SPOTLIGHT FEATURING MATT NORMAN OF CONFEX
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
Exclusive!
Swindell and Robinson on driving delivery and protecting C&C
ELECTRIC SWITCH
Wholesalers test a new generation of lorries CATEGORY INSIGHT
Confectionery Hot Beverages Big Night In Flavoured Milk
APRIL 2022
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Contents
April 2022
This month don’t miss... 07 6
Coral Rose moves from Country Range to Fairway Foodservice.
07
10
Booker puts a price hold on over 250 catering lines until 31 May.
The ‘Celebrate Wholesale’ event raises £46,000 for water charity.
ESSENTIALS 05 06
18
Editor’s Comment Industry News
FEATURES 14
Interview Parfetts’ joint MDs Guy Swindell and Noel Robinson talk to Cash & Carry Management’s Kirsti Sharratt about their plans for the employeeowned business.
18
Spotlight Matt Norman, senior business development manager of Confex.
34
CCM Chefs’ Own-Brand Awards Have you entered yet?
Confex’s Matt Norman enjoys socialising and is a keen cyclist, runner, swimmer and golfer; he’s the first to admit he can’t sit still!
CATEGORY INSIGHT 19
Confectionery
31
14
Confectionery is meeting consumer demand for inexpensive treats. 22
Flavoured Milk Flavoured milk performs particularly well in the convenience channel.
24
Hot Beverages Suppliers offer advice on getting the right mix of coffee, tea and hot chocolate core brands and NPD.
31
Big Night In Enthusiasm for at-home entertaining remains post-lockdowns.
Parfetts ensures there is always a hive of activity in its C&Cs.
The big night in continues to offer a big opportunity to boost sales.
www.cashandcarrymanagement.co.uks April 2022
03
NEW: SPEARMINT AND BERGAMOT WILDBERRY EXTRA-STRONG NEW STRENGTH
NEW FLAVOUR
BEST SELLER
Why stock it? • The nicotine pouch category is worth £2.2mi and is growing 40% year-on-year. • Strong and Extra-Strong now make up 72.6% of salesii, and Extra-Strong is the fastest growing strength.vi • This is the first ever Spearmint nicotine pouch available in an Extra-Strong strength • Bergamot Wildberry makes up 63.8% of all fruit flavour salesiii with menthol accounting for 77.6%.iv
Ross Hennessy, Sales Vice President at JTI UK, says:
“Retailers can now stock a full range of Nordic Spirit flavours, including Mint, Spearmint and Bergamot Wildberry. With Regular, Strong or Extra-Strong strengths available across our range, retailers can offer something for everyone and capitalise on the category’s potential.”
Stock up on the Nordic Spirit Extra Strong range now! Retailers should visit www.jtiadvance.co.uk or speak to their local JTI Business Advisor for more information. *IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Q4 21. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @ nordicspirit_uk or using our details at nordicspirit.co.uk/contact **Retailers are of course free to sell JTI products at whatever price they choose i.IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Q4 21. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @nordicspirit_uk or using our details at nordicspirit.co.uk/contact ii. IRi Market Place, Value Sales, Nicotine Pouch Category, Total UK, Dec 2021 iii. IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Q4 21. iv.IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Q4 21 vs. Q1 21. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @nordicspirit_uk or using our details at nordicspirit.co.uk/contact iii.IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Dec 2021 iv. IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Dec 2021.
[ EDITOR’S COMMENT ]
Is consolidation on the cards?
N
ews that Coral Rose is leaving Country Range Group (CRG) to join Fairway Foodservice as the successor to CEO Chris Binge (page 7) has taken the trade by surprise, probably because the groups are perceived as rivals. It got me thinking – once again – about possible consolidation in the buying groups arena. Many believe that having eight UK buying groups (Caterforce, Confex, CRG, Fairway, NBC, Sterling Supergroup, Sugro and Unitas) is excessive, and there have long been predictions that two or more of the foodservice-focused groups will merge. Binge, who is retiring after more than two decades at Fairway, told me that he thought for a few years there would be consolidation, but it just didn’t happen: “A few of us used to meet for coffee – Vanessa from Sterling, Coral from CRG, and Nick [Redford, former MD] from Caterforce – and we would talk about things we might be able to do together for the benefit of our members, but nothing came of it. “Generally, independents want to be independents,” he added. “The step of joining one buying group is maybe not too difficult for them, but then the competitive nature comes into play – they want their group to have different ammunition from other groups.” Will the points of difference that make these organisations appealing to individual wholesalers continue to be
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
Swindell and Robinson on driving delivery and protecting C&C
ELECTRIC SWITCH
Kirsti Sharratt Managing Editor
NEVER MISS AN ISSUE...
SPOTLIGHT FEATURING MATT NORMAN OF CONFEX
Exclusive!
sufficient to maintain the buying group status quo? We shall see, but in the meantime there’s no doubt that the foodservice groups have their work cut out in supporting their members. Following the pandemic lockdowns, which severely affected many of the groups’ wholesalers, the faltering economy has been clobbered again with price rises exacerbated by the RussiaUkraine war. We do not know yet what the full impact of this will be on foodservice operators, but history tells us that the tightening of purse strings hits luxuries like eating out pretty quickly, and this will have a knock-on effect on wholesalers and their buying groups. It will be interesting to see how Fairway evolves under Rose’s leadership, and how CRG progresses with someone new at the helm. Ton Christiaanse, non-executive chairman of CRG, told me that while it was a real shame that Rose is leaving, “the situation is also an opportunity” to re-evaluate the managing director role and see what attributes are needed to take the group forward. Talking of new leaders, turn to pages 14-17 to find out how Guy Swindell and Noel Robinson, who took over as joint MDs of Parfetts in January, plan to develop the employee-owned business.
APRIL 2022
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.
Wholesalers test a new generation of lorries CATEGORY INSIGHT
Confectionery Hot Beverages Big Night In Flavoured Milk
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Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email mail.winlove@btconnect.com Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt Contributor Siobhan Kielty ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,448 July 2018 – June 2019 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates, feature lists and deadlines can be accessed online by visiting: cashandcarrymanagement.co.uk
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April 2022
05
[ INDUSTRY NEWS ]
In-store campaign AF Blakemore has launched an interactive augmented reality (AR) game app that offers customers the chance to win prizes at SPAR stores. The SPAR Play & Win Trivia Game is live in Blakemore Retail and participating independent stores across SPAR’s Meridian & Welsh Guild until 27 April.
Thousands of prizes from top brands are up for grabs daily. There is also an opportunity to win tickets for the Queen’s Platinum Jubilee celebrations, Alton Towers, Thorpe Park and more.
Modern look Confex has a new corporate logo – the first change to its branding in 20 years.
Director Jess Douglas said: “We are delighted to share our new logo with the industry, which, after careful consideration, has been chosen to represent the business in a forward-thinking and modern way. “Although we are in our 50th year of trading, Confex is always evolving and growing, with the new logo being a symbol of a unique, collaborative and diverse wholesale buying group for the future.” 06
April 2022
Bestway shows improvement Bestway Wholesale Holdings reported 9.6% growth in revenues during the year ended 30 June 2021, with like-forlike sales up 2.5%, mainly driven by tobacco. Operating pre-tax profit was £37.2 million, equivalent to 1.4% of revenue. The figures include a contribution from Costcutter, which Bestway acquired on 19 February 2021. Bestway Meanwhile, Retail, which covers Bargain Booze, Central Convenience Stores and Wine Rack, showed some improvement but still recorded a loss (loss before tax of £4.9 million versus £10.6 million the previous year). Store numbers were also down – from 587 to 566 – but sales were up from £388 million to £396 million. The annual accounts stated: ‘The directors expect the loss position to improve further in the year ending June 2022.’
‘The results are a testament to our strategic approach.’
Dawood Pervez, managing director for Bestway Wholesale and Retail, said that the business had focused on integrating operations and delivering the associated synergy benefits. He commented: “Aside from Covid-19, market conditions in the wholesale sector remained challenging, with supply chain issues, staff availability and inflationary pressures. “We have also had to absorb the continued impact from the National Living Wage increases, as well as additional costs and the
uncertainty surrounding Brexit. “Despite these challenges, we remained committed to our strategic plans of offering improved service and convenience to customers and we continued to improve and manage availability of products during this period which resulted in a positive impact on sales. “Despite the economic turbulence and challenges faced during 2021, the results are a testament to our strategic approach and operating model, which has increasingly positioned us as the home of choice for the entrepreneurial retailer whether affiliated or unaffiliated, and with a fascia to suit every retailer, regardless of size or location.” Bestway Wholesale is part of the wider Bestway Group, which saw 10% growth in revenues during 2021 to £3.75 billion, with operating pre-tax profit of £350 million.
New HQ for HB Clark Kitwave Group has opened a new distribution warehouse in Wakefield. This facility replaces the group’s previous Wakefield depot and will act as the head office for on-trade wholesaler HB Clark. The site is 165,000 sq ft and includes a purpose-built unit of 65,000 sq ft with a height of over 12 metres. The premises will utilise warehouse management systems that will drive improved operational and administrative efficiencies, as well as providing modern spaces for coaching, training and in-person meetings. Kitwave’s InFAMous Soft Drinks post-mix production
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facility will relocate from its Leeds depot to the new Wakefield warehouse by May this year to bring operational synergies, including new equipment to improve capacity and better storage facilities. HB Clark will also
shortly introduce an online purchasing solution. A total of 80 staff are making the move from the old Wakefield site and Leeds to the new premises. There will be no job losses from either site.
