ran seamlessly, due to the team’s careful planning over two years. “We’re very pleased with what we’ve done this year, which is to move a substantial part of our business from one depot to another,” he states. The creation of the new depot and the subsequent plans signify Henderson Group’s aim to shift both its physical and industry presence to keep up with customers’ changing requirements. Performing strongly in a largely static channel, the group has found that the wholesale market’s focus on foodservice for future growth needed to be considered within its investment plans. The relocation from the building Henderson has been in since 1974 may have just been across the road, but the reasons and logistics behind it are anything but small-scale. “The building is over 40 years old and we really had used all of the available space, so we’ve been planning this for a number of years now,” explains McGarry. “In addition to that, even though we

Henderson Wholesale services 450 stores within its five franchises, including SPAR.

Henderson Group in figures £699.3 million turnover in the year to December 2016 – up 6% £23.87 million pre-tax profit in the year to December 2016 – up 10.9% 3,306 employees in total Six divisions: Henderson Retail, Wholesale, Foodservice, Property, Print, Technology Five franchises: SPAR, EUROSPAR, ViVO, ViVOXtra and ViVO Essentials 80 customers serviced by retail division, 450 by wholesale division, 6,000 by foodservice division

purpose-built a new site for foodservice in 2011, the growth through acquisition and organically has been phenomenal and we have outgrown the space. That’s a very good problem to have, but it’s a problem nonetheless that means we need to invest to provide space for the future. We’re a family business and Hendersons invests in the future. This is not just for now, this is for the next 1520 years.” The new depot has been up and running for some months now – the warehouse has been operational since June, although the official opening was in September – and work has begun on the next stage of the project. “The building we vacated has still got our chilled operation in it and we’re going to develop that,” he explains. “We will then move the foodservice business into the depot and will refurbish and extend that too. We’re creating a multi-purpose foodservice and chilled operation in the building that we’ve just left. This will be another £12.5 million investment.” All the activity signifies exciting times for Henderson, says McGarry: “It’s a very challenging market that we’re currently in but our wholesale business has been very successful and we punch above our weight. Our significant growth in recent years has been way in CCM excess of market growth.”

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November 2017

[ SPOTLIGHT ] Khalid Iqbal, senior buyer – beers, wines & spirits at United Wholesale (Scotland)

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‘Trust your ability and give 100%’ What has been the major milestone or turning point of your career? There have been two: reaching my current level at United Wholesale (Scotland) and starting my own retail business last year. I bought two shops, one in Coatbridge (North Lanarkshire) and the other in Ayrshire, and both are part of the Day-Today group, supported by United. My friend and business partner Shoaib Ahmed manages both sites with the help of 14 staff members. Because he is so capable, I decided to stay with United. Who has been the biggest inspiration to you? It is hard to name a specific person who had been the greatest influence on me. I think it boils down to surrounding yourself with good people to help you make the right decisions in life. How do you maintain a work-life balance and how have developments in technology affected this? It is hard to keep the balance between work and life: I win when I am working and my wife wins when I am with my family! (Iqbal is pictured above with his wife, eight-year-old son and five-yearold daughter.) Smartphones are like carrying a second brain in your pocket – 14

November 2017

they take away your ability to concentrate and contemplate. The way technology is growing is scary; I would not be surprised if soon I see a chip to control the human nervous system!

What advice would you give someone starting his/her first job? Trust your ability, give 100%, and keep a positive attitude.

What most frustrates you in business (and in life generally)? In business, when people are not straightforward, and in life, when somebody tries to deceive.

What type of business would you go into if it wasn’t C&C/wholesale? My passion is to go into online business, to bring something unique to the market. I have ideas in the pipeline, I am just waiting for the right time.

If you were able to retire tomorrow, how would you spend your time? I don’t think I can, but if I had the opportunity, I would definitely go for it. I would stay with my parents and look after them. They live in Pakistan.

If you had a million pounds to invest in business, how would you spend it? Sadly, these days, a million isn’t really that much, so it wouldn’t go as far as I would like. I would probably invest it in CCM property.

Wholesaler and retailer at the same time Khalid Iqbal completed a degree in Business & Media in Pakistan, then started his first job as a creative artist in an IT company. He moved to the UK in 2007 for two reasons: he wanted to explore the “better prospects” available this side of the world so that he could support his parents and wider family when required, and he wanted to marry his childhood friend

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who lived here in the UK at that time. In 2007, after six months at Glasgowbased United Wholesale Grocers, Iqbal joined United Wholesale (Scotland), a Today’s member, in a buying role. Iqbal remains with United today, and his current position is senior buyer for beers, wines & spirits. At the same time, he oversees the running of the two retail shops he bought last year.

[ EMPLOYMENT LAW ]

Is drug testing at work effective? Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

espite claims from drug testing companies, there is no real evidence that drug testing is commonplace in British workplaces. It is mainly used in safety critical areas such as transport and energy generation or after an incident. There is also increased usage in the construction industry. The presence of drugs can be detected in urine, for most drugs, up to three or four days after use, although in the case of some drugs they can be detected up to 30 days later. In the past, drug testing was very unreliable. In recent years, it has become more accurate and, if a sample is tested by an approved laboratory and is subject to a confirmation test, false-positive results are now less common. Even when it does identify drug use correctly, what the test shows is simply whether residues of a drug are present. It cannot tell with any certainty when the person

took the drug, or whether they were under its influence. The Employment Practices Code makes the following recommendations: a Only use drug or alcohol testing where it provides significantly better evidence of impairment than other less intrusive means. a Use the least intrusive forms of testing practicable to deliver the benefits to the business that the testing is intended to bring. a Tell workers what drugs they are being tested for. a Base any testing on reliable scientific evidence of the effect of particular substances on workers.

Drug testing is a costly and timeconsuming process that is often used by organisations as a substitute for an effective drugs and alcohol policy. If an employer does introduce a testing programme it should ensure that: a It is done by a laboratory accredited by the UK Accreditation Service. a It is part of an effective and agreed workplace drug and alcohol policy which aims to support any person with a drug or alcohol problem. a It is only done after impairment testing has been carried out and there is evidence that the person may be impaired as a result of drugs. a No samples are taken without the informed consent of the person – this cannot be given under duress. a There is an appeals process, with right to union representation, if anyone CCM tests positive.

121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you would like further guidance about the issues covered in this article, or need advice on any other HR matter, contact Cate at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Pregnancy in the workplace: dealing with expectant employees A recent report by the Women and Equalities Committee of the House of Commons revealed that 54,000 women lost their jobs in 2015 as a result of pregnancy discrimination, and that pregnant women and mothers are subject to more discrimination today than they were 10 years ago. UK legislation already places a strict burden on employers to ensure that pregnant employees and mothers are protected, treated equally and provided with rights, and to undertake risk assessments when they are informed that an employee is pregnant in order to ensure safe working conditions.

Here are some tips for employers on dealing with pregnant employees so as to avoid discrimination: a Deal with any performance issues as soon as they arise. If they are suddenly raised when an employee announces a pregnancy, it will look as though they’re being raised because of the pregnancy. a Ensure swift risk assessments as soon as you are notified of an employee’s pregnancy to ensure that she has safe working conditions. a Comply with basic minimum rights, for example, time off for antenatal appointments and supporting women who suffer difficult pregnancies. a If sickness occurs during pregnancy

and the employee is brought into a disciplinary hearing for this then any illness relating to the pregnancy should be discounted. a Carry out a thorough investigation before any disciplinary meeting, probation review or employment review, taking the longer procedure as best practice – even if employees are under the two-year service mark. If there are issues relating to discrimination then an employee will have the right to claim automatic unfair dismissal and discrimination, regardless of length of service. a Maintain reasonable communication throughout maternity leave.

