C&C Management April 21 by Cash & Carry Management

SPOTLIGHT: JASON MCGHEE OF HUNT’S FOODSERVICE

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

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Family-run Glencrest celebrates 25 years of delivering the goods

BACK FOR GOOD?

Own-B rand Own-Brand Awards Awards 2021 2021

Industry leaders discuss reopening of hospitality

Barr’s Jonathan Kemp on university teaching

APRIL 2021

CCM Chefs Own-Brand Own-B rand A Awards wards 2021 2021

CCM Chefs’ Own-Brand Awards 2021 ENTER ONLINE www.cashandcarrymanagement.co.uk

Contents

April 2021

This month don’t miss... 06 16

Sugro’s Sample Box initiative promotes NPD to its members.

Drinks wholesaler LWC opens a new £12.5m distribution site.

Confectionery has always been important to Glencrest’s business.

ESSENTIALS 05 06 17

Editor’s Comment Industry News Products & Promotions

FEATURES 12

Talking Point Leading wholesalers discuss the challenges and issues that foodservice and licensed operators will face as restrictions are lifted.

In Focus AG Barr’s commercial director Jonathan Kemp explains why he is teaching university students about the FMCG industry.

Behind the Scenes In its silver anniversary year, Glencrest is capitalising on its B2C growth and preparing for an upturn in business post-lockdown.

Being crowned the Dorset Under 9s Chess Champion was a very proud moment for Jason McGhee (far right) of Hunt’s Foodservice.

Product of the month

Spotlight Jason McGhee, purchasing director at Caterforce member Hunt’s Foodservice.

CATEGORY INSIGHT 18 28 36 41

Confectionery Hot Beverages Flavoured Milk Big Night In

Out-of-home trends continue to influence at-home consumption.

New snack boxes from Simtom include a hand-sanitising wipe.

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April 2021

Spring clean with ACE… ACE sales continue to grow, with more and more loyal customers. Stock up now to keep your laundry shelves looking bright and full of colour.

To book an appointment to discuss how ACE can improve your household offering call Robinson Young on 01284 766261 or email info@ry.tm

[ EDITOR’S COMMENT ]

Pent-up demand needs an outlet

have going-to-the-pub envy. It is the 13th of April and I have been chatting with John Mills, chairman (for a second time) of Hyperama (page 7), who was at the pub yesterday enjoying a beer in the sunshine after a round of golf. Like so many others, he celebrated the reopening of pubs with a proper pint. Because I live in St Andrews, I will not be able to go to the pub until the 26th of April. That date is part of First Minister Nicola Sturgeon’s blueprint for Scotland to return to relative normality after months of lockdown restrictions that have crippled the hospitality sector. No one knows exactly what the sales will look like as a result of the pent-up demand among consumers to eat out and drink out. Until people can be served indoors, the weather could influence the level of business, although many hospitality outlets now have covered and heated outdoor seating areas to protect their customers and staff from the vagaries of the British weather. The wholesalers who spoke at a recent Arena webinar about the road to recovery (pages 12-13) were optimistic about the public’s eagerness to return to restaurants and pubs. Bidcorp’s CEO Andrew Selley said: “We are hopeful that it is going to go absolutely crazy”. However, as Bestway’s MD Dawood Pervez pointed out, only about 38% of hospitality outlets have outdoor space and they will be limited by their capacity to serve customers safely.

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

Family-run Glencrest celebrates 25 years of delivering the goods

BACK FOR GOOD? CCM Chefs Own-Brand Own-Brand Awards Awards 2021 2021

Kirsti Sharratt Managing Editor

NEVER MISS AN ISSUE...

SPOTLIGHT: JASON MCGHEE OF HUNT’S FOODSERVICE

Exclusive!

As always, wholesalers will need to be agile and work with suppliers to provide their customers with the products they want, when they want them. Customers will use their wholesaler as their storeroom, predicted Country Range managing director Coral Rose. They will also want 100% availability and reduced minimum order quantities. Brakes’ CEO Hugo Mahoney takes the view that the pre-COVID £1 of foodservice spend will still be worth £1 – it will just turn up in a different place. Brakes’ large workplace customers are expecting around a 60% return in the next 12 months, which is good news for hospitality outlets located close to offices, as well as workplace caterers. Meanwhile, the cabin fever that some people feel when working from home could prompt them to look for another work base, such as a pub or a café now that they are opening, boosting business for those proprietors as well. The COVID infection rate is clearly the main factor that will affect the success of hospitality reopening, and that in turn will depend to a large extent on how people behave. What is certain is that many publicans and restaurateurs are desperate for people to return, and I, for one, will be more than happy to oblige – as soon as I’m allowed.

APRIL 2021

Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £74 a year or £7 per copy. Overseas yearly subscriptions are priced at £95. Back issues dating back to 2011 are available online.

Industry leaders discuss reopening of hospitality

Barr’s Jonathan Kemp on university teaching

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April 2021

[ INDUSTRY NEWS ]

Informed campaign Brakes has launched a pricefocused campaign to help its hospitality customers. The initiative – informed by research into what matters most to hospitality customers – comprises more than 3,500 price cuts, many of which will be held for six months, plus a cashback style scheme and promotions.

In addition, customers are no longer required to meet a minimum order value. Customers will benefit from at least 10% cashback on key categories. They will be able to identify the products that will bring them the maximum benefit at a new site, brakescashback.co.uk. a Brakes (01233) 206000

DRS details Circularity Scotland, a notfor-profit body that represents drinks producers, trade associations and retailers, has been appointed the new administrator for Scotland’s Deposit Return Scheme (DRS), which is scheduled to go live in July 2022. Circularity Scotland will work with companies across the supply chain, including wholesalers, to deliver a system that is expected to collect at least 90% of drinks containers in Scotland. Meanwhile, the start of the planned deposit return scheme for England, Wales and Northern Ireland has been delayed until 2024. a enquiries@circularityscotland.com 06

April 2021

Aylwin on board Sample Box Mark Aylwin, former managing director of Booker’s delivered wholesale business, has been appointed non-executive chairman of Unitas Wholesale. He replaces Simon Hannah, managing director of JW Filshill, who remains on the Unitas board. The appointment of Aylwin (pictured) is designed to bring a new perspective to the business – he has worked in the food and drink industry for over 35 years, with experience across wholesale, retail, foodservice and the on-trade. Earlier this year, it was agreed by the board that now is the right time for the transition to a non-member chair. Unitas managing director John Kinney commented: “Mark is a great appointment for Unitas Wholesale and is a hugely positive move, demonstrating the strong

initiative

intentions of the group. Mark brings a wealth of experience to the role that will be incredibly useful as we drive the organisation into its next phase of development.” Aylwin added: “While there are a number of significant challenges in the out-ofhome market, I am excited to be joining the group at a time when I believe we can make a real difference to our Unitas Wholesale members and their customers.” a Unitas Wholesale (01302) 249909

Alcohol-free site

Dry Drinker, Britain’s leading retailer for alcohol-free drinks, has moved into wholesaling. The company has launched a new tradefocused site and is offering next-day delivery on orders placed before 5pm. Owner Stuart Elkington

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said: “People now expect alcohol-free choices and yet, very often, there isn’t the choice available in cafés, bars, restaurants, clubs, etc. “We already have the supply chain in place so opening up in this direction is a natural progression for us.” Dry Drinker stocks more than 200 lines. It delivers six days a week up to 5pm, adopts a ‘no minimum or maximum order’ philosophy, and has an ‘order more – pay less’ scheme in place – trade orders of over £150 can be paid across four payments. In addition, customers signing up to Dry Drinker’s newsletter get 10% off their next order. a Dry Drinker (0203) 667 7222

Sugro UK has rolled out a new initiative, the Sample Box, in collaboration with one of its members, Approved Food – the UK’s largest online retailer of clearance food and drink at discounted prices. Packed with NPD from different suppliers, each Sample Box will help the suppliers concerned gain valuable feedback from wholesalers on the products.

Andy Needham, managing director of Approved Food, said: “We are delighted that we have been able to help bring this initiative from concept to launch successfully, and I’m sure that members and suppliers alike will appreciate the fantastic new products that will be delivered on a regular basis going forward.” Sugro’s head of trading & marketing Yulia Petitt added: “I am delighted with the launch of the Sample Box, which will be a fantastic opportunity for suppliers to showcase their products to wholesalers and to allow members to familiarise themselves with some exciting products and help with making purchasing decisions. “The new initiative will certainly lead to increased sales across the participating suppliers.” a Sugro UK (01270) 628728

[ INDUSTRY NEWS ]

‘A game-changer’ Hyperama chairman Glasgow-based Lomond – The Wholesale Food Co is repeating its ‘Welcome Back, Give Back’ campaign following its success last year. Designed to help customers boost margins and rebuild their businesses as they reopen, the promotion will run until the end of the summer. In addition to offers on food-to-go items, prices will be cut on many of Lomond’s core lines in categories that include bacon, chips, chicken, soft drinks and bouillon. “The feedback we had from our customers last year was that our Welcome Back, Give Back campaign was a game-changer for them,” said director Barbara Henderson. “It made sense to bring it back to offer support when our customers need it most.”

Barbara Henderson: Helping customers rebuild business.

Lomond credits the monthly promotion for helping its own business too. “Not only did we see sales increase by a minimum of 100% on all key lines on offer, but we also saw a staggering 400 new customers come on board during the campaign, which we’re delighted to have retained,” said Henderson. a Lomond – The Wholesale Food Co 0141-353 6777

50 wholesalers sign up b2b store, the wholesalespecific ecommerce platform from RNF, has marked its first anniversary with news that 50 wholesalers have now signed up to its services. RNF has also processed orders worth £235 million over the last 12 months across its digital platforms, which are used by wholesalers including Bestway, Booker and Blakemore, as well as independent operators and members of buying groups Confex, Fairway, Sterling Supergroup, Sugro and Unitas. This represents 60% year-on-year growth. So far five Confex members have taken advantage of the partnership between the group and RNF. These are Crowndale Food Services of Leicester, Moby

Foods (West Yorkshire), KCS Cash & Carry (West London), Caterking (Oswestry) and Fresco (Glasgow). Confex marketing director Jess Douglas said: “Although it is apparent that technology has been progressing hugely in the industry in recent years, the pandemic has moved this on significantly and we are delighted that our members are able to achieve their ecommerce goals through our partnership with RNF.” b2b.store works across mobile, desktop and tablet with zero set-up costs. a b2b.store (01926) 298867 a Confex (01608) 652333

John Mills (pictured), former managing director of Landmark Wholesale and deputy managing director of Unitas, has returned to Hyperama as non-executive chairman – a post he previously held for three-and-ahalf years until 2017. Marcus Singh, managing director of Hyperama, told Cash & Carry Management that he is delighted to welcome Mills back to the business: “We have a good relationship with John and feel that he adds great value with his years of experience in the channel.” In addition to his time at Landmark and Unitas, Mills has previously being managing director of Keith Spicer, InterContinental Brands, Gaymer Cider Company, Constellation Wines and Grants of St James’s.

Commenting on his Hyperama role, Mills said: “It is an extremely exciting time to be back at Hyperama after a challenging but strong 2020. “This year we have a host of plans including a big investment in software systems, which will help with our stock management and reporting and visibility. We also have several other exciting projects on the horizon.” a Hyperama (0115) 985 1300

£2m in price cuts Nisa Retail has announced a £2 million investment in price. The wholesale prices of many Co-op own-brand products, including chicken fillets, baked beans and flour, have already been reduced, and there is additional investment in branded items. Ken Towle, CEO of Nisa Retail, said: “We are always looking for ways to ensure our partners can adapt and grow in a fast-evolving market; this significant investment in price will ensure our partners stay competitive across a basket of goods, helping to drive sales and margin in key categories.” Nisa measures its competitiveness using a price index across thousands of comparable product lines. Overall, Nisa is consistently

cheaper than its major national competitors across 3,000 branded lines. In other news, Nisa’s Making a Difference Locally charity has launched a second round of its Heart of the Community Awards initiative, which will support a number of community projects with donations totalling £150,000. Nominations from Nisa retailers are invited until 30 April. a Nisa Retail (01724) 282028

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April 2021

[ INDUSTRY NEWS ]

Dessert selections Country Range Group has launched two frozen bitesized dessert selections, each comprising 3 x 10 treats. Country Range Mixed Dessert Selection features blueberry crumble cheesecake, chocolate salted caramel torte, and lime & meringue pie.