[ INDUSTRY NEWS ]
From Country Range to Fairway Coral Rose, managing director of Country Range Group, is joining Fairway Foodservice on 1 September to succeed chief executive Chris Binge, who is retiring after 24 years with the group. In the meantime, Rose, who is also chair of the FWD, is continuing to work remotely for Country Range Group on strategic projects. Binge told Cash & Carry Management how the change came about: “I have been looking to retire for about 18 months. Our internal candidate Steve Jeavons (purchasing director) decided not to take the CEO role as he is looking to retire in a few years himself, and so we went through a process of over 200 applicants. “We had a specific template of the skills and knowledge and experience we
Coral Rose
Chris Binge
wanted, and the board was unanimous. Coral was outstanding. With her experience and qualifications, I think you would be hardpressed to find a more suitable candidate.” Ton Christiaanse, nonexecutive chairman of Country Range Group, said it was “really a shame” that Rose was leaving the group: “She was doing a very good job for us, and this [development] is unfortunate but it is
a personal journey for her,” he said. “However, the group is stable, we have good members, and the situation is also an opportunity – we will see what we need internally going forward before we look for a replacement.” Meanwhile, Binge will become chairman of Erudus, a source of allergy, nutritional and technical product data. His role will be strategic rather than hands-on.
Product price freeze Booker has frozen the prices of more than 250 of its popular catering lines until 31 May. In its Catering Guide Spring 2022, the wholesaler highlights a selection of soft drinks, alcohol, snacks, grocery items, cleaning products and some frozen and fresh lines, including joints of meat, that are subject to the price hold. Stuart Hyslop, managing director – catering and small business at Booker, said: “With food prices continuing to rise and uncertainty in the market, Booker is delighted to reassure our catering customers that over 250 lines will be fixed until the end of May, allowing them to make more and save more during a busy season ahead.
“We are committed to being ‘here when you need us’ for customers – delivering the best in choice, price and service. By listening to feedback, we have extended the price lockdown on some key items such as chips, while including other lines for the first time.”
Binge will leave Fairway Foodservice at the end of September, after a short handover period. Following that, he will continue to be available, if needed, by phone or email to answer any questions about Fairway. However, he also plans to do some travelling. “My son left his job when he was 27 and he and his girlfriend went round the world for two years. As soon as he started sending photographs and Instagram posts, I just thought ‘I want to do this!’. That’s the ambition.” He added: “Coral is not just a safe pair of hands. She’s got skills and knowledge I don’t have. I think she will look at everything with different eyes, and blending her knowledge with what we’ve got already at Fairway, I think it will improve.”
Trading controller Caterforce has appointed Iain Julier (right) as its new trading controller. He joins the group with more than 26 years of purchasing experience in retail, wholesale and foodservice, having previously worked at Booker/Makro and Iceland Foods, where he specialised in fresh and frozen fish buying. Most recently, he was sales manager UK & Europe at Tassal Group. In his new role, Julier will work with key stakeholders to develop and implement category plans, hit commercial targets, and deliver the buying strategy for the group. “I am delighted to be part of the central buying team at Caterforce,” he commented. “The group has been going through a strong period of
growth. With two new members joining last year and ongoing investment in technology, it feels like a really exciting time to join.” Managing director Gary Mullineux added: “We are thrilled to welcome Iain to the team. I have no doubt that his many years of experience will strengthen the buying team and he will be a great asset to the group.”
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April 2022
07
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[ INDUSTRY NEWS ]
Scottish transfer Telly Sarai, formerly general manager of SK Food & Drinks, has been appointed licensed trading director of United Wholesale Scotland. Sarai (pictured) joins the Glasgow wholesaler after six years with SK Food & Drinks, which is based in Birmingham. Before that he spent 21 years with Hyperama – in 1995 he joined its inaugural graduate trainee programme and worked across all areas of the business. Eventually he settled into a buying role, becoming senior trading controller and part of the management team. Sarai replaces David Reilly, who has decided to leave the business.
Fresh range JJ Foodservice has extended its fresh UK halal lamb range. Newly available in all of the wholesaler’s London branches is a premium selection of hind shanks and cutlets in 2kg packs, and split forequarters in 8kg packs. “Our new, locally-sourced fresh lamb range will help caterers to put premium dishes on their menus, just in time for BBQ season,” said chief product officer Sezer Ozkul.
10
April 2022
Well-attended fundraiser Over £46,000 is expected to be raised for Every Well Water Foundation following the ‘Celebrate Wholesale’ charity dinner organised by Time Wholesale. In addition, £5,000 is being donated to the British Red Cross Ukraine Crisis Appeal. More than 400 guests attended the event at The City Pavilion, Romford, last month. These included suppliers and 14 wholesalers: Booker, Brakes, CoBev, Global Cardiff, Holland Bazaar, HT Drinks, Imperial, JJ Foodservice, Millennium, MSB, RA Trading, Star Beers, Time Wholesale and Unitas. Every Well Water Foundation is a charity organisation designed to help trusted local charities around the world to fund safe and clean water projects and sanitation requirements
in developing countries. The welcome speech was delivered by Neil Turton, chairman of the charity trustees, along with representatives from one of the charity recipients, Drop4Drop. More than 60 auction and raffle prizes were donated by guests, with all income being given to the charity. Sony Bihal, managing
director of Time Wholesale and founder of the Every Well Water Foundation, said: “We had a fantastic evening. We wanted to give everyone the opportunity to ‘Celebrate Wholesale’, which we did, so a massive thanks to everyone who attended and also to everyone who donated product or prizes to make it such a special evening.”
Growth of over 30% in year so far Sugro has achieved 32% growth so far this year compared to the same period in 2021. The upbeat news was shared with delegates at the group’s 2022 convention, held recently in Argentina. More than 60 delegates attended the event, which included a conference and networking sessions. Head of trading & marketing Yulia Petitt told Cash & Carry Management: “Sugro has had 16 consecutive years of growth. With some excellent business opportunities being discussed between members and suppliers during the convention trip, there is no doubt that the group will continue with its remarkable performance this year.
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“As always, the convention trip was delivered with very high standards. It was great to see how the event once again brought the Sugro ‘family’ together, this time in the incredible setting of Argentina.” In partnership with
Tomorrow’s Forests, Sugro UK has invested in planting 400 trees in Somerset, with the aim of offsetting the carbon emissions for its convention in Argentina. Sugro UK is committed to continue with the project for all future events outside the UK.
[ INDUSTRY NEWS ]
Head of marketing Parfetts has appointed Jamie Ferguson to the new role of head of marketing. He will lead the marketing department and oversee all aspects of the Parfetts brand, as well as supporting the Go Local and The Local fascias. Fe r g u s o n (pictured) joined Parfetts in November as interim head of marketing and he has now been confirmed in the role officially. His experience includes over 26 years with some of the UK’s leading marketing agencies and he has worked on a wide selection of symbol brands.
Student talent rewarded
Left to right: Steve Munkley from the Craft Guild of Chefs; student chefs Sam Paoli, Paulo Dela Cruz and Maria V Carbone; and Emma Holden of Country Range Group.
A team from New City College in London has been crowned winners of the Country Range Student Chef Challenge 2022. Sam Paoli, Maria V Carbone and Paulo Dela Cruz, under the guidance of lecturer Jeff Mason,
triumphed under the watchful eyes of the Craft Guild of Chefs judges in intense competition conditions. Competing against seven other colleges from around the UK, the talented student chefs had to recreate their menus and present them to
New impulse category guide Unitas Wholesale has launched a new Plan for Profit impulse category guide, which highlights the core lines for independent retailers across confectionery, sweet snacking, crisps and soft drinks. This guidance is updated annually to reflect changing customer behaviours and is developed alongside supporting category experts and a network of wholesalers, backed by the latest market data. The design of the latest impulse guide has been simplified, with icons to easily identify the best-sellers in each sub-category and those that are new to the core range. VAT-free products are clearly signposted, along
with price-marked packs to reflect the important role these products play in improving shopper confidence and driving value. The guide also contains regional products to help with store profiling across different parts of the UK. In addition to the core
range listing, Unitas has included planograms and a greater focus on category insights within this year’s edition, enabling retailers to make a more informed decision about the products they stock. The impulse guide also includes High Fat Sugar & Salt (HFSS) Regulation Guidance, provided by the ACS, to help retailers prepare for the new legislation coming into effect in October 2022. Printed copies of the new Plan for Profit impulse category guide are available in selected Unitas Wholesale member depots, and an online version of the guide can be accessed at planforprofit.co.uk and via the Plan for Profit app.
the Craft Guild of Chefs judges within 90 minutes in front of a live theatre audience at the Hotel, Restaurant & Catering Show in London. Country Range Group head of marketing and Challenge organiser Emma Holden said: “Well done to the team at New City College for coming out on top in the Challenge. It was an intense final, and the standard on show from all the chefs was terrific.” In addition to the glory of winning and their certificates and medals, the successful team members will receive an overnight stay and meal at a Michelin star restaurant; a stage working and learning what Michelin-level cooking is all about; and a Country Range Student Chef Challenge engraved Flint & Flame knife.
