C&C Management June 15 by Cash & Carry Management

SPOTLIGHT INTERVIEW WITH ALBERT YIP OF WING YIP

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

BIDVEST REBRANDS ‘New identity marks new era of evolution’

LANDMARK CONFERENCE

EXCLUSIVE insight from John Searle

Behind the scenes at Lomond Fine Foods

JUNE 2015

The new look of happiness

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in store now

Contents

June 2015

This month don’t miss... 14

Exclusive insight into the Landmark Wholesale conference.

Your guide to the Alcohol Wholesaler Registration Scheme.

Revealed! How you can capitalise on the ‘grab and go’ mission.

ESSENTIALS 05 06 26

Editor’s Comment Industry News Products & Promotions

FEATURES 14

News Extra John Searle reviews Landmark’s 2015 conference in Abu Dhabi.

In Focus The renamed Bidvest Foodservice unveils a programme of evolution.

Talking Point The Alcohol Wholesaler Registration Scheme explained.

Spotlight featuring Albert Yip, store director of Wing Yip’s Croydon branch.

Behind the Scenes with Sam and Barbara Henderson, directors at Lomond Fine Foods.

New name, new era: Bidvest drops 3663 title and launches new mission statement and proposition to become the best foodservice provider.

OPINION 24

Legal Advice How to tackle problem products.

CATEGORY INSIGHT 29 32 34

Tobacco Pies & Meat Snacks Food & Beverages on the Move

Albert Yip talks trumpets, apathy and dinner-table conversations.

Find out the secret ingredients to Lomond Fine Foods’ success.

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June 2015

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[ EDITOR’S COMMENT ]

Biting off too much? he heads of major companies have the unenviable task of keeping their businesses in tip-top condition, giving shareholders a reasonable return on their investment and the staff continuity of employment. The problem is how best to do this. Do you maintain the status quo, fine-tune where necessary, develop in a controlled way, or dispose of assets that are not deemed to have long-term worth? All these are constantly under consideration. Charles Wilson is the man who rescued Booker when it was on its knees – heavily in debt and with a history of leading executives who had failed to find the right formula. Slowly, carefully and methodically, the former Marks & Spencer director worked out a plan and recruited some of the top brains available to help him achieve his objectives. Between them they devised a way of improving the mainstream cash & carry operation, reviving the once abandoned delivered wholesale side, and purchasing concerns – notably Makro – whose survival was in doubt or required much-needed working capital. Few would deny that Wilson and his team have done a fine job at Booker, turning a considerable deficit into a healthy bank balance. Not to be ignored is the growth of the Premier retail club side, now numbering over 3,000 outlets, which spend much of their cash within the Booker operation.

SPOTLIGHT INTERVIEW WITH ALBERT YIP OF WING YIP

BIDVEST REBRANDS ‘New identity marks new era of evolution’

And just for small measure, there is the Family Shopper chain – in its infancy with 30 or so outlets, but nonetheless playing an important role. With all this going on, and with investors happy that their money is in safe hands, where do you go now? Certainly, the board’s mind has been fully occupied looking at all sides of the business and tweaking where necessary. However, there is always the question: Do you splash out once again because you firmly believe that what’s on the market will give you even more stability and long-term growth? When the Londis and Budgens chains became available, Wilson and his fellow directors answered in the affirmative. They felt that, by bringing another 2,000 shops – with established fascias – into the group, Booker would benefit and the two chains would also grow. The board argued that there would be no conflict with Premier, Family Shopper or the thousands of unaffiliated retailers whose livelihood depends on Booker. Internal discussions resulted in many Booker-aligned retailers giving their approval to the deal. But what about those who kept their opinions to themselves? Wilson has an impressive CV. Time will tell whether he has made yet another sound investment.

Mervyn Gilbert News Editor

NEVER MISS AN ISSUE... Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £52 a year or £5 per copy. Overseas yearly subscriptions are priced at £80. Back issues dating back to 2011 are available online.

EXCLUSIVE insight from John Searle

Email mail.winlove@btconnect.com or call (01342) 712100 for more information.

Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email mail.winlove@btconnect.com Web cashandcarrymanagement.co.uk Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Deputy Editor Michael Catling ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,560 July 2013 – June 2014 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk

THREE WAYS TO GET INVOLVED THIS MONTH 1. ONLINE Catch up on all the latest news via our weekly bulletin, plus take advantage of our Promo Checker service, exclusively for suppliers, and our online magazine edition. cashandcarrymanagement.co.uk

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3. TWITTER Follow us to receive exclusive news and pictures, plus live updates from conferences. @CandCManagement

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June 2015

[ INDUSTRY NEWS ]

Four fascias under one roof Three beer awards

Budgens and Londis come under control of Booker Group Should Booker Group gain approval from the Competition & Markets Authority for its £40 million bid for Musgrave Retail Partners GB, it will be the second time that Budgens will have been part of Booker. The first time was between 1957 and 1986 when the group was known as Booker McConnell. Its interests then were involved in not just delivered wholesaling and cash & carry, but also poultry in the US and fish trading. The new proposed deal includes the 167 franchise stores operating as Budgens and the Londis chain of 1,630 symbol convenience stores. Budgens’ sales last year were £329 million and Londis’s £833 million (down from £899 million), with the pair having an operating loss before exceptional items of £7.4 million. That, however, was a big improvement on

the previous year’s deficit of £22.6 million. Londis, whose strengths are in London and the southeast, claims a 2.8% share of the convenience market, while Budgens, which is more prominent in the north and Midlands, has 1.4%. The pair will join a group whose retail activities are dominated by the 3,082 stores trading as Premier (sales up 14% last year) along with the embryonic Family Shopper chain, which has 31 outlets. Booker chief executive Charles Wilson said that all the fascias would continue to be developed, adding: “We will use the Budgens and Londis supply chain to serve our Premier and independent retailers, and that will

save costs. “The deal also helps Premier and Booker with our chilled ranges while Budgens and Londis can benefit from a better local and national supply chain.” Wilson added that the Booker/Makro integration programme has so far resulted in 11 outlets changing their format. Total group sales for the year to 27 March were up by 1.5% to £4.8 billion, of which Booker alone rose by 2.3%, with its non-tobacco income growing by 2.9% and tobacco by 1.1%. Group profit after tax went up by 12% to £117.7 million. Internet sales also moved up by 12% – to £874 million. a Booker Group (01933) 371000

Improved wine margins Until 20 June, Landmark Wholesale is offering all varieties in its Vintners Collection range at £19.99 per case. At that price, and with an rsp of £4.99 a bottle, retailers can enjoy a profit on return of 19.9%. The selection includes pinot grigio, merlot, shiraz and chardonnay. Group business development director Chris Doyle (pictured) said: “We realise that wine is a notoriously complicated category. “We wanted to support 06

June 2015

retailers as best we can so we’ve made wine simple by selecting the tried and tested favourites to create one complete great value range. “It has been a real hit with

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retailers and their customers alike and this limited period offer means the margins are even better.” In a separate development, the group’s Lifestyle Express chain was named best newsagent convenience retailer by shoppers at the annual convenience tracking programme awards. Landmark retail controller Stuart Johnson said: “It’s fantastic that shoppers think we do a great job.” a Landmark Wholesale (01908) 255300

Today’s Group’s on-trade division member The Kite Brewery, of Llantrisant, near Pontyclun, won three prizes – gold, silver and bronze – at the Society of Independent Brewers Association (SIBA) Awards 2015. Wales’s largest independent distributor of cask ale took gold in the best bitters and pale ales category for Jemima’s Pitchfork beer (abv 4.4%), which also won silver in the overall champion of the competition section.