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November 2017

[ SAVOURY SNACKS ]

Crunch time in convenience

In impulse, the snacking segment is worth £525 million and an independent store sells, on average, 273 packs of savoury snacks every week (Nielsen). Is your range reflecting current trends and consumer demands so you can help your customers maximise sales?

orth more than £2.8 billion (Nielsen), savoury snacking is playing a major role for suppliers as they focus on opportunities from occasions such as food to go and big night in. At the same time, the increasing interest in healthier eating has influenced innovation. Mondelez International has identified a £46 million incremental opportunity in crisps and snacks in the next three year, in a segment that 98% of households buy into. Sharing is the biggest format growth driver and offers further crosscategory promotional opportunities. Within crisps and snacks, products that cater to the health and wellness trend are driving higher growth, with permissable snacks up by 4.5% while crisps are showing a decline. This activity is expected to continue due to shopper switching and increasing savoury munching occasions. Consumer interest in authentic ingredients, baked over fried products, health claims and the health perception of the brand are all playing a part in shaping the changes in savoury snacking. These trends are reflected in a value share of 86% for less permissable snacks and 14% for permissable snacks, and the convenience sector needs to recognise the opportunities to increase sales offered by NPD responding to the health and wellness trend. The baked credentials of Crisp & Thins and Bakefuls are positioned to carry on leading growth from the Ritz brand, fuelled by shopper behaviour, while the No.1 SKU Original Ritz Crackers overperforms at Christmas.

The savoury snacking segment in 2017 “Health concerns are prompting users to cut back: 42% say they are limiting the amount of crisp/crisp-style snacks they are buying compared to a year prior. Offering some good news for the market in this context is that 34% of users are buying more baked varieties than before. “This suggests that while variants positioned actively as healthier have limited resonance in this market, NPD in better-for-you categories has gained traction among a sizeable minority of users. As such, this stands out as a route for the industry to explore further to curb cutbacks.” Amy Price, senior food & drink analyst, Mintel Source: http://academic.mintel.com/display/792263/

November 2017

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The Pladis portfolio is 100% baked and its savoury bagged snacks range has a value of £101 million. The manufacturer has released NPD this year from its hero savoury snack brand Jacob’s, and has allocated investment of £10 million in Jacob’s savoury products this year. “Overall, the largest growth driver on Jacob’s has been the relaunch of the brand as part of our Masterbrand strategy,” says trade communications controller Hena Chandarana. “This has involved bringing all our crackers and baked snacks – with the exception of Carr’s – under the single banner of Jacob’s.” This year’s innovation includes the recent addition of Jacob’s Mini Cheddars Crispy Thins, which aims to bring further growth to the brand. “There is increasing pressure on fried snacks, as a continuing focus on healthier, more balanced snacking remains top of mind for consumers when selecting products from the shelves. As a result of this trend, baked snacks have played an increasing role in driving growth back into the savoury category,” says Chandarana. “We’ve already seen several major players within the market, including ourselves, begin to branch out with smart innovation targeted at capturing the opportunity to expand savoury; for example through bagged snack NPD.” Nairn’s Oatcakes is also looking to consumer trends to guide its NPD, and has recently launched Gluten Free Flatbreads, following the opening of its dedicated gluten-free factory. “The fastest-growing products within the portfolio are the Organic Super Seeded Oatcakes and our sweet and savoury gluten-free biscuit ranges,” says Ken Cameron, account controller at Nairn’s Oatcakes. “Nairn’s have the nation’s best-selling branded gluten-free biscuits, both sweet and savoury, within retail, and aim to replicate this within convenience retail.” Nairn’s has also supported the wholesale channel with a specific cash & carry shrinkwrapped pack of Nairn’s Rough Oatcakes 291g, which offers greater on-shelf stand-out and has achieved a sales rise of 17% over the old pack. “Our focus within the wholesale sector is to increase distribution of Nairn’s Rough Oatcakes within convenience whilst continuing to develop our foodservice and on-the-go snacking range,” says Cameron. “Snacking on savoury biscuits is in growth thanks to innovation and an image as a healthier alternative to crisps.”

[ SAVOURY SNACKS ] Kettle Foods offers brands to suit different consumer requirements, with a snacking portfolio that covers potato chips, vegetable chips, baked snacks and popcorn. Catering to health trends, sharing and premiumisation – three areas that are steering performance in savoury snacks – its newly rebranded, glutenfree Kettle Chips continue to deliver strong growth ahead of the market, up by 17.1% and in the top three sharing snack brands in the UK. Meanwhile, its Melcalfe skinny popcorn range caters to lighter snacking opportunities and is showing 37% growth in brand penetration. The popcorn market is a area of attention for suppliers, as the snack is now bought by one in two households and the ready-to-eat sector is growing by 9% year on year (Nielsen). Providing free PoS materials to flag premium brands and drive retailer trial, Kettle Foods suggests that wholesalers focus on display. It recommends clearer layouts and display communications in depot to make it easier for retailers and foodservice operators to shop – for example, categoryspecific layouts clearly highlighting standard, premium and healthy, divided into sharing, single-serve and multipacks. Also in the premium popcorn sector, Propercorn has extended its range to cater to kids snacking. Propercorn For Kids is available in Tomato Ketchup and Simply Sweet variants, and contains natural seasonings, wholegrain corn and no refined sugar. “Simplicity on-pack helps mums and dads make informed decisions when out shopping or eating,” says Propercorn co-founder Cassandra Stavrou. “We’re hugely excited to make popcorn an everyday, healthy snack for children, just as it is for adults.” PepsiCo remains a major player in the crisps and snacks category, holding 16 of the top 20 single-serve best-sellers. “In the impulse channel, better-for-you single serve is in 19% growth and sharing bags are in 6.5% value growth. Impulse growth in sharing packs has been boosted by strong PMP growth over the last year, up 11.1% (Nielsen),” says Pierre Jackson, category insights controller at PepsiCo. Tapping into the popularity of sharing packs, the current Walkers on-pack promotion is offering free movies through Rakuten TV with two codes from promotional bags.

There has also been a range of NPD this year: the supplier has introduced Sunbites Nut Mixes, while the Doritos Roulette concept now includes a Tabasco Sauce variant. In addition, the Walkers brand has three new Fusions variants: Spicy Tomato & Herbs, Cheddar & Red Pepper and Thai Chilli & Lime. Tyrrell’s, the manufacturer of small-batch, hand-cooked English crisps and popcorn, has extended its portfolio. Black Truffle & Sea Salt Crisps caters to more adventurous tastes and increasing demand for premiumisation from the consumer. The limited-edition flavour will be available until March 2018, with an rsp of £2.19 for a 150g sharing bag. Sarah Lawson, marketing manager, says: “Tyrrell’s Black Truffle & Sea Salt is a truly indulgent addition to our range and perfect for any festive gathering.” Burton’s has again focused on the rise of sharing and lighter snacking for its recent innovation of Crisp ‘n’ Fin, an addition to the £9.5 million Fish ‘n’ Chips brand. The thinner, crispier formulation uses a lighter recipe. Available in Salt & Vinegar and Sour Cream & Chive flavours (rsp £1.59), the 150g bags tap into the demand for sharing formats. “The addition of a Sour Cream & Chive variant marks our first foray into more mainstream flavour territory and this, along with a striking new pack design rolling out across the Fish ‘n’ Chips range, means retailers can look forward to driving profits from savoury snacking this autumn,” says Mandy Bobrowski, marketing director of Burton’s UK & Ireland. A brand refresh incorporates a new logo and brand identity, supported by a £100,000 campaign that includes instore activation, PoS materials, sampling and social media activity. “The sector is really on consumer trend at the moment, meeting demand for products that consumers regard as both permissible and convenient, with bagged savoury biscuits being the star performers in the past year,” CCM adds Bobrowski.