The Cheesecake Selection consists of lemon cheesecake, raspberry ripple cheesecake and marbled chocolate cheesecake. a Country Range Group (0845) 209 3777

Two guides Unitas Wholesale has launched two new Plan for Profit category guides: the first on Impulse and the second on Grocery, Non-Food, Chilled & Frozen. Tracey Redfearn, Plan for Profit category controller, said: “The category guides feature the key products we advise retailers to stock in order to maximise their sales and profits. “Each guide is compiled using information provided by our supplier partners, industry experts and member wholesalers, which means that we truly offer a credible core range tailored to the needs of the independent retailer.” a Unitas Wholesale (01302) 249909 08

April 2021

New £12.5m distribution site LWC Drinks, described as the UK’s largest independent drinks wholesaler, has opened a new 173,000 sq ft bonded distribution centre in Chadderton, Oldham. The wholesaler has also introduced the Blue Yonder warehouse management system (WMS) and duty management system at the new site, to help standardise operations and ensure that they are as efficient and effective as possible. The new systems will also provide improved inventory management and forecasting accuracy for the distribution teams on the ground, cutting-edge voice recognition technology, improved levels of service, and a better customer experience. Ebrahim Mukadam, managing director of LWC Drinks, said: “We are absolutely thrilled to announce that our new site is now officially

open and operational for business – just in time for the reopening of trade. “Throughout the pandemic, our logistics teams in Manchester have been working incredibly hard – and with limited resource – to relocate the business from one site to another, and integrate our new WMS.” He added: “In what has been an incredibly turbulent and difficult 12 months for our industry, we hope that this monumental step in

LWC’s journey will provide some reassurance, optimism and hope not just to our customers, but also to the wider hospitality industry, demonstrating that we are confident and looking towards a brighter future.” The new £12.5 million site – located just 10 miles from Manchester city centre, and 1.5 miles from junctions 20 and 21 of the M60 – is twice the size of LWC’s previous Openshaw site. a LWC Drinks 0161-438 4060

‘Bikes Against Bombs’ ride in UK The 2021 Wholesale & Convenience Industry Charity Bike Ride in support of landmine clearance charity MAG will take place in the UK in June and July. The annual ride was launched by Tom Fender (of TWC), Neil Turton (Sugro) and Raj Krishan (Select & Save) in 2015 and so far five rides have taken place, raising £673,000 for MAG. Turton said: “While we would normally love to visit a country where we have the chance to witness clearance first-hand in the field, the switch to UK rides in 2021 means that more people in the industry can join us this year as we have up to 150 places available.”

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The schedule for this year’s ‘Bikes Against Bombs’ ride is: 24 June – Newcastle 25 June – Glasgow 1 July – Bristol 2 July – South Wales 7 July – Midlands 9 July – London 15 July – Yorkshire 16 July – Manchester People can sign up for

any number of the rides and will need their own bike, helmet and water bottle. Each ride will be 45-50 miles but done at a comfortable pace with rest stops. The price per ride is £295, with a commitment to raise at least another £100 in sponsorship. a Tom Fender (07802) 336333 a Neil Turton (07715) 485836

[ INDUSTRY NEWS ]

Pricecheck snaps up Goldney Darren Goldney is joining fast-growing FMCG wholesaler Pricecheck as commercial director. Due to leave his role as Unitas managing director later this month, Goldney (right) will be involved in the future growth and development of Pricecheck as a key member of the board of directors. The appointment marks the start of Pricecheck’s next phase of growth as it aims to achieve a £200 million turnover within the next five years. Debbie Harrison, joint managing director (trading), said: “Darren’s experience speaks for itself. We’ve enjoyed working with him at Unitas and now we are excited to welcome him to the Pricecheck team. “His arrival showcases our confidence in the future of Pricecheck, and Darren’s

knowledge and understanding of branded supplier partnerships will be a crucial piece of our growth plan.” Goldney commented: “Pricecheck’s growth is one I’ve been following and supporting for a number of years and so I very much look forward to joining the team and playing my part in the journey. With the company’s ambition to double in size, it certainly looks a very attractive place to be for the future.

“My time at Unitas has provided unique and interesting insight into 160 businesses, and Pricecheck has always been one of the many great businesses that stand out, by acting not just as a wholesaler, but as a distribution partner with a range of targeted added-value capabilities.” Goldney brings to Pricecheck a wealth of industry experience, having led the merger to form Unitas after joining Today’s Group in 2017. Prior to that, he held key leadership roles at CocaCola, Whitworths and Palmer & Harvey. Pricecheck offers over 8,000 branded products to customers in the UK and to more than 80 countries globally through distribution agreements. a Pricecheck (0114) 244 0887

Healthy can mean wealthy In a pilot project conducted from its Croydon branch, Bestway Wholesale has shown that retailers can grow their business by selling healthy (low-sugar, lowcalorie) products. Called the Bestway Good Food Wholesale Initiative, the project is being conducted in partnership with the charity Impact on Urban Health, undertaken by specialist consultancy Rice Marketing, and supported by the FWD. Bestway developed and marketed a ‘healthier options’ range, ensuring strong availability of the products while making changes to its pricing and promotional activity, increasing shelf labelling and encouraging merchandising options for its retailers.

The results of the trial, conducted in October last year, exceeded expectation on every level, said the company. Volume sales of the healthier options range (excluding soft drinks), increased by 7,277 cases over the promotional period, representing a rise of 17.7%.

The sales volume of Alpro products increased by 21% and of Graze products by 170%. In addition, sales of wholemeal breads were up by 45.9%, fresh foods 13.4%, grocery 45.6%, frozen foods 98.3% and sugar-free confectionery 666%. It was found that key tactics of pricing, promotion, availability and merchandising have the biggest impact when used in combination. For the second phase of the Good Food Wholesale Initiative, a taskforce will be appointed to consider the implications of the report and how to tackle the challenges raised. This will lead to more practical trials with wholesalers and suppliers. a Bestway Wholesale 0208453 1234

Export partners Speciality and fine food wholesaler Cotswold Fayre has formed an export partRamsden nership with International. Cotswold Fayre is supplying products from its 4,000strong range to Ramsden International, which exports to retailers in 133 countries.

Paul Hargreaves, CEO of Cotswold Fayre, said: “While we have done a small amount of export business over the years, it makes complete business sense to partner up with an industryleading exporter like Ramsden International. “Particularly with the complexities of exporting products brought about by Brexit, the timing of this partnership with an expert exporter could not be better. We look forward to making the incredible, quality food from these islands more widely available to the rest of the world.” Sean Ramsden, founder and CEO of Ramsden International, added: “The fine food that Cotswold Fayre supplies is in high demand throughout our customer base and presents a clear opportunity for us to add value to our range proposition and drive incremental sales.” a Cotswold Fayre (03452) 606060 a Ramsden International (01472) 315610

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April 2021

[ INDUSTRY NEWS ]

More support needed from suppliers Relationships between foodservice wholesalers and suppliers were put under the spotlight in a survey conducted last month by Zest Food Partners. Worryingly, among the 60 respondents, only 12.5% of the wholesalers questioned said that 75-100% of their suppliers understand their business, compared to 34.6% of suppliers. And just 6.5% of wholesalers believe that suppliers understand foodservice in general, compared to 46% of suppliers. Wholesalers want more insight from suppliers: only 13% are happy with the level and quality of data they currently receive – they are looking for more foodservice-specific data and more operator insight by channel. “Wholesalers and suppliers should look to provide each other with relevant data,” said Nick Redford, strategy director of Zest Food Partners. “Gathering vital insight will enable smarter commercial decisions.” In addition, wholesalers

and suppliers alike recognise that there is ground to make up in the area of digital support: just 26% of wholesalers are happy with the level they receive from suppliers, and only 31% of suppliers are satisfied with the digital support they offer wholesalers. “There needs to be more collaboration between wholesalers and suppliers, with joint business plans and digital strategies in place,” advised Redford. In an industry where wholesaler-supplier relationships are so important, it was disappointing to find that just 26% of wholesalers are happy with the level of

contact/communication they are currently receiving from suppliers, whereas 50% of suppliers stated their satisfaction in their contact/communication with wholesalers – a clear mismatch. Interestingly, 71% of wholesalers said they would prefer to be communicated with via email, whereas 70% of suppliers would prefer to meet in person. However 52% of wholesalers and 38% of suppliers think that virtual meetings “will last forever”. “Success is reliant on strong relationships and collaboration, and it is important that we all take the time to connect and nurture

Listing opportunity Transparent JJ Foodservice is introducing catch dates on the Frozen at Sea fish that it sells. Sezer Ozkul, chief product officer, said: “We recommend serving fish as close as possible to the catch date. “We want to be fully transparent about when our products were caught. Fresher fish means happy customers.” a JJ Foodservice (01992) 701701 10

April 2021

James Hall & Co, SPAR wholesaler for the north of England, is hosting a virtual ‘Meet the Buyer’ event for local businesses on 18 May. Open to 1,600 members of the North & Western Lancashire Chamber of Commerce, the event will enable local suppliers to meet James Hall & Co’s trading team, who are responsible for sourcing products for over 600 SPAR stores. Andrew Barnes, trading director at James Hall & Co, said: “We’ve always tried to work with local suppliers but

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it’s now more vital than ever. It puts money back into local communities, helps reduce food miles, minimises environmental impact and helps develop sustainable, longterm partnerships.” a James Hall & Co (01772) 706666

relationships,” said Redford. The study by Zest Food Partners was designed to find out what support wholesalers and suppliers need from each other to work better together to rebuild foodservice. The recovery will take some time, according to the respondents: 42% of the foodservice wholesalers questioned think it will be 1224 months before their business is trading at the same level it was pre-COVID, but the suppliers were more optimistic, with 50% predicting it will take 6-12 months for their business to get fully back on track. “With concerns around product availability from both wholesalers and suppliers, as well as logistical issues and minimum order quantities, it is important that both parties work together to ensure the industry is prepared for the reopening of foodservice and hospitality,” added Redford. a Zest Food Partners (07784) 732756

Vimto deal The IB Group (Hancocks, World of Sweets, Bonds and Bobby’s) has become the licence holder, exclusive distributor and developer of three Vimto products: Chewy Bons, Jelly Beans and Fizzy Rippa. This deal expands the IB Group’s partnership with Vimto (Nichols), which has been gaining momentum for over 12 months with the launch of several new lines developed by the inhouse IB teams. These include Vimto Juicy Mix-ups, Flying Saucers and Fizzy Mallows. a Hancocks (01509) 216644

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[ TALKING POINT ]

Ready for reopening? Industry leaders at a webinar titled ‘Wholesale – The Road to Recovery’, organised by Arena, considered the challenges facing the foodservice channel as lockdown is eased.

tock, cashflow and credit are just three of the issues that wholesalers need to address as restaurants, pubs and other hospitality outlets open their doors after months of crippling restrictions. How well the hospitality sector fares depends to a large extent on the weather, especially in the early days of reopening when serving consumers is restricted to the outdoors, but beyond that, there are still many unknowns, according to the speakers at Arena’s recent webinar. Brakes has conducted an “unprecedented number” of pulse surveys to find out how its customers are feeling and to ensure that its response is insight-led. CEO Hugo Mahoney said: “Our customers are talking about four things: quality of products, availability, value and safety. “We are working very hard with our suppliers to make sure we can maximise availability of our brilliant range of products and also make sure there is some flexibility in there as well. If there is fluctuating demand, we are going to need to have frozen alternatives and be creative with ambient products so that we do not create a big waste bomb. “On value, we have a huge programme of support for our customers (page 6) – price holds, price cuts and service flexibility: everything to get our customers back on their feet as quickly as we can.

Hugo Mahoney: ‘The £1 of foodservice spend will turn up in a different place.’

April 2021

Consumers may want to work from a café or a pub instead of from home.

“On safety, contactless delivery and contactless payment are features that are important right now. Whether they will be as important in 12 months time we don’t know, but we have a dedicated responsibility to make sure that our deliveries are safe. When we come back as an industry, we want to make sure we come back for good this time.” Coral Rose, managing director of Country Range Group, believes that the next couple of months are going to be “pretty critical” for wholesalers. “One of the key issues is cash,” she said. “Caterers want 100% availability but they also want reduced minimum order quantities and more frequent deliveries – they haven’t got the cash to invest in stock, so they will be using their wholesaler as their storeroom. Wholesalers are having to invest in this additional stockholding. “Customers are also going to be expecting extended credit and will want more time to pay off debts that may be outstanding from last year.” Rose added: “Wholesalers maybe haven’t performed as well as they would have liked over the last 12 months, so in terms of getting credit availability from suppliers, the computer may say no but we would ask suppliers to look at the situation so that wholesalers are not squeezed further.”