Thunderbird, the brewer’s light, ‘citrusy’ ale (abv 4.5%), was awarded bronze in the premium bitters and pale ales category. Managing director of The Kite Brewery Rhys Anstee described the triple win as “incredible”. The brewery is offering customers a deal on the award-winning drinks – buy any 2 x 9-packs for £70 each. The next focus, said Anstee, is on craft ale kegs. “We’ve just invested £16,000 on equipment to start offering craft ale kegs in addition to cask ales.” a The Kite Brewery (01443) 406080

[ INDUSTRY NEWS ]

Sustainable fish pledge A statement issued by Brakes claims that ‘millions’ of UK schoolchildren, hospital patients, workplaces and restaurant diners are to be served only demonstrably sustainable fish. The company is a signatory to the Sustainable Fish Cities pledge, which commits companies to a raft of measures to ensure that all general sale, own-brand fish and seafood products are from verifiably sustainable sources, protecting marine environments and supporting sustainable fishermen and farmers. The foodservice wholesaler has stopped sourcing MCS (Marine Conservation Society) 5 rated products and is committed to removing or resourcing all 4 rated items within 12 months. It will also clearly identify which products are most

Hundreds of deals...

sustainable by applying the MCS’s 1-3 rating on its online product directory to help customers make the best choices. Products may also be Marine Stewardship Council (MSC) certified. The Sustainable Fish Cities campaign aims to see only sustainable fish on menus in the UK. It is now active in 14 towns across the UK’s SFC network. SFC project officer Ruth Westacott said: “This truly

ground-breaking scheme means that customers don’t actually need to know the ins and outs of seafood sustainability to make a good choice; the responsibility has been taken by their supplier. “People are eating more fish than ever when they eat out and it is simply unacceptable that they should be able to choose an endangered fish from a menu in the UK.” a Brakes Group (01233) 206000

60 new lines introduced by kff Foodservice wholesaler kff has published a brochure that features 60 new product lines. They include 10 cakes from successful Dragons’ Den contestant Proper Maid, such as Courgette & Lime, Beetroot & White Chocolate and Dandelion & Burdock. The publication – with three different front covers according to the product segment – also lists foods

from 28 suppliers, covering meat, fish, bread and desserts. Gluten-free items are clearly identified. kff managing director Chris Beckley said: “We have transformed our brochure with an extra 24 pages.” As reported last month, both the company’s depots, in Aylesford, Kent, and Witney, Oxon, are undergoing improvements. a kff (0500) 829798

...and online ordering

SPAR Summertime range The newly-launched SPAR Summertime range offers 67 products aimed at barbecues, picnics and alfresco dining. The items include

Mediterranean and piri piri chicken as well as a wide choice of side dishes, such as deli coleslaw and tex mex dip trio.

Blakemore Wholesale is this month launching a campaign offering independent retailers more than 40% profit on return. The section highlighting these deals can be found in the company’s 14 cash & carries, supported by shelfedge labels, posters and banners. Managing director Craig O’Connor said that hundreds of deals were being made available on leading brands and own-label products. He added: “We recognise that independents are often a vital means of support for local communities and, as such, we want to help them not just to survive but also to thrive. “Supporting independents is at the heart of Blakemore Wholesale’s operation, and this can be seen through our retail fascia group and our annual retailer of the year awards, which recognise retail excellence with a £31,000 prize fund.”

A new concept called ‘Daily Deli’ could soon be rolled out to stores across the UK. a SPAR UK 020-8426 3700

A new online ordering platform from Blakemore Wholesale claims to offer ‘not only faster, more efficient ordering, but also a host of useful information and tools for new and existing customers’. Delivery and same-day click & collect services are available. a Blakemore Wholesale (01902) 366066

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June 2015

[ INDUSTRY NEWS ]

Two join Landmark Landmark Wholesale has signed two new members – Country Fare, based in Bournemouth, and Esin Cash & Carry, of Enfield, north London. Country Fare, which was established more than 10 years ago, originally focused on fresh fruit & veg, but then developed into a full delivered foodservice operation, adding dairy, bread, frozen and dry goods to its range. Director Gavin Millward said: “In order for us to really progress the company, the next logical step was to join a buying group. As a growing foodservice concern, Landmark was the perfect choice. Their team took the time and effort to really understand our business.“ Country Fare, whose 14 vehicles deliver to pubs, hotels, schools and nursing homes around Dorset, Hampshire and Wiltshire, has a staff of 52. Turnover this year is projected at just over £6 million. Esin Cash & Carry is owned by the Ucur family, which owns several firms

within the TFC Holdings London Group. The group, which has been operating for 16 years, includes a chain of 15 London supermarkets under the TFC name, a wholesale food manufacturing and distribution business (EDA Quality Foods) and a specialist licensed importer (Tees). Esin operates from a new purpose-built 100,000 sq ft warehouse, which also accommodates the other TFC companies. The C&C offers an extensive range of ethnic products, as well as a growing UK-made selection, plus licensed drinks – the sector expected to benefit most from group membership. Business is split between

C&C and delivered, with drops being made as far as Colchester in the south and Manchester in the north. Landmark chief executive Martin Williams said: ”Traditionally, our strength has been in cash & carry retail, and our expertise will benefit Esin as it expands into new areas. “Country Fare will be supported by our new Caterer Connections programme, launched earlier this year.” Signing the two new operators will soften the blow that Landmark recently suffered when Sutton-inAshfield member Caterway ceased trading (Cash & Carry Management: April). a Landmark Wholesale (01908) 255300

The Bournemouth wholesaler’s head office.

Metro C&C picks Boone Dusseldorf-based Metro Group, which continues to reposition its international cash & carry business, has named a new chief executive for the C&C operation. He is Dutchman Pieter Boone (right), currently managing director of the C&C concern’s Russian chain, with more than 70 outlets. He takes on his new role at the beginning of next month. Boone replaces Olaf Koch, who will now concentrate on his position as chairman of the Metro Group 08

June 2015

management board. Commenting on the changes, Koch said: “Over the past two years, we have introduced numerous measures to get Metro Cash &

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Carry ready for future growth. Now, after seven quarters of successive likefor-like growth, we are seeing the fruits of our labours.” Boone began his management career at SHV Makro Cash & Carry in 1992. Since then, he has worked in Makro’s Asian and South American business, including being MD in Peru, the Philippines and Malaysia. He joined Metro Group in 2011 as operations director and became MD in Russia a year later.

Meat range increased Bidvest has extended its range of fresh meat and made next-day delivery a customer option. There are now 23 lines, covering beef, chicken, lamb, turkey, gammon and pork. Head of fresh meat Damian Stone told Cash & Carry Management: “We have sourced products from top suppliers to give customers the best choice of quality fresh meat products that cover all eating occasions, with full traceability for a service that’s comparable to a local butcher.” He added: “We know how important food provenance is for consumers when eating out of home. Using quality assured, British ingredients, with reference to these on the menu, can help boost sales or charge a premium.” The range includes lamb neck fillet, beef mince, 28day rump steaks and skin-on chicken breast fillets. a Bidvest 3663 (0370) 3663 000

Hospice support Today’s Group has been instrumental in Britvic supplying complimentary soft drinks to Bluebell Wood Children’s Hospice in Sheffield. The wholesale consortium and drinks supplier are also organising a series of fund-raising events. Today’s has supported the hospice for some time and encouraged Britvic to become a partner too. a Today’s Group (0844) 247 0700 a Britvic (0845) 758 1781

[ INDUSTRY NEWS ]

Scheme for smaller stores

Four of the five cyclists. The fifth, Graeme Cooper, was absent when this picture was taken.

Peddling for charity Five members of the Today’s Group staff – dubbed the ‘Today’s Trailblazers’ – have completed a 100km cycle ride around London on two nights (6 and 7 June), in order to help raise approximately £3,000 for Village Water, an initiative supported by the Today’s Charitable Foundation. Emma Down, a marketing assistant at the group’s Doncaster headquarters and one of the quintet, said: “Village Water is changing lives in Zambia by providing safe water, sanitation and hygiene training. “We have seen first-hand the work that it does, and it’s truly remarkable.” The other members of the cycling team were Graeme Cooper, Today’s retail business development manager; Shazad Hussein, IT co-ordinator; Aaron Green, marketing co-ordinator; and Philip Cowley, business support assistant. Down commented: “We would like to thank LR Suntory, which sponsored all the bikes and cycling equipment for the event, and Nestlé for sponsoring the Go-Pro cameras, which were used during the ride.” a Today’s Group (0844) 247 0700 10

June 2015

Bestway’s Xtra Local retail club is launching a new format for smaller stores in the realisation that some shopkeepers are unable to feature all the monthly promotions due to lack of space. Rather than penalise them for non-compliance, the group has introduced Xtra Local Xpress – a slimmeddown version of XL. It, too, offers ‘highly competitive’ promotions and instore point-of-sale, but on a smaller scale for those with fewer than 5 x 1m bays for traditional grocery. James Hall, Bestway’s symbol & club director, said that Xtra Local Xpress requires retailers to take a

minimum of 12 consumerfacing deals (15 if licensed), rather than the full-scale Xtra Local requirement. These promotions have been designed exclusively for stores that are more impulse driven, with high footfall but without the breadth of range of a normal convenience offer. Members receive regular monthly PoS and sales material to highlight deals

and trigger additional consumer purchases. Hall commented: “Since we recently trialled Xtra Local Xpress we have brought over 300 retailers into the scheme – a mix of new and Xtra Local customers making the transition. “Offering value has never been as important in retail. By ensuring smaller stores can compete and attract new shoppers through highly competitive promotions, we are confident Xtra Local Xpress will appeal massively to a wide range of retailers who want to offer their customers the best deals locally.” a Bestway Group 020-8453 1234

SWA members look to the future While business in Scottish wholesaling remains tough amid an unsettled economy following the General Election, there are still opportunities for growth, insisted Asim Sarwar (right), president of the Scottish Wholesale Association, at its annual conference last month. “Companies are investing, taking on more staff and very much looking to the future. That’s great news for the economy,” he said. Sarwar, who is managing director of United Wholesale (Scotland), cited numerous

examples of SWA members developing their businesses, including Booker’s relaunch of its Shawfield depot under the Makro name; Dunns Food & Drinks’ acquisition of craft beer specialist Dameck Drinks Scotland; and Fáilte

Foods’ opening of a new depot for its fresh fruit and vegetable business. “So if anyone thinks that Scottish wholesalers are being complacent and are reluctant to take risks, think again!” Sarwar also congratulated William Yule and Son for reaching its 150th anniversary and Dunns and JW Filshill (140th anniversaries). A full report on the conference will appear in the July issue of Cash & Carry Management. a SWA 0131-556 8753

Brakes to close in Runcorn Brakes’s depot on the Whitehouse Industrial Estate in Runcorn, Cheshire, where 150 are currently employed, is likely to close at the end of next month. A spokesperson for the

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foodservice wholesaler said that staff have been offered alternative employment at other sites, including Tamworth, Staffs, and Corby, Northants. Business conducted at

the Runcorn plant is being diverted to the 200,000 sq ft branch in Warrington, Lancs, which opened two years ago. a Brakes Group (01233) 206000

Almost 2/3rds of soft drinks sales bought “on the go” are purchased between March and October suggesting there is a correlation between temperature and on the go soft drinks sales!