Recognition Paul Coward, 47, a health and safety officer at James Hall & Co, was named the Higher/Degree Apprentice of the Year at the Lancashire Apprenticeship Awards 2022. Coward (below) began his career with James Hall & Co on the production line in food manufacturing 12 years ago, before moving into the training team, and latterly health and safety. He recently completed his Level 5 Operations Manager Apprenticeship with distinction. Commenting on the award, he said: “I feel extremely happy to receive recognition for my work.”
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April 2022
11
[ INDUSTRY NEWS ]
Wholesalers test electric vehicles The Scottish Wholesale Association partnered with Volvo Trucks to host its first Electric Vehicle Experience event on 5 April. The 19 guests were able to test-drive one of the UK’s first all-electric HGVs – a Volvo FL 16.7t. Aimed at wholesalers who wanted to glean more information about electric vehicles and how best to start making the transition to EV fleets, the event also provided an opportunity to question Volvo engineers about EV vehicle technology. Delegates heard from Transport Scotland on the nation’s transition to net-zero fleets and Scottish Power Energy Networks on resourcing and supporting the power demand. In addition, traffic management systems specialist Swarco, which provides much of the EV charging infrastructure that drivers
use across the country, talked about smart charging solutions. Colin Smith, SWA chief executive, said: “We’re experiencing considerable interest from members who are committed to reducing their carbon footprint and this event provided an excellent platform for wholesalers to learn more about the technology. “This is an extremely exciting and important time for the SWA and our members as we help shape the
future sustainability of our sector and Scotland’s food and drink supply chain.” Meanwhile, JW Filshill has signed a Memorandum of Understanding with ScottishPower to explore the potential of using green hydrogen and electrification to power its fleet. The partnership could see over 35 vans and lorries powered by green hydrogen and electrification, and over the course of a year this could save an estimated 1,100 tonnes of CO2.
Keith Geddes, chief financial and operating officer at Filshill, said: “As a delivered wholesale business our fleet of vehicles makes up a large proportion of our carbon footprint; therefore exploring options such as using hydrogen instead of diesel is extremely important to us.” AF Blakemore recently undertook a week-long trial of a 19-tonne Electra e-Cargo refrigerated rigid vehicle, which takes up to 10 hours to charge and has a 130-mile range. Over the course of a year, replacing one of the wholesaler’s standard diesel rigids with this type of electric vehicle could save the company more than 30 tonnes of CO2 emissions. Dave Higgs, logistics compliance manager, said: “We are hoping to do a number of trials over the next five years to understand the potential of electric HGVs.”
Catering in care sector Support continues
Brakes has published a Care Showcase magazine. Available as a printed version and an online digital copy, the 88-page magazine is a guide to Brakes’ products and services that deliver nutritious, enjoyable foods to 12
April 2022
meet the differing needs of care catering residents. The company has collated nutritional advice, menu support and product information. This is backed up with advice from the Brakes care team. “Mealtimes are often the highlight of the day in care homes and are central to the physical wellbeing of residents,” says Brakes’ head of customer marketing Cathy Amos. “Our Care Showcase publication brings together all the specialist knowledge and advice required to cater for residents, whether they be simply elderly, more complex dementia patients, or those who have physical difficulties eating.”
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Support for the people of Ukraine continues, with wholesalers like Forrest Fresh Foods taking an active role. Commercial director Mark Craven arranged for four lorry loads of stock to be taken to refugees and charities in Poland, and he intends to take more goods across. Meanwhile, Hertfordshirebased craft and speciality
beer importer Euroboozer has rescued 30,000 pints (and counting) of beer from Kyiv-based craft brewer Varvar Brew to raise money for the people of Ukraine. As Cash & Carry Management went to press, the stock had reached the UK and was being delivered to the hundreds of pubs, bars, restaurants and retailers that had pre-ordered the beer. In addition to paying Varvar the full price for the stock (around €55,458.86 so far), Euroboozer will be donating all profits from the sale of the beer to www.drinkersforukraine.com, which is raising money for humanitarian relief.
Evolution not revolution In their first in-depth interview since becoming joint MDs of Parfetts, Noel Robinson and Guy Swindell talk about symbol groups, trading with customers, and employee ownership.
A
record year for Parfetts has resulted in the employeeowned business awarding a 14% tax-free bonus to every one of its 853 staff. In the year ending 30 June 2021, the C&C/wholesaler achieved a £570 million turnover, up 28% on the previous year, and £14.6 million pre-tax profit, up 26%. Joint managing directors Guy Swindell and Noel Robinson (above left and right respectively), who took over from Greg Suszczenia and David Grimes in January, spoke to Cash & Carry Management’s managing editor Kirsti Sharratt about their plans and strategy for the business. To what do you attribute Parfetts’ success in the last financial year? Employee ownership is at the heart of the business. All the staff really do go the extra mile to deliver great customer service, and that in turn drives sales. Obviously, this last financial year covered a lot of the pandemic, which was a massive influence on the figures, but we have sustained that level of turnover. 14
April 2022
We’ve got a very strong cash & carry performance. Delivered accounts for a third of our turnover, and that is being driven by our symbol group Go Local. How are turnover and profits tracking in this current financial year? We’re in double-digit growth again, but our bottom line won’t be as good as last year. That’s because of the inflationary costs we are dealing with. Our targets are based on the sales and growth bonuses that we award to all colleagues – we have a framework around 5% 7.5% and 10% growth figures. What are your priorities for this year? Delivery is where we’re pushing growth. We’re looking at new business areas that we can go into and recruit. We have nearly 30 people out on the road, and they are tasked with looking after existing customers and recruiting new ones. Our delivery radius is 100 miles from each depot, but that covers a lot of area, including places like Coventry, Leicester and Birmingham, so there’s tons more business to get. We’re
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boxing clever and trying to ‘exhaust an area’; we’re looking to make our routes more efficient. We’re still championing cash & carry as well. It’s about trying to keep the business we have and also grow where we can. We’re definitely in the market to expand, whether that’s by gaining new customers from our current depots, or by opening a new depot or by acquisition – but there are no new depots in the pipeline at the moment! We have a new mission statement: ‘An employee-owned company that is supporting independently owned customers to grow.’ That encapsulates what we’re trying to do. What is your growth strategy? We had an off-site meeting in February for directors, heads of department and general managers where we presented some ideas on how we could drive efficiency to keep adding value to our customers. The title for that session was ‘Evolution, Not Revolution’. We know what makes Parfetts tick. We will continue to do that, but we’ve got to evolve.
[ INTERVIEW ] For example, we’re investing in Optrack route optimisation and load planning software that will help working practices around the delivered part of our operation. We didn’t do any deliveries until 2015, so it’s fairly new to us. We’ve learned some lessons, and we can now start to refine our model. Last year we invested heavily in the Aintree site. We put in a dedicated picking area and a new loading facility, which means we can now get all the vehicles loaded and out by 7am. This improves efficiencies and even gives us the potential to do second delivery drops – our drivers that do local deliveries can get back by midday, and out again by 12:30pm. We are doing something similar in Sheffield now as well. Our GOLD model [a 24-hour model where depots work as a cash & carry from 6.30am to 6.30pm and are then used by the delivery and click & collect teams to pick orders through the night] is in six of our seven sites. We don’t deliver out of our Anfield branch just because of its size, but we’ve got Aintree up the road which obviously covers Liverpool and the North West. The GOLD hybrid model does work but we’re very keen to continue to push cash & carry. We don’t want to lose any C&C business, and we have no plans to change any of our sites to delivered only. How are you protecting your cash & carry business? We make sure that there’s always a hive of activity in the depot – promotions on tower ends, lots of activity in the aisles,
Parfetts champions cash & carry and continues to promote it to retailers.
front-of-depot displays, supplier days. We’re working with Coke at the moment, installing some digital screens into all depots apart from Anfield and Middlesbrough. We want to understand what this delivers for customers – will it pique their interest? We have direct loads, we have multiple checkouts, we are well staffed, we carry a massive range [6,500 lines] and our opening hours are attractive. We have parking and are located just off motorways, so we’re quick to get to. One thing you see with us is very busy car parks, and that’s different from a lot of our competitors. We have cafés in every cash & carry, so it’s still a good experience for our retailers to spend time in the depot. And retailers can trade with us!
An investment in Optrack route software will bring efficiencies to the business.
How much flexibility do your managers have in trading with customers? A lot! We really encourage it. Independent retailers want to know that they’re getting the best price – they want to negotiate at a local level. How are you managing price increases? We’re incredibly busy because we’ve seen price increases like we’ve never seen for probably a decade. What we’re doing is passing on manufacturers’ price rises to the customer – but not a penny more. We’re trying to do the right thing by our customers. There’s a lot more understanding in the world right now about price increases. The big debate in our sector would be about price-marked packs – they are the honest broker in the supply chain. Soft drinks have broken through the £1 barrier, as have some items of confectionery, but not snacks. The pound will come under more and more pressure. Last year you introduced your own range of price-marked products. Where are you with that? We quickly developed around 150 PMPs. We started in grocery and moved into impulse, and the latest development is a range of hanging bags of sugar sweets at £1. Our energy drinks range is doing really well, and we have very good sales of toilet rolls. We
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[ INTERVIEW ] have different brand names, like Zenergy for energy drinks and Jungle Pops for kids’ drinks. We’re currently looking at flavoured water, cider and wine. We’re trying to give our customers a unique proposition with better margins. Are you confident that you can maintain your overall margin this year? Yes, it’s all about giving value to our customers. The key is tying the customer in, and that’s where symbol comes in. If we can recruit a customer and have a longterm agreement with them through our symbol, then we see a core spend come to us – the customer moves away from small, infrequent spends and buying on promotion to buying across categories and getting two deliveries a week. It also means that our deliveries become more efficient. It’s good for customers as well because they see an increase in footfall and profitability. We have around 5,000 customers per week and, of those, around 1,000 are symbol and they account for about 36% of turnover. With Go Local, do you have any conditions in terms of minimum spend or percentage of spend that retailers have to place with you? Yes, we do, but it’s always tailored to the site and the retailer – we agree a realistic spend figure and that influences the amount that we invest in that store.