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Rose questioned whether suppliers are geared up to give wholesalers the stock they need. “We don’t know how much of the market is going to open, what the demand will be like. Are our suppliers really ready?” “Availability is going to be key,” agreed Andrew Selley, CEO of Bidcorp. “We have to be agile and we will need our supplier partners to be agile to respond to the fluctuations in demand. Certain products will take off more than we expect. There is a danger that we could be too cautious; we are hopeful that it is going to go absolutely crazy.” He continued: “All of us have done a lot of planning and a lot of preparing, but none of us is going to get it 100% right. The key request I have is for understanding up and down the supply chain. We have to work with each other to maximise the opportunity that is there with the challenges that will come.”

Andrew Selley: ‘The request I have is for understanding in the supply chain.’

The speakers at the webinar agreed that wholesalers’ customers are looking for insight and advice on a range of issues, including menus, safety and hygiene solutions, and targeting different groups of consumers, such as those working from home who perhaps want to work from a café or a pub instead. “To a certain extent, people want to just get out again, but they are expecting a very high standard, something they can’t get at home,” pointed out Selley. “There is a desire to reduce waste up

[ TALKING POINT ] and down the supply chain so maybe customers will operate some element of limited menu or switch to more valueadded pre-prepared elements. “Customers will buy quality, value and convenience and you have to be able to offer that across all tastes. Vegan, vegetarian and healthy options will feature very strongly – if you offer too limited a menu you won’t get the traction. “Opening is the first challenge but when the operators are back up and running, we will be looking for more innovation from suppliers.” Dawood Pervez, managing director of Bestway Wholesale, warned against banking on a full-scale return by consumers to foodservice outlets as soon as lockdown is lifted: “Only about 38% of outlets have outdoor space and they will be limited by their capacity to serve customers safely, so it won’t be like flicking a switch – it will be a gradual increase as people gain confidence.” He added that the retail landscape will change, but it will take some months. “In the short term, alcohol sales will probably continue to be relatively strong in retail, especially with the timing of the Euros,” he said.

‘Eager but nervous’ In a survey of 1,200 consumers across the UK, TWC – the sponsor of the Arena webinar – found that there is a huge eagerness to return to hospitality outlets. Nevertheless, many people remain nervous and this will affect their behaviour, said development director Tom Fender. The findings of the study, which will be published in a report later this month, include: a 39% will use hospitality outlets only after receiving two vaccinations. a 70% still have some concerns around the safety of eating out. a 60% are willing to pay a deposit to secure a table. a 69% find fixed-price menus appealing. a 73% want to support their local restaurants, pubs and eating out venues. a 41% of people who normally holiday abroad will this year take a holiday in the UK.

Dawood Pervez: ‘There is anxiety in relation to economic wellbeing.’

“As people start going to their high street, parks, towns and cities again, there will be a transition towards instantconsumption impulse sales, which by and large have been hit quite badly. “Although there is cash in the banks that people have saved by not spending their money [during lockdown], there is quite a lot of anxiety generally in relation to economic wellbeing so I think value will be important,” he added. Around 10-15% of foodservice outlets have gone through closure or administration during the COVID-19 crisis, and so the high street is going to look very different, at least in the short term, said Mahoney. “Consumers’ habits have changed – for example, they have been trying to replicate the ‘eat out’ experience in the home, and takeaways of various quality and creativity have become the norm. “Like many others, we at Brakes took some painful decisions initially to make sure that the size of our organisation matches the market, but we are also creatively looking at where this £1 of foodservice spend is going to end up. Is it going to come back into the industry or is it going to float around in adjacent areas in the market? I happen to take the view that some of the changes will be forever changes while some will be temporary – a blip.” Brakes’ large workplace customers are saying that they expect around a 60% return in the next 12 months, Mahoney noted. “We are going to get a hybrid [of people working from home and at the office] and I don’t think that’s unhealthy. The £1 of foodservice spend will just turn up in a different place. “As ever, as wholesalers we need to be agile and listen to the market

carefully, and we have to be ready to be extremely responsive in ensuring that we serve our customers really well.” Selley said that he is “very hopeful” about workplace catering. “Workplaces used to be competing with all the hospitality outlets that were operating outside. Now some of those have disappeared, so there is an opportunity to capture that spend back in the workplace but only if you are offering quality, value and convenience. Innovation is a key part of driving that.” He also commented on the changing nature of UK tourism in the short term: “Staycations won’t be a 100% replacement for overseas visitors – five-star hotels in cities that rely on international tourists may struggle as we may not necessarily want to pay those prices – but I think that, in terms of destinations, leisure and restaurants, the sector will be less affected than people may think.” Rose concurred with the other speakers that wholesalers have to take note of changes in the marketplace, including the increasing use of ecommerce and B2C platforms, and the growth of food to go.

Coral Rose: ‘We would be foolish just to carry on as normal.’

“I think we would be foolish just to carry on as normal,” she said. “We are looking at our business mix – the sectors our members supply – and our category management. There was a lot of stock written off during the pandemic, and it caused everybody to have a rethink about the products we’re stocking. “We need to give our customers choice, so it’s not just about rationalising the range, it’s about making sure we have the right range and investing in categories as we get into trends – such CCM as the growth of vegan.”

www.cashandcarrymanagement.co.uk

April 2021

[ IN FOCUS ]

Inspiring future business leaders For the past two months, AG Barr’s Jonathan Kemp has dedicated every Friday afternoon to teaching business students about working in FMCG.

inal-year undergraduates at the University of Strathclyde have been given valuable insight into the fast-moving consumer goods (FMCG) industry in a new course designed and led by AG Barr’s commercial director Jonathan Kemp. ‘Brand Building in an FMCG Environment’ comprised weekly twohour lectures over a semester. These covered all aspects of FMCG, from purchasing to production, financial to logistics, sales to marketing, and of course customer to consumer. “The course draws heavily on realworld experiences,” Kemp explains. “I am not an academic and I don’t necessarily understand some of the business theories, but I’ve got 30 years of experience. There are lots of ways I have been able to illustrate key points, particularly as I have shared the good, the bad and the ugly to show that we can learn from mistakes as well as successes.”

Student viewpoint “I really enjoyed the course because it was about the practical application of everything I’ve been learning over the years. “It was challenging but gave me a better insight into marketing in the real world. “It also helped demonstrate the dynamic nature of the FMCG industry and has further driven me to pursue a career in marketing in this area.” Scott McCain, fourth-year student, BA Hons Marketing.

April 2021

Jonathan Kemp: ‘Talking about wholesaling was an eye-opener for many students.’

The students – who are all in the university’s business school – also heard from other industry experts about their roles and career paths. These guest speakers included AG Barr’s supply chain director Karl Donnan and business unit director Ian Johnstone; Ed Brooke, head of The Leith Agency (which creates the advertising for IrnBru); and the IGD’s CEO Susan Barrett. To reinforce their learning, the students were invited to take the IGD’s Fast Track New Starter course – something that is usually available only to people starting out in an FMCG role. The final element of the course was an assignment to create and launch a new soft drink. “I was trying to emphasise to the students the importance of being consumer and customer centric in their thinking, and justifying the choices they are making,” says Kemp. Explaining his idea to devise the course with the support of teaching fellow Thomas McAlinden, Kemp adds: “The University of Strathclyde’s strapline is ‘The Place of Useful Learning’ and I thought there was probably more that could be done to bring the outside world into the university. “The academic and business worlds are very different, so I think it is good to prepare students for what it is going to be like working in a business. Students tend to think about their particular discipline – ‘I’m an economist’ or ‘I’m a marketer’ – but when you work in FMCG you are much more of an all-rounder: you need to have an appreciation of areas other than your own specialism.”

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Although Kemp had not previously done any formal teaching, training and development have been a key part of his working life since he first entered the FMCG industry as an account executive at Procter & Gamble in 1992. “I joined the business and a year later I was helping to develop and train the people who joined a year after me,” he recalls. “I approached teaching at the University of Strathclyde in a similar way – treating the students a bit less like students and a bit more like people who had just started out in business.” Kemp hopes that the course will have given them a fast start if they choose to work in FMCG. “They are being exposed to knowledge they typically wouldn’t get until they have actually started work – for example, talking about the wholesale industry and the way it is the route to market for 35,000 symbols and independent shops in the UK was an eye-opener for many of the students.” He adds: “With this course, there is also an element of encouraging top talent into FMCG. If any of the students were inspired to go into the industry and then went on to have a fantastic career, that would be the outcome I would be most proud of.” Despite getting up at 5.30am on the days he teaches so that he can attend to his AG Barr duties, Kemp would be pleased to continue his voluntary teaching role if the university decides to repeat the course. “I enjoy training and developing people – I always have,” he says. “Perhaps in another life I would CCM have been a teacher.”

[ BEHIND THE SCENES ]

25 years of delivering the goods Glasgow wholesaler Glencrest is celebrating its silver anniversary with a plan to get the business back on track this year post-COVID and capitalise on its B2C growth.

rothers Ross and Fraser confectionery, alcohol, crisps, snacks Gourlay started wholesaling and catering products to a wide range 25 years ago as an extension of customers throughout Scotland. to their retail convenience These include local authorities, leisure store business in Glasgow. trusts, universities, colleges, schools, “We were working from the garage nursing homes, restaurants, bars, enterat my parents house and anywhere else tainment venues, social clubs, sports we could store our stock,” Ross recalls. facilities, golf clubs, outdoor events, As the wholesale busicaterers and convenience ness grew, the company stores. sold its retail shops and Since 2007, the combegan operating from a pany has also operated a 20,000 sq ft unit in confectionery van sales Balmoral Street, Glasgow division, calling on conIn 2014, it moved again to venience stores with a its existing premises in core range of confecClydeholm Road in the tionery products. west end of the city. Other major develop“The depot is about the ments over the years Ross Gourlay same size as our previous include joining Sugro in one but is higher, giving 2009; implementing a new more storage space. We also have copiback-office system, Microsoft Dynamics, ous yard space for parking our trucks and in 2016, which improved business effiloading and unloading,” Ross explains. ciency; and introducing online ordering Today, Glencrest is still owned (with direct deliveries throughout the equally by the Gourlay brothers. Fraser UK) and click & collect in 2019. looks after vehicle fleet management, And last year, in response to lockwhile Ross predominantly manages the down, the Gourlay brothers pivoted online and digital aspects of the business. Glencrest to a business-to-consumer The family’s involvement was (B2C) model. “The last year has been a strengthened when Ross’s children Kari difficult one, given our significant foodReilly and Cameron Gourlay joined the service customer base,” says Ross. “We business in 2013 and 2015 respectively. saw an initial increase in sales to retailKari is now senior buyer, while Cameron ers which was predominantly in larger is head of operations. format take-home packs and multipacks, Today, Glencrest supplies soft drinks, which present margin challenges.

“We moved our B2C online business forward during that time to the point that it currently accounts for close to 30% of our overall business.” Ross continues: “We lost a few staff during COVID – not our choice, they just didn’t like the new work balance and changes in job roles. We currently have 14 staff and we’re actively recruiting in several roles in anticipation of an upturn in business post-lockdown. “Our key focus at the moment is online B2B and B2C, supported by our upscaled online marketing and advertising team.” A well-known figure in the Scottish wholesale trade, Ross looks back at the past 25 years with a smile, but admits that the last 12 months have been hard: “I have some truly amazing memories from our Sugro overseas conventions over the years, but the last year has been the most memorable and challenging in our company history. “Our plans are hopefully to get back on track this year once our customers open again and to continue to develop CCM our online business.”

A B2C service now accounts for 30% of the company’s turnover.

Glencrest is big in confectionery sales.

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April 2021

[ SPOTLIGHT ] Jason McGhee, purchasing director Hunt’s Foodservice

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about as much disruption to supply chains as was possible and is still ongoing now. Experience helped me to make more right decisions than bad ones over the last 12 months, and having the close-knit community of all the buyers from the other Caterforce group members gave me informed and honest opinions to listen to and benefit from.