For further information: Burton’s Biscuit Company (01727) 899700 Kettle Foods (0800) 616996 Mondelez International (08702) 400861 Nairn’s Oatcakes (0131) 620 7000 PepsiCo (0118) 930 6666 Pladis 020-8234 5000 Propercorn 020-3053 4320 Tyrrell’s (01568) 720244

November 2017

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[ SUPPLIER STRATEGY ]

Keeping the cider category fresh Martin Thatcher, managing director and fourth-generation cidermaker at Thatchers Cider, urges wholesalers to take account of significant market changes. How are you looking to strengthen your relationships with cash & carries and delivered wholesalers? As our brands gain national recognition throughout the UK across all sectors, wholesale is playing an increasingly important part in our sales strategy. Within the convenience channel, for example, we’ve seen growth of over 98% during the last 12 months; in fact, we’ve seen 116% growth in the latest 12-week period with our brands gaining significant national distribution. As we grow, we are investing in our field sales team to strengthen our relationship with our customers in the cash & carry and wholesale sector. By working closely with them, understanding their business, and guiding them through the cider market, we can help them make considered buying decisions in line with market demand. We really feel it’s important to support our customers so our field sales team are visiting depots and retailers to drive brand awareness and visibility in store with stand-out PoS. What are the key trends in the cider market and do you find that wholesalers act on these? Ciders from family cidermakers like ourselves, where the focus is firmly on quality and taste, are increasingly important. Where shoppers are looking for great-tasting cider in their impulse buys, weekly shop, or pubs or restaurants, they turn to brands that they know will provide what they’re asking

the largest weekly sales of the entire year, valued at over £5 million more than the second largest week.

for. In particular when a brand such as Thatchers is front of mind because it has been seen on TV and in the cinema, we know it will be in demand. In the past few years, fruit ciders have been driving growth; however, we have seen this sub-sector go into decline in the latest 12 weeks, and it only accounts for 16% of the cider sales within the convenience sector. Apple ciders, such as those produced here at Myrtle Farm, play a vitally important part (76% of the market), with traditional premium ciders and cloudy ciders now leading the charge here. Within cloudy cider, Thatchers Haze is growing at 264.4% versus a year ago. Haze is consistently outperforming the competition and is now the No.1 cloudy cider in both volume and value MAT. Look out for Thatchers Haze cans in a 10-pack, coming soon. The word craft is on everyone’s lips, and here we’re delighted that our new cider, Barrel Roller, has quickly become the No.2 craft apple cider in 330ml cans.

All data unless otherwise stated: IRI

How dependent on warm weather are sales of your drinks? Cider has traditionally been a long, refreshing drink for the warmer weather, and there’s no doubt that sales are strong during the summer. However, it is an increasingly all-year-round drink – in the 12 weeks ending 25 February 2017, total cider accounted for over £220 million worth of retail sales. The week leading up to Christmas 2016 had 20

November 2017

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How can cash & carries and delivered wholesalers improve their cider sales? Our advice is always to look at the ciders that are selling well, review your range and reselect according to the ciders that are in demand in today’s market and that you know will work for you and your customers. Cans, particularly larger packs like 10 x 440ml Thatchers Gold, are important to any cider range, but ensure that you have a range of traditional premium ciders in bottles too. Traditional premium ciders such as Thatchers Vintage sit within the fastest growing cider category – growing at 43.9%. This category is dominated by apple cider, making up 97.5% of traditional premium cider value sales. Are there any cash & carries or delivered wholesalers you wish to highlight as being particularly progressive? It’s encouraging to see that a number of operators are now starting to use category data to make strong recommendations to their retail customers as to what should be in their range. With the category having changed so much in the last three years, providing the right advice on range ensures sales are maximised both for wholesaler and retailer. Are you making any investments that will benefit the trade over the coming months? We are continually investing here at Myrtle Farm in Sandford, Somerset. Most recently we have unveiled our own canning line, meaning that all our cidermaking and packaging is carried out here. Investing in new products is a focus for us to ensure our customers have ciders that meet market demand. This year we have introduced two new ciders in cans – Barrel Roller and Leaf Twister. We’ve also just released new packaging CCM for our single variety cider Katy.

Cash & Carry Management in association with the Craft Guild of Chefs launches the

CCM Chefs Own-Brand Awards

CCM Chefs Own-Brand Awards Chefs have a choice of products to use in their kitchens. Cash & Carry Management magazine, in association with the Craft Guild of Chefs, has launched the CCM Chefs Own-Brand Awards to determine the best foodservice own-brand products in the market. We know the care and passion that goes into creating a successful own-brand. It doesn’t just happen by magic, and development chefs and supply partners work hard to bring exceptional products of excellent quality and great value to market – products that are driven by customer need and provide innovation in many categories. ese awards will give cash & carries and delivered wholesalers whose own-brand products hit the mark the recognition they deserve, with endorsement from the Craft Guild of Chefs – the leading chefs’ association in the UK – who will conduct the judging in blind tastings. Each product will be tested on taste, texture, aroma, appearance and value for money. To add further value to the awards, feedback will be given by the chefs on each item tested. Entries are open for products in all food & drink categories at a cost of £75 per product, with one free for every 10 products entered. e closing date for entries is Wednesday 4 April 2018. e products must be delivered direct to Westminster Kingsway College, London. Delivery details will be provided when entries have closed, and judging will take place in April 2018. e winners will be announced at a prestigious awards lunch on ursday 24 May 2018. For further information, contact Martin Lovell or Kirsti Sharratt at Cash & Carry Management magazine on 01342 712100.

Product Categories

Are your own-brand products the best in foodservice?

Afternoon Tea: scones, cakes, sweet bakery, muffins, doughnuts, cookies, traybakes Bakery: baguettes, artisan, bread, rolls, petit pain, burger buns, hot dog rolls, dough balls, tortillas, bagels, ethnic bread, savoury hand-held, pies, pasties Baking Biscuits Butchery: poultry, beef, pork, lamb, game Butter, Fat, Spreads Canned: vegetables, beans, tomatoes, fruit, fish, meat, lentils, pulses, noodles Cereals Cheese Children’s Selection Chocolates, Mints, Petits Fours Cooking Sauces Crisps & Popcorn Delicatessen: sandwich fillings, salads, pesto, dips Desserts: sponge puddings, crumbles, tortes, gateaux, trifles, pies, tarts, flans, pancakes, crepes Egg Products: omelettes, tortillas, souffles, quiches, yorkshire pudding Fish & Seafood: fishcakes, scampi, breaded fish, battered fish Fork Buffet: canapes, Oriental, buffet bites, mini desserts Frozen Vegetables & Fruit Gluten-Free Gravies, Stocks, Bouillons, Jus

Product Categories

Are your own-brand products the best in foodservice?

Hot Beverages: tea, coďŹ&#x20AC;ee, hot chocolate Ice Cream, Sorbet, Gelato, Frozen Yogurt Pizza & Pasta Potato Products: baked, chips, fries, mash, hash browns, wedges, croquettes Preserves Processed Meats: bacon, cooked meats, sausages, stuďŹ&#x192;ng Ready Meals: British, Indian, Mexican, Americas, Middle East, Oriental, Italian, pies, bakes, vegetarian/vegan Rice Sauces & Condiments: portion packs, bulk Seasonal Products (Christmas, Easter, etc) Spices & Seasonings Soft Drinks: carbonates, still, juices Soup Wines, Beers, Spirits Yogurts Please note that this list is not exhaustive: let us know if you would like any other categories to be included.