Prepare for a sales heatwave - STOCK UP TODAY All packs available in PMP Source: Kantar food on the go panel, Total coverage, spend 4we 30th March 2014 to 12th October 2014 ©2015 Britvic Soft Drinks Limited, all rights reserved. BRV306571_15

[ INDUSTRY NEWS ]

Luton branch for Abra

Foodservice activity Landmark Wholesale has stepped up its involvement in the foodservice sector by producing three product catalogues as part of its new Caterer Connections club. They are: On-Trade Essentials, Quick Service Essentials and Cost Sector Essentials. They can be picked up in member depots or downloaded online. Business development director Chris Doyle explained: “We have carefully chosen 30 suppliers that we believe are integral to foodservice across the chilled, ambient, on-trade and non-food categories. We are confident that this is the perfect number to cover the essential products every caterer should be considering for his business.” As well as the three guides, the Caterer Connections programme includes a monthly magazine, Caterers Specials, which provides tips on trends and developments within the industry, along with advice and ideas. Landmark also arranges twice-yearly, one-to-one meetings between members and foodservice suppliers. a Landmark Wholesale (01908) 255300 12

June 2015

Abra Wholesale, of Edmonton, north London, which switched from Today’s Group membership to Landmark Wholesale at the start of last year, is to open a second branch – in Luton. The new C&C, in Dallow Road, on a site formerly occupied by a health care manufacturer, is near Junction 11 of the M1. Scheduled to start trading this summer, it will have a sales area of about 55,000 sq ft, compared with a total area of 75,000 sq ft at the existing unit.

Owner Dee Thaya, who set up the company in 2003, has recruited former Nurdin

& Peacock and Bestway executive David Gilroy (left) to assist on operational activity and strategy. Thaya commented: “We are pleased to have David Gilroy on board as we step up the next stage of our development. “Many of our customers travel long distances to shop with us – some from the south coast. Research tells us there is demand for a value proposition in the Luton area.” a Abra Wholesale 020-8887 9303

Blakemore in joint venture AF Blakemore has established a joint venture with SPAR retail and restaurant business EAT 17. The C&C/wholesaler and two of the East London business’s co-founders, James Brundle and stepbrother Chris O’Connor, will oversee the running of the EAT 17 group, which comprises two joint SPAR convenience retail and restaurant sites in Walthamstow and Hackney. The Hackney branch was recently crowned best new store at a convenience retail awards show and is also in the running for an international accolade. Blakemore Trade Partners managing director Jerry Marwood said: “Foodservice

in a franchise format has delivered strong growth across both our independent SPAR estate and companyowned stores, so this investment will further strengthen our insight into this area.” Brundle added: “Having worked in partnership with Blakemore since 2010, we

have seen the great benefits that their industry expertise and symbol group backing has brought to our company. “We are confident that this partnership will help us to grow our business and develop it to the next level.” a AF Blakemore (01902) 366066

Better value cod fillets Country Range Group has launched IQF (individually quick frozen) cod fillets (15% glaze). The ‘cook from frozen’ fish has less ice or water

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coating than the standard 20% glaze product, providing more on the plate. And the fillets don’t stick together. The fish can be steamcooked, grilled, fried or

oven-baked. Pack sizes: 25 x 140-170g; 20 x 170-200g; 18 x 200230g; and 15 x 230-290g. a Country Range Group (0845) 209 3777

new name same great

service Bidvest Foodservice the new name for Bidvest 3663

Paul, based at our Swansea depot, has been working with us for over 10 years. Rest assured that along with the rest of the team, he will be delivering you the same great service in his new Bidvest Foodservice uniform.

[ NEWS EXTRA ]

A ‘truly memorable’ conference More than 200 suppliers, members and industry leaders travelled across the globe to Abu Dhabi for the Landmark Wholesale conference last month. Trading director John Searle shares his perspective on the event, which delegates described as “the best yet”.

illed as one of the highlights on the retail and wholesale calendar, Landmark’s conference 2015 once again lived up to expectations as a record number of suppliers and members were encouraged to create growth from partnership. Held in the UAE state of Abu Dhabi, the six-day event, which attracted industry leading figures such as FWD chairman James Bielby and ACS chief executive James Lowman, reiterated the importance of working together to maximise real opportunities for growth across all aspects of wholesale – retail, on-trade and foodservice. Following a similar format to previous years, the conference featured a series of platform presentations from members, suppliers, industry leaders and Landmark’s central office. Although every presentation covered different fields of focus, all were aligned to the overarching theme of the conference: ‘Growth from Partnership’. This was supplemented by one-toone sessions throughout the week, which were fully exploited by suppliers and members to focus on bespoke business opportunities.

Memorable messages “We alway try to create an environment where networking and social engagement undercuts every programme of activity,” says Searle. “What really stood out was how each and every speakers’ contribution was equally relevant. It’s always great to have industry experts to provide the bigger picture, while guest speeches from Sir Clive Woodward OBE 14

June 2015

and Katie Piper were truly inspiring and motivating. “This year we had five outstanding presentations from our members, which focused on the growth in their respective businesses. The stories were strong, engaging and heartfelt from some of the smaller voices in the business, and they were told in a passionate and powerful way that captivated those listening.” Planning for the future “The topics covered during the conference included: economic recovery, collaboration and shared objectivity, the need to embrace data, and how to be objective and analytical with the data. Legislation was also discussed, in terms of impact and future risk, as well as how Landmark is leading the way on core range compliance through ranging and retail and promotional activity in depot. “A theme to emerge was around member investment, and how wholesalers are investing in new depots, technologies, acquisitions and infrastructures. This sent a strong message to suppliers that wholesale is in great shape and aiming for future success.” A valuable experience “It was terrific to see that virtually all of our members attended the event. We know from experience that they get enormous value from attending, and this year was no different. The feedback has been outstanding and all members took full advantage of the opportunities available during the conference. There were three sets of one-to-one sessions and everyone engaged fully in terms of time and participation. “We were also delighted to welcome our two newest members – Esin Cash & Carry and Country Fare – to our annual conference for the first time. It was a fantastic commitment from both members that they dedicated the time to attend at such short notice and it really boosted CCM their profile with suppliers.”

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What they said... “The 2015 conference in Abu Dhabi proved to be an inspiring, thoughtprovoking and truly memorable event. I’m confident that the delegates came away from a very special few days feeling informed and enthusiastic about how they can work with others to achieve growth and further success.” Martin Williams, managing director of Landmark Wholesale “The attention to detail and the logistics were world-class. It was great to hear from a very progressive set of wholesalers who are changing the face of the sector. We will definitely be using the insights shared to shape our future strategy.” Natalie Briggs, business unit director – off-trade at Diageo GB

Save the date! The 2016 conference will be held in the lakeside resort of Montreux, Switzerland.

[ IN FOCUS ]

New name set to spearhead Bidvest’s drive to deliver service excellence idvest Foodservice can deliver more profit for its customers than any other player in the market, according to group sales director Andy Kemp. “It’s not what I think, it’s what I know,“ he declares. Administered without a hint of self preservation, such claims are usually reserved for the José Mourinhos of this world, where hyperbole takes precedence over reality and arrogance is met with widespread condemnation. But as Kemp reels off Bidvest’s key ingredients for growth, there is little to suggest that his words are born of anything other than genuine belief. Grey hair and eloquence aside, the parallels between Kemp and Mourinho stop there. Less than five minutes into our conversation and any reservations about dropping the 3663 name and being rebranded Bidvest Foodservice from 1 July have been quickly dispelled.