‘Make decisions!’ What have been your biggest achievements in work and outside work? Within work, my achievement would be the progression from inexperienced account manager through to buyer and then to purchasing director. Outside work, becoming Dorset Under 9s Chess Champion back in 1986 still makes me feel proud! Who has been the biggest inspiration to you? Over the last 14 years, since I moved from selling to buying, I would have to give credit to Richard Hunt [managing director of Hunt’s Foodservice]. Richard has given me the confidence, freedom and trust to take the purchasing department on the path of my choice. He is always reminding me that standing still is the fastest way of moving backwards and that the worst thing to do is to not make a decision. What were your ambitions when you were growing up? Career-wise, I always wanted to be a journalist. English was one of my favoured subjects and writing essays and stories came naturally to me. I 16

April 2021

carried out two work experiences with local publications but my career path never ended up going in that direction. What are your interests outside work? I was always very sporty until about seven years ago when my son Jayden (pictured) was born. Now I enjoy spending my time outside of work enjoying fatherhood and savouring watching him grow up. Live music is still a passion and I normally always have a diary full of gigs to go to, so unfortunately in the current times these are all on hold. How would you describe your personality and what approach do you take in business (and in life)? Quiet, patient, loyal and supportive. Within work I try to lead by example, never asking someone to do something I haven’t or wouldn’t do myself. I work with a great team and always encourage them to make decisions, use their initiative and look to progress. What has been your biggest challenge and how did you overcome it? From a work perspective, the combination of COVID-19 and Brexit caused just

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What is your favourite film, book and song/piece of music? There are too many films to choose from, but the shortlist would include The Pursuit of Happyness, Back to the Future and Groundhog Day. No specific book is my favourite, but I have everything by Shaun Hutson and Mike Gayle, so any of those. Any hard rock music is fine – I love heavy metal – but specifically Metallica, Iron Maiden and Guns N’ Roses fill my iPod. If you won a holiday, where would you go and who would you take with you? A nice relaxing family break to New Zealand would be most welcome: touring the islands in a motorhome, enjoying the freedom and seeing the stunning scenery over the course of a month would be a nice reward after the CCM last 12 months of restrictions.

Selling to buying After finishing A-Levels in Economics and Geography, Jason McGhee began working in the pub trade with Eldridge, Pope & Co while deciding what he wanted to do next. He ended up staying and joined the company’s licensee management scheme. Four years later – in 2000 – he became a sales advisor for a local Alfa Romeo dealership. Then, in 2003, he joined Hunt’s as a territory sales manager. McGhee was asked to cover the buying role for a maternity leave period of six months in 2007 and has been in buying ever since. He was promoted to his current role of purchasing director in 2013.

[ PRODUCTS & PROMOTIONS ]

Nachos & dip snack box for out-of-home sector PRODUCT OF THE MONTH

The Stack Snack Company, available via Simtom Food Products, has launched Ranchito, a Mexican-themed snack box. Each 250g snack box includes a 100g pack of individually-wrapped nachos with an individually-wrapped 150g dip of choice. Consumers can choose from three Mexican flavoured dips: Mild Salsa, Hot Salsa and Guacamole. The range is suitable for a glutenfree and vegetarian diet, and the two salsa variants are suitable for vegans. With food safety and hygiene high on consumers’ agenda, the snack box also includes a hand-sanitising wipe, and the boxes have an antibacterial coating that protects against bacteria and viruses. To increase visibility in outlets, the

snack boxes come in branded shelfready packaging. Claire Williams, marketing director at Zest Food Partners, says: “Simtom want to support customers with solutions that are right for their business going forward. With the roadmap announced and the foodservice industry getting ready for the reopening, this is the perfect time to launch such an exciting and innovative concept.” Zest Food Partners (07784) 732756

The Coca-Cola Company has revealed a new design system for the Coca-Cola range that brings together Coca-Cola, Coca-Cola Zero Sugar and Diet Coke in an evolution of the ‘One Brand’ strategy that was launched worldwide in 2016. In addition, Coca-Cola Zero Sugar has a new recipe that brings it close to the taste of Coca-Cola. Supporting the new recipe is a marketing campaign, ‘Best Coke Ever?’. The campaign explores this debate across TV, digital films and out-ofhome, and calls on influencers and consumers alike to join the debate in social media. Coca-Cola European Partners (0808) 1000 000

‘Best tasting’

KPow! campaign

No time to waste

Tyson Foods has relaunched protein snack brand Grabits with a new name, new look and new recipe. Grab It is made with 100% chicken breast pieces and comes in five flavours: Chinese, Nice & Spicy, Original, Mango Habanero and Vindaloo. Each stick has 10g of protein and fewer than 68 calories. The product is now palm oil free and also has an extended shelf life. “We believe this is the best tasting meat snack in the market today,” says Felipe Castillo, director of marketing and innovation. Tyson Foods (01233) 667250

KP Snacks is investing £2.5 million in its core KP brand with the launch of a new campaign, KPow! The initiative, which runs until December, sees KP Nuts return to TV after a gap of three years. Using animation, the advertising is designed to make the brand more relevant to a younger audience and put KP Nuts at the top of consumers’ minds when they are looking for a daytime snack. The campaign heroes flavoured nuts and will give KP a presence across all media channels, including TV, video on demand, out of home and social. KP Snacks (0845) 601 7583

AG Barr plans to be carbon net zero by 2040 – 10 years ahead of the UK’s proposed 2050 deadline. The ‘No Time To Waste’ initiative brings together multiple energy, packaging and waste initiatives aimed at increasing sustainability. The company has also confirmed that Irn-Bru and Rubicon will be in 100% recycled plastic bottles by spring 2022. As a founder member of Circularity Scotland, the new administrator of Scotland’s Deposit Return Scheme, AG Barr is also committed to creating a truly circular system for drinks containers. AG Barr (01204) 664200

Refreshed look

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April 2021

[ CONFECTIONERY ]

Making life sweeter After more than a year of the pandemic, which has stifled growth in the confectionery market, Kevin Whitlock considers the state of play as lockdown eases and looks ahead.

here’s nothing like a small indulgent treat to lift the spirits, and there’s no treat which offers as much for as little money as confectionery, be it sugar or chocolate-based. Given how convenience stores, independents and symbols have seen sales move upwards during the past 13 months, it would be natural to assume that confectionery, as an affordable treat, would likewise prosper. However – and although no definitive figures are yet available – there is plenty of anecdotal evidence to indicate that confectionery sales haven’t prospered in lockdown as much as one might expect. This is primarily due to the decline of shopping on the go, thanks to the cessation of commuting and travel more generally. With this decline of shopping on the go, there is a need for suppliers to differentiate, innovate and excite consumers – and market their products to stimulate growth as lockdown eases and consumers start to move around more freely. It’s worth remembering that confectionery remains the top impulse purchase in the independent and convenience channels. Figures from Valeo Confectionery show that during lockdown, shoppers have been shopping less frequently (-0.7%) and buying more packs of confectionery per trip (+3.4%). Prior to the first lockdown last March, the category saw strong growth, due to wider ‘stockpiling’ missions. But the category then experienced significant sales decline and never truly caught up to 2019 levels. “Different formats and types of sweets have been affected very differently,” says Russell Tanner, marketing & category director. “Aside from the impact of the first lockdown, sharing bags of sweets have seen continued growth. This is driven primarily by gums and chews, popular with the whole family and purchased by shoppers as mood boosters.” Levi Boorer, customer development director at Ferrero, believes there is an opportunity to be had in the crisis: 18

April 2021

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“Having had to remain away from loved ones during the pandemic, we are seeing shoppers wanting to treat their family and friends more than ever. Wholesalers should therefore stock affordable luxuries, meaning retailers can make these occasions even more special for their shoppers,” he says. “Confectionery is one of the few categories where retailers are willing to spend money on the products that shoppers love, in order to cater for demand for treating. While the recent lockdown has added a degree of uncertainty to how people might celebrate, retailers will still be looking for highquality products to stock. We know retailers turn to the brands they know and love during times of uncertainty.” Swizzels is the largest British-owned sugar confectionery manufacturer in the UK and has enjoyed good growth in these difficult times. Mark Walker, sales director, says that keeping the innovation and NPD pipeline flowing will be crucial over the coming months, as will keeping ‘much loved’ brands top of mind via strong marketing initiatives. ‘‘Sugar confectionery continues to perform well over the course of the pandemic as shoppers seek out treats from well-known brands to cheer themselves up,” he says. Swizzels’ NPD includes Drumstick Chocolate Bar. This new concept for Swizzels sees the flavour of the Drumstick Lolly, which has been a firm consumer favourite for more than 60 years, encased in milk chocolate. The chocolate bar has a raspberry and milk fondant centre and real raspberry pieces, bringing Drumstick into the chocolate category – currently in growth, with chocolate blocks up 21% (IRI). Available to depots now in the standard pack format, there will also be a wholesale-exclusive PMP introduced later this year. Walker adds that hanging bag (100-199g) sales have seen growth of 6% over the past year and now account for 54% of total sugar confectionery sales (IRI), indicating that consumers are choosing to engage with these products most during lockdown: “We expect this to continue this year, so these are also a must stock for cash & carries.” Swizzels’ newest addition to its hanging bag range is Great British Puds, invented by an avid Swizzels fan who won the chance to have her own sweet brought to life through the company’s 90th anniversary competition. Great British Puds includes individually-wrapped chew bars in four nostalgic British dessert flavours – Sticky Toffee Pudding, Rhubarb Crumble, Apple Pie & Custard and Lemon Meringue.

[ CONFECTIONERY ] Five key trends for 2021 1. Sharing: Within traditional confectionery, sharing has continued to grow in the market by 0.3% (IRI). This increase is due to individually-wrapped and portionable sizes, which are two purchase drivers that grew exponentially last year. People seeking new ways to enjoy their evenings indoors, especially during key occasions like Easter or Halloween, are also likely to look to their favourite treats or snacks for familiar comforts at home. 2. Flavour: Teenage and young adult shoppers like their refreshment novel and indulgent, which means that combining flavours such as mint or exotic fruit with chocolate is likely to be a hit. 3. Better for you: The ‘better for you’ confectionery market is worth £28.5 million and is growing (IRI), especially reduced-sugar, sugar-free, and gelatine-free products. ‘Vitamin rich‘ confectionery is a trend that may take off this year. 4. Premiumisation: With sharing on the increase, and virtually every night being a ‘big night in’, there is a trend towards choosing more indulgent and ‘treaty’ selections, with the boxed chocolate segment seeing growth. 5. Brands, brands, brands: “In uncertain times consumers look for reassurance and brands they know and love,” says Susan Nash, trade communications manager at Mondelez International. “Consumers can trust in category-leading brands to deliver on familiarity and taste.”

Also benefiting from the trends for nostalgia and sharing, says Walker, is Swizzels’ Variety range, which contains a selection of individually-wrapped sweets and lollies in different hanging bag varieties “with something for everyone, making them the ideal product for sharing occasions”. There will be a new on-pack offer for the Variety range – available in £1 PMP and 40% extra free formats – to engage consumers over the summer months. Also from Swizzels are Drumstick and Refreshers Choos, which have been redeveloped to satisfy growing consumer demand for softer sugar confectionery products. What’s more, “the recipe was purposefully developed to ensure it is suitable for vegans, a trend that has continued to grow across confectionery,” says Walker. The successful Squashies hanging bag brand will be at the forefront of Swizzels’ summer marketing activity, with consumer competitions supported by digital and PR activity. Over at Mars Wrigley UK, sales vice president Nick Reade comments: “Despite a turbulent 2020 for all, we remain undeterred and are looking forward to rolling out a host of exciting NPD and brand campaigns, set to shake up the market in 2021. “Last December, and in celebration of its 60th year on our shelves, we heralded a new era for the Galaxy brand by announcing an exciting bold packaging redesign, 20

April 2021

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alongside the launch of two new NPDs – Galaxy Orange Block and Fusions. Staying on-trend is key to increasing relevancy and recruiting the next generation of consumers for years to come.” This year, the company is supporting Galaxy’s redesign with a campaign incorporating TV, digital, social and influencer activity. Mars Wrigley kicked off 2021 with the launch of 100kcal bars into the UK market. As a means of catering to the 25% of shoppers who say that calorie labelling impacts their purchase decisions (Kantar), the company has introduced new 100kcal (or less) versions across its top three most popular singles bars – Mars, Snickers and Twix. The company is also accelerating its sustainable packaging programme, starting with the reduction of packaging for some of its most popular brands. From this month selected ‘Standard’ and ‘More to Share’ sharing pouches across brands such as M&M’s, Galaxy Counters, Minstrels, Revels, Maltesers, Buttons, Skittles and Starburst will be narrower in the UK and Ireland, reducing the plastic used by around 647,000 square metres a year – equivalent to over 90 football pitches. In the gum category, Mars Wrigley recently launched ‘Get Your Ding Back’, a multimedia campaign for Extra created to drive chewing gum consumption in home – with in-store activations coming soon. Christine Cruz-Clarke, marketing portfolio director, says: “The campaign aims to drive category growth within mints & gum by sharing humorous insight on when and why consumers chew gum. The first piece of content focuses on home dating as it’s a passion point for Next Gen, the biggest age group of chewers.” She continues: “As consumer behaviour evolves, new shoppers and new purchase occasions are emerging in the gum category; these include morning routine, chewing alone, work/study, leisure at home and freshening moments.”