The app has been instrumental in attracting new customers.
We would look to mirror their ambitions, whether that’s a smaller store – say 1,000 sq ft – and the retailer is relatively new to the sector and wants support, or an established retailer with a 3,000 sq ft store looking to do a full refit. This will be our 10th year of our Go Local symbol group, and we’re approaching 1,000 stores (750 Go Local and 250 Go Local Extra, which is fullstore convenience including food to go and chill). It’s really exciting where we’ve got to. We cover the whole of the north of England and the Midlands, and we’re into Wales now as well. Our base target for new Go Local stores is about 200 per year – that’s the
challenge we’re giving head of retail Steve Moore. But we’re trying to get away from just the numbers – with the recruitment of Antony Downing [ex Costcutter] we have a new level of expertise in terms of store layout and format and so we are offering retailers more support, whether that’s around business operation, financing or drop shipment. We signed a deal in January with Eden Farm to do drop shipment for chilled and frozen products. Before that, we were doing chilled and frozen from blue containers on our lorries. We started the Eden Farm service from our Sheffield site, and our roll-out programme will probably end in mid June. And then every delivered customer will have that opportunity. What’s your minimum order and do you plan to introduce a delivery charge? Our minimum order is moving to £750 excluding tobacco but we are not introducing a delivery charge. Our delivered customers get cash & carry pricing and access to Go Local promotions. Last summer you launched next-day delivery through your app. How much of your delivered business is your app accounting for? Over 50%. It was the thing that attracted customers of our competitors to shop with us. That’s because our app offers the most efficient way to order in a store.
‘Being employee owned is a tremendous positive’ Parfetts has been fully employeeowned since October 2018 and this benefits not only the staff, but also customers and the business overall. Martin Race (pictured), the former MD of Bestway Wholesale who has been chairman of Parfetts’ employee trust board for more than two years, comments: “Being employee-owned is a tremendous positive which aids engagement and ensures the business is run for all, with targets that are reasonable and sales and profit bonuses available to all employees.” He continues: “I have always strived for an excellent culture since my early days at Batleys, and we at Parfetts – although there is always more to do – have a great base culture
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aided by a trust board that includes employee directors, depot and head office employee ‘Voice’ councils, and a dedicated full-time ‘Voice’ manager, all of which contribute to the employeeowned business model.” Joint MD Guy Swindell adds: “Being employee-owned affects every decision
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we make. We think as much about our colleagues as our customers.” Employees are able to influence the direction of the business: they can make suggestions and ask questions through the Voice councils, the Voice manager Zoe Taylor, and directly to the joint MDs via a new ‘askguyandnoel’ email. Parfetts is also very focused on developing its staff. “We always look to promote from within where possible,” says Swindell. “We advertise every single job internally and we interview all internal candidates.” He concludes: “Our employees are effectively business owners, and that translates into the excellent service we give to our customers.”
[ INTERVIEW ] managing directors for the best part of 15 years. Both had different skill sets and different experiences, and it proved very successful. Prior to that, it was Steve and Robert Parfett, and their dad Alan, so when talking about succession, having joint managing directors is a natural conversation. Had you worked together before at all? Noel: No, we hadn’t even met! The conversation started through Martin Race (chair of Parfetts’ employee trust board), who I worked for at Bestway.
Haydn Hicks has helped Parfetts to shape The Local off-licence symbol group.
Are you working to develop your digital channels further? Yes, every day. It’s the new arms race. We’re always going through new phases on our website and app, from marketing to the customer journey, and we’re working with suppliers. However we’re still really keen to have people on the road visiting retailers. We’ve seen competitors pull away from that, and we see that as a big advantage for us. What support do you offer to unaffiliated retailers? We have bespoke packages available; we’ve got something for everyone. Ultimately, Go Local and The Local are king, but if a retailer isn’t able to join our symbol – whether it’s due to the store size or promotional challenges – we can still offer store investment, such as signage or EPoS tills, to get them on the ladder towards Go Local or The Local. Around 4,500 of our 5,000 customers are part of our retail club. That gives them the chance to run the promotion every three weeks. We provide consumer leaflets and distribute them free of charge.
Go Local is now in its 10th year.
How is The Local, your off-licence based symbol, progressing? The Local is now up to 15 stores following its launch last summer. We wanted retailers to help us shape the model, so Haydn Hicks, who had been in Bargain Booze for 26 years, came across along with the Reynolds family who had five Bargain Booze stores. We’ve worked closely with them in creating a new promotional package, consumer leaflet and instore theatre. We hold a forum once a month with The Local retailers, where we review the previous promotion and talk about the next one. We really listen to them – they know what makes their stores tick so they can guide us. It feels real now that we have 15 stores, and we’re looking to land around 50 more of The Locals this year. Haydn Hicks has said that his margin improved significantly by coming to us. Are there any plans to invest in your own retail estate? No, although we do actually have four company-owned stores which were purchased in around 2006 under Steve Parfett’s leadership. It’s a very difficult world to be in company-owned stores; ‘Let the pilot fly the plane’ is what we say. We have some fantastic independent retailers – let them take care of that side, and we’ll support them where we can. Why did Parfetts decide to appoint joint managing directors again? If it ain’t broke, don’t fix it! Prior to us, it was Greg (Suszczenia) and David (Grimes). They were at the helm as joint
What are your individual strengths and responsibilities? Noel: Guy started on the tills 23 years ago so he knows every nook and cranny of this business, which is great for me because I hadn’t worked for Parfetts before June last year. What I bring is external experience and some new ways of working, some new ideas. We really complement each other. In terms of responsibilities, Guy is very customer-centric – marketing, IT, the website – and I’m very internally focused – numbers, operations, HR. What about personality wise? How are you alike and how do you differ? Noel: We actually did a personality test and both came out as ‘fire’. We are both driven and hard-working but quite relaxed as well. We have to be: Guy’s a Man CCM City fan and I’m a Newcastle fan!
Parfetts in numbers £570 million turnover, up 28% 63% of turnover is accounted by C&C customers, 33% delivered, and 4% click & collect £14.6 million pre-tax profit, up 26% 7 depots (Aintree, Anfield, Halifax, Middlesbrough, Sheffield, Somercotes, Stockport) 853 employees 14% tax-free bonus awarded to all employees on performance last year 5,000 active C&C customers 750 Go Local stores 250 Go Local Extra stores 15 The Local stores 4,500 members of retail club 75 delivery vehicles 50% of delivered orders are placed on the app
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[ SPOTLIGHT ] Matt Norman, senior business development manager, Confex What has been the biggest challenge you have faced and how did you overcome it? A fantastic challenge I faced was completing the London to Paris cycle ride for Grocery Aid, which consisted of 327 miles over four days. A truly enjoyable experience, which was both physically and mentally challenging. The grit and determination the team demonstrated was exceptional and I’ll never forget riding into Paris and crossing the line in front of the Eiffel Tower.
‘I look at the positives’ What have been your biggest achievements in work and outside work? Outside of work and in my earlier days, sports were always my passion, and playing rugby to a semi-professional level would be up there in my list of greatest achievements. In terms of work, my biggest achievement would be the successful launch of Confex’s CORE own-label to the membership, which is seeing some good year-on-year growth. It’s not been without its challenges but I believe as a team, we’ve made an excellent foundation on which to build in 2022. Who has been the biggest inspiration to you? My father has been a large inspiration to me throughout my life: always there to offer sound advice and support. Watching him relocate our family on numerous occasions throughout his working life has in some ways taught me to overcome challenges, embrace change and build new fulfilling relationships along the way. What are your interests outside work? To relax I enjoy getting away on holiday with the family. Something active will almost certainly be involved as I can’t sit 18
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still! Cycling, running, swimming and playing golf are regular things I enjoy doing with friends and family. I have an active social life, and at weekends I enjoy catching up with friends and eating out. I’m a bit of a foodie and love cooking at home with my six-year-old daughter. She’s the perfect little sous-chef. What were your ambitions when you were growing up? Growing up I spent a lot of time training and playing rugby, so I’d have to say I always dreamt of becoming a professional rugby player. How would you describe your personality and what approach do you take in business (and in life)? Life has its challenges, stresses and strains but there are a few principles I stand behind. I’ve always been an approachable individual who undertakes tasks with a strong passion, energy and enthusiasm and I always strive for better. I tend to look at the positives in what I do and how we can benefit from opportunities. I’m a firm believer that if you treat people with integrity and respect then you will develop strong, collaborative relationships.