To enter, send a list of the products you wish to enter and the category for each product to mail.winlove@btconnect.com or complete the online entry form at www.cashandcarrymanagement.co.uk Closing date for entries: 4 April 2018 We will then contact you with information about the next stage.

[ PRODUCTS & PROMOTIONS ]

Mondelez brings small sharing opportunities PRODUCT OF THE MONTH

Mondelez International superbrand Maynard Bassetts includes a new range of small bags, aimed at recruiting younger consumers to the category. Available in 70g non price-marked packs (rsp 60p) and 50p PMPs, there are five varieties, each with different flavours and shapes – Beaming Beasts Jellies (fruit-flavoured animals), Cheery Slices Gummies (watermelon slices), Silly Snakes Jellies, Chuckle Drops Gummies (sour gummies) and Straw’Merries Jellies. Creative ‘smile’ graphics are designed to attract young consumers to the packs. “Small bags is a growing category and soft jelly leads

candy with a 51.3% share, making it a great opportunity for retailers,” says Claire Molyneux, marketing manager for candy at Mondelez. Looking ahead, next year’s seasonal activity is already underway from the supplier, which has unveiled Easter plans, including a promotion exclusive to the convenience channel. Following on from the success of the ‘Gooless Egg’ campaign comes ‘Hunt Down the White Crème Egg’, in which consumers finding a white chocolate Crème Egg can win up to £1,000, with retailers also given the chance to win. In 2017, a total of 83.4 million Cadbury Crème Eggs were sold and the Cadbury Crème Egg Hunting campaign returns next year. Mondelez (08702) 400861

Festive fillings

Adelie Foods’ Urban Eat brand is ready for festive consumers with a Christmas range of sandwich products. The limited-edition lines include Turkey, Bacon & Stuffing and Turkey Feast sandwiches, a Piggies Under Blankets sub roll and a Brie & Cranberry wrap, all in festive packaging. This builds upon last year’s success, when over 10,000 Turkey Feast sandwiches and 9,000 Turkey, Bacon & Stuffing sandwiches were sold during the peak trading week (mid-December). This year also sees an improved recipe for the Brie & Cranberry wrap. The range has rsps from £1.99 to £3.49. Adelie Foods (0333) 0037 843

Christmas cake

Flavour additions

A little luxury

Premier Foods has built up its seasonal portfolio with Cadbury Roses Cake Bars and twin-packs of Mr Kipling Iced Topped Mince Pies. The individually wrapped, five-pack Cadbury Roses Cake Bars are available now in Orange Creme and Strawberry Dream, with an rsp of £1.69. Mr Kipling Iced Topped Mince Pies twin-packs have an rsp of 89p, and are part of supplier activity that includes a Mr Kipling brand refresh for returning favourites in the seasonal portfolio to help them stand out in a Christmas cake market worth £103 million.

Blu, the e-cigarette brand owned by Imperial Brands, has expanded its range of e-liquids. Two new variants have joined the six that were added during September and October, giving eight additions to complement the previous five-strong range. The new flavours are Tropic Tonic, Vanilla Crème, Peach Passion, Berry Swirl, Mint Chocolate and Green Apple, in both zero and 0.8% nicotine strength. Now joining them are Caramel Café and Polar Mint, which also come in a nicotine strength of 1.6%. Each 10ml bottle has an rsp of £4.99.

From Swiss dairy supplier Emmi comes new Ooola Secrets, a chocolate mousse dessert that is marketed as a permissible indulgent treat. The dessert is available in two variants in 3 x 60g pot packs with an rsp of £2.39. Both offer a touch of luxury – the Chocolate and Raspberry Mousse features chocolate chips, while the Triple Chocolate Mousse has a liquid caramel core. The launch is supported by an integrated marketing campaign, including above-the-line advertising, PR, social media engagement and sampling.

Premier Foods (01727) 815850

Blu (0800) 0149 355

Emmi 020-8875 2540 www.cashandcarrymanagement.co.uk

November 2017

[ CHRISTMAS DRINKS ]

Drinks all round at Christmas! A huge spending spree is around the corner, so wholesalers need to ensure that they can provide for the spike in demand from retailers and licensees. Adult soft drinks are playing a larger role in the occasion as consumer trends shift, while premium alcohol sales continue to reflect that the nation is, at heart, one that enjoys extravagant, boozy festivities.

hile December offers opportunities for lastminute purchasing, the act of prompting shoppers should be a priority in November and wholesalers need to ensure that their customers are aware of recommended ranges and the marketing tools on offer to maximise profit. At Coca-Cola European Partners, brand activity traditionally embraces the holiday season and this year is no exception. The iconic ‘Holidays are Coming’ advertisement returns to television screens, the Coca-Cola Christmas Truck hits the road once more and limited-edition festive packs feature an image of Father Christmas by illustrator Sundblom. “With over half of consumers starting Christmas preparation before December, we’re looking to encourage early sales by launching our Christmas activity in November,” explains Simon Harrison, customer marketing director. “Last year over 10 million more shopping baskets included a soft drink during Christmas compared to 2015, and we expect this year to be even bigger – showing the huge opportunity for retailers.” 26

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Cola remained the biggest seller within the soft drinks sector during the holiday season, worth £135 million at Christmas. “It’s continuing to grow, with 1.26 million more shopping baskets containing colas in 2016 than the previous year,” says trade communications manager Amy Burgess. “In line with the rising health trend, light colas were responsible for £5 million incremental growth in the cola sector over the festive period last year (Nielsen).” CCEP’s Appletiser and Schweppes brands are attracting adult consumers, and Schweppes sparkling juice drinks also cater to health trends: “They tap into the increased demand for lighter drinks with just 20 kcal per 100ml – the lowest calorie count within the adult special sector,” says Burgess. Radnor Hills offers its premium Heartease Farm brand for shoppers looking to treat themselves to “a diverse range of soft drinks that offers sophistication; they also perform well as a mixer”, says sales director Chris Sanders. “Christmas always puts people in high spirits and because of this consumers are more likely to trade up.”

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[ CHRISTMAS DRINKS ] A new development in premium mixers has come from a partnership between NB Distillery and Bon Accord. Responding to the growth of premium gin, the tonic water (rsp 95p) contains natural quinine with hints of citrus and vanilla. It has been launched initially in Lockett Bros, with a national roll-out to follow in the coming year. Calorie counting drives AG Barr’s festive advice to wholesalers: “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,” states Adrian Troy, marketing director. “Ensure that the soft drinks range includes a wide variety of low and zero-sugar variants for retailers looking to cater to the needs of all shoppers at Christmas.” The supplier’s IrnBru and Rubicon brands offer low and no-sugar variants, and both have created sporting partnerships as part of their marketing activity. Rubicon became the official soft drink of the England Cricket Team this summer in a three-year deal, while Irn-Bru has teamed up with Sky Sports’ Soccer AM, ensuring high brand visibility at football fixtures over the festive period. Lucozade Ribena Suntory recommends a focus on merchandising to allow the retailer to prepare for a change in shopper habits at Christmas time. As well as take-home formats, which grew by 7% in the last three months of 2016, shoppers will want chilled instant consumption easily accessible. “Retailers should remember that the rise in family occasions and mealtimes means shoppers will be looking for family and kids drinks such as Ribena squash and Ribena minis,” says market, strategy & planning director Mark Sterratt. For the low-sugar shopper, the wholesale-exclusive Ribena Pineapple & Passion Fruit variant (rsp 69p) contains fewer than 15 calories per serving. Nichols’ Vimto brand has positioned itself to respond to the demand for hot squash over the winter months. “Vimto No Added Sugar Squash really comes into its own over the Christmas season,” says Ed Jones, senior customer marketing manager. “There’s a growing appetite to add boiling water to the concentrate. What’s more, drinking Vimto hot provides a healthy dose of vitamin C.” Britvic’s Christmas activity includes the return of the limited-edition Glitter Berry J2O and an on-pack promotion. J2O’s Merry Quizmas campaign was launched in October and allows players to answer questions for a chance to win vouchers redeemable in a number of foodservice and retail outlets. A £2 million marketing campaign incorporating outdoor and digital activity is supporting the festive promotion. 28