Mars Wrigley is also launching Extra Refreshers in a new bottle format and flavour – Tropical – to capitalise on the popularity of tropical flavour profiles with younger consumers. Nearly 50% of gum consumption comes from ‘Gen Zers’ (those aged about 19 to 24), especially fruity gum which over-indexes with under 25-year-olds and is 51% incremental to the category (Kantar). Extra Refreshers bottle (rsp £2.19) is available in three flavours: Peppermint, Spearmint and new Tropical, which also comes in a single pack of seven pieces at 59p rsp.

BRAND NEW NPD FLAVOUR & FORMAT FROM THE LEADING GUM BRAND FRUITY GUM IS HUGELY INCREMENTAL TO THE GUM CATEGORY

CONSISTENTLY RATED OUTSTANDING IN CHEWING EXPERIENCE WITH CUSTOMERS* OUR BIGGEST COMBINED GUM MARKETING CAMPAIGN OF 2021

[ CONFECTIONERY ] The launch of the Extra Refreshers bottle and Tropical flavour will be supported by in-store and multimedia campaigns featuring in-store displays and PoS, as well as comprehensive consumer online activation. Additionally, prefilled counter-top units will be available via wholesalers. Sasha Storey, senior brand manager of Extra, says: “Consumer habits evolve constantly, and format can play a key role in these changes. Whilst individual packs remain essential lines for stores of all sizes, the larger bottle format is set to be one of the bestselling formats of the year. Gum bottle will be driving the growth in 2021 with 1.7% projected growth, so we recommend it is stocked alongside core single packs for maximum sales success. Flavours are also set to grow, especially as we head into summer.” Perfetti van Melle (PvM) has launched two new Pure Fresh gum products in its Mentos range: a Bubblefresh bottle (rsp £2.25) and a Cherry roll (rsp 65p). The new variants build on the 101% growth of the range following its launch last year (IRI). Fruit-flavoured gum currently has a 20% share of the chewing gum market, says PvM, and the merging of fruit flavours with traditional, functional gum occasions increases category penetration and is generating incremental sales, says product manager Kim McMahon. The launches will be supported by a £2.1 million abovethe-line ‘Yes to Fresh’ campaign, which includes in-store, digital, video on demand and out-of-home advertising. McMahon says: “There are 30 million gum chewers in the UK, but we have seen a decline in frequency, driven by consumer changes in habits due to reduction in travelling and commuting. That’s why we’re investing in the category, to ensure the products are front of mind to ultimately encourage more sales at till point – we want the nation to ‘Say Yes to Fresh’. “With the wider gum market mainly focusing on two reasons to chew gum – fresh breath and clean teeth – the Mentos Pure Fresh fruit offering opens up more occasions to consumers, such as for enjoyment, as a snack, or to satisfy a sweet craving.” Two big names at Valeo Confectionery are to have a makeover in 2021: this month sees the roll-out of a rebrand for Fox’s Glacier, capitalising on the brand’s 100 years of heritage and 91% brand recognition to create a new proposition that heroes the iconic Fox’s polar bear and creates shelf standout to drive trial from new audiences. This is supported with an abovethe-line campaign and more NPD later in the year. In the chocolate category, which accounts for 75% of confectionery sales in value (Nielsen), Valeo’s Poppets brand has seen 29% value growth, primarily driven by sharing bags as consumers have treated themselves at home during periods of lockdown. 22

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Ambitious growth plans for UK Kervan Gida is a family-owned business with 25 years’ experience and €100 million global sales. Owner of the sugar confectionery brands Bebeto and Dexters, the company has grown to become Turkey’s largest soft candy producer and exporter, with offices in the UK, the USA, Germany and Russia. Established in 2015, the UK office now distributes Bebeto and Dexters to over 12,000 retailers across the UK. Managing director Stuart Johnston says that the company has ambitious growth plans for this country: “Our UK business has grown by 25% over the past year. In 2021 we have the same ambition to deliver healthy sales that exceed our forecasts. We’ve grown to sit among the market leaders in the UK wholesale sector. This year we will focus on broadening our product range and our distribution channels. “We are an ambitious company by nature, so we have big Stuart Johnson: ‘UK plans to grow and expand over business has grown by the coming years. Although we 25% over the past year.’ will continue to innovate and release new products, we have some excellent existing products in our portfolio and our objective over the coming year will be to invest in brand awareness.” UK brand marketing manager Gabriella Egleton adds: “We began the year by reintroducing our consumers to our range of vegan laces and soft candy pencils, which consists of 13 SKUs in total, all of which have been certified vegan-approved by the Vegetarian Society. “The vegan market is expected to rise to £1.1 billion by 2023, so it’s important for retailers to ensure they have an inclusive confectionery range that is accessible to a wide audience. Like all our products, our vegan range is also 100% Halal certified. “We’re also delighted to announce the release of our new 150g gummy range. This includes Fizzy Watermelons, Strawberries, Big Mix and Big Fizzy Mix, available in both pricemarked and nonprice-marked packs.” Kervan Gida has plenty of marketing activation planned for Bebeto this year. It is revamping its online presence by focusing on its website and social media. “We know that consumer engagement and feedback is invaluable, and we have big plans to interact through competitions and engaging content,” says Egleton.

†UK, IoM, CI, ROI. 18+. Enter the last 4 digits of your barcode online for a chance to win a staycation every day (worth up to €/£1,500 each) or 1 of 100s days out (worth up to €/£100). open 03.05.21 – 27.06.21 & 2x late entry draws. No purchase necessary in NI. Full T&Cs at www.nestle-promotions.co.uk/staycation.

For illustrative purposes only. ®Reg. Trademark of Société des Produits Nestlé S.A.

[ CONFECTIONERY ] Poppets is getting a new look and a Salted Caramel variant to tap into consumer demand for that on-trend flavour. Later in the year, wholesalers should look out for NPD from Fruit Salad and Wham. Other NPD in confectionery comes from Mondelez International, which has just launched Cadbury Dairy Milk Caramel bar in a 60p PMP. Nielsen research shows that PMPs offer a number of advantages for shoppers and retailers, and therefore are an important part of a store’s offering, generating a perception of improved value, convenience and trust from their shoppers. The research also found that Cadbury Dairy Milk singles PMP packs achieve a better unit rate of sale than the non-price-marked packs. Mondelez has also announced a packaging refresh for the Green & Black’s Organic tablets range, designed to capture the attention of shoppers looking to trade up within the category. The new visual identity, which has already started to appear in depots, reinforces the brand’s commitment to ethically sourced cocoa and high quality chocolate. By celebrating these core attributes of the Green & Black’s brand, the new design marks “a return to its roots, with a nod to its heritage and values”. The packaging refresh for five Green & Black’s Dark bars will be registered with The Vegan Society (70% Dark, 85% Dark, Ginger, Maya Gold, and Hazelnut & Currant). Storck UK has added new Mint Fondants to the Bendicks range. Available in an 180g box (rsp £4.11), the new line combines soft peppermint fondant with 50% dark chocolate. Bendicks hopes that the launch will tap into the growing trend for indulgent options as more shoppers buy into darker chocolate. Rebecca Robert, marketing director at Storck UK, says: “Having monitored consumer behaviour, we see an increased demand for dark chocolate, dairy-free and vegan options, as well as indulgent flavours and softer textures. “Bendicks Mint Fondants use the highest quality ingredients, and are Kosher Pareve, gluten-free and vegan, so certainly deliver against these consumer desires. We’re confident that the new pack will be enjoyed by our existing Bendicks customers, but will also encourage new shoppers to buy into the finest, quintessentially English after-dinner mints. “Stocking products that balance health and indulgence claims offers the greatest potential to drive value. The new Mint Fondants provide retailers with an opportunity to offer their customers great flavour and texture combinations as well as catering to shoppers looking for allergen-free chocolate treats.” 24

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Same taste, much less waste: Nestlé redesigns sharing bags In recognition of the nation’s growing awareness of environmental issues, Nestlé in the UK and Ireland has redesigned its confectionery sharing bags to use “significantly less” packaging – a move that will see at least 83 tonnes of virgin plastic taken out of its supply chain every year, the company claims. From this month, favourite brands, including Milkybar, Aero Bubbles, Munchies, Rolo, Yorkie, and Rowntree’s Randoms will come in narrower pouches. Nestlé sells approximately 140 million confectionery sharing bags in the UK and Ireland every year; this change will save almost one million square metres of packaging – equivalent in area to 131 football pitches. Cheryl Allen, head of sustainability at Nestlé Confectionery, told Cash & Carry Management: “We are working hard to reduce our use of virgin plastic by onethird by 2025. Removing 15% of the packaging from our sharing bags is an important step towards this goal. The move will not only save on the amount of virgin plastic we use each year, it will also have significant benefits throughout our supply chain in the UK and Ireland.

“For example, we can now pack more sharing bags at a time, which means that fewer lorries are needed to transport them. In total, we will be able to take the equivalent of 331 lorries off UK roads every year, saving 71,472 road miles and 130 tonnes of CO2 emissions.” Alongside reducing the amount of packaging used, Nestlé plans to make it easier to recycle plastic wrappers which are not currently collected at kerbside. Its partnership with TerraCycle3 gives consumers the ability to recycle confectionery wrappers now, while changes in technology and infrastructure are being worked on. Flexible plastic packaging can be dropped off at around 300 TerraCycle recycling points across the UK and Ireland. The waste is sent to a specialist recycler, where it is turned into plastic pellets that can be used to manufacture new products such as outdoor furniture and storage boxes, meaning that wrappers recycled this way will not end up in landfill or as litter in the environment. Further initiatives that Nestlé is undertaking as it works to make all its packaging recyclable or reusable by 2025 include making all Smarties packaging paper-based. This will remove approximately 250 million plastic packs sold worldwide every year.

INTRODUCING

THE BAR FOR

THE BOLD

100%

REC YC PACK LABLE AGING

DARE Y OU TO ST OCK C O H THE DR TICK C UMS #DELICIOUSLYDARING

LARGE CHOCOLATE BLOCKS ARE IN 25% GROWTH*

*Source: IRI Total market Data, Sugar Confectionery, 52wks to 21/02/2021

[ CONFECTIONERY ] Also catering to vegans, Nestlé recently announced the launch of a vegan KitKat. Arriving in the UK this year, KitKat V features chocolate blended with plant-based ingredients to balance the brand’s trademark crisp wafer. Louise Barrett, head of the Nestlé Confectionery product technology centre in York, says: “Taste was a priority when developing the plant-based chocolate for our new vegan KitKat. We used our expertise in ingredients, together with a test and learn approach, to create a delicious vegan choice for KitKat fans.” Alex Gonnella, marketing director at Nestlé Confectionery, adds: “We have seen an incredible response to our veganfriendly Fruit Pastilles since their launch last year, so we know how much people want to enjoy alternative versions of their favourite treats.” KitKat V is certified vegan by the Vegan Society and is made from 100% sustainable cocoa, sourced through the Nestlé Cocoa Plan in conjunction with the Rainforest Alliance. Walker’s Nonsuch has, unlike many confectionery companies, always specialised in making one thing – in this case, toffee. Using traditional methods and working to the motto of founder Edward Joseph, “to make quality toffee at affordable prices”, the Walker’s Nonsuch range includes toffee bars, bags, slabs and gifts.

Innovation and inspiration Leading confectionery wholesaler Hancocks has expanded its offering with several new lines. Bonds Just Desserts Berry Mess Mix Shaker Cup and Chocky Road Mix Shaker Cup take their inspiration from the chocolate treat rocky road and the dessert Eton mess. In addition, the PEZ portfolio has been extended with several new character dispensers, including Luigi in the Best of Nintendo selection, Black Panther in the Marvel Avengers range, and Miles Morales in the Spiderman selection. Hancocks has also added 10 new lines to its pick & mix range. These are Kingsway Sugared Multi 3D Hearts and Yellow Belly Snakes, and seven Makulaku liquorice sweets, each of which comes in a 2kg bag.