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What is your favourite film, book and song/piece of music? Well, this is going to divide the camp but based on the number of times I’ve watched it, it has to be Top Gun. By far the best film ever! If you won a holiday, where would you go and who would you take with you? For me it’s always been a dream to get away over Christmas, so a holiday in Lapland with my family and friends would be an experience we’d never forget. What would people be surprised to know about you? Between the ages of 17 and 20 I played for the Gloucester Rugby academy as a winger/full back. It was an amazing time – CCM both enjoyable and rewarding.
Wholesale accounts Matt Norman graduated from the University of Gloucestershire with a Business & Marketing degree. He then joined SHS Sales & Marketing as a marketing executive. He spent eight years there, working his way into the sales team. He held several roles and looked after key accounts including Bestway, Dhamecha, East End Foods and Hyperama. He then worked at Tate & Lyle as a national account manager for five years, before joining Confex in 2019 as senior business development manager.
[ CONFECTIONERY ]
Sweet spot in a tough time Tightening purse strings mean that shoppers are seeking inexpensive ways to treat themselves as bigger luxuries and extravagancies are cut. The confectionery category may be just the lift that shoppers and retailers need in the current climate.
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here is very little to raise the spirits of most shoppers at the present time. After a difficult two years, the economic climate is an unpleasant reality for many, so small moments of joy are more important than ever for consumers, and the confectionery category, which is growing by 3.6% (Kantar), is well placed to deliver. Mars Wrigley recommends that wholesalers bear in mind the sales opportunities offered by occasions such as on-thego consumption and big night in. “Since the lifting of Covid restrictions, celebratory occasions have continued to be reinvigorated, and with that comes the sharing and gifting of chocolate and fruity confectionery,” says Nick Reade, sales director. “At Mars Wrigley, we are focusing on pinnacle moments throughout the year, alongside ‘mini-moments’ such as birthdays, which are all the more worth celebrating after the pandemic.” Gifting brands such as Maltesers Truffles, Galaxy Truffles and Celebrations all perform well thanks to this celebratory trend.
‘Since the lifting of Covid restrictions, celebratory occasions have continued to be reinvigorated, and with that comes the sharing and gifting of chocolate and fruity confectionery’ Nick Reade, sales director, Mars Wrigley Mars Wrigley has branched into the gummy category for the first time in the UK with Skittles Squishy Cloudz. Available in two flavours, Fruits and Crazy Sours, the NPD combines a gummy and marshmallow with the same intense fruity flavours that make Skittles a favourite. The launch will be supported by a digital campaign, titled ‘Squish the Rainbow!’, across social media and online video platforms, and there will be PoS for the trade. Meanwhile, in the gum segment, Mars Wrigley has introduced two new flavours – Apple and Blueberry – in its Extra range. “These two popular flavours are set to continue to grow gum penetration by recruiting new consumers to the segment,” says Sasha Storey, senior brand manager. “We will be supporting retail partners with colourful PoS to drive awareness and trial.”
Partnerships with wholesalers Hancocks’ partnership with Vimto has seen more activity already this year. Vimto Giant Cables are expected to be a top seller, along with Vimto Fried Eggs. Vimto Remix flavours are being introduced to customers through the addition of Vimto Juicy Mixups in a £1 pricemarked sharing bag. The new pack features a mix of five gummy and foam sweets – Watermelon Remixed, Vimto Bling Ring, Vimto Stix, Mango Remix Bottle and Vimto Yolky. The traditional sweetshop favourites Bonds of London range is also expanding this year. Bonds Black and Red Liquorice Sticks are a traditional treat made modern with a crunchy candy topping, while new Candy Cane Fountains are available all year round in strawberry, watermelon and bubble gum flavours. Recent additions to the Crazy Candy Factory range are Sour Taffy Tongues – soft sour chew bars at pocket money prices and available in four flavours. Other new novelty items for kids include Paint Splash, Double Duo Dunkers and Zoo Pops. “Smaller convenience stores should ensure they are well stocked with impulse, novelty sugar confectionery and some top-selling gifting products year round,” advises Chris Smith, marketing manager at Hancocks. “New confectionery products and seasonal items should be prioritised in store merchandising and placed near the front of the store for maximum impact.” Elsewhere, fine food wholesaler Cotswold Fayre has secured an exclusive distribution partnership with Turkish confectionery business Hazer Baba. Products include an array of Turkish Delight variants, including Pistachio and Cherry Berry. “We feel that Cotswold Fayre will do a great job of representing not just our products in the UK, but also our brand ethos,” says Sahin Elmas, owner of Hazer Baba.
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[ CONFECTIONERY ] Mars Wrigley has also launched a trade hub offering tips and insight to retailers to make the most of gum displays and drive sales. Swizzels recently launched Love Hearts Candy Sticks, which combine the popularity of the iconic Love Hearts sweets with a new format. Each packet of candy sticks includes a temporary tattoo featuring a positive, ‘feel good’ message to boost the spirits of consumers. Twenty tattoo designs have been created. “As ever, when it comes to stocking sugar confectionery, retailers should focus on offering a diverse range of products that would satisfy the needs of any type of customer,” says Mark Walker, sales director. “Since one of the highest level of impulse buys is in the confectionery category, having a versatile offering is essential to increase the chances of securing last-minute purchases.” Swizzels has noted the popularity of the £1 price point and the retail success of sharing formats over the past couple of years. With this in mind, the manufacturer is promoting its Rhubarb & Custard Squashies this quarter with a marketing campaign supported through social media platforms and influencer outreach. To maximise sales opportunities, Swizzels again urges retailers to pay close attention to merchandising and secondary sitings. “As only 5% of sweets purchases are planned, it’s important to create eyecatching displays to attract shoppers, as well as taking advantage of seasonal events such as Easter by combining chocolate and confectionery into an Easter-themed display,” says Walker. An interesting development by Vegan All Sorts, which could catch the eye of other confectionery businesses, is the launch of Sad Bags, an initiative to minimise packaging waste while enabling customers to save on their purchases. When customers select the ‘800g Sad Bag’ option on Mega Bags, Fizzy Mega Bags and Fizz Free Mega Bags, the Vegan All Sorts team selects packs that have an incorrect product name on the front, minimising packaging waste. “Our customers, like us, are always looking at ways to protect the environment. With Sad Bags, we give new and returning customers the ability to save £1 and, in turn, allow us to make use of packaging that would otherwise be unutilised,” says Dario Marinelli, co-founder. Mondelez is investing in the mints segment, with a £1.6 million marketing drive that includes a promotion running for the rest of the year. The ‘Own It’ campaign has been launched on the Trebor mint 20
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brand, offering consumers confidence-boosting prizes and entry into a £10,000 prize draw. The promotion is supported by social, digital and out-of-home advertising, as well as PoS. Recent NPD from the supplier includes Sour Patch Kids Watermelon jelly sweets. The 140g sharing bags have an rsp of £1.32 and contain watermelon-flavoured sweets with a coating of sour sugar. In chocolate confectionery, Cadbury has extended its Caramilk brand with Cadbury Caramilk Buttons, available in 90g and 105g bags. “Cadbury Caramilk was our biggest launch of last year and our best-ever confectionery launch,” says Nancy Galvin, brand manager for Cadbury. “We are confident that Cadbury Caramilk Buttons will help the brand to reach even more shoppers and help retailers drive incremental confectionery sales this year.” Launch activity includes PR and in-store support. Cadbury is also giving shoppers the chance to win a pair of limited tickets to the Platinum Jubilee Pageant in June. The promotion runs until the end of the month and offers 250 pairs of tickets to the celebrations.
‘Single chocolate bars, as well as smaller packs of sugar confectionery and mints, remain crucial to a retailer’s range’ Susan Nash, Mondelez International’s trade communications manager Singles of confectionery have returned to growth, reports trade communications manager Susan Nash: “With lockdown restrictions now lifted, we’ve seen the impulse occasion return across single format confectionery, with latest MAT and 12-week data showing singles in growth (Nielsen). “Single chocolate bars, as well as smaller packs of sugar confectionery and mints, remain crucial to a retailer’s range to help them meet the demands of impulse shoppers looking for treats on the go during the day, so cash & carries should stock them too.” Ferrero recommends that retailers maximise opportunities for premiumisation in the confectionery category, as shoppers seek out small ways to treat themselves. “Premium boxed confectionery will continue to play an important role for retailers wanting to drive confectionery sales, so it’s important that the right pack formats are offered in-depot to suit retailer missions,” says Levi Boorer, customer development director. “Our advice to retailers is to continue to support the brands that you know shoppers will purchase, ensuring you’re offering a number of more premium brands to add sparkle.” CCM
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[ FLAVOURED MILK ]
Flavoured milk is on the up With many consumers trying to find healthier options that still offer a treat, flavoured milks are seeing significant growth in convenience as an alternative to a fizzy drink.
Ambient milk drinks enable retailers short on space to capitalise on the growing popularity of the category.
