SPOTLIGHT ON JANNA HORSTHUIS OF ROBINSON’S
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
JANUARY 2021
Exclusive!
Mert Ucar on Holland Bazaar’s strategy for success
NEW EU-UK TRADE DEAL
Wholesalers discuss the impact of the new rules CATEGORY INSIGHT
Seasonal Confectionery
Price-marked Packs Carbonates Update
Healthy Snack Bars
Information Technology
BLACK TEA
Improve strategic thinking Better serve customers Create joint business plans
Enhance promotional analysis Optimise pricing Refine core ranges
“The digital systems and tools TWC provide us with are leading edge which makes our jobs easier. The data and insights allow us to make strategic decisions based on fact.” Al Gunn, Sales Director, Boost Drinks
Contents
January 2021
This month don’t miss... 08
JJ succeeds in employing more female warehouse staff.
10
11
Filshill upgrades its delivery fleet with more fuel-efficient trucks.
Fresh fruit & veg remains the specialism of Holland Bazaar.
ESSENTIALS 05 06
16
Editor’s Comment Industry News
FEATURES 11
Behind the Scenes Holland Bazaar, which recently joined Confex, is looking to supply its fellow members with fruit & veg while also expanding its own retail, confectionery and non-food ranges.
14
In Focus Executives from Bestway, Mevalco and Wanis talk about adjusting to the new trading rules following the UK’s exit from the EU single market and customs union.
16
Janna Horsthuis admits that working full-time as managing director of Robinson’s while being a mum and wife is hard but right for her family.
Spotlight Janna Horsthuis, managing director of Isle of Man-based Robinson’s.
28
14
CATEGORY INSIGHT 17 20 28 32
Seasonal Confectionery Price-marked Packs Healthy Snack Bars Information Technology IT suppliers continue to offer solutions that help wholesalers boost their resilience to market disruption.
38
Carbonates Update
Additional processes mean extra costs under the post-Brexit deal.
Healthy snack bars are delivering benefits that consumers want.
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January 2021
03
A year of two halves? new year, a new start. If only! In the first few days of 2021, wholesalers were facing even more hurdles than before, namely the sudden closure of schools and the introduction of new trading rules under the post-Brexit EUUK trade agreement. After intensive talks between UK and EU negotiators reached a stalemate and a ‘no deal’ seemed inevitable, the announcement that a deal had been done came as a relief for many businesses. However, the fact that there are zero tariffs and zero quotas on goods traded between the UK and the EU unfortunately doesn’t translate to zero additional effort for those wholesalers involved in such transactions. More processes and paperwork mean more cost, and when many operators have been struggling to remain viable as the COVID-19 crisis closed their customers’ doors, this is an extra pressure they simply do not need. On top of the pile of admin and logistical challenges associated with the new EU-UK trading rules, wholesalers have a difficult balance to strike: they will need to take in enough stock to mitigate delays due to the new border controls but will not wish to risk being left with a surplus if their estimations do not match customer demand. On pages 14-15, directors of Wanis International Foods, Bestway Wholesale and Mevalco talk about how they
A
JANUARY 2021
Exclusive!
Mert Ucar on Holland Bazaar’s strategy for success
NEW W EU-UK TRADE DEAL
Kirsti Sharratt Managing Editor
NEVER MISS AN ISSUE...
SPOTLIGHT ON JANNA HORSTHUIS OF ROBINSON’S
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
planned for various ‘deal’ and ‘no deal’ scenarios. They predict how long the disruption will last and discuss the issues that will need to be addressed. George Phillips, commercial director of Wanis, thinks that the problems will be resolved over the first six months or so of the year. Meanwhile, in our Behind the Scenes feature on pages 11-13, Mert Ucar, managing director of Holland Bazaar – which imports 85% of its fresh fruit & veg direct from the EU – is confident that the company will still receive its stock within 12 hours of placing an order. What’s more, he believes that the changed trading environment will eventually present new business opportunities. As some industry leaders like Ucar look ahead at post-Brexit trading with optimism, the hope is that the second half of the year – by which time millions of us will have been vaccinated – will also bring substantial easing of the COVID-19 restrictions. For many wholesalers, it will not be until students can properly return to schools, colleges and universities, and hospitality outlets can welcome back customers, that they will be able to enjoy stable and profitable trading once more. Here’s hoping that, with regard to this year, the two halves are not equal.
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 discuss the impact of the new rules CATEGORY INSIGHT
Seasonal Confectionery
Price-marked Packs Carbonates Update
Healthy Snack Bars
Information Technology BLACK TEA
Email mail.winlove@btconnect.com or call (01342) 712100 for more information.
[ EDITOR’S COMMENT ]
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 Abigail Brierley 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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January 2021
05
[ INDUSTRY NEWS ]
Wholesalers’ plight highlighted by BBC
Wholesalers are increasingly making their voices heard in the national media. They are highlighting the losses they are suffering due to lockdowns, including the sudden closure of schools in England just after the festive break, which is estimated by the FWD to have resulted in £12 million of excess stock. BBC News covered the plight of Creed Foodservice, which was facing dumping £6,000 worth of fresh milk if food banks and charities couldn’t use it. This was part of £50,000 of surplus chilled stock the firm needed to deal with. Managing director Philip de Ternant told the BBC that, since April 2020, Creed has had to write off £150,000 of food. After the story hit the headlines, England footballer Marcus Rashford got in touch with Creed via social media, urging the wholesaler to contact the charity Fareshare. It did so, and was able to clear more than £9,000 of its excess stock. Meanwhile, Mike Morgan, managing director of Savona
Driving north A total of 14 stores, including four in the north of the country, joined SPAR Scotland in the second half of 2020. Mike Leonard, sales director, said: “We are looking at progressive independent retailers everywhere from Aberdeenshire and Invernessshire upwards, as well as all other areas of Scotland. “The north will continue to be a huge focus. With our depot in Dundee, we can offer as many as three multitemp deliveries a week to this part of the country.” a CJ Lang (01382) 512000 06
January 2021
Philip de Ternant: Creed was able to donate excess stock to Fareshare.
Tom Mathew: Wholesalers have been asking for help for months.
Foodservice, told the BBC that the school closures were threatening about a quarter of his company’s turnover, which is usually around £30 million a year. In addition, Darren Labbett, MD of Woods Foodservice, which mainly serves upmarket restaurants and venues, said that the company’s turnover drops overnight with every lockdown. All three wholesalers that spoke to the BBC highlighted the injustice of their customers receiving business rates relief while the wholesale industry – particularly in England – has not been given the same support.
They joined many others who are campaigning for this measure, including Tom Gittins, MD of Confex, Dunsters Farm director Tom Mathew, and Coral Rose, MD of Country Range Group and chair of the FWD. Gittins said: “The argument has been made clear – wholesale needs a support package today to ensure the UK food supply chain does not break down.” Mathew told BBC Breakfast: “We’ve been asking for help for months. The situation is so dire that the industry does need grants, and we’ve seen the devolved powers recognise this fact
and give grants to wholesale directly, but in England we’ve not seen anything yet and it seems to be falling on deaf ears.” Rose repeated the plea on BBC Five Live: “We can’t just close our doors and wait for this to be over. We still have to deliver to care homes and hospitals. We would like some support: business rates relief and grants for all the stock we had to throw away.” Further to the schools closure, FWD chief executive James Bielby accused the Government of “twisting the knife in wholesalers’ backs” in changing the guidance on free school meals and reintroducing the voucher scheme. He said: “Thanks to the Government’s U-turn there’s a lot more excess stock in wholesale now, after schools cancelled the food parcels in their droves. And where can the vouchers be redeemed? Supermarkets! That’s the biggest irony of all.” A Treasury spokesperson said that support for businesses could be reviewed for a Budget in early March.
personal trainer, SPAR is sharing nutritional advice and exclusive recipes this month to help consumers start 2021 as they mean to go on.
Madeleine Blowing, brand & digital executive at SPAR UK, explained: “Our January lifestyle message aims to encourage a fresh and balanced start to the year at an affordable price. “We will not only be utilising his breadth of knowledge and expertise to drive sustainable goals, but we have also created a series of recipe videos showing some of The Fitness Chef’s favourite meals, all featuring SPAR brand products.” a SPAR UK 020-8426 3700
Influencer partnership
SPAR has joined forces with social media influencer Graeme Tomlinson, aka The Fitness Chef. Through its partnership with the nutrition coach and
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Sugro continues to recruit Sugro UK has recruited two new members – Hardy Brothers and Cyprofood – taking the group’s collective turnover to more than £1.4 billion. A spokesperson for Northern Ireland based Hardy Brothers commented: “Sugro’s buying power and expertise in the confectionery, soft drinks and snacks market will help us offer our customers the best possible pricing and range from all of the leading manufacturers. “The support provided by their team in sales, IT and marketing will help us to deliver our long-term growth strategy.” Tevfik Agcagul, purchasing
manager of Tottenhambased Cyprofood, which has been in the fresh produce business since 2007, said: “Our reputation for quality and consistency has allowed us to gain the trust of customers, not only in London but across the UK. We believe in our company’s strength and the strong link Sugro has with leading suppliers. “Sugro has been vital in our research and buying
NBC appointments
Jason Langmead
David Longfellow
National Buying Consortium (NBC) has announced the appointment of Jason Langmead as its new chairman, replacing Stuart Lane. Langmead is managing director of VWT – the leading wholesaler and distributor in the Channel Islands. Fulfilling Langmead’s former NBC role of vice chairman is David Longfellow, owner of Leeds-based JL Brooks. Commenting on the appointments, NBC’s managing director David Lunt said: “We must first say a big
thank you to Stuart Lane, our inaugural chairman. His leadership has proved to be invaluable in our first year and during extremely difficult trading conditions caused by the pandemic. “Together with the existing team, we are confident that the board of directors can provide the necessary stewardship for the group and ensure that we continue to offer a forward-thinking and unified wholesale solution to the UK market.” a NBC (01608) 692410
directly from suppliers. With the help of the business development manager from Sugro, Tabitha HunterSmale, we were able to gain competitive prices from suppliers due to their power and strength in the market. “For the year 2021, we will be looking into expanding our range and becoming one of the major players in the region.” Hunter-Smale said: “It’s reassuring for us as a buying group to know that independent wholesalers continue to look to Sugro UK for support. Both Cyprofood and Hardy Brothers already look set to be integral players within the group.” a Sugro UK (01270) 628728
[ INDUSTRY NEWS ]
Category guidance
Unitas Wholesale is launching a new series of ‘Focus On’ by Plan for Profit mini category guides. The first two editions – on healthy breakfast and ‘mini seasons’ – include insights and advice developed in partnership with Kellogg’s and Mondelez. Plan for Profit category controller Tracey Redfearn said: “The new ‘Focus On’ guidance will serve to complement the portfolio of business tools we already make available to independent retailers regularly through Plan for Profit.” a Unitas Wholesale (01302) 249909
More for vegans Nisa retailers are meeting growing customer demand during Veganuary with nine more lines from the Co-op’s GRO range. These include vegan Spaghetti & Meatballs, Sausage Rolls and Nuggets. Year-on-year, vegan sales at Nisa have grown by 262%. The group is also offering a range of deals on superfoods and snacking this month. The healthy living event is being promoted with PoS instore, as well as in Nisa consumer leaflets and on
social media channels with healthy living inspired recipe content. Promotions include Belvita Breakfast Bars and Fibre One 90 Calorie Chocolate Fudge Brownies at £1.50, a saving of up to £1.49; Co-op ripe avocado and mango at £1; and Co-op kiwi fruit at 90p. In addition, Veganuary shoppers can make the most of the meal deal of Goodfella’s Vegan Stone Baked Falafel Pizza and Magnum Vegan Classics for £4. a Nisa Retail (01724) 282028
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January 2021
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[ INDUSTRY NEWS ]
Menu solutions
Country Range Group is launching a series of Menu Solution Guides in 2021, with the first brochure focusing on plant-based food. Available to customers and chefs through the CRG sales teams, social media channels and Stir It Up magazine, the guide features plantbased options and recipes and offers advice on how to promote menus to customers, pupils or residents.