The company’s latest launch is Arabica Coffee Toffees. Made with coffee beans roasted in the UK, real Arabica cold brew coffee is added to Walker’s toffee during the final stage of the cooking process along with a natural coffee flavour. The cold brew coffee has hints of both milk chocolate and cocoa which “blend blissfully well, creating the perfect satisfying chew”. “With coffee consumption at an alltime high, our Coffee Toffees seemed a natural and exciting development to bring to our current range, as we look to attract younger consumers to the global toffee market,” says Jonathan Rae, production manager and grandson of the late Ian Walker, former chairman of the business. Arabica Coffee Toffees are available in 150g bags and 2.5kg bulk bags and, like all Walker’s Nonsuch products, are vegetarian-friendly and free from artificial colours, preservaCCM tives, hydrogenated vegetable oils and gluten.

For further information: Ferrero UK 020-8869 4000 Kervan Gida (01243) 530550 Mars Wrigley UK (01753) 550055 Mondelez International (01214) 582000 Nestlé Confectionery 020-8686 3333 Perfetti van Melle (01753) 442100 Storck UK (01256) 340300 Swizzels (01663) 744144 Valeo Confectionery (01977) 692500 Walker’s Nonsuch (01782) 321525

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It’s the little things that make life sweeter

The next few years are set to be pivotal for Kervan Gida. The vision is to drive Bebeto to become one of the top ﬁve sugar confectionery brands worldwide by 2023.

“We are an ambitious company by nature, so we have big plans to grow and expand over the coming years. Although we will continue to innovate and release new products, we have some excellent existing products in our portfolio and our objective over the coming year will be to invest in brand awareness.”

Kervan Gida is a family-owned business with 25 years’ experience in the confectionery manufacturing sector. Owner of sugar confectionery brands Bebeto and Dexters, the company has grown to become Turkey’s largest soft candy producer and exporter, with ofﬁces in the UK, the USA, Germany and Russia.

We’ve taken our best-selling shapes and ﬂavours and we’ve mixed, matched and repackaged them in a bigger bag format.

Having achieved year-on-year growth since it was established in 2015, the UK ofﬁce now distributes the Bebeto and Dexters brands to more than 12,000 retailers across the UK. It has established itself as one of the leading suppliers of sweets across the country and has ambitious plans to maintain this position. Managing Director, Stuart Johnston, says: “The UK ofﬁce has a pivotal role to play in the expected growth of Kervan Gida. Our UK business has grown by 25% over the past year, and Kervan Gida has reach sales of over €100m worldwide.”

“In 2021, we have the same ambition to deliver healthy sales that exceed our forecasts. We’ve grown to sit among the market leaders in the UK wholesale sector. This year we will focus on broadening our product range and our distribution channels.” “We’re conﬁdent in our long-term growth strategy.”, he adds. “In December 2020, we announced that we had become a public company, listed on the Turkish Stock Exchange. In line with our strategy, and to strengthen the position of Bebeto outside of Turkey, we’ve recently signed a preliminary protocol for the acquisition of shares in the European market. We will undoubtedly continue to look at acquisitions within Europe if and when they become available.”

Kervan Gida UK Ltd Unit 2, Rutland Way, Chichester, West Sussex, PO19 7RT

T. 01243 530550 /bebeto_uk

bebeto.co.uk /bebetouk

Kervan Gida’s UK Brand Marketing Manager, Gabriella Egleton, commented: “Bebeto is all about the little things that make life sweeter. Packed full of fun flavours and tempting tastes, our range includes laces, soft candy pencils, gummies, marshmallows and bubble gum lines.” “We began the year by reintroducing our consumers to our range of vegan laces and soft candy pencils, which consists of 13 SKUs it total - all of which have been certified vegan-approved by the Vegetarian Society. The vegan market is expected to rise to £1.1bn by 2023, so it’s important for retailers to ensure they have an inclusive confectionery range that is accessible to a wide audience. Like all our products, our vegan range is also 100% Halal certified.” “We’re also delighted to announce the release of our new 150g gummy range. We’ve taken our best-selling shapes and flavours and we’ve mixed, matched and repackaged them in a bigger bag format. This range includes Fizzy Watermelons, Strawberries, Big Mix and Big Fizzy Mix, and are available in both price-marked and non-price marked packs.” “We’ve got plenty of marketing activation planned for Bebeto this year. Given the current restrictions on events and face-to-face experiences, we’ll be revamping our online presence by focusing on our website and social media. We know that consumer engagement and feedback is invaluable, and we have big plans to interact through competitions and engaging content.”

[ HOT BEVERAGES ]

Out-of-home trends are still key In the convenience channel, the hot beverages category is growing at 19% year on year, which is more than double the rate achieved in the grocery channel (Kantar).

total of 97.6% of households buy into hot beverages each year and the category as a whole is now worth £2.4 billion (Kantar). One of the biggest trends is for consumers to try to replicate the ‘coffee shop’ experience at home, and suppliers have responded with relevant NPD and marketing activity.

Coffee The Nescafé brand accounts for 31.3% of the total spend in hot beverages across the convenience channel, and over 40% of this value comes from the top five selling products, reports Nestlé. These products are different pack formats of Nescafé Original, Nescafé Gold Blend and Nescafé Azera Americano, making these ‘must stock’ items. Wholesalers can provide extra value for their customers with these products by selling the price-marked variations, advises the company. It is also important to take note of pack preferences: with consumption in-home being far higher than in previous years, shoppers are choosing larger pack sizes (ACS). Wholesalers can maximise profits by providing an offering across all segments of tea and coffee, adds Nestlé. Key segments that are growing include roast & ground coffee, coffee pods and origins instant coffee (IRI). Recent NPD from Nestlé includes Nescafé Azera craft coffee, brought to the market through a collaboration with Grindsmith coffee roasters. Nescafé Gold has also focused on the roasting stage of coffee with the introduction of Roastery Collection in Light and Dark variants. This new product development is designed to bridge the gap between the premium and super-premium coffee segments. Taylors of Harrogate has redesigned the packaging for its core range, which includes its well-known Rich Italian and Lazy Sunday blends. After extensive customer research, the priority for the brand was to ensure easy navigation and recognition on shelf by expressing the brand’s heritage, clearly differentiating ground and beans, and simplifying the messaging on pack. Taylors of Harrogate is now the UK’s No.1 coffee bags brand (IRI) following the introduction of boxes of 80 individuallywrapped Coffee Bags for hotels, travel and workplaces in 2019. Each coffee bag contains fresh roast and ground coffee and works just like a tea bag, brewing in 28

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two minutes. The company’s multi-channel advertising campaign is expected to drive further awareness and demand for this product. “We know that there isn’t always the equipment or time to make roast and ground coffee, and our coffee bags offer a convenient solution,” says Natalie King, out of home account manager. Consumers can have a proper coffee no matter where they are and don’t have to compromise by drinking instant.” Caterers know that the foundation of a good coffee is high quality beans, says King. “At Taylors of Harrogate, we only buy speciality grade coffee, which is sourced from the world’s best growers. Our Espresso Coffee Beans are ideal for making popular coffees like lattes, flat whites, espresso shots and Americanos.” Last year, Jacobs Douwe Egberts (JDE) added Barista Editions to the Douwe Egberts out-of-home espresso bean portfolio. There are two products made from 100% Rainforest Alliance Certified Arabica beans. Signature Espresso, described as a “real all-rounder”, is medium dark roasted with notes of dark honey and citrus fruits. Rich Espresso is an “intense and full-bodied blend roasted to pack a punch”. It is dark roasted with notes of sticky treacle and almonds. The packaging features easy to follow barista recommendations for dosage, storage and serving tips, supported by online training videos that give baristas “the confidence to serve incredible coffee”. In addition, the Douwe Egberts seal comes with quality assurance, including how the company sources its beans. 100% Rainforest Alliance Certified means that each bean is grown and picked from farms supported by sustainable farming practices that help to protect forests, improve

DISCOVER NEW PREMIUM INSTANT COFFEE

Inspired by the Starbucks beverages you love Starbucks and the Starbucks logo are trademarks of Starbucks Corporation used under license by Nestlé.

[ HOT BEVERAGES ] farmers’ livelihoods, protect the human rights of farm workers, and help farmers mitigate and adapt to the climate crisis. At-home consumption of single-serve coffee grew by 23% in value in the year to 26 December, and these products now account for 18.6% of total coffee sales (Nielsen). “This is driving the trend of premiumisation within the coffee category, with consumers looking for a higher quality experience at home,” says Hannah Morris, category team leader at Jacobs Douwe Egberts, which offers Tassimo and L’OR capsules. “Single-serve coffee and machines are providing the perfect solution during the pandemic for those looking to get that high-quality coffee as part of their morning routine.” For consumers without a coffee machine, Kenco Duo comprises two ingredients in a fully recyclable pot, enabling consumers to craft their chosen beverage. The most recent addition to the Kenco Duo range is an Unsweetened option. Kenco Duo has 3.2% penetration of the entire speciality category (Kantar).

‘Price is less important for consumers purchasing roast and ground coffee and coffee capsules’ Hannah Morris, category team leader, Jacobs Douwe Egberts Morris emphasises that brands play an important role across all coffee formats, from instant to capsules, and points out that this is especially true in the convenience channel. “Price is less important for consumers purchasing roast and ground coffee and coffee capsules; therefore, there is an opportunity to encourage trade up to premium brands, boosting average spend,” she says. Rombouts is introducing home compostable filters across its One Cup Filter Coffee range, a development that will save 170 tonnes of plastic annually. The new eco-friendly filters are currently available for the Original variant (rsp £3.39), with a roll-out during the year for other variants. The filters and lids are made from bagasse, a by-product of natural sugar cane production. The inner film, essential to ensure the freshness of the product, is fully recyclable and the outer packaging is recyclable card. Sales director Simon Remmer comments: “With more people spending time at home than ever before, offering them a quick and easy way to make a quality cup of real coffee is a no-brainer. But at the same time, we can’t shy away from the coffee industry’s impact on packaging waste, particularly as it remains the second most consumed drink in the UK, after water. 30

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Andy Dixon drives Lyons forward Lyons Instant Coffee, a heritage British brand that dates back to 1894, has seen a resurgence under new ownership, reports Andy Dixon (pictured), who recently joined the business as wholesale sales lead after years of experience working with Kraft/Mondelez and JDE. Lyons Instant comprises a full range of coffees – powder, granules, freeze dried and whole bean instant – as well as wider selection of coffee mixes and flavours. The performance of Lyons granules has been very strong over the last 12 months, up 57% (Kantar). Jars, bags and tins are available, and a stick product will be launched shortly. Lyons Rich Roast Granules, Lyons Gold Roast and Lyons Decaffeinated will all be produced in this format, with 500 sticks per case. Lyons coffee comes in non-pricemarked packs and PMPs, with the PMPs offering value price points and shared margins approaching 40% at the rsps of £1.99 for Lyons Gold Roast Freeze Dried and £1.59 for Lyons Rich and Lyons Mellow. Dixon intends to drive the brand in cash & carry/delivered wholesale, foodservice and vending, and Lyons is able to offer flexible delivery solutions dependent on customer needs.

“We are a family company and feel a strong sense of responsibility to help protect the environment for future generations.” Coinciding with the launch is a wave of marketing activity, including advertising, sampling, digital, social and PR activity to reach mainstream shoppers across the UK. Following the success of its catering coffee range, Romana Caffé was asked by many of its customers about retail formats. As a result, just over a year ago, the company introduced two products: 100% Arabica ground and 100% Arabica beans in 250g packs. The company subsequently expanded the selection to feature 11 types, including an organic fairtrade variant. For foodservice, Romana Caffé’s bestselling lines are Luxury black label 1kg and Roaster’s Pride 1kg. In the next few months, a 6 x 1kg case will be introduced. The company works with four different roasters for its products. In total it offers 17 different blends from selected sources in Southern America, Africa and Asia. A total of 73% of coffee shop consumers believe that adding a syrup to their drink enhances the overall drinking experience. In addition, 55% of consumers are more likely to try a new flavour of drink if they recognise the syrup brand used in it (Monin and CGA).

Our newest editions are made of 100% Rainforest Alliance Certified™ Arabica beans expertly blended and roasted to meet the needs of every barista; to produce incredible full-bodied coffee, serve after serve. Stock up today and see your coffee sales soar! Discover barista to barista serving tips and Douwe Egberts front of house brand support.

Bringing people together over quality coffee since 1753

100% Rainforest Alliance Certified™ Coffee

[ HOT BEVERAGES ] Monin advises wholesalers to support outlets by providing them with the tools they need to make their offering stand out, such as limited time offers and seasonal varieties. “To maximise sales, promotional and concept drinks must be included as ‘hero’ items on the menu. Specials boards can also be used to highlight limited editions and work well when placed at the point of sale. Social media is also key for promoting specials, especially via Instagram if they offer visual appeal,” says Lee Hyde, beverage innovation manager.