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ith summer coming up, there are further opportunities for convenience retailers to boost their milk drink sales. The flavoured milk category is worth £487 million and has seen growth of 24% year on year (IRI), with innovation and activity expected to continue this upward trajectory. Premium brand Shaken Udder has added to its line-up with a new ambient range specifically designed to cater for the convenience channel. The ambient shakes come in Chocolush, Vanillalicious and Strawberries & Cream variants, in 330ml bottles that do not need to be refrigerated. This enables retailers with a lack of space to tap into grab-and-go sales. The shakes also have a longer shelf-life than the original chilled variants. The NPD is supported with wholesaler and retailer merchandising tools including pallet wraps, floor stickers, shelf barkers and shelf wobblers, and price-marked packs. Shaken Udder consumer research has revealed that 58% of people buy milkshakes as a snack, while 39% of milkshake purchases are unplanned. Shaken Udder has responded to market trends to become the No.1 premium shake brand in the market and the No.2 flavoured milk brand in grocery multiples (Nielsen). In 2020 its Shaken Other range was launched, offering plant-based chilled shakes made with ethically sourced coconut milk. The £20 million Shaken Udder brand is currently undergoing a brand refresh to draw attention to its taste credentials. The range is made with quality ingredients, is compliant with HFSS regulations and contains no preservatives, artificial colours or flavours. The core range of chilled product includes Chocolush! Vanillalicious!, Strawberries & Clotted Cream, Top Banana and Salted Caramel, and the company reports an 84% purchase intent among consumers who try the shakes. Mars Chocolate Drinks & Treats has a strong presence in the chocolate milk drinks sub-category, which is worth £113 million (IRI). The supplier is seeing growth 22
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from a return to on-the-go purchasing, with an increase in sales of 17% from its 350ml milk drinks range. The line-up benefits from the instantly recognisable brands Mars, Galaxy, Mars Caramel, MilkyWay, Bounty, Maltesers, Snickers and Twix in 350ml bottles. “As consumers return to work and travel more than they were a year ago, sales of on-the-go formats are sure to rise in tandem,” says Michelle Frost, general manager. FrieslandCampina has tapped into the growth of the sharing occasion, with its one-litre format of premium chocolate milk brand Chocomel reaching sales of more than £1.4 million in convenience (IRI). The manufacturer highlights the versatility of the product, which can be heated or served chilled. “Premium milk drinks are a growing trend in flavoured milk, growing 51% year-on-year (IRI). As we go through 2022 this will become more of a factor, with value a key concern, as shoppers look for smaller indulgences and rewards instead of holidays and expensive treats,” says Gabriella Sudall, marketing manager NPD. FrieslandCampina is supporting Chocomel in the convenience channel this year with a number of van sales bursts, helping retailers to understand the benefits of stocking Chocomel and offering advice on merchandising the soft drinks category. Yazoo is currently worth £74 million, and £32 million of sales (43%) come through the convenience channel (IRI). “Lots of brands now offer low or no-sugar product alternatives so it’s important to keep driving the message that milk drinks like Yazoo offer many other nutritional benefits that soft drinks currently on the market cannot,” says Wayne Thompson, business unit controller out of home at FrieslandCampina. “Yazoo is free from artificial sweeteners, flavours or colours, is high in protein and a source of calcium and Vitamin B2. Our Yazoo Kids product, which has a completely unique no-added-sugar or artificial sweeteners recipe, is the fastest growing no-added-sugar milk drink in the market.” Yazoo recently relaunched one of its best-selling limited-edition flavours – Choc Caramel – due to consumer demand. It replaced the Jaffalicious Choc Orange variant. The company produces price-marked packs of its limited editions, as well as the core flavours: the one-litre bottles are available as a £1.79 PMP, while the 400ml bottles come in a £1.15 PMP, with an additional flash showing a new ‘2 for £2’ offer. PMPs represent 64% of CCM Yazoo’s sales (IRI).
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[ HOT BEVERAGES ]
Instant success for big brands Today’s consumers are looking for quality, sustainability and innovation. Suppliers are finding yet more ways to bring café culture into homes and convenience stores, so wholesalers should make sure they have the range to inspire their customers.
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he hot beverages market has been a solid performer over the past couple of years, with tea and coffee purchases remaining strong during the periods of lockdown and shifts in shopper behaviour. “Within the tea category, many consumers have a preferred brand that they know, love and will expect to see when they pop to the shops. As tea is a staple in many kitchen cupboards, it pays to have the best-selling lines available,” says Helen Boulter, multi-sector sales controller at Taylors of Harrogate. Yorkshire Tea is the UK’s No.1 tea brand with more than 33.9% of the total market (IRI/Kantar). “If customers know they can rely on quality products in their nearest convenience store, they will view it as a reliable retailer. This can mean additional purchases during each shopping trip and, as a result, an increase in average basket spend,” says Boulter.
‘As tea is a staple in many kitchen cupboards, it pays to have the best-selling lines available’ Helen Boulter, Taylors of Harrogate’s multi-sector sales controller The supplier highlights the profit potential of the increasingly popular decaf market, in which Yorkshire Tea Decaf is a key driver with a 14.2% rise in value retail sales (IRI/Kantar). “While some shoppers are switching to decaf from standard black tea, we are also seeing incremental sales in this category, with consumers enjoying a caffeinated brew in the first part of the day, then switching to a decaf option in the afternoon and before bed. Decaf can help in trading up shoppers within the tea category, with decaf having a higher pence-per-cup than standard black tea,” Boulter points out. The hot beverages category is one that benefits from a price-marked strategy in the convenience sector. “Pricemarked packs communicate value to the customer, without compromise, and overcome the perception that independent stores are more expensive than supermarkets. As a result we 24
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expect to see demand for PMPs grow, especially on essential and everyday categories such as standard black tea and decaf,” says Boulter. Distributor Petty Wood can provide alu-foil wrapped teabags from family brand Ahmad Tea for a quality cup of tea. The company is one of the most respected tea brands, with tea sourced from Sri Lanka, India, Kenya and China. A rigorous testing and tasting process ensures that the finest blends are produced. Petty Wood can supply £1.99 PMPs of 4 x 20 teabags. Tapping into current trends is vital for wholesalers, and dairy alternatives are rising significantly in popularity. Glebe Farm Foods produces oat drinks from their milled oats, offering a gluten-free, dairy-free range that is fully traceable. “As Britain’s first and only production plant, all of our oat drinks are grown and made entirely in the UK, meaning we have the lowest food miles compared to other dairy alternatives,” says Phillip Rayner, co-founder & owner of Glebe Farm Foods. “With the modern consumer being far more environmentally conscious, wholesalers need to strongly consider the sustainability credentials of manufacturers in order to generate sales and maintain consumer engagement.” The free-from appeal of Glebe Farm has also been maintained by running a dedicated gluten-free production line that ensures no other grains such as wheat, barley or rye can contaminate the oats. “Globally, the free-from food market is projected to grow at a compound annual growth rate of 9.5% from 2021-2026 (Mordor Intelligence); this increase can be linked to growing instances of allergies and intolerances to lactose and gluten which are causing gluten-free and dairyfree products to dominate shelf space,” Rayner adds. Unilever’s PG Tips brand is also highlighting sustainability credentials as a brand that’s fully plant based. “There’s a clear demand for a cuppa that not only tastes good but does good for the planet. The transition to a fully plant-based range will help retailers meet demand and help to grow the category,” says Fiachra Moloney, general manager tea UK&I.
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p ro d u c t
[ HOT BEVERAGES ] “We’ve also made it easier for customers to make greener choices, with clear messaging of the biodegradable tea bags on the front and back of the box,” she adds. The packaging is also wrapless across the entire retail range. Jacobs Douwe Egberts also highlights the importance of trends to boosting hot beverage sales. “For retailers, remaining up to date with the latest trends is key for driving sales. Many coffee trends are being driven by the demand of outof-home coffee consumption, with consumers looking to recreate their favourite coffee-shop style beverages from home,” says Hannah Morris, category team leader. Kenco Duo has proved popular as a coffee-shop alternative, with sales of almost £12 million in convenience. Kenco specialities have seen sales growth of 33%, boosted by the current demand for flavours – which the brand has answered with speciality variants such as Kenco Duo Salted Caramel Latte. JDE’s recent innovation of Kenco Iced/Hot Lattes enables consumers to enjoy the flexibility of iced or hot coffees in Salted Caramel and Vanilla variants. “These are positioned to be a consumer favourite,” states Morris. “The demand for a diverse range of coffee styles is clear, with more than 24 million households in the UK buying coffee. Consumers are looking for quick, convenient coffee products that fit in with their busy modern lifestyle.” JDE recommends that wholesalers and retailers ensure that NPD and promotions are clearly visible, and that merchandising takes into account the versatile nature of the segment. “As the category becomes more sophisticated, there is an opportunity to increase basket spend across multiple complementary categories,” says Morris. Lavazza advises wholesalers and retailers to ensure that their core range includes best-sellers. “Brand is the most important factor to the coffee shopper, with more than a fifth of people saying they would not buy if their preferred brand was unavailable, hence stocking the best-sellers in each segment is critical to avoid losing sales. Price and promo, as well as breadth of range, are also highly important to the coffee shopper,” explains a company spokesperson. While instant still dominates the impulse market, roast & ground has seen strong uplifts in the past couple of years. Within roast & ground, in impulse, ground accounts for the majority of sales (75%), with capsules making up 19.5% of sales of roast & ground. The majority of capsules sales (88%) in impulse are proprietary ones (Tassimo Dolce Gusto and A Modo Mio). “Despite beans remaining a small segment in impulse (3.6%), it is seeing significant positive shifts year on year (+14%). Freeze dried remains 26
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Craft has arrived in the coffee segment – further proof that instant formats no longer sacrifice quality for convenience.
the biggest sector in instant and accounts for close to half of total instant sales (43%) in impulse,” summarises the spokesperson. Nestlé UK&I Beverage recommends that wholesalers look ahead to ensure that they have category trends covered. “Among the wide breadth of opportunities available for wholesalers to use to their advantage, the biggest and arguably most profitable is taking a more proactive approach, rather than reactive,” says Abu-Bakr Bapu, customer business manager. “For instance, rather than just stocking products from segments which are on the rise, predicting and forecasting trends allows wholesalers to be in the driving seat and ahead of competition when these do come to fruition.”