Senior soundbite

Words: Michael Catling

“Our new identity marks a new era for Bidvest Foodservice in terms of culture, our structure and our operations. To be the best foodservice provider, we must be famous for providing service excellence and making life easier for customers, which in turn will help us build longterm relationships with customers.” Andrew Selley, chief executive

On the face of it, dispensing with a title that has become synonymous with the company for 16 years should represent a sizeable risk. But as Kemp explains, the new identity is part of a much wider programme of evolution. “We don’t see it as a risk,” he says. “We see it as an opportunity to restate our position as the UK’s leading foodservice wholesaler. We are confident people will see this movement forward as a ratification of our business intent. “We always aspire to give our customers what they want. To do this, we must focus on delivering our vision of service excellence, making life easier 16

June 2015

‘Our business is growing strongly because we always want to be ahead of the curve in our operational standards’ – Andy Kemp, group sales director (second on left).

and helping our customers to grow.” As part of its new mission statement, Bidvest Foodservice will be releasing a document called Making Sense of Standards later this month, which is designed to help caterers understand and comply with the latest procurement standards affecting the public sector. New refrigeration kits are also being installed in its Salisbury branch, while a new site is currently being built in Worthing to replace its existing depot. “We have over 100 million pounds worth of business in tender at any one time, either in existing or potential agreements,” reveals Kemp. “We have just renewed the biggest leisure contract in the UK [Merlin Entertainments] until 2021, but we will never allow our business to trade above 85% capacity.” To help extend its footprint across the UK, Bidvest recently announced the acquisition of Cimandis and the opening of a new head office and distribution centre in Slough next year. Kemp adds: “We are committed to investing in our business and developing our teams and product ranges and

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looking at how we can add real value for customers, both now and in the future. “To ensure decision making is made as close to the customer as possible, we have actually devolved all central control, decentralised and appointed 16 general managers across 21 sites.” Reporting to either Norman Wemyss, managing director for the North, or Dave Hodgson, MD for the South, each general manager is now responsible for all commercial operations and customer service activity in their local area. Kemp’s hope is that Bidvest’s new business structure and forward-thinking approach will enable each customer to meet their own KPI requirements and achieve greater profitability. Provided he can help to secure some additional contracts throughout this transitional phase, Kemp may welcome a more favourable comparison with CCM Mourinho’s strategic ingenuity. a Bidvest

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[ TALKING POINT ] Your ultimate guide to...

The Alcohol Wholesaler Registration Scheme (AWRS) Prepare and prosper: why you can benefit from AWRS To help tackle alcohol duty fraud, which costs the taxpayer approximately £1.3 billion per annum, HM Revenue and Customs (HMRC) will be introducing a registration scheme for alcohol wholesalers in October. Forming part of the Finance Act 2015, the legislation is designed to reduce unfair competition and restrict the involvement of criminals penetrating the supply chain. Cash & carries and distributors will be vetted under ‘fit and proper’ criteria, with HMRC reserving the right to ban noncompliant businesses from operating in the beer, wine and spirits market.

*This list is not necessarily exhaustive.

Who will be affected by the scheme? Businesses that trade wholesale, at or after the point excise duty is payable, need to register. An exemption is made for licensed retailers that make only incidental wholesale sales. HMRC estimate that the initiative could cut the alcohol tax gap by 20%. How soon does AWRS come into effect? a From 1 October to 31 December 2015, all alcohol wholesalers must apply online to HMRC via GOV.UK to register for AWRS. Those who do not apply within this three-month window will be unable to legitimately trade in the alcohol sector from 2016 onwards. a From 1 January 2016 to 31 March 2017, HMRC will rigorously scrutinise around 20,000 applications and carry out site visits to determine which businesses meet its ‘fit and proper’ criteria. Companies that fail to comply with these standards will be informed that they must cease trading alcohol. There will be a right of appeal. a From 1 April 2017, all wholesalers and trade buyers must ensure that any UK wholesalers they buy from are approved by HMRC. An online database will be provided by HMRC for buyers to verify all approved traders. There will also be an obligation for wholesalers to display a unique reference number on all invoices. 18

June 2015

Forward planning: New wholesalers looking to trade in alcohol after 31 December 2015 must register at least 45 working days before they intend to start operating.

What are the key conditions to meet HMRC’s ‘fit and proper‘ criteria?* a No evidence of illicit trading. a Application is accurate and complete, with no attempts to deceive. a The persons involved in the business have no criminal convictions relating to acts of dishonesty. a No history of staff involvement in any significant revenue fraud. a No connections with non-compliant or fraudulent companies. a No outstanding, unmanaged HMRC debts or a history of poor payment. a Satisfactory due-diligence measures in place to protect from trading in illicit supply chains. a No previous attempts to avoid registration and trade unauthorised. a Sufficient evidence of commercial viability and/or credibility. a No persistent or negligent failures to comply with record-keeping.

Trading unauthorised could result in a £10,000 fine or a prison sentence.

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How serious are the penalties? In addition to existing penalties for duty evasion, a new civil penalty of up to £10,000 will be imposed on wholesalers trading unauthorised, as well as trade buyers caught purchasing alcohol from unauthorised businesses. HMRC will also prosecute the most serious offenders, which could result in fines or even imprisonment. What can you do to prepare? Wholesalers are advised to review their processes to make sure they are only sourcing legitimate alcohol. Applicants will be assessed on standards of record-keeping, day-to-day checks and safeguarding procedures to avoid exposure to illicit trade. A public notice will be issued later this summer. In the meantime, HMRC is publishing all the details about the scheme on GOV.UK. What the FWD says... “HMRC has created a scheme that will be effective without being too complicated, time-consuming or expensive to comply with. Hopefully the criminals won’t be trading by the time the registration database goes live in April 2017. The crucial thing to understand right now is that if you don‘t apply for registration by the end of this year, neither will you.” James Bielby (above), chief executive of CCM the FWD.

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Albert Yip, store director of Wing Yip’s Croydon branch discussed immediately, then we either phone or instant message each other. If you were able to retire tomorrow, would you? I’m only 41 years young so I wouldn’t fully retire. However, I would definitely spend more time with my better half and my children. I’ve also just been given a trumpet for my birthday so I would probably try to use the time to practice making some kind of decentsounding note from it!

Priceless advice at the dinner table What has been the major milestone or turning point of your career? When the last Croydon store manager decided to hang up his boots. He left with over 15 years of experience in the business and so it was a big gap to fill. Looking back, it allowed us to spread that one person’s role and responsibilities amongst pre-existing staff. This meant that we could bring up and build a team of management staff who have a say in the direction and operation of the store. Who has been the biggest inspiration to you? From a business perspective it would have to be our chairman Woon Wing Yip OBE. From an early age, he would give us business advice at the dinner table which, at the time, was not always appreciated. Looking back, a lot of that advice has been priceless. From a nonbusiness perspective, it would have to be my wife Mink. She looks after not only me, but also our four children. Every day it astounds me as to how she does it! 20

June 2015

What advice would you give someone starting his/her first job? Start from the bottom and be humble. Observe and learn from anyone and everyone. They will show you what to do, and more importantly, what not to do.

What most frustrates you in business and in life generally? Apathy towards customers and colleagues. We spend most of the waking day together, so why make it unpleasant?

What type of business would you go into if it wasn’t C&C/wholesale? To be honest, I would stay in the food industry. I love eating and cooking food and I love speaking to customers and advising them on how to cook with ingredients they’ve never heard of or used before. We sell food items that you wouldn’t find in your normal supermarket so I’m constantly learning myself.

How do you maintain a work/life balance and how have developments in technology affected this? Luckily, neither the business nor the store are wholly reliant on my reading and replying to emails. We have a good team at Croydon and we have a transparent way of doing things. Emails are useful for generally keeping people up to date but if something needs to be

If you had a million pounds to invest in business, how would you spend the money? We are a seven-days-a-week business so it’s impossible to get all the staff together for any one event. So I would close the whole business for a day or so and treat all the staff to a holiday together...and maybe throw in a few fun CCM team-building exercises!

Qualified pharmacist and company director On leaving school, Albert Yip studied and qualified as a pharmacist before working for Boots and Lloyds Pharmacy. Having done the occasional holiday stint at Wing Yip, he joined the family business full-time in 2002, beginning by helping out at the

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checkouts and going on deliveries. Made a director in 2005, Yip was appointed to his current role as store director of the Croydon branch four years later. One of four children, Albert works in the business along with his brothers Brian and David.