Topics also covered in the guide include the key driving forces behind the popularity of plant-based food, the
More women
A target set by JJ Food Service for 20% of its warehouse staff to be female has now been exceeded. In 2017, JJ pledged to employ more women to encourage a greater diversity of talent in the business. Back then, only 4% of the Enfield warehouse team were female and now the number is 23%. “It’s important to have a diverse workforce at all levels – it helps to make our industry a more attractive place to work,” said head of operations Sedat Kaan Hendekli. a JJ Food Service (01992) 701701 08
January 2021
impact of the trend specifically on the education, hospitality and care sectors, how to utilise ingredients such as sea vegetables within menus, biodiversity, and the science and technological advances facing the plantbased industry. Although campaigns such as Veganuary have helped to highlight the benefits of a vegan diet, 93% of plantbased meals are currently eaten by non-vegans (Kantar) and approximately 22 million people now identify as being flexitarian. Emma Holden, CRG marketing controller, said: “Whether it’s the care, education or hospitality sectors, it’s vital that foodservice caterers are proactive and adapt their menus to suit the changing demands of their customers. “The COVID-19 pandemic and ensuing restrictions have only accelerated this plant-based focus.” a Country Range Group (0845) 209 3777
‘Meal deal’ scheme
Confex is to launch a new Food To Go Club in March. Similar in format to the group’s Retail Club, the new promotional scheme is designed to help foodservice and hospitality outlets upsell by adding a drink and a snack to the main part of a takeaway meal. Tom Gittins, MD of Confex, explained: “The idea is to take the meal deal that you get in the multiples and put that into the foodservice/ hospitality arena by adding a drink and snack to a main course – whether that be a jacket potato, a kebab or a sandwich – for a discounted price decided by each foodservice outlet. “We have worked out that our members deal with more than 40,000 food-to-go outlets and so our Food To Go Club is potentially a lot bigger
than our current retail club,” he added. “We are producing posters to help outlets sell the meal deal, which is a new concept in quite a lot of foodto-go arenas and has massive supplier support.” Gittins added: “It is almost pandemic-proof because people are still buying their lunch from food-togo outlets.” Confex is partnering with key suppliers in categories such as bottled water, energy drinks, snacks and crisps for the promotions, which will run 16 times a year in line with the schedule for its retail club. In other news, Confex is looking for an experienced buyer to join the group. Anyone interested in the post should contact Tom Gittins or chairman Martin Williams for a confidential chat about the role. a Confex (01608) 652333 a See pages 11-13 for an in-depth look at new Confex member Holland Bazaar.
Problematic plastics removed Brakes fulfilled its pledge to remove all hard-to-recycle black plastic from its ownbrand range by the end of 2020. The wholesaler, which has the largest private label foodservice brand in Europe, has now changed the packaging on almost 500 lines and removed more than 1,000 tonnes of the problematic plastics from its supply chain. CEO Hugo Mahoney said: “It is a major achievement to have made good on our promise, especially given the circumstances.
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“There have been so many challenges over the past year for suppliers to the hospitality and catering markets, but nonetheless we have maintained a close focus on our CSR commitments.” In addition to 2ZERO20, Brakes’ CSR efforts include
its Meals & More charity, which advocates holiday hunger prevention, helping clubs that serve more than 10,000 children. In addition, the wholesaler continues to make long-term progress on carbon reduction (having already hit its original targets and improved them to a 30% reduction by 2025) and reducing food waste. Brakes intends to launch a new packaging policy early this year, having already increased the visibility of recyclable materials with clearer on-pack labelling. a Brakes (01233) 206000
[ INDUSTRY NEWS ]
Brakes and Bidfood duos awarded MBEs
Key figures from Brakes and Bidfood were recognised in the New Year Honours List. Brakes’ supply chain & operations director Alex Mayfield, and lead solution designer Ricky Sercombe, were awarded MBEs in recognition of their pivotal roles in leading the Brakes team that provided food boxes to the clinically vulnerable during the first nationwide lockdown. Similarly, Bidfood’s supply chain & technical services director Jim Gouldie, and MD wholesale Steve Clarke, were awarded MBEs for their services to the vulnerable during the pandemic. Working with the Government, Brakes and Bidfood conceived and launched the ‘shield pack’ service, delivering the first boxes direct to those who
L to r: Alex Mayfield, Ricky Sercombe, Jim Gouldie, Steve Clarke.
most needed them in only nine days. Both wholesalers also ensured continuity of food supply to critical institutions such as the NHS and the care sector as they struggled to cope with the difficulties caused by the pandemic. Furthermore, they worked tirelessly to maintain availability for retailers, providing much needed products to fill empty shelves in the early days of the crisis. Hugo Mahoney, CEO at Brakes, commented: “The MBEs given to Alex and
Ricky reflect the resilience, innovation and resourcefulness of our business in developing and launching a service to support the clinically vulnerable at a time when many of those most in need were unable to access food and essential supplies. “The well-deserved honours are a fantastic recognition of the boundless energy and resourcefulness they displayed in leading their teams at a very challenging time. I’m very proud of how they drew the business together to deliver such a
No initial change to operation
Subject to Financial Conduct Authority approval, Bestway Wholesale’s acquisition of Costcutter Supermarkets Group (CSG) from Bibby Line Group is expected to be completed during the first quarter of this year. Under the terms of the deal, CSG and its brands will become part of Bestway’s 10
January 2021
retail division and continue to operate as normal. Approximately 1,500 stores branded as Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh, along with 20 Costcutter and four Co-op franchises, will join Bestway Wholesale’s retail estate, which includes Bargain Booze, Best-One, Wine Rack,
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Select Convenience and Central Convenience. Dawood Pervez, MD of Bestway Wholesale, said: “As part of Bestway Wholesale, the team at Costcutter will be able to build upon the amazing results they have been achieving in partnership with their retailers.” Bestway also confirmed a two-and-a-half year extension to the current supply agreement with the Co-op/ Nisa, meaning that Nisa will continue to supply CSG stores for the next five years. CSG has a range of over 13,000 lines, including the 2,000-strong Co-op range, which has proven to be an important driver of footfall and sales. a Bestway Wholesale 0208453 1234
valuable service so quickly, at a time when many supermarkets were displaying empty shelves and were not able to provide delivery slots.” Bidfood’s CEO Andrew Selley said: “All of us at Bidfood are immensely proud of what Jim and Steve have achieved, and this honour could not have been bestowed on two more worthy individuals. They are both incredibly modest and I know they will say that this recognition is for the whole Bidfood team. “Both Steve and Jim moved mountains to help those most in need. To us they are true heroes. We cannot express how delighted everyone is within the Bidfood business that they have received this recognition.” a Bidfood (01494) 555900 a Brakes (01233) 206000
Fleet upgrade Glasgow-based wholesaler JW Filshill has upgraded its fleet of vehicles as it ramps up its commitment to sustainability. The company has invested around £600,000 in three 18tonne and two 26-tonne lorries, which are more fuel-efficient than older trucks and meet the latest Euro 6 specifications. Stuart MacKenzie, senior operations manager, said: “As we use cages for deliveries, we don’t need quite so much height so these new vehicles are a foot lower than our existing fleet, making them more energy-efficient.” The vehicles are fitted with vehicle tracking technology, a full telematics system featuring eight cameras and bespoke satnav. a JW Filshill 0141-883 7071
[ BEHIND THE SCENES ]
Ripe for further growth Fast stock rotation, a high level of staff loyalty and a 24/7 operation have helped London wholesaler Holland Bazaar to double its sales of fresh fruit & veg in the last five years. rom a single stall in London’s Spitalfields market in 1996 to a £100 million turnover wholesaler today – and a supplier to Spitalfields itself – Holland Bazaar has devised a winning strategy for its business based on the fresh fruit & veg that has always been its focus. The company, which has depots in Edmonton and Croydon, has diversified over the years and now carries a range of more than 5,000 product lines, covering frozen, chilled and ambient foods, soft drinks, confectionery and nonfoods. Nevertheless, fresh fruit & veg still accounts for a substantial chunk (30%) of its turnover, and sales of fresh produce have doubled in the last five years. Managing director Mert Ucar attributes this growth to the company’s careful handling of these easily-spoiled products: “We rotate our fresh fruit & veg stock every 24 hours or less, which is faster than most wholesalers,” he explains. “Average industry wastage on fresh fruit & veg is 4-5% but we are continually achieving below 2%.” Ucar, who joined the company as a partner in 2010, is the brother-in-law of
F
the founder Ali Matur, who came to England from Turkey in 1995. Matur is now chairman of Holland Bazaar, looking after key accounts while also overseeing various other business interests including construction and mining, the Continental Food Bazaar retail store in Kennington, London, and La Lluna restaurant in Muswell Hill, also in the capital. Ucar is responsible for the day-today running of Holland Bazaar, leading the 250-strong workforce. The initial
Mert Ucar: ‘I am looking for more opportunities to invest in this industry.’
team of 20 employed when the Edmonton branch opened in 2014 are still with the company, which claims to have one of the highest levels of staff loyalty in the wholesale industry. “Holland Bazaar is more than a business; it’s like a family,” remarks Ucar. “We spend so much time together. Before COVID, we would go for dinner together, play football and even visit each other’s homes. We have a mix of experienced and inexperienced workers and we mentor the new ones – we look after them.” The company’s 24-hour, seven-daysa-week operation is another strength, he says. “It gives us very high availability – we always aim for 99% – and it enables us to use off-peak hours to deliver to our customers. Operating 24/7 also means that our customers can shop at times convenient for them.” Holland Bazaar receives its daily deliveries of fresh fruit & veg from 10pm until early in the morning. The cash & carry comes alive at about 4am, with coffee shop owners and fast-food operators visiting before they open. Retailers start arriving a few hours later, as
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January 2021
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[ BEHIND THE SCENES ]
Fresh fruit & veg is still the mainstay of Holland Bazaar’s business.