‘Among the breadth of opportunities available for wholesalers to use to their advantage, the biggest and arguably most profitable is taking a more proactive approach’ Abu-Bakr Bapu, Nestlé UK&I Beverage’s customer business manager Catering to emerging trends, the supplier has partnered its Nescafé Azera brand with an independent Manchesterbased coffee roaster, Grindsmith, to create the UK’s first craft coffee in an instant format. Also focusing on quality coffee in an instant format, the new Nescafé Gold Blend Roastery Collection is a range of two premium instant coffees, available in Dark Roast and Light Roast blends. “Wholesalers trading within the beverages category can benefit from a lot of support in relation to key metrics and insights, key measures and advice on the premiumisation journey of a traditional beverage shopper,” states Bapu.
https://www.nescafe.com/gb/gold-wholesale-win-cash/ †GB only. Wholesaler customers, including Bestway, Batleys, Booker, Unitas members, responsible for purchasing coffee, 18+ only. Employee/employer consent, internet access, purchase of NESCAFÉ Gold Blend 6 x 95g case, personal/business registration and receipt upload required. Promotion open 00.01 01.04.2022 to midnight 31.05.2022 for a daily prize draw for a chance to win a case of NESCAFÉ Gold Blend 6 x 95g and a case of NESCAFÉ Gold Frothy Cappuccino 6 x 8 sachets, or 1 of 200 cases of NESCAFÉ Gold Blend 6 x 95g via a monetary advance, plus entry into one of the two monthly draws for a chance to win a £2,000 cheque drawn on 04.05.2022 & 01.06.2022. Scan QR on Gold Blend tray or visit website, register online and retain/upload one valid/unique receipt for each entry. Max 1 win/prize type/ person & 1 win/prize type/ business. To enter & for full T&Cs, including exclusions, visit: https://www.nescafe.com/gb/gold-wholesale-win-cash/
[ HOT BEVERAGES ] “They can do this by getting in touch with the customer category managers, who will give an objective view of the category and give invaluable advice on fixturisation and shopper behaviour.” RH Amar is the distributor for Cafédirect, a Fairtrade brand that invests 50% of all profits into Producers Direct, a UK charity that works directly with farmers to improve sustainability and livelihoods across the coffee-growing world. The brand’s Single Grind, Freeze Dried and Beans rose by 28% in value last year (Nielsen), with 227g caffeinated and decaf roast and ground Machu Picchu coffee, 227g roast and ground Mayan Gold, and 750g Machu Picchu featured in the top 10 highest growth drivers in 2021. “A busy promotional programme for Cafédirect in 2021, coupled with a high-profile TV advertising campaign, new packaging and the introduction of new products, has seen sales of the brand go from strength to strength and cement its position as a key growth driver for retailers of all sizes,” says Lesley Parker, brand controller. “New listings throughout all retail channels have also helped the brand to secure a 6.8% share of all coffee sales.” This year is another busy one for the brand, with a Freeze Dried Instant Decaf Machu Picchu Coffee introduced ahead of a whole bean format for filters and cafetieres. “Adding two new Machu Picchu formats to our caffeinefree range is a direct response to a huge spike in demand for decaf products, with decaf roast and ground products currently growing nearly three times faster than their caffeinated equivalents,” Parker adds. More than £1 million in marketing has been invested in a media campaign that features on Channel 4, ITV Hub, YouTube, Facebook and Instagram. “Promotions will also feature as part of Cafédirect’s support package for retailers throughout the year, while being careful not to detract from the brand’s continuing ability to drive full price sales for retailers across the year,” says Parker. “This continued investment behind the brand is testimony to the size of the opportunity for Cafédirect and the premium coffee category in 2022 and beyond.” Aimia Foods’ Drink Me Chai brand has a wide consumer appeal and a predominately younger (18-34) demographic, making it an on-trend addition to an operator’s menu. As well as being easy to prepare as either a hot or iced beverage, Chai Latte is free from caffeine and gluten, and complements various milks including dairy, soya, coconut and almond – answering the demand for free-from products. The distributor has catered to an increasingly sophisticated consumer wishlist in the hot beverages category with the chai drink. “It’s become clear that serving the bare minimum is simply not enough to meet demand. Consumer needs are constantly evolving and as a nation we are attracted to 28
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View from HQ Kenton Burchell, group trading director, Bestway Wholesale What are the most significant trends in hot beverages? With the hot beverages market worth more than £280 million in the convenience channel, there is no denying that it is an incredibly important category. Coffee pods have performed remarkably well in recent years and are the fastest-growing segment, but instant coffee still reigns supreme and is worth over £150 million in the channel. Of course, the tea sector remains strong, forming 30% of the hot beverage category, and while standard black tea accounts for most of the tea sector at 72%, retailers should still consider stocking decaf, fruit and herbal teas, which are delivering strong growth. Are there any specific products or brands that are performing particularly well at the moment? The following brands and products are currently performing particularly well: Tetley Tea Bags, Yorkshire Tea, PG Tips, Kenco Really Smooth, Nescafé Original, Nescafé Gold Blend, Nescafé Azera Americano and Ovaltine. By stocking these lines, retailers will meet their shoppers’ needs and increase the likelihood of repeat visits. Retailers should keep three considerations in mind: stock the right range; offer a competitive price; and ensure the category is backed by promotional activity. With space limited in retail stores, what advice are you giving to retailers about extending into areas of growth? Consumers are increasingly adopting healthier options like decaf and herbal, so retailers should look at expanding their core range to capitalise on this trend, even if space is limited. However, the core ranges are critical to stock, so while NPDs can supplement sales, it should not come at the cost of core brands. Bestway highlights ‘must stock’ products in depot and offers planograms that help to take the guess work out of stocking. We have hot beverage category advice that factors in store size by outlining suggested stock based on three-shelf and five-shelf layouts. We suggest that retailers display their hot beverage range next to complementary products, such as sugar, cakes, biscuits and morning goods. How are your hot beverage sales to foodservice operators performing? Are they back up to pre-Covid levels? We are seeing a recovery, but performance has not reached pre-Covid levels yet. Foodservices have just come back after seismic disruption and while customers are eager to enjoy their newfound freedom, we are all facing significant inflationary pressures that could make the recovery slower than hoped.
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[ HOT BEVERAGES ]
The hot chocolate segment now caters to an increasingly creative consumer and expanding number of occasions.
on-trend, premium options, which is why having a diverse, high-quality and visible tea offering is a prime opportunity to increase sales,” says Michelle Younger, head of marketing. Mondelez is also seeing growth from premium brands, with its Green & Black’s hot chocolate recording an increase of 8.2% over the past year (Nielsen). “The brand’s hot chocolate is made with the finest organic cocoa beans, which are ethically sourced,” says Susan Nash, trade communications manager. “The hot chocolate segment as a whole is in strong year-on-year growth, proving its ongoing relevance to shoppers throughout the year.” Tapping into the increasing consumer interest in health and wellbeing, the Cadbury Highlights brand is a lower-
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calorie option. The brand has had a packaging and recipe refresh to increase consumer appeal and on-shelf standout. Mars Chocolate Drinks and Treats is optimistic about further growth for its Galaxy and Maltesers Hot Chocolate brands. “The increased number of shoppers that bought Galaxy Hot Chocolate during the long lockdown of 2020 stayed with us in 2021, driving a further 1.1 million shoppers to the category, equating to some £1.3 million incremental gains,” says Michelle Frost, general manager. The hot milky drinks category is worth £209 million, with hot chocolate representing 67% of these sales and malted drinks representing 23% (Kantar). The manufacturer has identified the trends of vegan and gifting as relevant opportunities for the milky drinks segment, and introduced Galaxy Vegan Instant Drink in response to this. “The future for hot chocolate is exciting and we aim to stay at the forefront of new consumer trends while ensuring our core products remain relevant and deliver on taste,” Frost continues. “Consumers are now viewing hot chocolate in a very different light than they were a decade ago. It is no longer drunk purely in the evenings by a narrow demographic but is enjoyed all day, with people of all ages having fun with CCM toppings, sprinkles, recipes and more.”
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[ BIG NIGHT IN ]
Big night, big sales One of the social shifts of the pandemic has been a lasting consumer enthusiasm for at-home entertaining. To make the most of the opportunity, retailers and wholesalers should stock products for both premium shoppers and those driven by value.