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With all the indulgence over Christmas, it may not just be the calories that consumers are watching, but the ingredients too. Danone’s Volvic brand is raising the appeal of healthy hydration for children with its latest promotion, a range of glow-in-the-dark labels to coincide with the release of Star Wars: The Last Jedi. The new design replaces the Disney Volvic lineup and the launch is supported by a campaign including TV, out-of-home and digital content. “Health concerns are still prevalent among consumers and are relevant to a Christmas drinks offering,” says Carol Saunders, head of customer marketing at Highland Spring Group. “Plain, bottled water, with no calories, sugar, preservatives or additives, is increasingly becoming the drink of choice.” With this is mind, the supplier is reminding wholesalers not to overlook the sector: “Retailers, and therefore wholesalers, should consider increasing space to make the most of demand and the sales opportunities over the festive season,” she continues. “Wholesalers should not diminish the focus they place on bottled water during the rest of the year, but make additions to cater for additional demand.”

‘Ensure that the soft drinks range includes a wide variety of low and zero-sugar variants’ Adrian Troy, marketing director, AG Barr Nestlé Waters also points to the growing role of the water sector in the convenience channel. “Total bottled water currently represents 23% of total soft drinks in volume terms – 18% in convenience (IRI) – and so should be given substantial space within the chiller,” advises Silika Shellie, head of category and shopper development. “Buxton and Nestlé Pure Life feature within the top four performing brands in both mineral and spring water, making them must-stocks within the bottled water fixture in convenience.” The addition of Green Apple and Lemon variants for premium brand Perrier further enables retailers to bring more shoppers into the water category. “Consumption of sparkling water has increased continually for the past five years, presenting a growing opportunity for retailers, so it is a good idea to stock a well-known sparkling brand such as Perrier or S.Pellegrino,” she says. Grace Foods has added to its healthy drinks range with a new Sparkling Coconut Water. “The coconut water market is growing fast and shows no sign of slowing, with NPD playing a pivotal role in that growth. Shoppers require alternatives to sugar-sweetened soft drinks,” says brand manager Giuseppe Vullo. Available in Original, Apple and Lemon variants, the 310ml cans have an rsp of £1.39.

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[ CHRISTMAS DRINKS ] In the functional drinks sector is Tata Global Beverages’ Tetley Super Squash, which leads on from the success of Tetley Super Teas. With health benefits promoted on-pack that include reducing tiredness and support for the immune system, the NPD from Tetley is expected to drive incremental growth. “We believe that health is an untapped opportunity to deliver value in the squash category, which has not seen any genuine innovation for some time,” says Cassie Shuttlewood, marketing manager. The three-strong range of Sunshine with added Vitamin D (850ml and 50ml concentrate), Boost with Vitamin B6 (850ml and 50ml concentrate) and Immune with Vitamin C (850ml) is already in the grocery channel and will be available to the wholesale channel soon, and the launch is being supported by a £3 campaign including TV and ambient advertising, in-store activation and PR, social media and sampling activity.

Energy spike The festive season in full swing is a huge retail opportunity for pick-me-ups and party drinks, and the energy category is one that can benefit. With the increasing choice of energy drinks available, Red Bull emphasises the importance of a correctly merchandised core range. “50-60% of soft drinks space should be allocated to the top five brands,” advises category development manager Rich Fisher. “With both consumers and legislators driving demand for low-calorie options it’s important to stock sugar-free and diet variants to offer choice.” Diet has driven growth of £46.5 million in the sports and energy category and £18.7 million in the functional segment (IRI), and consumers of these drinks must not be overlooked. “Reports have found that if there is no diet SKU available over half of shoppers would walk away: 31% would go to a different store, 15% would delay their purchase and 9% would buy nothing, meaning diet options are a must-stock,” says Fisher. “With health, price and taste being the top three barriers to purchase, by offering Red Bull Sugar Free – the No.1 sports and energy diet SKU (IRI) – wholesalers can help retailers, who can then assist shoppers to overcome these purchase barriers.” Take-home formats are important, as well as instant-consumption packs. Boost Drinks has almost a 50% share of one-litre stimulation drink sales. This is popular as a party drink for designated drivers and tired travellers as well as a nextday beverage for hungover consumers. “Our one-litre SKUs offer a great sales opportunity for the Christmas season, perfectly suitable for a chilled or ambient fixture,” says 30

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View from HQ Telly Sarai, general manager, SK Food & Drinks “Each year, preparing for the rise in trading over the Christmas period gets closer to the big day – when I started in the industry back in 1992 it was common to see retail trade increase from mid-October onwards and tail off in the week leading up to Christmas but in the past few years the trend seems to be a gradual increase from the start of December right up to and including 24 December. The on-trade increase starts earlier, as the party season begins the second week in November. “Our best performers during the season in soft drinks, beers, ciders and spirits are Coca-Cola, Carling, Strongbow and Smirnoff Vodka. In alcohol, the biggest spike in percentage sales increase over the festive period will be in the spirits category, followed closely by wines, beers and ciders. “Although there will be an across-the-board increase, if you break this down into sub-categories the biggest uplift in spirits in percentage terms, in order, would be cream liqueurs, malt whisky, shot spirits, bourbon, gin and vodka (flavoured then standard). Wines would be fortified and port, sparkling then still wines. Beers would be ales, low/no alcohol beers, flavoured lager and standard lager. Ciders would be flavoured, traditional then amber. “Trend-wise, Prosecco is still going strong, with customers trading up to more premium brands. Fruit wines are continuing to grow, with more varieties and brands available, and also continuing the upwards trend is the gin category, where we sell just as much premium as we do standard. “Lately, soft drinks have not had anything of note in terms of big launches as the manufacturers have been busy preparing for the sugar tax, but if I had to pick, it would be the Ribena 250ml 50p PMP range, which was recently extended with Pineapple & Passion Fruit variant. In alcohol, latest products of note are Echo Falls Summer Berries Vodka, Magners Dark Fruits and Gordon’s Pink Gin, all of which I think will do really well.”

sales director Al Gunn. “Following the brand refresh earlier this year, its high-impact pack design will stand out for independent retailers.” The one-litre PET range includes Boost Original in plain pack, and Original, Sugar Free and Exotic Fruits in £1.29 price-marked bottles. Intercarabao considered the changing energy drinks market for the reformulation of the Carabao range, which is now all low and no sugar, and the addition of the Green Apple Sugar Free variant. The supplier is currently running an onpack promotion with prizes including match tickets, mini footballs and cash, tying in with its marquee sponsorship of the Football League Cup, renamed the Carabao Cup.

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[ CHRISTMAS DRINKS ] Christmas cheers The beer and cider categories both benefit from Christmas socialising – not only do 52% of beer and cider value sales come from key seasonal periods (Nielsen), but 39% of consumers are more inclined to buy premium products during the Christmas period (him!). Heineken advises wholesalers to ensure that retailers have the opportunity to enable their customers to trade up. “Average spend per trip for beer and cider rose to £8.45 in December 2016 versus £6.66 for the full year (him!),” says category & shopper marketing director Toby Lancaster. “More premium segments grew share during Christmas trading. Ensuring your range includes a selection of premium options that are chilled and highlighted with PoS is key, as this trend is expected to grow.”