do household customers – family members as the wholesaler calls them. Takeaway clients stock up late in the afternoon ready for their evening opening, and after 2am when they have shut for the night. In Edmonton, cash & carry accounts for 80% of sales, deliveries the remainder, while at Croydon (which opened in 2016), C&C and deliveries are split more evenly. Within the next few weeks, the company will open a distribution hub close to its Edmonton depot to facilitate an extension of its product range and delivered network, and provide additional storage. The wholesaler has 20,000 active
foodservice, retail and household customers, predominantly in London. Ucar cites the multi-channel customer base as a key reason for the company’s 8% growth during the COVID-19 crisis. “Although one side of our customer base was hit, sales on the other side went up significantly,” he explains. “We also helped some of our restaurant customers set up takeaway operations during the pandemic, and they have been successful but it is not on the same scale as their established operations. “It has not been easy for our customers – some have had very difficult days – and we have focused even more on our customer relationships to try to
support them. For example, we reduced our minimum order from £350 to £150. I hope that with the vaccine, they will be able to get back to their normal daily routine soon.” In addition to individual customers, Holland Bazaar supplies wholesalers in Leicester, Doncaster, Swansea, Brighton and Southend on a full-load basis, and this secondary wholesaling element is something that Ucar intends to expand through the company’s membership of Confex, which it recently joined from Unitas Wholesale. He comments: “Unitas were good friends, but Confex are such a memberfocused group and I think they have better synergy with us. We were a Today’s member for more than 10 years before Unitas, but I felt a change was needed. There are a lot of opportunities: Confex will be able to help us with expanding our product range – we want to offer a better choice of retail, confectionery and non-food items – and we will be able to supply Confex members with fruit & veg through their member marketplace.” Tom Gittins, managing director of Confex, confirms this position: “At Confex we don’t offer fruit & veg through our Central Distribution operation so Holland Bazaar’s supply capability is a massive plus for the group. “We have other members that specialise in different areas; for example, North West Teas concentrate on hot
Holland Bazaar has successfully diversified from its fresh fruit & veg base into other product categories, including frozen foods.
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January 2021
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[ BEHIND THE SCENES ] Holland Bazaar in numbers
In total, 20 delivery vehicles operate from the Edmonton and Croydon sites.
beverages so they help other members with those, while Dunsters Farm do the same in the chilled arena. That’s the way we as a group are going to see a lot of growth because it’s all about keeping the turnover in the group and increasing our buying power.” With 85% of Holland Bazaar’s fresh fruit & veg imported direct from Holland, Spain and other EU countries, Ucar is pleased that a post-Brexit trade deal has been agreed. “I am very positive that the uncertainty around trading with the EU is over,” he says. “Our requirement is for our orders to be delivered 12 hours after we place them, especially from Holland, and I am confident that we can still hit this target.
“Long-term, I think that Brexit will offer some opportunities, especially in the agricultural area,” he continues. “We are looking to invest in greenhouses in the UK, whether alone or in partnership with our suppliers and growers from Europe. We are researching alternative greenhouse technologies because here there are different considerations: the climate, watering and the seed varieties.” Holland Bazaar already obtains some vegetables, such as lettuces, cabbages and potatoes, from the UK and Ucar says he will move to sourcing more products domestically. He welcomes the Government’s announcement that it will allow farmers to bring in 30,000 seasonal EU and non-EU workers in 2021 – three times more than last year –
50,000 sq ft Edmonton depot & HQ. 35,000 sq ft Croydon branch. 30,000 sq ft new distribution hub. 5,000 product lines. 30% of sales from fresh fruit & veg. 85% of fruit & veg imported from EU. 250 employees. 20,000 active customers. £100 million turnover, up by 8%.
to help pick and pack fruit & veg. The extension of the seasonal agricultural workers scheme follows a difficult harvest last year when farmers struggled to recruit enough pickers. Overall, Ucar is very optimistic about Holland Bazaar’s fortunes post-Brexit: “Big challenges also present opportunities, and once all the new rules are in place, I will focus on the opportunities, such as trading with different countries. We already get grapes from South Africa and lemons from Argentina, and I think we will do more business outside the EU.” He concludes: “I see myself as an entrepreneur, and I am looking for opportunities to invest further in this industry CCM once the picture is clearer.”
Strategic and geographic expansion planned by Confex 2020 was a year of recruitment for Confex – it signed up 16 new members, adding over £600 million to its buying power. It was also voted the No.1 buying group by suppliers in The Advantage Group report. In 2021, Confex is aiming for further expansion, reports managing director Tom Gittins: “We would like to add to our membership strategically and geographically. “We will look to strengthen our position by adding another 10 big cash & carries along with 10 large foodservice wholesalers so that we can comfortably reach our 20-year group strategic plan,” he says. “There will be casualties after last year, but hopefully not Confex or our wholesaler members. “We are the most diverse group and also very collaborative,” he adds.
“Our competitors aren’t other wholesalers – they’re the likes of Amazon and Booker/Tesco – and what we’ve got to do is work together and share business practices. That’s how we’re going to win.”
Both Confex and its suppliers say that the group’s USP is its Central Distribution operation. “If wholesalers are looking at diversifying into other categories then our Central Distribution service can give them a jump start; it also offers our members a top-up-shop facility,” Gittins explains. “Through challenges like Brexit and the pandemic, if wholesalers have
diversified and are entrepreneurial enough, the business is there. There is big potential for forward-thinking wholesalers.” Last year, Confex initiated several projects to benefit its members. These include a sales data reporting service in partnership with TWC, the launch of its Core own-brand foodservice range of 300 lines, and a new Food To Go Club (page 8). “It sounds a bit harsh but we think there will be a real opportunity for our members to get into foodservice ownbrand and pick up the pieces from some of the casualties in foodservice,” says Gittins. “Holland Bazaar were one of the biggest foodservice players in Unitas and we are over the moon to have them on board – they will massively strengthen our hand.”
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January 2021
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Adjusting to new trading rules
[ IN FOCUS ]
By Abigail Brierley Exclusive report
fter years of disputes, talks and an eventual deal, the United Kingdom left the European Union single market and customs union on 31 December 2020. The deal, of which trading rules are a vital part, brought with it a lot of change for the food and drink wholesale industry to address. A major element of the deal, formally called the EU-UK Trade and Co-operation Agreement, is that there will be no tariffs or quotas on trade between the UK and EU – welcome news for importers and exporters. Despite this, the impact on the wholesale industry will be varied, widespread and take a while to be fully realised. Colin Smith, chief executive of the Scottish Wholesale Association, commented: “The deal secured by the UK Government is to be welcomed, despite it coming at the eleventh hour. “However, there is much detail to be pored over, and businesses importing fresh products and ingredients are understandably concerned about the prospect of increased admin and paperwork which could have a knock-on effect on the UK supply chain, reducing choice for shoppers and increasing costs.
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“We are also deeply concerned about potential delays at border control points. Wholesalers and their customers in Scotland are at the far end of the supply chain of goods coming in via Dover. Delays of two days in either direction have a huge impact on fresh, perishable produce in particular.” Smith stated that one SWA member estimates that custom charges could add 1.5% to its costs of goods. “Wholesalers operate on net margins of only 1.3% – these additional costs can’t be absorbed by the wholesaler and have to be passed on, creating a new level of disparity between the wholesale sector supplying independent convenience stores and the multiple operators,” he said. The dramatically increased number of bureaucratic hoops that businesses
Bestway has worked closely with suppliers to ensure they have the stock it needs.
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will now be forced to jump through is a concern for all wholesalers that deal with the EU. After all, time is money. We are still very much only in the early days of the deal. James Bielby, chief executive of the Federation of Wholesale Distributors, explained how the impact of the agreement is yet to be fully felt, and how the detail (1,200 plus pages) and the current COVID-19 situation add to its complexity. He commented: “It’s good news that we have no tariffs and quotas on goods, but the Trade and Co-operation Agreement will have implications for the food and drink supply chain on things like Rules of Origin and supply of goods to Northern Ireland. “The complexity of the deal, its delivery at the eleventh hour, and the fact that it comes in the middle of the COVID-19 pandemic means there is much detail still to be fully understood. The FWD is in constant contact with government and food and drink industry colleagues and we are communicating developments to our members as the picture becomes clearer.” Regardless of individual opinions on Brexit itself, the absence of tariffs was part of the deal that was praised across the industry. However, the increase in administrative work has a cost that businesses will have to absorb, or pass on (fully or in part) to their customers. Dawood Pervez, managing director of Bestway Wholesale, said: “There will still be additional process, formalities
[ IN FOCUS ] and paperwork, which adds complexity to businesses to manage and there will be associated cost in doing so. Some of that cost will inevitably have to be passed to the end consumer so the implications are yet to be seen.” How businesses tackle this issue could set them apart in the competitive market. Despite the added administrative costs, the very existence of a deal has brought an end to the years of uncertainty and contingency planning. George Phillips, commercial director of Wanis International Foods, said: “Perhaps the biggest positive impact is clarity where none previously existed for both our customers and suppliers. “While the UK’s departure from the EU brings logistical and administrative challenges – irrespective of the trade deal – we have imported to and exported from global markets outside of the EU for many years and so have considerable experience of trading outside the EU zone.” Knowledge and experience will certainly count for a lot in today’s turbulent climate, ultimately affecting a business’s ability to adapt. Working closely with their suppliers, food and drink wholesalers planned for various ‘deal’ and ‘no deal’ scenarios. The effects of the ongoing pandemic impacted their contingency plans too. Phillips explained how Wanis prepared for leaving the EU single market and customs union: “As with other businesses we increased stockholding on key products to mitigate a potential ‘no deal’ and this will have a positive impact on serving our customers while we navigate the inevitable initial delays until
Justin Slawson: ‘It is quite difficult to see where the silver lining is at the moment.’
the new trading framework normalises. “We anticipate challenges to be fairly short-term – over the first six months or so of 2021 – mainly due to the adjustments required by the new trading framework. We expect these to include delays to shipments due to the new border controls and of course the impact of COVID-19 on the supply chain and trade structures, here and in the EU markets.” Justin Slawson, Mevalco’s joint managing director, also spoke about the challenges predicted from both the Brexit deal and the current circumstances: “We increased our stocking levels in anticipation of shortages and delays. In terms of how long this will last, this will depend on the impact of COVID regulations and the extent of lockdown and tier 4 adoption. Under normal supply, we have brought in sufficient stock to keep us going for two to three months but this will last longer if we are locked down.”
Wanis anticipates that the challenges arising from the deal will be ‘fairly short-term’.