Tea

The opportunities for increased tea occasions during the past year have benefited sales. People have renewed their love of tea, with tea sales up by 5.9% in value and 3.1% in volume in the total market (Nielsen). Among tea brands, Tetley, from Tata Consumer Products, claims to have maintained its position of having the largest number of buyers and the greatest household penetration. Although fruit & herbals and teas that tick the healthy lifestyle box are important areas to explore, everyday black and everyday decaf still account for the majority of sales, points out Parminder Walia, category development manager. In the convenience channel, everyday black tea generates 83.9% of overall tea sales, while everyday decaf accounts for 5.9% (Nielsen). Nearly 40% of all decaf tea buyers buy Tetley, notes Walia. A total of 60% of tea drinkers are now drinking more than one type of tea (Nielsen). Volume sales of green tea are up by 16.5% in total impulse (Nielsen). In the green tea segment, Twinings is the No.1 brand followed by Tetley. Meanwhile, fruit and herbal teas are particularly popular among 18-24s, with 39% regularly choosing herbal tea and 26% a fruity brew (Nielsen). Tata has a full programme of activity as part of its investment behind the Tetley brand in 2021 which will see the company adapt the way it engages with different groups to create desire for tea and drive sales. “Tetley has more social media followers than any other tea brand, and therefore digital marketing has a prominent role, supported with traditional advertising,” says Walia. Tata’s commitment to sustainability will take a prominent role this year too, with more steps taken to reduce plastic and improve recyclability. 32

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The importance of stocking the best-sellers in the tea category is also emphasised by Natalie King, out of home account manager at Taylors of Harrogate: “Standard black tea continues to perform well, with both value and volume in growth. Not only is Yorkshire Tea driving the majority of this growth, but we are also the No.1 tea brand (IRI), which makes us an essential wholesale listing.” Decaf tea is also achieving good growth, with value sales up 10.9% (IRI). “We think this is down to consumers drinking more tea at home and expanding their repertoire as a result,” says King. Yorkshire Tea Decaf has grown by 12.6% in the latest 12 weeks (IRI).” Stocking price-marked packs of tea can help boost sales, she adds. “PMPs stand out on shelf and encourage purchase by helping to communicate value and overcome the perception that convenience stores are more expensive than supermarkets.” A total of 28% of customers are dissatisfied with the tea that they are served out of home, and this dissatisfaction is mainly due to taste, strength and brand (YouGov). “Yorkshire Tea is the only major black tea brand to offer the same strength across all products regardless of where it is drunk,” King points out. The importance of sustainability has been recognised by Taylors of Harrogate: in 2019 it celebrated becoming 100% CarbonNeutral from field to shelf. “We’re proud of the proper way in which we achieved this, by setting up projects that not only offset our carbon footprint but that also improve the lives and livelihoods of our suppliers,” says King. In addition, Taylors of Harrogate continues to make good progress in eliminating oil-based plastics from its packaging. In line with the UK Plastics Pact, one-fifth of UK Yorkshire Tea teabags are now plant-based, and the company is on track to have switched the majority of these by mid-2021. Typhoo Tea is aiming to re-engage shoppers using a campaign that reinvigorates its ‘bold personality’. “The plans we are putting in place will see the biggest campaign of Typhoo Tea’s recent history come to life, and will not only keep those loyal consumers buying more, but will bring new shoppers into both the brand and the hot beverages category,” says Melody Chapman, sales & marketing director. “All of our upcoming brand plans are being developed to work alongside our current strategy to reinvigorate Typhoo Tea’s retail distribution in the convenience channel.” Chapman points out that shoppers are on the look-out for quality brands that they trust and that also provide good value for money. Typhoo Tea is currently available in £1 (40s) and £2 (80s) PMPs. Typhoo Tea Gold (80s), which was awarded two stars in the Great Taste Awards 2019, is also now available in the convenience channel in a pricemarked format.

p ro d u c t

[ HOT BEVERAGES ] Ingredients supplier Henley Bridge is expanding its offer into premium hot beverages by securing sole UK exclusivity on a number of brands. These include Dilmah from the premium Sri Lankan tea producer. The only international tea brand owned by tea growers, it is picked, perfected and packed at the Dilmah Tea Gardens in Ceylon. The range includes traditional speciality, gourmet and premium teas, herbal infusions, pure Ceylon green teas, flavoured teas, spiced chais, organic tea, the Dilmah Exceptional range and an exclusive Teamaker’s Private Reserve. Launched in 1988, Dilmah is described as the world’s first genuinely ethical tea brand: 15% of all pre-tax profits directly benefit people and the planet through a range of initiatives.

Hot chocolate Hot milky drinks was the fastest growing segment within hot beverages in 2020 with growth of 13%, predominantly driven by new shoppers and an increase in volume purchased by existing shoppers (Kantar). Hot chocolate represents 66% of the hot milky drinks segment and is worth £137 million (Kantar). Sales of Galaxy Hot Chocolate, from Mars Chocolate Drinks & Treats, showed growth of 15.8% year on year, while Maltesers Instant Hot Chocolate was up by 10.1% (Kantar). Within convenience, Galaxy Instant Hot Chocolate (200g) and Maltesers Instant Hot Chocolate (180g) and PMP jars are ‘must stock’ skus, says the company. They are available from Aimia Foods. In August last year, MCD&T redesigned its Maltesers Hot Chocolate products, creating synergy on-shelf with the Galaxy Hot Chocolate range. Hot chocolate pods are another growing segment within the hot milky drinks category and now account for 15% of sales (Kantar). MCD&T claims that its Galaxy Hot Chocolate Pods, which are compatible with Dolce Gusto machines, are driving the growth of pods at +26.6% year on year (Kantar). Michelle Frost, general manager, says: “Pods have proven really popular with consumers. Continued innovation within the category is not at the cost of other hot chocolate products, but is attracting new millennial customers.” To tap into the consumer focus on health and wellbeing, Mondelez International last year launched a reduced sugar variant of Cadbury Hot Chocolate, the UK’s No.1 hot chocolate brand (Nielsen). Available in 280g jars and with no artificial sweeteners, Cadbury Hot Chocolate Reduced Sugar has 30% less sugar than the original variant. Trade communications manager Susan Nash comments: “Reducing sugar is the second biggest priority for shoppers who are looking to improve their diet (Shopper Vista), so this innovation is driving incremental sales for retailers by bringing new shoppers into hot chocolate.” 34

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Cold hot beverages Each year over 170 million iced beverages are served in cafés throughout the country, and cold coffee now ranks in the top five coffee drinks in the UK (Allegra). Following the success of Kenco Iced Latte in retail, Jacobs Douwe Egberts has extended its Kenco Specialities range with Iced Latte in a catering tin. To prepare, caterers just add cold water and stir – they do not need to use a blender. Coca-Cola European Partners and Costa Coffee have applied insights from Costa’s coffee shop business to launch two new Costa Coffee RTD variants in 100% recyclable cans. Vanilla Latte is available in a 250ml size. The new variant is designed to tap into 85% growth in vanilla-flavoured RTD coffee over the last 12 months (Nielsen), while bringing a point of difference to the category. Consistent with the rest of the Costa Coffee RTD range, Vanilla Latte offers consumers an authentic coffee experience with less milk and 30% less sugar than its competitors. The second new variant, Flat White, combines a double shot of espresso with milk to deliver a stronger coffee taste and velvety texture, with just 76 calories per 200ml can. Flat White RTD coffee sales have more than quadrupled over the last year (Nielsen). Simon Harrison, vice president, commercial development at CCEP, says: “The RTD coffee sector is experiencing over 20% growth in value, as consumers look for pick-me-ups whilst on the go and increasingly at home as well. Within this, Costa Coffee RTD doubled in size in 2020 (Nielsen). Our strategy is to continue driving growth through incrementality, as more than 50% of Costa RTD consumers are new to the sector (Kantar).” CCEP will continue to support the Costa Coffee RTD range CCM with marketing and sampling activity this year.

For further information: Aimia Foods (01942) 272900 Coca-Cola European Partners (0808) 1000 000 Henley Bridge (01273) 476721 Jacobs Douwe Egberts (0845) 271 1818 Lyons Instant Coffee (0800) 328 4515 Mars Chocolate Drinks & Treats (01753) 550055 Mondelez International (01214) 582000 Monin (01795) 413754 Nestlé UK 020-8686 3333 Romana Caffé 020-8150 3827 Rombouts (01344) 774656 Tata Consumer Products 020-8338 4000 Taylors of Harrogate (01423) 814000 Typhoo Tea (0800) 633 5650

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[ FLAVOURED MILK ]

All in the best possible taste... Flavour innovations, price-marked packs and nutritional benefits are driving sales in the flavoured milks market, which is now worth £388 million (Kantar). By Kevin Whitlock.

or those of us of a certain age, ‘flavoured milk’ once meant a spoonful of Nesquik or instant coffee in a glass of the white stuff; to the slightly younger, it means a chocolate milk to help heal a student hangover. It was something of a niche line, something to get kids to drink more calcium-rich milk, or a protein-rich treatment for throbbing heads and indulgence-damaged stomachs. Now, however, flavoured milk is a mainstream product, found in ambient fixtures and chiller cabinets in shops and wholesale depots the length and breadth of the land. According to Mars Chocolate Drinks & Treats (MCD&T), a staggering 11.9 million households bought into the milk drinks category last year, with household penetration for these products at a record high, up 4.2% year-on-year (Kantar). Michelle Frost, general manager, believes the market is being driven by flavour and free-from innovations and a growing consumer interest in the drinks’ functional benefits. Chocolate remains the most important segment for convenience with a market share of 27% (about 95.3 million units sold) and value sales totalling £43.6 million a year (IRI), but coffee is the flavour that’s in growth, she says. “Meanwhile, dairy alternative drinks are growing even faster and the market is now worth an impressive £361 million and shows no signs of slowing down with 30.4% growth year on year (IRI),” Frost notes. And within convenience, the category shows 40.3% growth and a value of £58.4 million (IRI) – it is an area the wholesale trade should really be getting their retail customers into. MCD&T’s non-dairy range includes Galaxy, Bounty and Mars variants. MCD&T’s vegan drinks range (available in a 250ml format and approved by the Vegan Society) has performed “exceptionally well”, with sales now totalling £480,000, up 134% (IRI). “More than 500,000 people signed up to Veganuary earlier this year, surpassing the 400,000 in 2020 (Vegan Society) and so we are delighted to be able to offer consumers additional ways to enjoy their favourite confectionery brands,” adds Frost, who is also keen to point out that MCD&T has recently completed its ambition to have all its milk-based and dairy alternative drinks as no-added-sugar products. “We hope the move to no added sugar in our milk and dairy alternative drinks categories will encourage shoppers to opt for their favourite brands in a chocolate drink – confident that we’ll deliver on flavour whilst meeting demand for less sugar.” 36

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Another important, almost iconic brand is Grace Foods’ Nurishment, which for the past 40 years has been a key line in UK convenience stores, in its famous ring-pull can (and now bottles). It was one of the first drinks to push added nutrients – protein and vitamins – as a selling point. Bola Akintewe, brand manager, beverages at Grace Foods, says: “The flavoured milk market continues to provide value to the trade, despite prolonged lockdowns, growing value by 1.5% (IRI), and as restrictions start lifting there are indications that there is significant potential to grow further. To tap into this, suppliers need to focus on range in formats and flavour to increase appeal to consumers.” Grace Foods says that Nurishment, which has driven 28% of the category’s value growth (IRI) and maintained its top five volume sellers, will continue its focus to bring value across the trade chain.

Boosting flavoured milk sales Grace Foods offers advice that C&C/wholesalers can give to their retail customers: a Stock ready-to-drink bottles to target consumers who enjoy their flavoured milk drinking alone, whether they drink it on the go or as a treat at home. a Offer products with added benefits from trusted brands to give consumers choice on taste and enrichment, depending on their dairy drinking occasion and needs. a Site different formats, from easy-open and ready-todrink bottles to cans within the dairy fixture, to drive offtake when consumers are receptive to a milk purchase. a Leverage branded merchandising tools such as wobblers and shelf talkers/barkers to increase visibility to shoppers.