‘More premium segments grew share during Christmas trading last year’ Toby Lancaster, Heineken’s category & shopper marketing director This year, the supplier’s Kronenburg 1664 brand has a festive scarf wrapped around the neck of 660ml bottles to increase on-shelf appeal. In addition, retailers from Heineken’s Star Retailer scheme will be offered branded festive socks to offer as a promotional incentive to consumers with two of the 4 x 440ml Kronenburg 1664 packs to encourage impulse purchasing. Heineken’s 0.0 is also expected to perform well over and post-Christmas, with 50% of people choosing to moderate their alcohol and ‘dry January’ featuring for many consumers. At Marston’s, changing consumer habits are accounted for in both type and format. Golden ales like Wainwright and IPAs such as Shipyard IPA can be served chilled, an increasingly popular way of drinking ales; brands such as these also engage a younger audience. Marston’s Hobgoblin IPA is also driving growth, as the brand continues to engage new shoppers with penetration up 6.9% year on year. The ale category is worth £1.79 million and premiumisation is not just a festive consumer choice – Marston’s points out that switching from standard to premium has been a constant trend over the long term and, crucially, premium products have been recruiting shoppers into the canned ale sector. Premium cans are achieving 3.6% year-on-year growth, driven by penetration and frequency. The mini-keg has seen the biggest 32

November 2017

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growth in format, up by 58% MAT (IRI). With the mini-keg, multipack and mixed pack suited to festive socialising, retailers need to ensure they have made space for a full range. Marston’s advises wholesalers to offer pack formats to suit shopper missions and ensure that they have the widest range possible to appeal to all drinkers. Thatchers Cider has updated its premium offering with a redesign for its Katy cider label, now aligned with Thatchers Vintage. “Thatchers Katy sits within the traditional premium category, the fastest-growing category in the offtrade at 16.7% and where apple ciders dominate (97.5%). These two ciders have great shelf standout and a loyal following within this category,” says managing director Martin Thatcher. Prosecco sales have been driving substantial growth in the sparkling wine category, where its volumes have tripled, while Cava and Champagne have remained steady. Freixenet increased its presence in the wine category with a premium Prosecco, targeting the current popularity of the drink for special occasions. The cut-glass packaging is designed to increase on-shelf stand-out and reflect quality.

High spirits Moving into the spirits category is wine brand Echo Falls, from Accolade Wines. “We have driven the fruit-infused wine market from £20,000 a year to more than £72 million annually in three years and we’re confident that we will succeed in replicating this success in the flavoured vodka market with Echo Falls Vodka Summer Berries,” says brand manager Laurence Hinton. The new Echo Falls Summer Berries Vodka has an rsp of £13.50-£16 and is supported by PoS materials and a £5 million Echo Falls brand campaign over the next year.

SPAR’s shopper-friendly new ranges SPAR UK has launched new wine collections to cater to today’s consumer. Targeting specific customer missions and occasions, the two ranges are “on trend, relevant and offer consumers great value for money”, according to Philippa Carr, a Master of Wine and a consultant to SPAR UK. The ‘Everyday Drinking’ portfolio consists of five lines: Bold Red, Smooth Red, Crisp White, Fruity White and Fresh Rosé, all with an rsp of £5. The 12-strong Varietals range features Tempranillo, Garnacha, Malbec, Cabernet Sauvignon, Pinot Noir, Shiraz, Merlot, Pinot Grigio Rosé, Sauvignon Blanc, Chardonnay, Pinot Grigio and Chenin Blanc. Each style has an rsp of £6.

[ CHRISTMAS DRINKS ]

The demand for cocktails at home has increased by 23%.

Within the spirits category, premium products have been driving 100% of category growth, equating to £6.5 million in the last year. Pernod Ricard UK has identified this trend as the focus for its Christmas activity. “Ignore premium this Christmas and you will miss out,” warns James Middleton, channel director for impulse. “We are seeing success within the on-trade, where premium accounts for 50% of all spirits sold, which tells us consumers are willing to spend more on premium spirits. In comparison, 18% of all spirits sold within the convenience channel are premium, so for retailers it’s about upping volumes to make the most of the obvious opportunity.” He adds: “We’ve created two incredibly simple campaigns to help retailers capitalise on this demand, the aim being to encourage shoppers to trade up and select the brands they are enjoying in bars at home.” The ‘Mix With The Good Stuff’ campaign focuses on premium opportunities for at-home socialising. The demand for cocktails at home has increased by 23% (CGA) and Pernod Ricard has selected three cocktails to promote, made with premium spirits Absolut Vodka (and Kahlua), Jameson Whiskey and Plymouth Gin. The activation is supported by attention-grabbing PoS materials and is forecast to increase store profits by as much as £2,500. The supplier’s ‘Expertly Selected Whiskies’ campaign promotes six of Pernod Ricard UK’s premium Scotch whiskies, including the recently launched Glen Keith, Distillery Edition (rsp £30). The other five are The Glenlivet Founders Reserve, Chivas Regal 12 Year Old, Scapa Skiren, Aberlour 12 Year Old, and Ballantine’s Finest. “Malt whisky experienced a strong uplift of 90% last year (Nielsen). However, only 51% of shoppers have a brand in mind when they enter a store. The campaign calls out helpful flavour cues, ratings and reviews,” says Middleton. The activation is backed with a full planogram and striking PoS materials, and it has the potential to add over £1,000 to each retail store’s annual sales. 34

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Global Brands is also targeting the popularity of premium cocktails, this time with a ready-to-drink range exclusively for independent retailers. “Cocktail culture is growing year on year, with many people attempting to replicate experiences they’ve had in the on-trade, making them the perfect tipple for consumers this Christmas,” says Jen Draper, head of marketing. “43% of UK consumers will have started planning Christmas purchasing by the end of October; independents need to make their offering stand out to consumers to ensure they see a good percentage of consumer spend.” The Flare range includes On the Beach, Cosmopolitan and Mojito in 250ml cans, price-marked at £1. Diageo’s attention to the premium sector has identified gin as a main growth driver. The spirit has been the No.1 contributor to total spirits performance in the impulse channel over the last year, yet only accounts for 6% of total spirits in impulse compared to 15% in grocery multiples (Nielsen). Two in five premium spirits are purchased in the 13 weeks before Christmas, so availability is key. New to the Gordon’s brand is Premium Pink Distilled Gin (70cl, rsp £16.50), backed by a £2.1 million marketing investment. The timings of Christmas Day this year offer further opportunities in convenience: “While the 23rd is likely to be the busiest day in supermarkets, Christmas Eve will be affected by early closing for a Sunday,” says Claire Kendall, senior customer category manager, impulse & wholesale. “This is likely to result in customers frequenting their local store to make CCM last-minute purchases.”