For Mevalco, a 100% importer of Spanish products, its relationships with European producers form the backbone of its business. Slawson does not expect the company’s sourcing policy to change, but when asked whether he envisaged any opportunities arising as a result of Brexit, he said: “As with all adversity, there is also opportunity, but it is quite difficult to see where the silver lining is on this one at the moment. We are all just hoping for a considerable ‘bounce back’ by what remains of the hospitality sector, later in 2021.” Despite the clarity the EU-UK trade agreement was intended to bring, it has yet to be felt by many operators in the wholesale industry – and it is not helped by the continuous unpredictability of the COVID-19 pandemic. It therefore may take a while for the full effects of the deal to be realised. Pervez summed up the impact of both, whilst addressing the upcoming year: “At the moment, it is too soon to see how this deal will translate into actual supply and what opportunities may emerge alongside the recalibration of changing consumer behaviours that we have seen under the COVID-19 pandemic. What is for sure is that 2021 will be a year of adjustment.” This seems to ring true for many operators: unfortunately, both Brexit and the pandemic have ensured that the year will be anything but smooth sailing CCM for the wholesale industry. Abigail Brierley is in her second year at Durham University, studying for a BA in International Relations.
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[ SPOTLIGHT ] Janna Horsthuis, managing director of Robinson’s encouragement is the best skill anyone can have because ideas come from inner confidence, and one golden nugget can change your business. At home I am a perfectionist, but family and friends are the best and I love being around people.
‘A life we all enjoy’ What have been your biggest achievements in work and outside work? There have been so many over the years, but most recently a big achievement was our business quickly adapting to survive the awful COVID pandemic. My team really showed resilience during this period – I couldn’t feel prouder. My appointment as managing director in 2017 – and being the only female on a board with nine men – was a huge accomplishment and, as a business, we continue to encourage females into this industry. However, being a wife to Ross, and mum to two wonderful boys, Leo (14) and Jack (11), will always be my biggest and best achievement. What were your ambitions when you were growing up? I wanted to be a vet or a nurse from a young age…not sure that would be the case now as I have very little patience. Who has been the biggest inspiration to you? My family and co-workers. I am very fortunate that I am leading the business into the fifth generation. My grandparents, father and uncles have passed on a highly successful, diverse business, and I feel incredibly proud to continue 16
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this legacy. I have a huge amount to live up to, but the past year really emphasised why I hold our team in the highest regard. Every day I feel inspired by them. What are your interests outside work and how do you maintain a work-life balance? Working full-time in a role like mine whilst being a mum and wife is admittedly hard. When I look back, I think I did miss out on the boys in the early years – I returned to full-time work after three months’ maternity leave – but Ross and I know that what we did was right for us. Leo and Jack have fabulous lives and know that their mum works hard which helps us to have a life we all enjoy. Holidays where we switch off and focus on the four of us are a huge priority. The past year has been incredibly hard as I think everyone’s balance has been thrown, but we need to concentrate on getting through this period and being stronger for it at the end. How would you describe your personality and what approach do you take in business (and in life)? Some say I am bold but efficient, but I do also have an open ear – I love new ideas and I embrace change. I think that
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What is your favourite book, film, and song/piece of music? I have just finished Ignite your Business by Andrew Selley of Bidfood – what a great book! For me, films have to be funny – like Bridesmaids – or I fall asleep. Leo and Jack refuse to let me go to the cinema with them as I fall asleep within three minutes. The music I like is anything to get up and dance to. If you won a holiday, where would you go and who would you take with you? I actually did win three holidays over a five-year spell: a holiday for four to Alpe d’Huez, an all-inclusive holiday for four to Portugal, and a weekend stay for four at Carden Park, Chester. If I were to win again, I would aim big – the Maldives! What would people be surprised to know about you? I have terrible FOMO (fear of missing out) when I can’t do something, and I CCM hate being on my own.
Through the ranks After A Levels, Janna Horsthuis deferred her place at university and got a job selling pay-as-you-go mobile phones. She saved up and then travelled the world for 10 months. On her return, she studied Business Studies & Sports Science at Sheffield Hallam University and then joined the family business Robinson’s in 2002, rising through the ranks to become director in 2010. While working, Horsthuis also completed the Institute of Directors’ Diploma in Company Direction at the University of Salford. In 2017, she was appointed to her current role of managing director.
Put a spring in shoppers’ step
[ SEASONAL CONFECTIONERY ]
Shoppers are happy to spend extra to treat loved ones and themselves for occasions such as Valentine’s Day, Mother’s Day and Easter. With a rise in people shopping locally, this presents an opportunity for convenience stores, and their wholesalers, to tap into seasonal spending. onfectionery is resilient to consumers tightening the purse strings, and shoppers are willing to spend money on products they love, especially for key seasonal events, says Levi Boorer, customer development director at Ferrero UK. He adds: “While upcoming spring occasions may be enjoyed in smaller groups depending on any restrictions, people will likely be eager to make the events even more special and turn to more premium brands to add some sparkle.” Ferrero’s spring 2021 campaign, which features NPD and a £5.8 million advertising investment, focuses on the importance of stocking core products alongside seasonal lines. Valentine’s Day confectionery added £2.6 million to the category in 2020 versus 2019. This was achieved through a mix of more shoppers (+355,000) and people switching to more premium products (+7.4% spend per trip) (Kantar). Last year Thorntons Classic was the fastest growing boxed chocolate brand at both Valentine’s Day and Mother’s Day. Alongside this, Ferrero Rocher 200g saw growth of 24% while Ferrero Collection had an uplift of 15%. Ferrero Rocher 300g remains the No.1 boxed chocolate SKU at Valentine’s Day, giving retailers a gifting solution that retains its relevance after the event (Nielsen). For 2021, Thorntons Classic gift-wrapped ‘With Love’ packs have a more premium design.
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Meanwhile, for Easter, the Kinder range will feature new licences, including Marvel heroes and Disney princesses on Kinder Surprise 100g. Mixed cases will be available to give retailers the chance to appeal to more shoppers. The larger Kinder Surprise 220g eggs, which grew by 47% during Easter 2020 (Nielsen), will receive a Minions update to celebrate the launch of Minions 2: The Rise of Gru, which is out in the summer. For the Thorntons brand, Ferrero aims to replicate the success of its kids’ range, bringing back two popular designs – Unicorn Egg and Dinosaur Egg. In addition, Ferrero Rocher Golden Easter Egg and Ferrero Collection Milk Egg will both receive a makeover for 2021. “With our established core range, media campaigns, PoS solutions and new products, we want to do all we can to support retailers during the spring occasions,” says Boorer.
Nestlé Confectionery is also focusing on its big brands for its spring 2021 offering. Headlining the range is the KitKat Bunny, which became the No.2 impulse novelty after its launch last year, generating sales of £3.1 million across the range of formats (IRI). To tap into this success, Nestlé has added Milkybar Bunny to its portfolio. It is available in three sizes to meet different shopper needs: impulse 17g (rsp 65p), small novelty 44g (rsp £1.49) and medium novelty 88g (rsp £2.49). Also new this year are KitKat Mini Eggs (rsp £1). Each foilwrapped egg has a milk chocolate shell with a chocolatey centre and crunchy wafer pieces. It joins Smarties Mini Eggs, Milkybar Mini Eggs, and Aero Milk Chocolate Mini Eggs. Other NPD from Nestlé includes Smarties Buttons Giant Egg and Aero Peppermint Mini Eggs Giant Egg, both with an rsp of £7.49, as well as KitKat Chunky Cookie Dough Incredible Egg (rsp £12). “Seasonal occasions provide a platform on which to create magical brand experiences, and spring confectionery is also highly incremental to all-year-round confectionery,” says Emily Lord, senior seasonal brand manager. “There is a strong opportunity for brands and retailers to drive growth in 2021 by ensuring the right brands are available in the right formats at the right time for the shopper. The early season remains key, with 80% of shoppers who buy in the early season returning to buy again.” Easter is the second largest confectionery season after Christmas (HIM), and over half of Easter confectionery is consumed before Easter, notes Mondelez International. For example, two out of three people buy Cadbury Creme Eggs for non-Easter-related consumption (Kantar). This shows how capturing consumers right at the beginning of the season is an opportunity to drive spend and impulsivity in-store. This year, Mondelez is celebrating 50 years of Cadbury Creme Egg with a ‘Golden Goobilee’ promotion, offering consumers the chance to win cash prizes. When a shopper wins, so too does the store where they bought their Cadbury Creme Egg. Independent retailers have the chance to win cash prizes or Amazon vouchers, worth up to £1,000, with 30 golden eggs hidden within the convenience channel. To participate, retailers must use Cadbury promotional display material. www.cashandcarrymanagement.co.uk
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[ SEASONAL CONFECTIONERY ] The ’Golden Goobilee’ campaign will be supported by digital, out-of-home and PR activities. The brand will also be rolling out a celebratory new retro pack design to grab shoppers’ attention and alert them to the occasion. The Cadbury Mini Eggs 80g bag was the No.1 product across all Easter SKUs in 2020, with the brand accounting for 50% of total mini egg sales (Nielsen). The brand now has a new line extension – Cadbury Mini Eggs Tablet. The 110g bar (rsp £1.49) comes in cases of 20. Cadbury Mini Eggs has a new pack design and is backed by a new suite of PoS material this year. In a partnership with Beatrix Potter’s Peter Rabbit, several Cadbury products will feature the iconic bunny. These include new product White Oreo Hollow Bunny (rsp £2.99). For Easter 2021, Mondelez is tapping into the joy of the traditional Easter egg hunt with a ‘Show You Care…Hide It!’ campaign based on the Cadbury purple egg. It will run across TV, video on demand, out-of-home, digital, in-store activations and experiential marketing. In the shell eggs segment, the company is also introducing two new products: Cadbury Fruit & Nut shell egg (rsp £8) and Cadbury White Oreo Shell Egg (rsp £6). In the early weeks before Easter, people seek a little treat to beat the winter blues – this period drives 30% of the Easter confectionery category’s total sales across the season (Kantar). “While shoppers aren’t thinking about Easter day just yet, new and exciting seasonal products can encourage permissible and impulsive treating,” says Sophia Padt, senior brand manager – Easter at Mars Wrigley. Maltesers Bunny Orange (rsp 61p) has been introduced to join the existing original variant. In addition, a ‘Find the Bunny and Win the Money’ campaign has been launched, offering shoppers the chance to win £5,000 and hundreds of other prizes. Mars Wrigley has updated the design on some of its Galaxy shell eggs this year. “Although it’s not clear what the February-April season will look like in 2021, we do know that moments to celebrate and show appreciation for loved ones will be more important than ever,” says Padt. “It will be essential to offer a product range suitable for gifting at this time of year.” She adds: “With fewer social gatherings to exchange gifting, we predict seeing more egg hunt events hosted at home,” NPD in this segment includes Maltesers and Galaxy Easter Hunt Mix packs, each containing an assortment of treats. Valeo Confectionery, which offers the Barratt range of classic favourites, highlights the benefits of effective merchandising to Easter sales. 18
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“In addition to stocking the right products, merchandising is key for promoting seasonal lines and encouraging buyers to get in the Easter spirit, ultimately maximising profits for both retailers and wholesalers,” says Russell Tanner, marketing & category management director. “Impactful entrance displays can help highlight NPD and key offers, while gondola end displays should be used for a combination of products.” He adds: “While low price-offers are important for securing sales, retailers and wholesalers should opt for high-quality products as indulgence and luxury are important to shoppers purchasing gifts for Easter.” The Swizzels Easter range grew by 26% last year (IRI), showing that it is a popular choice for consumers looking for an alternative to chocolate at Easter, reports sales director Mark Walker. The company is bringing back Drumchick Squashies for Easter this year. These limited-edition Squashies come in chick shapes with an orange and pineapple flavour, and are ideal for driving impulse sales of themed, selftreat sharing bags in the lead-up to and throughout the season. Also back for Easter 2021 is the Spring Selection variety bag, which contains a selection of Swizzels’ bestloved brands and is perfect for Easter hunts. “All products contained in the variety pack are suitable for vegans as Swizzels recognises this is a growing lifestyle choice, and it can be particularly difficult to find suitable confectionery products over the Easter period when chocolate is so prominent,” says Walker. “The spring-themed design also ensures the product can be sold after Easter.” Also ideal for Easter hunts is Swizzels’ Spring Mix, an Easter-themed pouch filled with 40 individually-wrapped sweets, including Drumstick Squashies, Parma Violets and Love Hearts. Mother’s Day is the perfect occasion for both gifting and sharing, says Walker, and Swizzels’ Sweet Shop Favourites Tub and Drumstick Squashies Carton are popular choices for those seeking a sweet treat to share with their mums. Swizzels’ Love Hearts gifting range is also ideal for boosting sales in the lead-up to Mother’s Day, and is a good way CCM to make use of any surplus Valentine’s Day stock.