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[ BEHIND THE SCENES ]

Breaks are good for business Having captured the lunchtime market in Scotland, Lomond Fine Foods is expanding into new areas. Kirsti Sharratt learns about its plans and the ingredients to its success. or a great example of people who live life to the full, look no further than Sam and Barbara Henderson, the husband-andwife team who own and run Lomond Fine Foods. Their business has a turnover of £12 million, they employ 85 people – many of whom have been with the company for a decade or longer – and they have two other successful commercial interests: their own bakery business, Cake, which they launched in 2011, and a 30% share in the Redemption Food Company, which produces Love Soup. Busy? You bet. But they still manage to take between 12 and 15 weeks’ holiday a year. “We make a conscious effort to do that because our downtime adds more to the business than not,” explains Barbara. “In fact, it was when we were on holiday in France that we decided to launch our own bakery firm.” This enviable work-life balance is a far cry from the early days, when Sam would deliver pizza on Friday nights and curry on Saturdays to ensure that they didn’t take too much money out of their fledgling business. Now 46 and 44, Sam and Barbara first met in Glasgow in 1988 while Sam was studying accountancy at university. Coincidentally, Barbara was also training to be an accountant. Just two years later they married; another year on, they set up Rolls Royale, a sandwich manufacturing business in a former café in Drumchapel. “Back then, the industry was in its infancy – people were still accustomed to making up a lunch box to take to work, and the thought of paying extra for a packed sandwich was a bit strange,” says Barbara. “It was therefore very difficult to get a margin. There was no such thing as a minimum wage, and

June 2015

Sam and Barbara Henderson, who own and run Lomond Fine Foods.

we had low paid, unskilled labour, which caused a raft of problems – there was a lot of ‘football sickness’ and we had P45s coming out of our ears.” Sam’s skills as a salesman generated the contracts with businesses and organisations – such as Shell forecourts, the NHS in Glasgow and the Women’s Royal Voluntary Service (WRVS) – that allowed Rolls Royale to grow from a standing start to the production of 14,000 sandwiches a day. Barbara recalls: “By the time I was 25, we had three children under five and a business that was going full tilt, with double shifting and 80 staff. We had no life – that’s the truth of it. We tried to do everything at once, as you think you can at that age, and to be fair we did. But the children were growing up quickly and we weren’t able to enjoy them.” So the Hendersons sold Rolls Royale in 1996 to take some time out with their children. They also bought “a do-upper of a house” in Bishopbriggs and indeed “did it up” before turning their thoughts again to business.

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With their background in sandwich manufacturing, they decided the natural move would be to supply their former competitors and so, in May 1997, they launched Lomond Fine Foods. Sam says: “We bought a pallet of tuna, hired a van, and got on with it. I was doing the driving, the buying and the selling.” The couple leased 2,000 sq ft premises just across the road from their existing site in the Darnley area of Glasgow, and they positioned Lomond as a supplier for the lunchtime market, selling sandwich fillings, bread, cooked meats, cheeses, soup and cakes to a broad customer base, ranging from delis to sandwich shops and from student unions to restaurants. After the first year, turnover hit £300,000 and the company moved to its present 24,000 sq ft depot. Of its £12 million revenue today, around £750,000 is accounted for by Cake bakery products and a similar figure by items like Love Soup, sauces, stews and stocks from Redemption Food Company. “We achieved £12 million turnover four years ago and, although our sales haven’t increased, our profits have as a result of focusing more on control and margin,” says Sam. Barbara interjects: “I’m delighted that we’ve maintained that figure

[ BEHIND THE SCENES ] because we had 300-400 of our customers close during the recession. Our team have done a smashing job bringing in new business to fill that gap.” Lomond Fine Foods, which earlier this year was rebranded as Lomond The Wholesale Food Co, trades five days a week and offers online ordering. A Landmark member, it has a fleet of 17 vehicles to service customers across Scotland and in Manchester. “We trunker orders down to Manchester five days a week and we have a driver and a sales rep based there,” says Sam. “Manchester, Leeds, Liverpool and the surrounding towns probably have twice the population of Scotland. We already have a big chunk of the lunchtime market in Scotland, so if we are going to grow, we need a new area.” Lomond is also now responsible for sourcing and delivering local products to the previously neglected delis within 20 branches of the Co-op in Scotland. This arrangement has allowed the company to stock a bigger volume of Scottish goods that its whole customer base can tap into. Lomond additionally holds exclusive rights in Scotland for a large number of products, including certain French breads and cooked meats. “We want to have a point of difference,” explains Sam. “There’s no point in us selling the same products as everybody else.” Barbara continues: “Last summer, we were one of the first suppliers to do

Lomond Fine Foods is a regular exhibitor at trade shows like ScotHot.

a full range of pulled meats, and they have been phenomenally successful. We saw the market going that way from conversations we had in London. For every new product that you try, you will get one that’s a complete disaster and another that just has legs and runs.” So how do Sam and Barbara find the time to search for new products, as well as fulfil their duties at the office? “Going back about five years, we set up a management team of 10 people, including ourselves, which covers all aspects of the business. Everyone on the team is on a profit share and many of them have been with us for years,” says Barbara, adding: “They often secondguess our thought patterns and add their own twist.”

A ‘no brainer’ of an investment As Redemption Food Company’s biggest customers, Sam and Barbara Henderson believed so strongly in the quality of its products that in 2008 they bought a 30% stake in the business, securing sole rights in Scotland for the soups (branded Love Soup), stews, sauces and stocks manufactured by the County Durham-based business. “Love Soup is not the cheapest soup in the market but when people taste it, the freshness and quality make it a no-brainer for them,” says Barbara. “Last year, our soup sales through Lomond increased by 20%, and we are aiming for a similar rise this year.”

Sam is responsible for the company’s strategy, product portfolio and sales, and he also looks after the larger customers, while Barbara’s role is more operational and people-based. Barbara comments: “We still keep our finger on the pulse. Equally, we have the freedom to explore what could take our business to the next level. For example, we recently went on a road trip to visit different companies, and then we went to London for IFE. We did the best part of 2,000 miles in nine days. Without having complete confidence in our team, we could never do that.” Talking to the Hendersons, it is clear to see that their ambition, vitality and positivity pervade not only their work, but also life as a whole. Sam says: “I like the buzz of finding new markets, creating something different and seeing a plan come to fruition. At the same time, we try to ensure that we provide a good working environment so that our staff enjoy their job. You spend most of your time at work. If you can’t enjoy it, then you’re not enjoying life.” Looking to the future, Barbara ponders: “We could sell the business – we have been approached in the past – but we would be bored. We are natural creators. We could bring in a managing director, but that is very unlikely, or one of our children could come into the business. However, we have a few years left in us yet, and while we appreciate our holidays, we really do enjoy working with our team. Not to have that would be very strange. Lomond is CCM essentially our fourth child.”

www.cashandcarrymanagement.co.uk

June 2015

[ LEGAL ADVICE ]

Withdraw or recall: can you tackle problem products? you know how your supply chain partners process product safety issues? Will they be able to provide you with the information on batch numbers you need to comply with your own obligations?

Meet the legal expert Helen Jenkins, Legal Edge Helen Jenkins is a legal counsel to small and medium businesses

ow ready is your business to deal with a problem product? With the latest Rapid Alert System for non-food (RAPEX) report showing another annual increase in unsafe and dangerous products being stopped from entering the European market, itâ&#x20AC;&#x2122;s important to have product safety compliance procedures in place. This article is aimed at those who manufacture products, but is equally relevant if you distribute them â&#x20AC;&#x201C; you still have a responsibility for product safety, be it non-food, food or pharmaceuticals (the safety of which is regulated by specific legislation). The costs of getting it wrong arenâ&#x20AC;&#x2122;t just financial; the potential damage to business and brand reputation are unquantifiable. So how can you put processes in place to comply with the General Product Safety Regulations, which place an obligation on producers and distributors to only supply products that are safe? The starting point is to ensure that your business has product quality testing to pick up issues before they become a problem, but you should also have a product recall plan in the event of a worst-case scenario.

A great crisis management team The key to mitigating your losses is your team, so work out who will be best placed to make decisions and manage any product safety issue. Allocate roles and train your team on your product recall plan. The better prepared they are, the more efficient and accurate the decisions are likely to be. Withdraw or recall Notifying relevant authorities is a priority, so making a quick assessment of 24

June 2015

what action, if any, you are going to take is important. Plan your risk assessment methodology in advance to support that decision making. Recall should be the last resort and there are a range of actions from monitoring, issuing warnings and withdrawing items from the supply chain before you reach that point. Obligation to notify If you have produced or distributed an unsafe product then you must notify the competent authorities, for example Trading Standards, as soon as you become aware of it. In the event of a serious risk, that should be within three days and no later than 10 days in any event. They will need to know what the issue is and what action you have taken to remove the risk to consumers. Communication is key Who do you need to inform and when? Do you have current contact details for your crisis management team and the relevant authorities? You should prepare template documents for your communications to employees, supply chain partners, customers, regulators and the media, and update contacts regularly. Know your supply chain As a distributor, you have an obligation to provide documentation necessary to trace the origin of unsafe products. Do

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Contractual protection Your liability in any product claim will depend on where you are in the supply chain and what protections you have in place in your contracts. Best practice is to exclude or restrict your liability to the extent you are permitted by law and seek indemnities from your suppliers and distributors to pay you for any loss you suffer as a result of their actions. Insurance You should ensure that you have insurance in place to deal with product recall. This may be available to cover recall costs and loss of gross profit from accidental or malicious contamination and a recall order from the authorities. Penalties Regulators have their own powers to make sure you take corrective action, such as withdrawing or recalling products. Failure to notify any breaches of product safety laws carries the risk of hefty fines or even a prison term. Whilst they may be few and far between, product safety problems are a fact of life. If you have to deal with one then learn lessons from it too. Review your plan and assess whether it worked Use the experience as an opportunity to CCM perfect future planning.