For further information: Accolade Wines (01932) 428600 AG Barr (01204) 664200 Boost Drinks (0113) 240 3666 Britvic Soft Drinks (0845) 758 1781 Coca-Cola European Partners (01733) 828000 Danone 020-8799 5895 Diageo 020-8978 6000 Freixenet UK (01344) 758500 Global Brands (01246) 216000 Grace Foods (01707) 322332 Heineken 0131-528 1000 Highland Spring Group (01764) 660500 Intercarabao 020-7629 4255 Lucozade Ribena Suntory 020-3727 2420 Marston’s (01902) 711811 NB Distillery/Bon Accord (01620) 894744 Nestlé Waters (01923) 897700 Nichols (01925) 222222 Pernod Ricard UK 020-8538 4000 Radnor Hills (01547) 530220 Red Bull (0203) 117 2000 Tata Global Beverages 020-8338 4000 Thatchers Cider (01934) 822862

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[ CIGARS UPDATE ]

Tap into the seasonal peak Worth £198.5 million (IRI), the cigars category benefits from a boost in demand during the festive period, and wholesalers can help their customers generate incremental sales. ales of cigars in December last year increased by 10% in comparison to the previous month, with larger cigars from the medium/large cigars segment reporting a 20% increase (IRI). “As we move closer towards the festive season, cigars present a great opportunity for wholesalers to increase their sales,” says Jens Christiansen, head of marketing & public affairs at Scandinavian Tobacco Group UK (STG UK). “By ensuring they are fully stocked with the right cigar offering at all times, wholesalers will be well placed to take advantage of the seasonal sales on offer.” He adds: “To capitalise on this peak in celebratory sales, wholesalers should ensure they are stocking larger cigars such as Henri Wintermans Half Corona, which holds the position of the No.1 selling cigar in the medium/large segment and is also the sixth best-selling cigar overall in terms of value sales. We also recommend stocking a selection of smaller cigars, such as the category-leading cigar brand, Café Crème, as well as Moments, to make the most of the growing miniatures segment.” Jens Christiansen: ‘Many consumers remain loyal The miniatures segment is to well-known brands.’ now dominating the value-formoney category as consumers continue to seek out quicker smoking cigars. Moments Blue has an rsp of £3.83 for a pack of 10. “Price continues to be a major focus for shoppers, especially within the tobacco category, and we expect the valuefor-money trend to gain even further momentum now the EUTPD2 restrictions are in place,” says Christiansen. To tap into this demand for value, earlier this year STG

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November 2017

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launched Moments Panatella, which is available to buy in packs of five with an rsp of £4.20, making it the cheapest product on shelf within the small cigar segment. Thanks to its exemption from the plain packaging restrictions, the range also benefits from an eye-catching yellow design to help it stand out on-shelf. “With the small cigar segment worth £77.5 million, we believe that, with the right product, there is a huge opportunity to capitalise on this demand for value and drive growth back into the category,” Christiansen maintains. Highlighting the importance of focusing on trusted brands, he adds: “Many consumers remain loyal to wellknown brands they can trust as they provide reassurance in terms of the quality and perceived value of the product. As a result, it’s important for wholesalers to include a range of top-sellers from each segment in their range so that they don’t miss out on sales. As the No.1 cigar brand in the UK, Café Crème Blue accounts for 22.2% of cigar sales single-handedly, making it a valuable asset for any tobacco retailer.” He continues: “STG UK is leading the way in the cigars category, accounting for seven of the top 16 brands and over half of the entire category with a 51.9% market share. With a portfolio benefiting from many category-leading cigars, its brands should be considered must-stocks for any wholesaler.” STG offers the following advice to help wholesalers maximise the returns from the cigar category: a Stock the right range: Make sure you include the topselling brands from each segment as a minimum. a Know your customers: You know your customers better than anyone and there will always be regional differences in product performance. Pay attention to what your customers are buying and review sales data to see what’s performing well and stock your range accordingly. a Stay stocked up: If a product isn’t in stock, your customers can’t buy it so make sure you monitor stock levels carefully CCM to avoid this from happening. Tel: Scandinavian Tobacco Group UK 020-8731 3400

WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH

[ BREAKFAST ]

Healthy sales to be made The number of people starting the day by eating breakfast continues to grow, with breakfast occasions rising by 0.7% in the past year to 21 billion (Kantar). Products with health benefits and on-the-go formats are performing well, while ready-to-eat cereals are declining. reakfast represents the biggest consumption occasion of all meals, and over 95% of the UK population have bought cereals in the past year (Kantar). However, consumer habits are changing and manufacturers are responding with NPD, as well as heavyweight marketing and promotional campaigns. Weetabix Food Company claims to be bucking the downward trend in the cereals category. “Earlier this year, we announced a £10 million investment and a bold new pack design for Weetabix aimed at extending our lead in the breakfast cereal category. We brought back our famous ‘Have You Had Your Weetabix?’ strapline with a new TV advertising campaign to encourage consumers to think of the brand as the first choice for breakfast,” says head of category Becky Hain. Part of the company’s success is down to well-performing sub-categories such as protein cereals. Weetabix Protein biscuits currently hold a 54% share of the protein sector, the fastest growing segment of the cereal sector – up 9% (Nielsen) and now worth £13.1 million (Shopper’s Voice). Breakfast drinks are also performing strongly, and Weetabix Protein On the Go drinks have a 78% share of the category. “Developing the Weetabix Protein range has been a direct response to the 40% increase in consumer demand for food products that will help people increase their protein intake,” explains Hain. The amount of Weetabix’s business that goes through the wholesale channel has grown significantly in recent years, she reports. “Wholesale is an increasingly important channel for us and we are committed to working closely with cash & carries and delivered wholesalers to continue to grow this into the future,” she says. In order to get the most out of the cereals category, cash & carries should focus on a core range of best-sellers, she advises. “Stock the right range and use off-shelf activity, including PoS, supported by strong promotional offers that link with current advertising,” she says, adding: “Keeping on top of NPD coming into the market is crucial. We see innovation at the forefront of growth. Staying up to date with the latest shopper trends and offering those products in high demand is another way for wholesalers to improve sales.” Weetabix Additions was rolled out to the convenience sector in September after its introduction in the multiples at the beginning of the year. The product comes in two varieties: Apple & Raisin and Coconut & Raisin. The launch of the product was backed with a nationwide television advertising

November 2017

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Health is continuing to influence breakfast choices.

campaign and in-store activities across the UK, reaching over 40 million consumers. The company has also supported its Alpen brand on TV. The campaign ran until September and coincided with a new pack design for the range, which includes original and noadded-sugar mueslis, as well as three granola products. Cereal Partners UK has announced that Nestlé Breakfast Cereals is collaborating with Star Wars: The Last Jedi for its latest initiative. An on-pack promotion started on 1 November and will run for 17 weeks on Shreddies Original, Cheerios Multigrain, Shredded Wheat, Less Than 5% Sugar Oat Cheerios, Shredded Wheat Bitesize, Nestlé GoFree Corn Flakes and Nestlé GoFree Rice Pops. Two different packs are available – the light side featuring ‘Rey’ and the dark side starring ‘Kylo Ren’ – and there are 30,000 prizes to be won including 20,000 on-the-go BB-8 breakfast units, cereal containers and bowls featuring characters from the film. The Star Wars promotion is being supported by TV and digital campaigns, as well as a range of in-store material. Toby Baker, marketing director UK at Nestlé Breakfast Cereals, comments: “This is our first big movie collaboration in a number of years and we’re delighted to work with Star Wars, one of the world’s most successful and iconic movie franchises. “We hope that consumers will enjoy the exclusive packs, as well as the opportunity to win their own Star Wars branded prize.”

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[ BREAKFAST ] Kellogg’s has also chosen to link up with a film – The Emoji Movie – for its latest promotion. Consumers enter a code from special packs of Coco Pops 720g, Rice Krispies 700g and Coco Pops Granola 380g at www.kelloggs.co.uk/ emojimovie to see if they have won a stationery set, lunch bag or eraser set. The promotion runs until 28 December.

More like it hot Porridge is becoming increasingly popular as consumers recognise the health properties of oats. Porridge is also seen as offering excellent value for money per serving compared to other breakfast cereal options. Around 56% of consumers aged between 45 and 54 eat porridge, and sales are now strong throughout the year, with much less of a winter peak than in previous years, reports Alan Meikle, managing director of Hamlyns of Scotland. “Porridge has always been the favourite breakfast choice for healthy eaters, but the growing trend for breakfast on-thego, satisfied by the wide range of instant porridge pots and sachets, and the huge interest in making overnight oats, mean that porridge really is an all-year-round breakfast favourite,” he comments.