For further information: Ferrero UK 020-8869 4000 Mars Wrigley UK (01753) 550055 Mondelez International (01214) 582000 Nestlé Confectionery 020-8686 3333 Swizzels (01663) 744144 Valeo Confectionery (01977) 692500
A clear mark of good value
[ PRICE-MARKED PACKS ]
As the UK heads into a recessionary period, value for money is a key purchasing decision for consumers. With 33% of shoppers believing that price-marked packs are cheaper than non-PMPs (HIM), packs flashed with a price have an important role in portraying good value. ore than one in four consumers say that they are more likely to shop in a convenience store that stocks price-marked packs, which give shoppers confidence that the products they are purchasing are not overpriced. In addition, almost half of shoppers like PMPs because they then don’t have to ask the price in store (HIM).
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Snacks, biscuits and confectionery KP Snacks offers 21 PMPs in its portfolio, which is currently growing by 6.4% in value, ahead of the 3.6% growth of the overall crisps, snacks & nuts category (Nielsen). According to trading director Matt Collins, PMPs will play an increasingly important role in the months ahead: “We have seen a substantial change in shopping behaviour over the pandemic, with the resurgence of bigger baskets. We can definitely assume that this will shift back to ‘little and often’ shopping as government restrictions are lifted and likely recessionary conditions prevail, as seen from 2008. “As this happens, promotional mechanics and appropriate merchandising in convenience will play a key role in offering value to shoppers, serving both insulated and constrained spenders. The role of the largest brands and category leaders will become even more important, as will the role of PMPs in convenience as shoppers’ budgets are squeezed.
“Retailers and manufacturers should use PMPs and promotional offers to create value and customer trust, utilising brand strength to heighten appeal and awareness and retaining the shopper loyalty that they have gained.” With 57% of shoppers wanting to see PMPs on crisps, nuts & snacks (HIM), KP Snacks’ recent addition of three new products to its £1 PMP range has responded to this demand. McCoy’s Hot Mexican Chilli £1 PMP is designed to capitalise on popular flavour trends, while the shift towards healthy snacking is catered for by Penn State Sour Cream & Chive Baked Pretzels £1 PMP and popchips BBQ and Sour Cream & Onion £1 PMPs, which replace the previous £1.29 packs. Last year, Burton’s Biscuit Company rolled out its new £1 200g PMP range, replacing its 99p 136g PMPs to offer shoppers even better value for money and drive impulse sales in 20
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stores. The £1 packs are available for Wagon Wheels (Original and Jammie variants) and Maryland Choc Chip, Double Choc and Hazelnut variants. The company also recently expanded its range of pricemarked Maryland Cookies, the nation's favourite cookie (Nielsen), with the launch of Maryland Choc Chip & Coconut in a £1 PMP – available exclusively to the convenience channel. Also under the Maryland brand, Big & Chunky is offered in a £1.39 PMP. Other Burton’s products available in price-marked packs are Jammie Dodgers Raspberry (89p) and Fish ’n’ Chips (50p). “The market for price-marked packs remains hugely important in driving the impulse sector,” says Kate Needham, marketing director. “Burton’s Biscuit Company recognises the important role that PMPs play in offering shoppers’ reassurance when it comes to value, and we will continue to support the sector with bestselling products.” According to Mark Walker, sales director at Swizzels, value-for-money confectionery continues to be a hugely popular choice for shoppers. “Research shows that 82% of shoppers seek out PMPs, in addition to 61% of shoppers who think PMPs offer better value for money (HIM). Therefore, it is important for wholesalers to display a strong sugar confectionery PMP offering that provides breadth of choice and best-selling options to attract retailers looking to maximise sales,” he says. Hanging bags have grown by nearly £50 million in the past two years and now account for 50% of total sugar confectionery sales. Swizzels’ newest addition to its pricemarked hanging bag range is Great British Puds, which features individually-wrapped chew bars in sticky toffee pudding, rhubarb crumble, apple pie & custard and lemon meringue flavours. Other popular PMP hanging bags from Swizzels are Drumstick and Refresher Choos. “Choos come in £1 PMPs, and with value being an important factor for consumers, particularly in the current circumstances, retailers will be looking to make the most of this with their sugar confectionery offering,” points out Walker.
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[ PRICE-MARKED PACKS ] Squashies is now the No.1 hanging bag brand in sugar confectionery (IRI). Squashies original flavour has the highest rate of sale out of all £1 price-marked sugar confectionery packs in the market, 28% above the next nearest competitor. Meanwhile, Loadsa hanging bags are available in £1 PMPs “which also makes them enticing to shoppers on a budget”, says Walker. The latest addition to the Mars Wrigley sugar confectionery PMP range is Skittles Giants, which come in a £1 price-marked 125g bag. Mars Wrigley is also looking to grow the gum category with its £2 PMP of Extra sugarfree gum 46-pellet bottle, available for its best-selling core flavours, Peppermint and Spearmint. “The gum bottle will be driving growth in 2021, with 1.7% projected growth, so we recommend it is stocked alongside core single packs for maximum sales success,” says Marta Gil, brand director.
On-the-go options PepsiCo has launched a new price-marked format of Quaker Porridge to Go. Available in two variants – Golden Syrup and Strawberry, Raspberry & Cranberry – the new PMPs are priced at 75p rrp. Danielle Mendham, senior brand manager, comments: “Over the last year, we’ve seen shoppers become even more money-conscious in the impulse channel (Lumina). With shoppers increasingly looking for products that offer value for money, we saw our total Quaker rrp PMP range grow by almost 17% (Nielsen), so we can expect demand to continue in the new year.”
At a time of low confidence in spending, the price sensitivity shown by shoppers is set to continue through 2021 and the convenience channel will continue to benefit by offering price-marked packs, maintains Monisha Singh, shopper marketing manager at Kepak Consumer Foods. “PMPs at accessible price points help to attract new customers and encourage repeat purchase from brand loyalists and impulse shoppers,” she says. Products like Rustlers that are backed by sustained, heavyweight marketing support will have even stronger appeal, she adds. Rustlers is the UK’s No.1 chilled ready meals brand, worth £112 million (Nielsen) and showing double-digit growth year on year. The company has developed a range of PMPs that enable wholesalers to provide the products that their retailers need to meet the needs of priceconscious shoppers. The Rustlers ‘must stock’ lines are Rustlers Quarter 22
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Pounder £2 PMP – the No.1 selling micro-snacking product in impulse, with seven sold every minute (Nielsen), plus Rustlers All Day Breakfast Sausage Muffin £1.75 PMP, Rustlers Southern Fried Chicken Sub £2 PMP, and Rustlers BBQ Rib £2 PMP.
Drinks Price-marked packs account for 59.7% of total soft drinks sales in symbols and independents (IRI), highlighting the importance of offering soft drinks in PMPs. In addition, pricemarked soft drinks are growing more quickly than non-PMPs in the channel – up by 16% versus an increase of 6% from non-PMPs (IRI). “Price-marked packs are incredibly important when it comes to demonstrating value to shoppers,” says Matt Gouldsmith, channel director wholesale at Suntory Beverage & Food GB&I. “They need to be balanced alongside shopper insight and store-specific requirements in order to meet the needs of consumers.” Suntory offers the option of price-marked or non-price-marked packs across its range of soft drinks, including recent NPD – Ribena Raspberry Rays, Ribena Raspberry & Rhubarb squash, Ribena Sparkling Blackcurrant and Sparkling Raspberry, and Lucozade Energy Citrus Chill. To help retailers cater for shoppers drinking more soft drinks at home, Suntory has reduced the PMP price to £1.50 of some of its most popular drink-later products, including Ribena 600ml squash and Lucozade Energy one-litre. “The reduced PMPs across our Ribena and Lucozade Energy drink-later range offer a lower everyday price to consumers – at a time when many shoppers will be looking for increased value from their regular purchases,” says Gouldsmith. Suntory’s Orangina also taps into the growth of drink-later formats with a new two-litre bottle, available now as a £1.79 price-marked pack. PMPs continue to play a strong role in retail outlets by delivering a greater perception of value to consumers, points out Red Bull. What’s more, with 21% of shoppers saying that they wouldn’t buy a soft drink from a convenience store if it wasn’t a PMP (HIM), it is important for retailers to stock PMPs of soft drinks if suitable for their customer base.
PRICE MARKED PACKS
INCREASE YOUR SALES WITH PMP*
• Price Marked Packs attract younger, more affluent shoppers • 44% of shoppers are more likely to shop in a Convenience Store that stocks Price Marked Packs • 26% of Convenience Store shoppers say that price shown at shelf is an extremely important factor in deciding what to buy Source: HIM November 2019. ®Reg. Trademark of Société des Produits Nestlé S.A. *Sales not guaranteed.
[ PRICE-MARKED PACKS ] To give retailers a choice, the Red Bull core range is available in both price-marked and nonPMP formats, and includes Red Bull Original 250ml, 355ml, 473ml and Red Bull Sugarfree 250ml. Red Bull’s Editions, which comprise Tropical, Coconut & Berry and the newest variant the Red Edition, also come in PMP and non-PMP cans. Red Bull recommends stocking PMPs across best-sellers at all times to demonstrate range and give customers choice, whilst driving profit. Hall & Woodhouse offers Rio, one of the top 10 carbonated adult soft drink brands in the UK (IRI), in both pricemarked packs and non-PMPs. Rio is not available in any of the big supermarkets – the brand’s focus is on serving the impulse market – enabling cash & carry customers to offer a point of difference in their chiller. There are two variants in the range (sold as 24 x 330ml cans): Rio Tropical, which contains 10% real fruit juice and lightly sparkling spring water, and Rio Tropical Light, which provides a lower sugar alternative and is UK sugar tax exempt. Rio Tropical also comes in cases of 12 x 500ml PET (PMP and non-PMP), giving retailers the ability to offer their customers different formats to meet different consumption occasions.