Legal Edge (www.legaledge.co.uk) are a group of experienced, commercial legal consultants who have all worked in businesses to help manage legal risk. They can help you review your product safety compliance plans. For more information, contact Helen Jenkins at helenjenkins@legaledge.co.uk.

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[ PRODUCTS & PROMOTIONS ]

Discover new sweet and savoury popcorn sales PRODUCT OF THE MONTH

Tangerine Confectionery has expanded the UK’s number one popcorn brand by pioneering the launch of Butterkist Discoveries – a new flavour fusion range. Comprising Salted Caramel and two new variants – Hickory BBQ Pulled Pork and Sweet Chilli & Zesty Lime – the 80g packs have an rsp of £1.49 and meet consumer demand for sweet and savoury flavour associations, a market that has increased by 109% year on year. “With British popcorn culture on the rise (currently worth £100.7 million), we believe we’ve identified an opportunity in the market for retailers to drive incremental sales as we head into the BBQ, picnic and big summer getaway season,” claims Anjna Mistry, senior brand manager at Butterkist.

To build on its portfolio of impulse formats, Butterkist has also extended its range of Sweet & Salted products into multipack and single-serve packs. Sweet & Salted is ranked as the fastest growing flavour year on year, and Mistry claims that Butterkist’s recipe has been validated by consumers as the leading variant in the market. Retailing at around £1.68 and 55p for 6 x 15g and individual 27g bags, the range fulfils consumers’ desires for healthier snacking alternatives on the go. Both launches, which will be available in wholesale and convenience stores from July, will be backed by a £2 million investment in above-the-line marketing. Further flavour and format developments are scheduled for later this year. a Tangerine Confectionery (01977) 692500

Twin innovation Proctor and Gamble has extended its two leading fabric care brands by releasing new packs of Bold2in1 and Fairy. Bold 2in1 Pearls represents the brand’s first-ever three-chamber detergent and comes in four scents – Lavender & Camomile, Peony & Cherry Blossom, White Lily & Lotus Flower and Hibiscus & Lime Blossom. Available in packs of 12, 18, 29 and 38 washes, with rsps starting at £3.99, the new premium offering also includes the addition of a ‘touch of Lenor’ for a longer lasting, refined fragrance. This coincides with the launch of Fairy Non Bio Pods – an innovation that delivers a hassle-free washing experience for consumers who have sensitive skin. Retailing from around £4.50, the new addition is available in packs of 12, 19, 30 and 38 washes. Both launches are supported by heavyweight marketing campaigns, with digital activity helping to educate shoppers on the benefits of each product formula. a Proctor and Gamble (01932) 896000

All data unless otherwise stated: Nielsen

Jacob’s launch set to crack savoury biscuit market United Biscuits (UB) has announced the biggest NPD for the business this year with the introduction of Jacob’s Cracker Crisps in the grocery, convenience and impulse trade channels. Available in three variants – Sea Salt & Balsamic Vinegar, Thai Sweet Chilli and Sour Cream & Chive – the baked snack range offers the proven best-selling flavours for sharing crisps within the overall ‘everyday premium’ sector, according to Ted Linehan, director of savoury brands at UB. 26

June 2015

Forming part of the Jacob’s masterbrand, which will receive an investment of £14 million in 2015, Jacob’s Cracker Crisps come in a 150g sharing bag, with an rsp of £2.09. A 40g handy pack range will also be made available later this year. The release represents a further move by UB to unlock the growth potential within the savoury biscuits category. In the UK, the segment makes up

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just 17% of total biscuit spend, compared to around 40% in the US. The premium range will also benefit from a £4.5 million media spend, UB has announced. This will be spearheaded by a TV advertising campaign from July, featuring the ‘Jacob the Baker’ character first seen in 2014. This will run alongside a mass sampling campaign and an in-store activation programme across all shopper channels. a United Biscuits 020-234 5000

[ PRODUCTS & PROMOTIONS ]

Seasonal solution

Music campaign

Retro revamp

AB InBev has announced the return of limited-edition Budweiser BBQ packs in time for the summer season. Available from early July, the bespoke artwork will run across a number of SKUs, including 8 x 440ml PMP, 10 x 440ml can fridge pack, 12 x 440ml, 4 x 300ml bottle wrap and 6 x 300ml basket pack. The new-look range will be backed in all outlets in an omni-channel approach, with messaging supporting the barbecue season. Key retailers will also be running their own promotional overlays, giving shoppers the chance to win barbecues and other related merchandise. a AB InBev (01582) 391166

Red Bull UK has debuted an onpremise can in conjunction with electronic music duo Disclosure. The special-edition Disclosure Red Bull Energy 250ml can features iconic Disclosure face artwork that appeared on the cover of the act’s debut album Settle and will be stocked in around 65,000 pubs, bars and clubs. Backed by social media and PoS activity, the launch is expected to reach 1.5 million consumers through Twitter and Facebook. Consumers who engage with the brand via the hashtag Disclosureface will also receive exclusive content and prizes from the band. a Red Bull (0203) 117 2000

Mondelez International has refreshed its range of Cadbury Roses with a packaging redesign and a new Almond Caramel Bite variant. The artwork bears closer resemblance to the original Roses’ design in 1938, but with a modern twist. The carton includes a new lid for easier sharing, and each chocolate is individually flow-wrapped to help retain freshness and prevent accidental unwrapping. The changes, which have already been applied to all Cadbury Roses tubs (rsp £9.19), will be implemented on 70g (rsp £1.07), 187g (£3.09) and 321g (rsp £4.59) cartons in August. a Mondelez International (08702) 400861

Flash promotion

Modern makeover

Space saver

Heineken has revealed that Bulmers will be giving away 5,000 pairs of personalised, colourful, high-top trainers in a new disruptive promotion. Designed to amplify its #LiveColourful campaign, the initiative encourages consumers to engage with the brand online, via Twitter, Facebook or Instagram, by uploading a flash photo of their Bulmers bottle. Running until the end of August, the promotion has been activated in the on and off-trade channels on individual bottles of Bulmers, as well as six and eight-packs. a Heineken 0131-528 1000

Tangerine Confectionery, the manufacturer of British retro favourites Wham, Refreshers and Fruit Salad, has reinvented its confectionery classics into soft gum formats. Manufactured under the Candyland brand, the new Softies range is available in 120g and 160g packs of Wham, Refreshers and Fruit Salad variants. Retailing at around £1 and £1.49 for the smaller and larger packs respectively, all three products feature retroinspired packaging and also include a window to help entice consumers. a Tangerine Confectionery (01977) 692500

Coca-Cola Enterprises (CCE) is supporting convenience stores by introducing a 12 x 500ml PET case format for selected flavoured carbonates. Designed to benefit retailers with limited storage space, Fanta, Sprite, Dr Pepper, Lilt and Cherry Coke will now be available in larger outers in both £1 PMPs and standard packs. “The change will enable wholesalers to better support retailers so they can stock a broader range of soft drinks across a variety of sectors,” explains wholesale sales director Simon Harrison. a Coca-Cola Enterprises (0845) 722 7222

June 2015

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[ TOBACCO ]

The power of positivity A never-ending list of regulations and health campaigns continues to unsettle the tobacco industry but, as Michael Catling found out, reports of the category’s demise appear to be greatly exaggerated. etworking with a group of representatives from a leading tobacco manufacturer earlier this year, there was an uncomfortable silence amongst a band of reporters as the words ‘Breaking News‘ flashed up on a TV screen. The lead story concerned the Government’s decision to introduce plain paper packaging legislation before the General Election. Considering the supplier in question had just unveiled new artwork across its entire RYO range, the announcement could not have been more untimely. But rather than greeting the news with a folly of expletives, any awkwardness was quickly dispelled by a mere roll of the eyes and a shrug of the shoulders by the manufacturer’s general manager. As his colleague later remarked: “The tobacco category is fraught with challenges and regulations – this is just another in a long list.” To suggest that tobacco companies have endured a tumultuous relationship with the Government would be a gross understatement. The opposition to the retail display ban has been well documented, while Philip Morris and British American Tobacco have recently filed lawsuits after MPs voted in favour of imposing plain, unbranded cigarette and RYO packs from May 2016. With bans on cigarette packs below 20 sticks and RYO tobacco packs under 30g also set to come into force in April 2017, JTI believes it is more important than ever that wholesalers work with their trade partners to ensure the category remains buoyant, now and in the future. “There are lots of challenges and changes to come, but tobacco is still a very important category for retailers and cash & carries,” explains Jeremy Blackburn, head of communications at JTI.