“We used to ramp up production at our mill in Banffshire in the build-up to winter and through the winter months, but we’re now working 24/7 all year round to cope with demand,” he adds. Hamlyns recently introduced a competition on 750g bags of Hamlyns Scottish Porridge Oats and 1kg packs of Hamlyns Scottish Oatmeal giving consumers the chance to win a short break with Forest Holidays. The partnership also provided Hamlyns with sampling opportunities at the two Forest Holidays locations in Scotland. Sampling remains a core marketing activity for Hamlyns, which is offering in-depot demonstrations and sampling to cash & carry customers throughout Scotland. Individually C&C-branded money-off coupons are also available by arrangement. Furthermore, Hamlyns key traditional lines, Scottish Porridge Oats 750g, Scottish Oatmeal 1kg and Scottish Porridge Oats and Bran 750g are now available for cash & carries in shrinkwrapped packs of six. The JFK Partnership is responsible for Hamlyns sales to the wholesale trade. John Kerr, director of The JFK Partnership, says that cash & carries in Scotland could capitalise to a greater extent on the growing interest in buying Scottish. “Growing numbers 40

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of consumers want to know where their food comes from, wherever they’re shopping,” he says. “The multiple retailers have been really clever at merchandising Scottish food products over the past few years, with eye-catching displays of a wide variety of products, not just to increase sales, but also to show their support for the Scottish economy by featuring local suppliers. Cash & carries can follow suit, particularly around key Scottish occasions such as Burns Night, St Andrew’s Day and big sporting events.”

‘Porridge really is an all-year-round breakfast favourite. We’re now working 24/7 all year round to cope with demand’ Alan Meikle, managing director, Hamlyns of Scotland The hot cereals segment has gained ground in the total cereals & breakfast drinks market from 10.7% in 2011 to 15.7% in 2016 (Nielsen). “This longer-term growth has been driven by the rise in popularity of porridge, given the health credentials of oats,” says Eric Williams, marketing manager at Quaker Oats, which is owned by PepsiCo. There is no sign of the rise in popularity of porridge abating – the hot cereals segment is expected to achieve 8% volume growth between 2017 and 2022, with value sales predicted to grow by 18% to £297 million over the same period (Mintel). In terms of breakfast occasions, eating breakfast at home represents the biggest opportunity, although on-the-go is growing the strongest at 27.7% (Kantar). “Wholesalers should therefore consider their current offering and whether they cater to the out-of-home and on-the-go occasion,” says Williams. PepsiCo claims a 73% share of the hot cereals segment in the impulse channel, and Quaker Oats is the leading porridge brand with 61% of the total hot cereals segment (Nielsen). The range includes Quaker Oats So Simple pots and sachets, as well as Quaker Oats and Scott’s Porridge Oats in 1kg packs. The company recently unveiled Overnight Oats pots (rsp 99p) in Red Apple and Blueberry & Cranberry varieties. Consumers simply add milk in the evening, refrigerate and enjoy chilled in the morning. For breakfast on the go, PepsiCo has relaunched its Quaker Fruit & Oat Squeeze pouches with an improved

[ BREAKFAST ] recipe that combines natural yoghurt, fruit and oats with no added sugar. The 200g pouches (rsp £1.39) come in three flavours: Red Fruit, Apple & Cinnamon and Blueberry. The company has also introduced Porridge To Go Breakfast Squares, which provide fibre and calcium and the same amount of oats as a bowl of porridge. The new product is available in two varieties – Golden Syrup, and Strawberry, Raspberry & Cranberry – in single-serve packs (rsp 75p) and a twin-pack (rsp £1.39). Microwaveable packaging enables consumers to enjoy the product warm in 10 seconds.

Breakfast in a bar Stoats has invested in a new factory in Loanhead, Edinburgh, as part of a major expansion plan. The move will allow the company to increase the manufacture of its Stoats porridge oat bars. It currently produces over nine million bars per year and this figure continues to rise with increased consumer demand. The company has secured numerous new listings, including with Bidfood and Brakes, in the past year. Besides the porridge oat bars, the Stoats portfolio includes 750g boxes of porridge, porridge sachets and quick pots, flavoured porridge, muesli and oatcakes. Natural Balance Foods has introduced new recipes for its Nākd Breakfast Bars, which comprise just fruit, oat and nuts ‘smooshed’ together and are designed to appeal to consumers looking for healthier, tasty options to eat on the go. Each bar contains fewer than 100 calories and counts as one of the recommended ‘5 a day’. The four flavours – Banana Bread, Apple Danish, Berry Bliss and Cocoa Twist – now feature gluten-free oats and, like all Nākd bars, are made with 100% natural ingredients and no added sugar. The 30g bars come in singles (rsp 75p) and four-packs (rsp £2.49). UK shoppers bought 20 million fewer packs of ready-toeat breakfast cereal in the past year (Kantar) in favour of onthe-go options. Marina Love, marketing director of Natural Balance Foods, says: “One in 10 breakfasts are now eaten on-the-go (Kantar), with consumers aged between 24 and 44 overindexing in on-the-go breakfast occasions. Our Nākd Breakfast Bars offer retailers the perfect opportunity to increase grab-and-go breakfast sales and we’d recommend that they place the bars in impulse locations and alongside other morning goods to drive breakfast occasions in their stores.” Nākd is the third biggest brand in the cereal bar category, which is worth £39 million and growing at 12% (IRI). 42

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Since its launch by Mondelez International in 2009, belVita has seen huge success – the brand is now worth £79 million and is currently growing by 11% (Nielsen). The belVita concept was founded on the insight that one in three people in the UK skip breakfast during the working week, the main reason being a lack of time (Mintel). As out-of-home breakfasts are currently experiencing double-digit growth (Kantar), wholesalers and retailers have an opportunity to drive sales by offering convenient formats that cater to consumers’ busy lives. Trade communications manager Susan Nash comments: “We believe that eating breakfast can help to encourage a good start to the day and have recently undertaken research which shows that nearly half of Brits (46%) state they are more likely to have a good day if they eat breakfast, causing them to feel more energised (55%), alert and attentive (52%). A huge 89% of Brits claim their morning sets the tone for the rest of the day, as respondents also admitted to being twice as likely to help someone out if they have a good start to the day (52%), compared to a bad start (23%).” For the on-the go-market, belVita Breakfast is available in convenient single packs, in several variants: belVita Strawberry Duo Crunch, belVita Honey & Nut, belVita Crunchy Hazelnut and Soft Bakes Choc Chip. Introduced in 2016, belVita Soft Bakes has been the brand’s biggest innovation and best-performing range since initial launch, and is already worth £16.5 million (Nielsen). A recent addition to the belVita range is Duo Crunch Chocolate Hazelnut. Packs contain two crunchy biscuits made with wholegrain cereals and featuring a chocolate and hazelnut filling. “With one of the highest repeat rates in the entire category at 62% (Kantar), belVIta has continued to lead the segment through continued investment in NPD and large-scale marketing campaigns,” says Nash. “Each product has a distinct purpose to bring new consumers to the belVita brand through a range of CCM tastes and textures that satisfy their needs.”

For further information: Cereal Partners UK (01707) 325100 Kellogg’s 0161-869 2000 Mondelez International (08702) 400861 Natural Balance Foods (0345) 862 5340 PepsiCo (0118) 930 6666 Stoats 0131-657 9955 The JFK Partnership (01343) 541496 Weetabix Food Company (01536) 722181

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