T
he Big Night In became a necessary social event over the past two years and has remained a popular shopper mission. As well as a family get-together, it can now be an opportunity to socialise with friends in larger numbers. This offers new possibilities to retailers in merchandising and promoting this key occasion. Campari Group UK highlights the growth of at-home mixology and the opportunities afforded by this. “Premiumisation continues to drive the alcohol sector. Therefore, wholesalers should use the big night in as a moment to encourage retailers to be bold with the premium spirits they carry,” says Sandra Brunet, marketing director. “We’re also seeing an increased tendency towards branded products, among both delivery and in-store shoppers, underlining the opportunity for premium branded products around those all-important nights in.” She advises wholesalers and retailers to make the most of cross-category merchandising in order to increase sales: “Wholesalers could consider offering a big night in bundle at a set price point to encourage retailers to shift focus to this increasingly popular occasion.” Diageo recommends that wholesalers stock up on Pimm’s and Pimm’s Sundowner ahead of the summer. “The early evening ‘aperitivo’ moment has been steadily growing in popularity,” says Lauren Priestley, head of category development off-trade. “Spritz serves lend themselves to early evening catch-ups and summer occasions, making Pimm’s no.1 Cup and Pimm’s Sundowner perfectly placed to cater to these popular moments. We also suggest cross-merchandising these elements to inspire sales.” The supplier has added to its Smirnoff vodka brand with a new pre-mixed can. Smirnoff Raspberry Crush and Lemonade is set to recruit more drinkers to the vodka category. “The latest product launch places the brand at the forefront of emerging trends and we’re excited to offer the high-quality, vibrant liquid in a convenient, on-the-go format which retailers can capitalise on,” says Camisha Zinke, Smirnoff brand manager. The big night in has changed as the result of the pandemic, agrees Sunny Mirpuri, director for wholesale & convenience at Budweiser Brewing Group: “87% of alcohol occasions now occur in the off-trade, so stocking and merchandising effectively for occasions like the big night in will be key for retailers in 2022.” The supplier notes that these in-home occasions now often revolve around food, rather than purely drinking, and
as such can benefit significantly from cross-category merchandising. “Themed nights work well for larger gatherings, such as an in-store Mexican-themed display with fajitas and Corona, or charcuterie and Stella Artois,” says Mirpuri. “Mealtimes have grown in importance, and now account for 43% of all drinking occasions in the home. Retailers should encourage stores this year to stock up for these new mealtime-focused big nights in. Beer is at the heart of many of these occasions, with three out of five beers now consumed with food (Kantar).” Mast-Jägermeister UK recommends that retailers combine the appeal of big brands with the reassurance of price-marked packs in order to increase consumer confidence in shopping for the mission in convenience. “Price-marked packs are effective in boosting impulse purchases due to clear price labels reassuring consumers they are not being overcharged, while contributing to an overall positive price perception. Jägermeister posted positive growth across its entire range of price-marked packs including our 20cl at 14%, 35cl at 4.3% and 50cl at 18% (Nielsen),” reports Johnny Dennys, head of brand and trade marketing. “The big night in offers a large opportunity for retailers to boost sales and increase basket spend,” he continues. “While the on-trade is open, consumers are still taking the opportunity to reconnect with loved ones and we are seeing the trend of the big night in before the big night out returning. By merchandising food and spirits together with engaging point of sale, retailers can maximise this opportunity.” www.cashandcarrymanagement.co.uk
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[ BIG NIGHT IN ] Accolade Wines believes that the wine on tap (bag in box) format will see growth this year, driven by the increased in-home demand. “We are focused on transforming consumer perceptions around the quality of wine-on-tap wines and introducing new shoppers to the category, and it’s the perfect format for a night in,” says Tom Smith, marketing director – Europe. Accolade introduced its latest wineon-tap brand, Vino Societa, at the end of last year and is following up the launch of sauvignon blanc and rosato varietals with a malbec. It’s not only alcoholic drinks that are a popular sales driver for the big night in – soft drinks also play a key role. Suntory Beverage & Food GB&I expanded its Lucozade Alert range earlier this year, and anticipates incremental sales. “Soft drink sales grew by 4.3% last year, and flavours are a particularly strong area of growth. New flavours are crucial for retailers looking to drive excitement, with one in four flavour shoppers being entirely new to the energy category, so cash & carries should stock a wide range of different flavours,” says Matt Gouldsmith, channel director wholesale. CCEP has the No.1 flavoured carbonate with Fanta, while its Appletiser and Schweppes brands are well suited to the big night in. “Consumers have been recreating the pub, bar or restaurant experience for much of the past two years, creating drinks that capture the excitement of going out, like mixed drinks, cocktails and non-alcoholic mocktails. We expect this trend to continue,” says Amy Burgess, senior trade communications manager. “Britain has a busy sporting schedule over the coming months. We expect friends and family to gather together to watch events at home, which means there is a big opportunity for cash & carries to score more sales,” she adds. Britvic Soft Drinks recommends larger formats and more everyday lines for ‘low-tempo’ occasions, while ‘high-tempo’ occasions, which include special events and gatherings, can boost sales of premium products. “The eagerness of consumers to socialise at home again after the easing of restrictions shows clearly in the positive soft drink sales figures for total convenience, released at the end of October 2021,” says a company spokesperson. Snack manufacturers also highlight the lingering consumer preference for staying in, and the opportunities it affords retailers and wholesalers. Tayto Group has found that 32
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Consumers opted to recreate a pub evening out in their homes during lockdowns, and the behaviour is sticking.
pork snack sales have been performing well as consumers enjoy the pub snack at home – a behaviour that was encouraged by pub closures in lockdown and that shows no sign of stopping. “Scratchings are synonymous with the pub but surprisingly almost half of purchases are in retail,” says Matt Smith, marketing director. The supplier is also seeing solid sales for the big night in from its Golden Wonder £1 PMP range. The latest lines to be added are Mature Cheddar & Spring Onion, Chargrilled Steak and Crispy Smoked Bacon. “To give even more reasons to buy this new range, we have included it in our 75th birthday on-pack promotion, offering consumers a chance to win an experience day, with every entrant receiving 10% off any experience at experiencedays.co.uk,” says Smith. He adds: “Sharing snacks are driving the market as we continue to enjoy a snack in front of Netflix or have friends round again, with £1 PMP sharing snacks growing at 17% (IRI).” Tapping into continuing consumer interest in spicy flavours, Golden Wonder recently introduced Spicy Thai Ringos to its successful £1 PMP range. Valeo Snackfoods has a range of formats for its Kettle Chips brand, in order to cater to different consumer needs. Kettle’s Steakhouse Barbecue is available in a 150g sharing pack as well as a £1 PMP format. Kettle 80g PMPs x 12 will be on promotion through Unitas Wholesale in May. “As well as encouraging shoppers to trade up to premium snacking options, it’s important to consider value and Kettle offers a good option here,” maintains Michael Owens, head of impulse. KP Snacks covers a range of snacking options with brands that include crisps, popcorn and nuts. “At £1.4 billion, sharing is the largest segment in crisps, snacks & nuts and growing strongly at 7.3% (Nielsen),” says Matt Collins, trading director. “The crisps, snacks & nuts sharing segment represents a huge opportunity for retailers. 49% see snacks as a musthave for an evening in, which have become increasingly popular as consumers continue to spend more time at home CCM due to the lingering impacts of Covid.”
Over 45% of retailers who sell Crisps & Snacks don’t sell pork snacks – missing out on a sales potential of £6.2m pa for Symbols & Independent Retailers.1
BRAND2
ED SALT NUTS
No.2 BRAND2
BEER & LAGE R
& WINE R CIDE
Put scratchings on shelf with nuts. S& CRISP KS C A SN
83%
OF PORK SNACKS ARE CONSUMED WITH A DRINK3
Hang clipstrips with Beer Wines and Spirits (BWS) to capture incremental impulse sales.
Hang pubcard on flat side of fixture.
DON’T MISS OUT ON HIGH PROFIT, VAT-FREE SALES.
Sources: 1. IRI Market Advantage | Symbols & Independents GB | Crisps, Snacks & Popcorn and Pork Snacks | Value to 52 w/e 15-Jan-22. 2. IRI Market Advantage | IRI All Outlets GB | Pork Snacks | Value to 52 w/e 15-Jan-22. 3. Norstat | Jan 20.
IF YOU’RE NOT STOCKING PORK SCRATCHINGS YOU’RE MISSING OUT! No.1
CCM Chefs Own-B Own-Brand rand Awards A wards 2022 20 2
CCM Chefs’ Own-Brand Awards 2022 ENTER ONLINE www.cashandcarrymanagement.co.uk
CCM Chefs’ Own-Brand Awards 2022 Now in its fifth year, the prestigious CCM Chefs’ Own-Brand Awards is run by Cash & Carry Management magazine, in association with the Craft Guild of Chefs. We know the care and passion that goes into creating a successful own-brand. It doesn’t just happen by magic: development chefs and supply partners work hard to bring exceptional products of excellent quality and great value to market – products that are driven by customer need and provide innovation in many categories. These awards give cash & carries and delivered wholesalers whose own-brand products hit the mark the recognition they deserve, with endorsement from the Craft Guild of Chefs – the leading chefs’ association in the UK – who conduct the judging in blind tastings. Entries are open for products in all food & drink categories at a cost of £125 plus VAT per product, with one free for every 10 products entered. The closing date for entries is Friday 1 July 2022. The products must be delivered on the date and to the delivery address that will be confirmed on receipt of your entry. Judging will take place in August and the winners will be announced at a prestigious awards lunch in October. For further information, contact Martin Lovell on 01342 712100.
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