‘Price-marked packs help independent retailers to realise a competitive margin whilst giving consumers confidence that the price is fair’ Jon Black, head of off-trade sales, Hall & Woodhouse Jon Black, head of off-trade sales at Hall & Woodhouse, emphasises the importance of PMPs: “Price-marked packs are a vital tool for the impulse channel, helping independent retailers to realise a competitive margin whilst at the same time giving consumers confidence that the price is fair. “These pack formats are helping to drive many brands forward and Rio is no exception, with the price-marked variants in our range growing at 20% year on year (Booker). This is a clear indication that consumers are seeking out value reassurance in the current tough economic times, so it is clearly important for retailers and wholesalers alike to be offering price-marked variants across their range.” Last summer, Coca-Cola European Partners (CCEP) reduced the pricing for its range of PMPs across its colas portfolio. Available in a £1.75 PMP are 1.75-litre bottles of Diet Coke and Coca-Cola Zero Sugar, including the cherry 24
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and vanilla-flavoured variants, while 1.5-litre bottles of CocaCola Original Taste and Coca-Cola Original Taste Cherry come in a £1.95 PMP. These meet demand from consumers for larger formats for home consumption. “More people are spending more time in the home, and we’ve seen a shift to people buying more products to drink later (Nielsen),” says Amy Burgess, senior trade communications manager. “This has seen an increase in demand for bigger packs, such as large plastic bottles and multipack cans of soft drinks – a trend we expect to continue with an estimated rise of up to 38% of at-home consumption occasions each week (Kantar).” For on-the-go shoppers, Coca-Cola Zero Sugar, including cherry and vanilla flavours, now come in a £1 PMP, as do Diet Coke Sublime Lime and Diet Coke Twisted Strawberry. In the energy sector, which has grown by £139 million over the last two years (Nielsen), CCEP offers its Monster energy drinks in price-marked formats, as well as plain packs. In addition, the six Relentless variants, including original and flavours like Mango and Apple & Kiwi, are offered in a £1 PMP, while performance energy range Reign Total Body Fuel is presented in a £1.49 PMP. PMPs are hugely important for retailers: they help ease the path to purchase and in turn often lead to larger basket spend, maintains Simon Gray, founder and managing director of Boost Drinks. “At a time when social distancing measures are in place and people are more conscious of getting in and out of store as quickly as possible, PMPs are a simple way of checking value for money before making a purchase. By making it easier for consumers to purchase, retailers help increase the chances of them spending more in store,” he says. “We also believe that PMPs are a simple way for retailers to gain the trust of their consumers. It gives shoppers confidence in the store’s pricing in comparison to larger outlets.” Gray insists that Boost Drinks has always understood the importance of PMPs and strong margins in the independent sector; consequently it offers every one of its energy, sport, protein and coffee products in a price-marked pack format. The out-of-home hot and cold coffee market is worth over £20.2 million and is growing in value by 51.9% year on year (IRI). Last year, Boost Drinks launched two chilled ready-todrink coffee lines – Silky Smooth Caffe Latte and Full Bodied Double Espresso with Milk – both available in £1 pricemarked cans.
YOUR NEW YEAR MUST STOCKS.
[ PRICE-MARKED PACKS ] “Our RTD coffee offers consumers a great tasting product from a trusted brand at a lower price than the market leaders,” says Gray. “As with all Boost products, they also offer strong margins for retailers.” Boost Drinks provides a calculator on its website to help retailers calculate the margin for its products. “We know how important margins are to retailers and do everything we can to help them plan ahead and make the most from the range,” Gray explains. Becky Unwin, senior brand manager at Nichols, says: “Whilst retailers need to keep an eye on their profit margins, the allure of a PMP will help to increase impulse purchases, encourage repeat custom and ultimately drive stock through more quickly. “PMPs also make shopping easier for the consumer as they are clearly marked, creating real on-shelf presence, which in turn drives quicker purchase decisions.” PMPs account for £16 million (33%) of total squash sales and are growing at 37% year on year, an outperformance of +15% compared to the total squash sector (Nielsen). Vimto is the fastest-growing squash brand (Kantar). To meet demand for healthier alternatives, Vimto No Added Sugar 500ml comes in a £1 PMP, and another of the company’s no-added-sugar drinks, Vimto Remix Orange, Strawberry & Lime, is available in a £1 500ml PMP and a £1.29 two-litre PMP. FrieslandCampina offers permanent 400ml and one-litre PMPs of all core flavours of Yazoo (Chocolate, Strawberry, Banana and Vanilla) as well as its limited-edition flavours. “Retailers can stock the flavours and sizes they know sell well whilst communicating value to their shoppers and maintaining that point of difference, especially as a quarter of consumers continue to shop locally (IRI),” says Wayne Thompson, business unit controller for out of home. He adds: “PMPs inspire trust so can lead to repeat purchasing.” According to Helen Boulter, multi sector sales controller at Taylors of Harrogate, COVID-19 has impacted the hot drinks category in a number of ways, but most notably, shoppers have realised the benefits of shopping locally. “This change in shopper behaviour appears to be here to stay, and independent and convenience stores can encourage this behaviour by ensuring customer demand is met,” she says. “This not only includes ensuring that customers’ favourite products are available, but as we enter a recession, shoppers will be increasingly conscious of value. As a result, we expect to see demand for PMPs grow, especially on essential and everyday categories such as standard black tea and decaf.” Boulter adds: “Yorkshire Tea is the nation’s No.1 brew (IRI), and our PMPs help independent and convenience stores communicate value and can help to overcome the perception that convenience stores are more expensive than supermarkets.” 26
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Nescafé Gold Blend, which comes in £3.49 price-marked 95g jars, is being backed by a new competition from Nestlé, starting on 1 February. The initiative, which follows the success of the company’s ‘Win A Van’ competition last year, gives cash & carry/wholesale customers the chance to win £1,000 each month until the end of April. To enter, customers simply buy a case of 6 x 95g Nescafé Gold Blend and text GOLD to 60060 with their name, business name, postcode and 8 digit code. The competition is supporting the relaunch of the Gold Blend range, which now features a new and improved recipe, with a 60/40 win over key competitors in terms of a rich aroma and a smooth taste, reports Nestlé. In addition to the competition, the relaunch is being backed with new communications, including a TV advert, focused on the superiority of Gold Blend. Nescafé Gold Blend is the UK’s No.1 premium instant coffee (IRI), and five million more households now buy Nescafé Gold Blend than in 2017 (KWP). In total, an additional 375 million cups of Gold Blend are consumed per year versus 2017 (IRI, KWP, Ocado). CCM
For further information: Boost Drinks (0113) 240 3666 Burton’s Biscuit Company (01727) 899700 Coca-Cola European Partners (0808) 1000 000 FrieslandCampina (01403) 273273 Hall & Woodhouse (01258) 452141 Kepak Consumer Foods (01772) 688300
KP Snacks (0845) 601 7583 Mars Wrigley (01753) 550055 Nestlé UK & Ireland 020-8686 3333 Nichols (01925) 222222 PepsiCo (0118) 930 6666 Red Bull (0203) 117 2000 Suntory Beverage & Food GB&I 020-3727 2420 Swizzels (01663) 744144 Taylors of Harrogate (01423) 814000
Lift sales of better-for-you bars
[ HEALTHY SNACK BARS ]
With New Year giving a boost to healthy products, snacks bars that deliver benefits such as low-calorie or high-protein content are worthy of additional focus by the trade.
roducts high in protein have moved from being mainly for sports nutrition to part of everyday snacking, and they are the main driver of sales in the overall snack bar category (Kantar). Nature Valley Protein cereal bars contain 10g protein per bar and are also gluten-free, meeting demand from shoppers looking for better-for-you, functional options. To capitalise further on the protein trend, General Mills is kicking off 2021 with the launch of Nature Valley Protein Soft Bakes. Available in two flavours – Oats & Honey and Blueberry & Almond – the soft bakes are designed for the busy breakfast moment. “We know that 25% of UK consumers eat cereal bars for morning fuel (Nielsen) and are looking for ways to increase their protein intake in the morning too,” says Adrienne Burke, marketing manager, snacking. “By offering a breakfast biscuit with high protein content that also delivers on taste, we’re meeting this demand head-on.” Offering 8.4g of protein per bar, Nature Valley Protein Soft Bakes and are made with 100% wholegrain oats and barley and are high in fibre. Other NPD in the protein segment includes Fibre One protein bars in two variants – Caramel and Cookies & Cream. “Our research found that 71% of Fibre One consumers are interested in protein but are wary of the high sugar and calorie content of the options currently on the market (Nielsen),” says Burke. “Our new range is the ideal alternative – the bars contain 10g of protein and only 1g of sugar, all for only 90 calories, and they taste great.” Fibre One, claimed to be the fastest growing snack bar in the weight management category, is now worth £38 million and, following a recipe revamp to contain 30% less sugar, is up by 22.1% in convenience (Nielsen). “Since the beginning of the pandemic, the diet management category has grown by 2% as an increased focus on health and limited movement due to lockdown caused shoppers to worry about weight gain,” says Burke.
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She adds that an increasing number of people are also making the choice to include more minimally processed, plant-based foods in their diet. “Our gluten-free, dairy-free and vegan snack bar brand LÄRABAR – made with no more than six ingredients – meets this demand perfectly,” she says. Since being launched in the UK in 2019, sales of LÄRABAR have reached £1 million (Nielsen). Mondelez International recently introduced Cadbury Nuttier, a range of fruit and nut snack bars in three variants – Peanut & Almond, Cranberry, Peanut & Almond and Coconut & Almond. Available as 40g single bars (rsp £1.19) in cases of 15, the launch is designed to help retailers recruit new shoppers to this expanding and valuable category with a trusted, recognisable brand. Cadbury Nuttier is one of the first products within the ‘healthier bars’ segment to include milk chocolate. The transparent packaging means that consumers can see the combination of fruit and nuts at the top, embedded into Cadbury milk chocolate at the bottom. This points to the concept that ‘there are two sides to every bar’, and this slogan appears on displays and PoS in-store. Lyndsey Homer, brand manager for Cadbury Nuttier, says: “As the nation’s favourite chocolate (Nielsen), Cadbury is in prime position to deliver growth for the ‘healthier bars’ category, catering for the growing shopper demand for snacks that are wholesome, but still deliver on taste. “Cadbury Nuttier is a really exciting launch for us. Not only do we know that the ‘healthier bars’ category is very popular (Nielsen), but we’re also confident that Nuttier is one of our best tasting bars yet, performing exceptionally in testing. This, combined with its striking packaging that will stand out on shelf, will mean Cadbury Nuttier is sure to be a hit.” Mondelez advises retailers to position Cadbury Nuttier in the on-the-go section, near the front of store, or alongside other ‘healthier snacking’ options to maximise impulse sales. Weetabix Food Company recently added a White Chocolate, Raspberry & Shortcake variant to its Alpen Light bars range, which is now worth over £14 million at retail sales value (Nielsen). With an rsp of £1.99 for a pack of five, the new Alpen Light bar has 67 calories. Cases contain 10 packs.