All data unless otherwise stated: Nielsen

A black mark on the category A new study by KPMG has revealed that the UK consumption of counterfeit and contraband cigarettes rose by nearly 50% in 2014, the second highest increase across the whole of the EU. This has been driven by a rise in black market tobacco coming out of Belarus and Pakistan. One in two unlawful cigarettes in the UK now come from those countries, as well as Poland, with the illegal Belarusian brand Fest accounting for 40% of the total amount of ‘illicit whites’ in the UK. Last year, the UK economy lost an estimated £2 billion in tax revenues due to the black market tobacco trade. The volume of cigarettes seized also increased by 19% to 430 million.

“To help combat upcoming legislation, I would encourage wholesalers to make sure their staff talk to sales reps from tobacco suppliers to understand the category better and make sure retailers are stocking the right range and sticking to a workable planogram.” Worth £2.22 billion and up 6.6% in the year to March 2015 (IRI), Blackburn highlights the RYO category as the perfect riposte to those already writing a pre-emptive obituary for the industry. One in three now smoke an RYO cigarette, according to Nielsen, with JTI’s portfolio accounting for a 42.5% volume share of the RYO market in the UK. “Our leading RYO brands Amber Leaf and Benson & Hedges are performing exceptionally well,” says Blackburn. “Amber Leaf has three of the top selling SKUs in the UK [12.5g, 25g and 50g] and these are must-stocks.” David Warren, trading controller – tobacco at Today’s Group, believes that consumers are now exhibiting a preference towards RYO brands because prices in the cigarette market are sky-rocketing. He comments: “It can cost up to £10 for a packet of 20 branded cigarettes. The value range is also not that low cost any more, which is why many smokers are turning to RYO. This trend should be reflected in the space allocated to RYO.” James Higgs, head of marketing and public affairs at Scandinavian Tobacco Group UK, envisages that many consumers will start to default to well-known brands which offer greater value for money. “Now the display ban has arrived, it’s likely that unfamiliar products that are new or not big sellers may be rationalised out, meaning that stocking popular brands will be of even greater importance,” he says. “Our Salsa RYO tobacco range is available to buy in www.cashandcarrymanagement.co.uk

June 2015

[ TOBACCO ]

All data: Internal estimates

half outers of 5 x 12.5g PMPs, making it the cheapest RYO gram for gram, on shelf. The half outer size also means less financial outlay for the retailer, which has to be positive.” Sharing a similar perspective, Imperial Tobacco has identified a marked increase in the number of consumers who are shopping ‘little and often’ and purchasing more convenient, reduced pack sizes. Following the release of Player’s Gold Leaf 9g (complete with papers) in December 2013, Imperial has recently added rolling papers to 9g, 25g and 50g pouches of JPS RYO, retailing at around £3.12, £8.09 and £15.79 respectively. The inclusion of papers brings the range in line with an estimated 80% of economypriced RYO products. To continue its focus on offering better value for money, Imperial has revamped its portfolio of cigarettes by introducing standard and price-marked packs of L&B Blue Superkings 10s and Carlton Superkings Menthol 19s. The new lines, which have an rsp of £3.78 and £6.40 respectively, are designed to resonate with value-conscious consumers who desire the reassurance of a big name brand, as well as a low out-of-pocket spend. This also correlates with the national release of Player’s Crushball in King Size 18s, following a successful trial period in key account stores. The Smooth variant ranks as the cheapest crushball on the market (rsp £5.99) and contains a capsule in the filter tip which releases a burst of fresh flavour once activated. Imperial estimates that crushball cigarettes have an 8% market share.

In the cigar category, JTI has unveiled new pack designs and formats across its Hamlet range, reinforcing its claim as the number one fine cigar brand in the large whiffs sector. The modernisation, which is supported by wholesalerspecific PoS material, celebrates the heritage of the brand with a new rotational design on selected SKUs featuring fictional characters from the ‘Freeman business empire’. “J R Freeman & Son were the original founders of the cigar factory that made Hamlet cigars,” explains Blackburn. “The range offers impressive PORs for retailers of up to 21.3%, whilst the availability of Hamlet 50s drums in half outers for the first time means retailers can also benefit from reduced cash outlay.” Blackburn notes that quality and heritage represent “two very important aspects” for consumers purchasing more premium products, hence the recent addition of limitededition packs of Camel. Available in the King Size 20s variant only, the artwork presents a more modern look to reflect the creative spirit and vibrancy of the premium cigarette brand. Elsewhere, Republic Technologies (UK) has unveiled its largest-ever brand awareness programme for Zig-Zag rolling papers by releasing its second major music promotion. The new ‘Roll With…’ campaign, which is expected to engage with more than five million music fans this summer, focuses on Grammy award-winning band La Roux and the Welsh rock group, Catfish and the Bottlemen. “Zig-Zag likes to originate and this is a first for the RYO sector,” says Eleni Koulara, marketing manager at Republic Technologies. Behind-the-scenes video footage and social media activity will be promoted on the specially-created Zig-Zag website (proudtobedifferent.co.uk), and the campaign will conclude mid-September with a live event featuring both bands. CCM

For further information: Imperial Tobacco 0117-963 6636 JTI (01932) 372000 Republic Technologies UK (01494) 556129 Scandinavian Tobacco Group UK 020-8731 3400

June 2015

www.cashandcarrymanagement.co.uk

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

[ PIES & MEAT SNACKS ]

Everyone’s a winner! Valued at £188 million, the meat snacks category has survived the fallout from the horsemeat scandal and blossomed into a highly lucrative sector for delivered wholesalers and cash & carries. As more people engage in impulse purchasing, retailers and foodservice operators are turning to gastro pies and micro-snacks to exploit comfort food urges and entice convenience seekers. nce synonymous with unappetising hospitality at football grounds and corner shop cafés, the pies and meat snacks category has undergone a reinvention in recent times amid the street food revolution and gastronomic inventions. Male appeal has now been supplemented by femalefriendly advertising and packaging, with healthier promotional messages helping to remove the unhealthy stigma attached to pies and other savoury snacks. Kepak Convenience Foods reports that 40% of its Rustlers customers are now female, with new artwork, advertising and the recently launched Pepperoni and Chicken & Pesto panini lines helping to reflect the evolution of the brand’s target demographic. “Rustlers’ audience has changed and is no longer the sole preserve of lads and young men,” explains John Armstrong, marketing director at Kepak. “As our audience matures and broadens, we are ensuring that the Rustlers range evolves accordingly. “Consumers of all ages are now looking to eat hot, easy to prepare snacks when they’re out and about. More convenience stores are now stocking our range week in, week out, rather than just on promotion, and we have even trebled the distribution of our Quarter Pounder to help cash & carries and wholesalers keep up with demand.” To help meet its target of achieving £66 million annual sales of Rustlers packs in the convenience channel by 2018, Kepak has teamed up with Terminator Genisys – the latest film in the Terminator franchise – to launch a new on-pack promotion across six million Rustlers products. Supported by a heavyweight marketing investment, the promotion coincides with the brand’s largest-ever sampling campaign this summer. An estimated 80,000 consumers, spanning 32 UK cities, will trial the new panini range (rsp £2.29) and receive money-off coupons as part of a #RustlersOnTour social media drive. Elsewhere, Wrights Food Group has embraced the street food revolution with a range of handheld world cuisine-inspired pies. Available in Piri Piri Chicken, Cajun BBQ Pork and Beef Adobo (latino-style spicy beef), each Street Pie features urban-styled packaging and aims to satisfy the public’s increasing appetite for spicier and more innovative food. To fill a gap in the market for messfree pies that can be eaten on the go,

All data unless otherwise stated: Kantar

June 2015

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Stat attack: Nearly half of consumers (44%) are interested in buying products that are naturally high in protein (Mintel).