[ FLAVOURED MILK ] “Our focus in coming months is on growing distribution of our 330ml bottle range and dialling up awareness within the target audience that are looking for a tasty pick-me-up during the day, but in a ready-to-drink and single-serve format,” says Akintewe. Nurishment will also be promoted with a through-the-line campaign as it turns 40 this year, “highlighting its unfaltering presence in the community that has provided a great mix of tasty yet enriching product to be enjoyed”, according to Akintewe. Promotions on both formats – bundle deals on Nurishment bottles and £1.19 price-marked packs (PMP) – will run during the warmer months to deliver incremental value to both retailers and consumers as lockdown restrictions lift. Unsurprisingly, PMPs are widely seen as a key driver of sales in convenience stores. “Visible PMP pricing encourages shoppers to try new products with the confidence that the price will be the same next time they visit, encouraging repeat purchase,” says Michelle Frost of MCD&T. Wholesalers, she adds, can play a vital role in educating retailers and getting them to consider the benefits of stocking PMPs which “offer consumers obvious value for money and price reassurance”. As well as PMPs, ‘category champion’ brands (such as Mars, Nestlé, Yazoo, Nurishment) should be used both indepot and in-store to drive purchase and entice shoppers to the chiller – MCD&T’s Frost points out that despite many milk drinks being ambient, like soft drinks they are best presented to consumers chilled, “with on-the-go bottle tops providing a clear point of difference for those looking to drink on the move”. She adds that depots should also be stocking larger pack formats for consumers who enjoy milk drinks at home. Yazoo, the flavoured milk brand from FrieslandCampania, is now available in a new limited-edition flavour: Choc-Orange. The variant, which comes in standard and £1 price-marked packs of 400ml, combines chocolate milk with “sharp, sweet citrus tones to entice shoppers into the category by offering a new flavoured milk experience”. The popularity of chocolate orange as a combination continues to grow, with a 52% increase in UK search demand for the flavour versus last year (Google Trends). The new flavour is supported by a marketing campaign that includes video on demand, print and digital advertising, social media support, nationwide sampling and shopper marketing. Also new to the market is a chocolate flavoured milk from Jersey Dairy. Suitable for use in the home as well as in a range of foodservice venues, it is made from the milk of Jersey cows on the island of Jersey. David Ashton, Jersey Dairy sales manager, says: “The high nutritional content – it contains a unique type of butterfat and more calcium and protein than milk from other breeds of cow, has a higher level of vitamins and minerals 40

April 2021

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and is good for the immune system – makes it a healthy alternative to fizzy drinks or squash, so it will be popular with parents who want to keep a pack at home for making cold drinks or hot chocolate. “In leisure outlets and coffee shops, it is great in thick shake machines, blenders or straight from the carton, offering operators a flexible solution for a full range of beverage options – it is a great product across all seasons.” The chocolate flavoured milk is made from UHT skimmed milk, boasts a 12-month ambient shelf life prior to opening, and comes in cases of 12 x one-litre cartons. When many out-of-home venues were closed because of lockdown restrictions, drink shoppers turned to retail, with take-home sales of dairy drinks up 8.4% in the past year (Kantar), reports Isla Owen, senior marketing manager at f’real, part of Rich Products. “We also know that during the past 12 months, treating has overtaken health, with shoppers turning to more indulgent options as a reward or pick-me-up during these testing times,” she says. “More people have turned to their local convenience store, both for the essentials and ‘treat’ items. Our blend-ityourself milkshake brand f’real is made with real ice-cream and allows shoppers to customise the thickness of the shake, so it’s the perfect indulgent moment. “Restaurant quality products like f’real tie into the ‘hospitality at home’ trend we are seeing more and more of – shoppers looking for products that recreate the experience of CCM eating out, especially with summer on the way.”

For further information: FrieslandCampina (01403) 273273 Grace Foods (01707) 322332 Jersey Dairy (01534) 818 500 Mars Chocolate Drinks & Treats (01256) 471500 Rich Products (0330) 060 5100

[ BIG NIGHT IN ]

Still a big opportunity Evening snacking is worth over £6.5 billion (Kantar), and although lockdown is easing, the appeal of the big night in is likely to continue as consumers remain cautious about going out.

he enforced big night in during the pandemic has seen a shift away from impulse packs, with 24% of consumers buying more sharing packs than a year ago (Norstat). Matt Smith, marketing director of Tayto Group, explains: “A night in front of the TV or a Zoom catch-up with friends has become the norm, and people are treating themselves with a pack of their favourite snacks such as Golden Wonder Ringos, meaning wholesalers need to have a snacks offer that covers a range of brands and pack sizes.” Tayto has expanded its £1 PMP range to include Spicy Bikers and is supporting the product with digital activity, including opportunities to win bikes and an independent retailer focused trade campaign. The company has also added a Sour Cream & Onion flavour to its Ringos range, and it has made its Cheese & Onion variant of TransformA-Snack available as a £1 PMP. In recent months, pork snacks have been the star performer in crisps & snacks, up by 10.1% (IRI). Tayto has launched the biggest ever campaign for pork scratchings, with the strapline ‘There’s no matching a scratching’. The campaign will include national radio coverage through a partnership with TalkSport, as well as a heavyweight regional campaign in the Midlands (where sales of scratchings are particularly strong) across out of home, radio and digital. The initiative will reinforce the ongoing digital activity for the Mr Porky brand. “While consumers are still spending significantly more time at home, there is an increased desire to make at-home occasions feel more special, and snacks are an affordable in-home treat,” notes Matt Collins, trading director of KP Snacks. Some 48% of consumers eat crisps, snacks & nuts when watching a film at home, and 48% say snacks are a must for an evening in with family (Mintel). KP offers a wide selection of brands and products to meet big night in needs, including Tyrrells, KP Nuts, McCoy’s, popchips and Butterkist. According to Jon Wood, commercial director of Calbee UK, shoppers are looking to try something different to inject some excitement into the big night in. Calbee recently launched Loaded Fries, its first branded snack product under the Seabrook brand. Available in Cheese & Bacon and Chilli Heat flavours, the product comes in a 6 x 19g multipack, 130g sharing bag and £1 PMP.

According to Matt Goddard, wholesale trading director at PepsiCo, as we begin the slow transition out of lockdown, larger packs are likely to continue to dominate over singles. “Shoppers are still looking to enjoy a big night in at home and this is likely to continue once small, intimate events with friends and family are able to be hosted,” he says. PepsiCo has introduced new pricemarked packs for a number of its multipack and sharing bag lines, including Walkers Classic Variety and Quavers Cheese six-packs. In addition, larger Doritos and Walkers Sensations sharing bags have been launched in the convenience channel. The £2 PMPs are available for Doritos Chilli Heatwave and Tangy Cheese, and Walkers Sensations Thai Sweet Chilli. To make the most of the big night in opportunity, retailers should focus their display on products that are ideal for sharing, such as Starburst ‘tear and share’ pouches, advises Jo Sinisgalli, senior brand manager for gifting at Mars Wrigley. “In order to drive impulse sales through maximised availability, core lines should always be updated and constantly well-stocked, as well as showcasing NPD,” she adds. New from the company are ‘100kcal or less’ bars, a new format for Mars, Snickers and Twix. In addition, Mars Wrigley’s current ‘Get Your Ding Back’ campaign for Extra is aimed at driving chewing gum consumption at home. Chocolate is still the top choice for those settling down for a night in with friends and loved ones, followed by sugar confectionery, biscuits and crisps, reports Mondelez International. The company’s popular chocolate sharing bags are growing by 4%, driven by Cadbury and Green & Black’s, and a recent addition to the Maynards Bassetts range is Fruit Smoothie Jellies in 130g bags. Mark Walker, sales director of Swizzels, emphasises that sugar confectionery is key for the big night in category, with sales of sharing treats on the increase. Swizzels’ most recent launch is Drumstick Chocolate Bar. Currently available to cash & carries in the standard pack format, the product will also be offered in a PMP later this year. Hanging bags are very important for the big night in occasion. Sales of 100-199g bags have seen growth of 6% over the past year and now account for 54% of total sugar confectionery sales (IRI). Swizzels has several products in this segment, including Squashies – the No.1 hanging bag brand in sugar confectionery (IRI). Squashies will be at the forefront of Swizzels’ summer marketing activity, which will include consumer competitions and digital and PR activity. www.cashandcarrymanagement.co.uk

April 2021

[ BIG NIGHT IN ] Ice cream is another popular choice for the big night in. In convenience, ice cream sales are currently worth £424 million, with handheld ice creams in multipacks proving to be the strongest segment, with sales worth £170 million (IRI). Sales of ice cream multipacks from Mars Chocolate Drinks & Treats have increased by 81% in the last year. For consumers who prefer a hot snack or meal, Rustlers from Kepak is increasingly being used by retailers as an essential part of a big night in meal deal. Alongside the Rustlers Quarter Pounder, the No.1 micro-snack in impulse, Rustlers offer bigger eats that can meet the dinner occasion including Rustlers Double Decker, Rustlers Deluxe and the twin packs range. Soft drinks are an important part of the big night in. To help retailers cater for shoppers drinking more soft drinks at home, Suntory Beverage & Food GB&I has reduced the on-pack price to £1.50 of some of its most popular drinklater products, including Ribena 600ml squash and Lucozade Energy one-litre. The company also recently introduced a two-litre bottle of Orangina, price-marked at £1.79. AG Barr has announced the permanent return of Irn-Bru 1901. Made to the unique 1901 recipe, the drink is available in 750ml glass bottles, ideal for a big night in. Adrian Troy, marketing director, says: “1901 proved super-popular with fans who really loved the recipe but were disappointed when stock ran dry. Now it’s back for good, so shoppers can enjoy it year-round.” Socialising in the house with family or house mates has increased, with 2.1 billion at-home social soft drinks occasions for adults, up by 14.7% (Kantar). The growth of mixers continues to outpace total soft drinks (Nielsen) as a result of a boom in sales of gin and an increase in consumption of mixers without the addition of alcohol (Kantar), reports Britvic. The company has launched its branded tonic water into convenience for the first time, with the pub classic available exclusively to wholesale in an 850ml bottle, in Classic and Low Calorie variants. Canned RTDs will likely see a boost in sales once restrictions are lifted, allowing friends and families to meet for small gatherings and evenings in together, predicts Kingsland Drinks, which last year launched Vin Crowd low-calorie wine spritzers and Mix Up pre-mix alcoholic drinks. One of the biggest trends is consumers buying for the last-minute ‘meal tonight’ occasion, notes Hannah Dawson, head of category development, off-trade at Diageo. “This presents a huge opportunity, as 44% of shoppers plan to 42

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Wholesaler viewpoint “Big night in is prevalent, and the prime football season is coming up soon as a key occasion to drive this theme. We are planning to make this more of a feature in depots. “2021 is still a year with a lot of uncertainty; therefore, special events pre-summer will still likely be catered for in the home. “Evening snacking is quite different to day-time snacking and so is likely to drive some different behaviours. Big night in is often centred on the need for a treat, in front of the TV, with three or more people and amongst 16-44 year olds (Kantar). “We call out the big night in theme in our leaflets and offer promotions across products that drive the theme, such as popcorn, sharing snacks, soft drinks and alcohol. Big night in bundles across the grocery market are also targeting take-away type evening meals, such as pizza.” Kenton Burchell, trading director, Bestway Wholesale

purchase from the beers, wines and spirits category as part of their store visit,” she says. The growth of gin is showing no signs of slowing down, and Tanqueray and Gordon’s cater for this demand. Value growth of still wine in convenience increased by 28% in the past 12 months, whilst volumes were up by 22% in the same period (Nielsen). “The big night in has understandably become the norm during the last year and we’re likely to see this behaviour continue in the months ahead,” predicts Norbert Jozsa, head of category and insight – Europe at Accolade Wines. Hardys and Echo Falls are the top two convenience wine brands in CCM terms of brand sales share.

For further information: Accolade Wines (01932) 428600 AG Barr (01204) 664200 Britvic (0345) 758 1781 Calbee UK (0330) 660 0015 Diageo 020-8978 6000 Kepak (01772) 688300 Kingsland Drinks 0161-333 4300 KP Snacks (0845) 601 7583 Mars Chocolate Drinks & Treats (01753) 550055 Mars Wrigley (01753) 550055 Mondelez International (01214) 582000 PepsiCo (0118) 930 6666 Suntory Beverage & Food GB&I 020-3727 2420 Swizzels (01663) 744144 Tayto Group (01536) 204200

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C&C Management April 21

Articles inside

Big Night In

Flavoured Milk

Hot Beverages

Editor’s Comment

Confectionery

Talking Point

Jonathan Kemp explains why he is teaching university students about the FMCG industry

Industry News

face as restrictions are lifted

in business post-lockdown