Healthier Bars as defined by Nielsen
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[ HEALTHY SNACK BARS ] Darryl Burgess, head of sales, says: “We make sure we keep the Alpen Light range current and continue to deliver on the lead flavour trends in a low-calorie format. Our last two pieces of NPD, Salted Caramel and Jaffa Cake, are now our best-selling SKUs. “Choice and variety are the key drivers of growth in this category,” he adds. “To keep driving performance forward, it is important that retailers rotate flavours and create diversity in their range.” Another important factor in delivering growth in the cereal bar category is protein. “There is a big opportunity for trusted names such as Alpen to offer an accessible route into buying more protein, especially for those unsure of traditional sports nutrition brands,” says Burgess. Alpen Protein is available in two flavours – Chocolate and Berries & Yoghurt. The bars have 19g of protein per 100g – over 100% more protein than the average cereal bar – and contain less than 130 calories per bar. Last year, Weetabix redesigned the packaging for its Alpen range, with vibrant colours providing clearer flavour differentiation. New shelf-ready packaging was also introduced to ensure improved impact in-store. “The newly designed shelf-ready packaging provides a neater, clearer look on fixture, whilst improving navigation and messaging for shoppers with key health claims and flavour call-outs on the front lip,” says Burgess. “We’re confident this will help to further add value to the category.”
& Dark Choc. Each bar contains 10g of plant protein, sourced from a combination of peas and nuts, and has the added luxury of smooth dark chocolate, made with sustainable cocoa certified by the Rainforest Alliance.
‘People are increasingly looking for options that are good both for them and for the environment’ Rosamunde Hobson, brand manager for YES! at Nestlé
The Ferrero Group has announced its acquisition of cereal bar and granola specialist Eat Natural. Ferrero plans to build the Eat Natural brand, while supporting its distribution and expansion to new markets. Commenting on the acquisition, executive chairman Giovanni Ferrero says: “Eat Natural are an excellent strategic fit for the Ferrero Group as we continue to expand our overall footprint and product offerings into the healthier snacking market segment.” In September, Nestlé UK & Ireland began rolling out its YES! snack bars to wholesalers. Research by the company showed that most people buying protein bars are now looking for more innovative protein sources, and unlike competitor products, the YES! bar taps into an emerging trend towards pea protein. The bars have an rsp of £1.59 and come in two flavours: Almond, Peanut & Double Dark Choc and Cashew, Blueberry 30
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In addition, as with the existing YES! range, the bars are wrapped in recyclable paper. The paper is from sustainable sources, certified by the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification. Brand manager for YES! Rosamunde Hobson says: “We know that people are increasingly looking for options that are good both for them and for the environment. YES! plant protein bars provide a source of plant protein to deliver a great wholesome product on the go and are wrapped in paper packaging that is easy to recycle.” Convenience retailers are advised to site the YES! bars within their healthy snacking fixture – next to lifestyle protein/enhanced wellbeing products that typically have between 8g-12g of protein and away from functional protein/ enhanced performance products that typically contain up to CCM 20g protein.
For further information: Ferrero 020-8869 4000 General Mills (01895) 201100 Mondelez International (01214) 582000 Nestlé UK & Ireland 020-8686 3333 Weetabix Food Company (01536) 722181
Capitalising on change
[ INFORMATION TECHNOLOGY ]
Leading technology suppliers are meeting wholesalers’ demands for solutions that will help them expand their customer base and increase their resilience to market disruption. he pandemic that has gripped the globe for over a year has significantly changed consumer behaviour. People are making fewer trips to the stores to comply with lockdown measures, but as a result they are buying more on each trip. In addition, as the economic impact hits consumers who are unable to work during lockdown, value over price has become a key differentiator. Price comparison wars favoured by supermarkets are no longer enough to entice people looking for a bargain. Consequently, many people have changed how and where they shop to accommodate their desire to get everything in one go, points out Oporteo. There was an exponential shift to online shopping in 2020 as people looked for the best deals at the click of a button. According to the Office for National Statistics, in November 2020 alone, the value of sales from online commerce was 74.7% higher compared to sales in November 2019. Andy Pratt, business development executive for Oporteo, says there is a great opportunity for B2B businesses to capitalise on these new consumer trends: “Wholesalers need to differentiate themselves and compete for customers’ attention and loyalty. When many retailers and hospitality venues have been forced to close their doors, opening a direct-toconsumer (D2C) channel is essential for competitive advantage and growth,” he maintains. Spikes in demand and the ever-increasing volume of online orders have meant that many wholesalers are looking for solutions that will help them expand their customer base and increase their resilience to marAndy Pratt: ‘Wholesalers ket disruption. need to differentiate Pratt says: “As the pandemic themselves.’ continues to shift everyone online, wholesalers are competing with a growing number of online retailers and digital disruptors. However, many of our customers have seen the value of direct-to-consumer ecommerce whilst traditional sales channels are inaccessible.” Oporteo has been undertaking rapid deployments of direct-to-consumer solutions to help their customers survive and thrive during these trying times. These have included implementing Oporteo’s B2B ecommerce platform with click & collect functionality for commercial and public use; mobile sales solutions so that businesses can enable sales from stock on-the-move; and white-label ecommerce solutions so that B2B customers can generate additional revenue online. However, the success of a direct-to-consumer approach isn’t as simple as just implementing technology, says Pratt, who has been advising businesses on a strategic level. “In
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There was an exponential shift to online shopping in 2020.
order for this type of business model to work, there are some key considerations that businesses need to take on board. “Expanding a customer base to include consumers will require various operations across the businesses to be changed, from marketing and sales to customer support and warehouse operations,” he explains. “Consumers have slightly different needs that businesses have to accommodate, such as a mobile responsive website, relevant payment and delivery options, VAT inclusive pricing, and appropriate customer support in place to process enquiries and returns.” As a result of increased interest from businesses looking to better utilise their digital platforms, Oporteo has written an ultimate guide on how to expand B2B operations to D2C. The company’s goal is to help wholesalers and distributors take advantage of changing consumer behaviours and maximise their sales potential.
Significant commitment When the first lockdown occurred due to COVID-19, STL Technology Solutions thought that business might quieten. But, as the world became less predictable, wholesalers turned to STL’s next-generation merchandise management system, STL MMS Evo, to gain stronger control, efficiencies and business insights. Within 15 months of its launch, UK wholesalers have now committed to running £2.4 billion of revenues through Evo, reports the company. Designed specifically for wholesalers, MMS Evo is accessible from any device, intuitive to use and ultradynamic with realtime key performance graphs for swift, confident decision-making. Its role-based access STL is helping wholesalers to and automatic updates thrive through uncertain times. keep operators
Mos tec ommer c epl a t f or ms a r en' tdes i gnedwi t h whol es a l ebus i nes s esi n mi nd. Our si s .
[ INFORMATION TECHNOLOGY ]
STL’s David Tomlinson (left) and John Perret.
secure and compliant. It is also very easy to customise and scale up or down, giving users the responsiveness and adaptability they need for an uncertain future, STL points out. Rising to this unexpected demand, the company revved up its development roadmap, rolled out new IT solutions and service initiatives, and recruited experienced customerfacing executives. It now offers a range of optional modules that fully integrate with MMS Evo: a Supplier Claims Management – auto-manages claims on supplier incentives to increase profits with less effort. a Biometric PoS Access – prevents theft or discretionary discounting by staff at the point of sale by requiring fingerprint access, mitigating the common practice of sharing PIN numbers, and controlling and tracking who performs which activities. a Tobacco Track & Trace – ensures that all relevant operations, from point of sale to goods inward, are automatically kept fully compliant with the Tobacco Products Directive regulations, without doubling up on any data entry. a Fast Pay – overcomes common central cash bottlenecks by enabling operators to accept payments by card or mobile phone direct from their standard scanning unit. The facility can be turned on and off to match customer flow and prevent small-basket customers getting frustrated behind multitrolley purchasers at the central cash booth. a Omni-channel Ordering – in a new joint venture with ecommerce solution provider RNF, STL is delivering the first truly seamless and real-time end-to-end omni-channel ordering solution for wholesalers. It will allow customers to order on the go 24/7, whilst enabling operators to deep-analyse customers’ needs to provide a more responsive, personalised and profitable service. 2020 wasn’t all about Evo at STL, which recently migrated all its handheld terminals on to Android. This will enable it to keep enhancing these devices with all the latest advances in mobile computing. On the service front, STL is making two major investments in IT. One is in the implementation of Mondays management software, which controls the delivery and deployment of STL’s software and services, and capacity management, for a more organised and efficient service experience. STL’s service desk is also trialling the B2B customer support solution, TeamSupport. It enables customers to log calls directly into a web portal or via a smartphone app, track their tickets, and communicate directly with service desk analysts. 34
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Following full installation, it will help STL optimise workflow, time management, collaboration and accountability. To oversee this new project, the company has appointed John Perret as service desk manager. Building on a career in retail and wholesale technology solutions, Perret has worked at STL for more than three years, most recently as lead analyst where he provided Level 3 support and developed and implemented vital upgrade strategies to keep customers compliant, secure and ‘ahead of the curve’. STL has also appointed David Tomlinson as account manager responsible for taking care of its existing wholesale and retail customers. Most recently business development manager at Tierney’s Office Automation, Tomlinson also previously worked with STL’s founders Ivan Durkin and Tim Dobie at Riva. In addition, Tomlinson was STL’s point of contact at its retail solutions partner NCR. Commenting on Tomlinson’s ‘extra mile’ approach to customer support, Durkin said: “Rather than giving us the usual superficial, sales-motivated opinions, he continually provided value-adding advice. We’re really excited to have someone of such high calibre looking after our own customers.”
Digital leadership During 2020, the wholesale channel faced a triple threat – the usual challenge of competing for fair prices and stock allocation versus the retail multiples, the looming presence of Amazon, and potential digital disruption overlaid with a rapid change in customer behaviour driving the channel to pivot fast to digital engagement, points out Tanya Pepin, CEO of data and digital specialists TWC. “Wholesalers have a choice right now with what they do next – do they lead or follow?” she says. “Leaders will be looking to establish a data-led business with an end-to-end capability to follow customer journeys, micro analyse product trends and let technology monitor buying and selling patterns as well as personalise all communication. Followers are sure to be embracing ecommerce and apps but as a bolton rather than as an integrated part of their whole business.” Decisions made now could Tanya Pepin: ‘Wholesalers have a choice right now: make the difference between do they lead or follow?’ success and failure in the longer term, she continues. “At TWC, we sit outside the operational day-to-day of wholesale – almost as silent observers and, hopefully, trusted advisors. “What we are clearly seeing is that wholesale generally lacks the digital leadership of other verticals, and this paucity of expertise means that wholesalers tend to rely on their existing back office or ERP (enterprise resource planning) providers to support their journey into digital (because they know them already) or they use a platform one of their competitors seems to have successfully installed.” To fill this vacuum in digital expertise, there perhaps needs to be a shift in how the industry is recruiting its
Why are wholesalers racing to STL?
Our IT solutions are driving ÂŁ2.7 billion UK wholesale revenues. And accelerating fast. Why? Because of what we stand for...
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In these uncertain times, responsiveness is vital. STL’s next-generation solutions are designed to provide the superior visibility, control, agility and usability you need to react to fast-changing conditions, meet customer demands and out-manoeuvre competitors.
You need an IT partner and technology you can trust. For 20 years, STL has engineered dedicated wholesale systems on proven yet evolving platforms that automatically keep you secure, compliant and up-to-date. And our friendly, proactive and flexible support teams provide a wide range of reliable services that keep your business on the road.
STL’s solutions are future-proofed to optimise your investment. Our modern, open architecture allows us to continuously advance our core systems with new IT capabilities and seamlessly integrate modules designed to help you navigate emerging challenges.
To get into pole position contact us now. 0333 3207101
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[ INFORMATION TECHNOLOGY ] Unitas offers wholesale members a digital health check
Unitas Wholesale has launched a Digital Excellence Academy to offer advice and support to its 165 wholesale members on a wide selection of digitally related topics. As part of the initiative, Unitas members can have a digital health check carried out by Lumina Intelligence, which will score and benchmark each wholesaler’s online capabilities and identify opportunities to develop and increase sales across the digital trading platform. A Digital Excellence Academy virtual event will be held on 2 February and will highlight best practice for B2B wholesale transactional platforms, including websites and apps. There will be two sessions – one dedicated to wholesalers servicing retailers and the other focusing on operators supplying out-of-home customers. Darren Goldney, Unitas managing director, says: “The events of recent months have highlighted the importance of the need for efficient and effective online capability more than ever, and as the digital agenda is a key strand of our forward strategy, we are committed to supporting this type of initiative with our wholesale members.”
talent to bring about necessary change and new thinking, suggests Pepin. “This question of change goes right to the top – will the fundamental make-up of the C-suite (senior business leaders) need to change to encompass tech and digital in a more meaningful way? Arguably, the tech/digital director could be as important as the sales director or buying director to the future of the business (if not more so!). “Talent will be pivotal, and merging detailed operational (wholesale) experience with leading-edge digital knowledge will be the silver bullet to success. Those organisations that do this will get to know their customers better and faster in a disruptive market and analyse and react to sales performance faster to drive a more agile business.” Pepin notes that talent falls into two camps – ‘administrators’ and ‘innovators’. Administrators have possibly worked elsewhere in a depot and then been promoted into a digital role, while innovators are ‘the rare breed’ who have joined wholesale from other sectors where digital natives already exist and apply their knowledge to the wholesale channel. “You wouldn’t employ a depot manager who hasn’t worked in a cash & carry before,” says Pepin. “For a depot manager to be effective, you need someone who is experienced in running a depot, and the same goes for a buyer – you wouldn’t compromise on the skills and experience of a senior buyer. So why not embrace those principles across e-commerce?” 36
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Improved access The COVID-19 pandemic has undoubtedly accelerated the move towards digital ordering – previously the sole domain of the big players – across the wholesale industry, points out Rob Mannion, founder and CEO of RNF’s b2b.store. “Technological advances mean that it is easier and more cost-effective than ever to create a digital ordering platform that effectively puts your depot in your customers’ pocket. “One technological advance that has played a key part improving access to online ordering is progressive web apps, or PWAs,” he says. “Previously, wholesalers looking to offer mobile ordering needed to develop a mobile-optimised website and a native app for each mobile platform – for example, iOS and Android – or compromise on a web app. While native apps were quicker and offered greater functionality, such as camera access and push notifications, web apps were more affordable but offered limited functionality.” However, says Mannion, the new generation of PWAs overcome many of the shortcomings associated with web apps, behaving more like native apps in practice. “From a customer experience point of view, PWAs can be dragged on to a mobile or tablet home screen so appear, to all intents and purposes, just like a native app on a customer’s screen. Once there, all updates happen automatically, ensuring customers always have access to the latest version of the app.” PWAs also offer messaging functionality, which means that wholesalers can contact app users when they are using their devices. Like native apps, PWAs also work offline when network connections are poor, vastly improving the customer experience, and adapt automatically to a user’s device and screen orientation. “PWAs also use one set of code across desktop, mobile and tablet, meaning only one set of code needs to be maintained,” adds Mannion. “This massively reduces ongoing costs. At RNF, we have spent two years building a highlyscalable Software as a Service (SaaS) platform that means we can create digital ordering solutions in seconds, keeping the channel within reach of all wholesalers and distributors, whatever their size. “All of these features are why we use a PWA as the basis for our freemium ecommerce platform b2b.store, which brings together digital ordering capability with great customer user experience for wholesalers and distributors of all
Ecommerce platform b2b.store from RNF brings together digital ordering capability with great customer user experience.
[ INFORMATION TECHNOLOGY ] sizes. Crucially, the cost of entry to PWA technology is minimal compared to other solutions and our freemium offer makes it risk-free.” B2b.store is available free of charge and wholesalers can also subscribe to premium features on an on-demand basis. “Foodservice wholesalers in particular are under continuing financial pressure so we are also offering our premium onboarding service – which helps gather the product data Rob Mannion: ‘Our and information wholesalers freemium offer makes b2b.store risk-free.’ need to get started in the correct format – free of charge, alongside three months of premium features,” says Mannion. “With uncertain times ahead until a vaccine enables a return to normal times, we believe it’s a combination worth considering.”
software that ‘revolutionises’ the way companies make sales and engage with their customers. As well as supporting businesses with its B2B app, Adventoris adapted its B2B model to create a B2C version to support wholesale businesses to sell direct to consumers. The company plans to add 17 employees to its 30-strong team in 2021 and roll out its B2C model to a wider market. Fleetmaxx Solutions, which specialises in telematics technology, is offering a dashcam and tracking ‘combo‘ for £12.95 per month. The price includes free installation, the Fleetloc8 tracking system and the forward-facing Fleetcam. “Telematics technology lets you see your drivers and the performance of each vehicle in real time – all on one screen, and whenever you want, and wherever you are,” explains Steve Clarke, marketing manager. “It offers in-depth reporting on pump pricing, driver behaviour, fuel, fraud, vehicle CCM tracking and much more.”
Support for wholesalers
Adventoris (03333) 447557 Fleetmaxx Solutions (01698) 537153 Oporteo 0161-355 3000 RNF (01926) 298867 STL (0333) 207101 TWC (01908) 920602
Adventoris is set to double its turnover to £2.5 million in 2021, following a successful year supporting distribution and wholesale businesses during the pandemic. The company is a Software as a Service (SaaS) provider and creator of SwiftCloud, mobile busines-to-business
For further information:
Don’t get left behind Move to digital ordering – fast More ordering than ever is now done via smartphone, which is why our B2B eCommerce platform is built for mobile first. • Quick to set up • On demand subscription model - freemium offer – only pay for features you need • Advertising capabilities • For wholesalers of all sizes • Totally focused on B2B wholesale market
Future-proof your business today
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Call: 01926 298 867 Email: hello@b2b.store
Flavour drives category growth
[ CARBONATES UPDATE ]
Carbonates are worth £4.6 billion and account for 54% of the total soft drinks category (IRI), so they should be an important focus for C&C/wholesalers and their customers. lavoured carbonates are experiencing growth of 4.2% (IRI) and the category has one of the highest penetrations – 81% – of any in the soft drinks market (Mintel). “Four out of five of those buyers consume flavoured carbonates at least once a week (Mintel), which demonstrates the sales opportunity they offer wholesalers and their customers,” says Matt Gouldsmith, channel director, wholesale at Suntory Beverage & Food GB&I. Suntory has launched Ribena Sparkling Blackcurrant and Ribena Sparkling Raspberry in 330ml single cans. Both variants are available as 65p PMPs, and Blackcurrant also comes in a non-price-marked can with an rsp of 80p. Sales of 330ml cans are growing at 7.3% (IRI). The new Ribena Sparkling single can joins the three existing formats – 500ml, two-litre and multipack cans. “There’s less than 4% cross shopping between PET and cans (Dunnhumby) so this launch will really help retailers see more sparkling sales from different shoppers choosing the Ribena range,” says Charlotte Flook, head of brand. Also in the flavoured carbonates segment, Coca-Cola European Partners reports that Fanta Zero Raspberry, which was launched last year, has already delivered sales worth almost £3 million in GB (Nielsen). The Fanta range continues to be backed by marketing and promotions, designed to appeal to and engage an audience of young adults who enjoy experimenting with new flavours. Low and zero-sugar options remain important as consumers are increasingly interested in health and wellness (IGD). Tapping into both the growing flavoured colas segment and consumer appetite for lighter options, Diet Coke Sublime Lime has achieved £5 million of sales since its launch last January (Nielsen). As the trend of health continues to grow and evolve, so does the range of products that are available to shoppers, points out Adrian Troy, marketing director at Barr Soft Drinks. “However, taste remains the number one reason for shoppers to choose a carbonate and it is essential that retailers offer a wide choice of flavours to satisfy their many different needs,” he says. “Flavoured carbonates provide choice for shoppers, and convenience retailers can really differentiate their stores by stocking a range that excites their customers,” he adds.
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Barr Soft Drinks’ portfolio features a number of best-sellers, including Irn-Bru – the UK’s No.1 flavoured carbonate brand. The Barr Family range is the UK’s most popular range of flavours and is growing at 33%, while KA is the UK’s No.1 Afro-Caribbean soft drinks brand, and Rubicon Spring is the UK’s No.1 flavoured sparkling water brand. (IRI). While providing a core range is important, it is also worth factoring in additional flavours, maintains Ian Patefield, wholesale director at Britvic Soft Drinks. “This is particularly the case for the cola segment. With 38% of those who buy flavoured cola purchasing two or more flavours (Kantar), there is an opportunity to cater to these consumers by stocking variants of the original,” he says. Pepsi Max Raspberry has become the biggest flavour extension in soft drinks since its launch in 2019 (Nielsen). Another successful launch was 7UP Cherry, which has grown to be worth £3.2 million at retail sales value since its introduction by Britvic last year (Nielsen). Hall & Woodhouse prides itself on selling Rio exclusively through the impulse channel, meaning that, by stocking the product, convenience retailers can offer a point of difference versus the supermarkets. There are two variants in the range: Rio Tropical, which contains 10% real fruit juice and lightly sparkling spring water, and Rio Tropical Light, which provides a lower sugar alternative and is sugar-tax exempt. Both are available in 330ml cans and 500ml PET bottles. With consumers now buying over one million litres of Rio every month, the brand has outperformed the adult soft drinks market over the last year, CCM reports the company.
For further information: Barr Soft Drinks (01204) 664200 Britvic Soft Drinks (0345) 758 1781 Coca-Cola European Partners (0808) 1000 000 Hall & Woodhouse (01258) 452141 Suntory Beverage & Food GB&I 020-3727 2420
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