Proper Cornish has manufactured four pies that it claims can be held without any of the filling dripping out during eating. Comprising Steak & Ale, Chicken, Bacon & Leek, Asparagus & Mushroom and Sausage variants, the 145g pies can be eaten hot or cold and are sold uncooked and frozen, ready to be freshly baked. Mark Muncey, marketing director at Proper Cornish, says: “Consumers are increasingly savvy about food provenance and ‘added nasties’, so wholesalers and cash & carry outlets should ensure they are addressing these concerns by promoting the origin and USPs of brands.” Deli Santé has launched the UK’s first-ever range of Gaelic-inspired galettes (French-filled puff pastry). Available in Grilled Pepper, Tomato & Mozzarella and Mushroom & Smoked Bacon flavours, the 750g products (rsp £7.99) are ready to eat in just 20 minutes, offering shoppers a quick and easy item for sharing occasions. Charles Coleman, co-founder of Deli Santé, says: “With growth in the premium pastry sector continuing to outstrip expectations (17.5% in volume), these two products tap into consumers leaning towards trading up to quality artisan products with an emphasis on ingredient traceability.” CCM

For further information: Deli Santé (01296) 712007 Kepak Convenience Foods (01772) 688300 Proper Cornish (01208) 265830 Wrights Food Group (01270) 504300

[ FOOD & BEVERAGES ON THE MOVE ]

Moving with the times Once confined to pre-packaged sandwiches and sausage rolls, the food-to-go market now encompasses everything from microwavable snacks to breakfast bars. The widening availability of ‘grab-and-go’ facilities has now compartmentalised the category by every meal occasion, leaving many wholesale customers with the difficult task of gaining a point of difference and enticing shoppers with attractive meal deals. ith the country slowly coming out of the recession, spending is now growing by 1.5%. In light of this, consumer confidence is currently at its highest level since January 2007. As a result, consumers are no longer shopping just for essentials, and an increase in disposable income means that 17% of all eating and drinking occasions are now out of home. In the foodservice industry alone, the food-to-go category holds a 24% share of the total market (Allegra). The convergence of foodservice and convenience markets has forced many retailers to re-think their on-the-go propositions, with several stores now offering a mixture of indulgent and healthy options for ‘aspirational gourmets’, ‘pragmatic foodies’ and ‘pleasure seekers’. From deli and bakery counters to customer-facing microwave ovens and self-service hot beverage machines, many retail shops and forecourts have invested heavily in equipment and customer-centric displays to offer bespoke mealtime and snacking solutions. The number of franchise partnerships with the likes of Subway, Starbucks and Greggs has also grown. The food-to-go category was worth £5.2 billion in the convenience channel just 12 months ago, according to him!

All data unless otherwise stated: Kantar

June 2015

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Spar is currently trialling an all-day foodservice concept.

To put this into perspective, one in five shoppers are now on a food-to-go mission (him!), with the average customer spending £5.67 per trip. In 2011, Palmer and Harvey (P&H) launched Fresh Express – a multi-purpose food stand offering a one-stop solution for all food-to-go missions. Four years on and P&H supplies over 100 of its retail customers with the dual temperature units, as well as a 49-strong range of category best sellers and luxury items. P&H believes it is vital that retailers are armed with the right equipment and products to cater for different snacking behaviours, from top-up grazing to full meal replacements. “Customers are looking for fast service, fresh ingredients and value pricing when choosing a meal solution,” explains Simon Harris (below), business development controller at P&H. “Retailers have to be prepared to deliver convenience, speed of service and portability.” Hot beverage machines are widely considered a musthave essential for almost every retail store. As many as 165 million cups of tea are consumed nationwide every day (Nielsen), while 39% of Brits choose to purchase takeaway coffee at least once a week, versus 34% in 2013 (Allegra). Noting that fuss, drips and mess are some of the problems consumers most commonly report with hot drinks purchased for takeaway purposes, Tata Global Beverages offers a bespoke Tetley On The Go range to combat spillages and negate the need for paper sleeves. Featuring non-drip drawstring tea bags, convenient sip lids and double-wall branded

From the

Special Treat Biscuit*

*Value Sales, Special Treat, MAT, we 10.01.15 ÂŠ All Cadbury trademarks and copyright are owned by Mondelez International Group and used under licence

[ FOOD & BEVERAGES ON THE MOVE ] cups, Tetley On The Go includes virtually everything caterers need to serve a takeaway tea. To tap into the emergence of the UK’s cafe culture, McColl’s Retail Group partnered with Nestlé Professional in March to install eXpresso Plus Nescafé Alegria machines in 110 of its 1,300-plus stores. Explaining the decision, Paul Taylor, general manager Food2Go at McColl’s, said: “Food2Go is a key pillar of our strategy for 2015 and onwards, and so it made perfect sense to complement this concept with a coffee and hot drinks offering.” More recently, Nestlé Professional has developed Nescafé & Go coffee solution, a new counter-top unit featuring 10 hot drinks and three new Maggi soups – Chicken, Tomato and Vegetable. Based on the assumption of 20 cups sold per day (rsp £1.10), Nestlé predicts wholesale customers could generate an incremental turnover of £6,336. Cash & carries are advised to stock a selection of coffee, tea, hot chocolate and soup sleeves within branded lane trays and shippers. Kepak Convenience Foods, which offers retail stores an in-store range of ‘heat and eat’ units, works closely with nearly 150 cash & carry depots to help facilitate best practice merchandising and make sure retailers can easily navigate fixtures in store. Earlier this year, Kepak engaged in a three-month category management project with Bestway Gateshead and contributed to increasing profitability by 350%. “We encourage wholesalers to make sure they have an easily signposted range, eye-catching PoS and a good

Stat attack: 70% of adults snack while on the go (Mintel).

execution of promotions on pallet displays to help aid the overall shopper experience,” explains John Armstrong, marketing director at Kepak. “Retailers don’t want to linger in store, particularly in the chiller room, which is notoriously hard work for depots. It is vitally important to guide visibility to increase rate of sale and also reduce waste.” Sharing a similar view, Mondelez International urges wholesalers to maximise the morning occasion by positioning a range of breakfast on-the-go formats in high-traffic areas in depot. Five years ago, Mondelez pioneered the creation of the breakfast biscuit category by launching belVita Breakfast Biscuits. Now ranked as the leading brand in healthy biscuits, belVita is valued at £65 million (Nielsen). To complement its Honey & Nuts and Strawberry Duo Crunch singles, which currently hold the number one and two spots in impulse breakfast biscuits, Mondelez has recently introduced 50g packs of belVita Crunchy Hazelnuts. Retailing at around 60p and available in outers of 20, the hazelnut variant has already proven popular in multipack formats, amassing approximately £5 million worth of value sales since April 2014.

All data unless otherwise stated: Allegra

Retailer’s view: Chetan Patel, Felbridge Village Store, Surrey “I think that cash & carries could potentially benefit from offering a bigger and more bespoke range of fresh, delitype products in their walk-in refrigerators. “Customers value variety and tend to want bistro salads and local produce from a deli-counter for lunch, rather than pre-packaged 99p sandwiches and burgers. ”We do have a hot food display, but it tends to work best during the cold seasons. In the summer, sales are generally confined to sweet treats such as Danish pastries. “One of the biggest challenges we face is keeping control of waste. Products that are specifically for on-the-go consumption, particularly hot food, have a short shelf life. “Bigger outlets may not be as affected, but smaller stores really benefit

June 2015

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from smaller minimum order requirements. Without sale or return initiatives and single order opportunities, it is difficult to trial a new range and to justify the risk.”

LIMITED EDITION RED BULL AIR RACE 250ML CAN. Red Bull 250ml is already in the lead when it comes to Soft Drink sales.1 But why stop there? Touching down this Summer â&#x20AC;&#x201C; the Red Bull Air Race Limited Edition 250ml can. Stock up now and see your sales take off. Red Bull Gives You Wiiings. SOURCE: 1IRI MAT 25.04.2015.

[ FOOD & BEVERAGES ON THE MOVE ]

United Biscuits (UB) has also embraced the ‘grab and go’ mindset by unveiling two new McVitie’s Breakfast biscuits – Oaty Breaks and Fruit & Oat Bakes. Backed by a £3 million media spend, the latter addition comes in multipacks of 6 x 2 Apple or Blueberry slices (rsp 1.99), while the Oaty Breaks range features a new snappable format and is offered in a choice of Golden Syrup and Raisin & Cinnamon 6 x 2 handy packs. Taking a different approach, General Mills UK and Ireland claims it has fulfilled a gap in the market for a mainstream cereal bar with ‘added benefits’ by developing a selection of Nature Valley ‘pick me up’ treats and healthier alternatives. Following the release of Nature Valley Crunchy Bites – bite-sized pieces of its best-selling cereal bars in a resealable grazing bag – General Mills has added Popcorn and Protein bars.

‘The number one frustration for retailers is poor availability, so it’s really important to ensure that all popular lines are prominently displayed and fully stocked’

All data unless otherwise stated: Nielsen

Bep Dhaliwal, Mars Chocolate’s trade communications manager The Protein range, which come in a choice of Peanut & Chocolate or Peanut, Pumpkin & Sunflower Seeds, features a combination of nuts and seeds and contains 15% of the recommended daily protein intake. Retailing at around £2.89 and 69p for multipack and single formats respectively, the launch coincides with the release of a two-strong range of low-calorie Nature Valley cereal bars. The new addition contains fewer than 100 calories and comes in multipacks of five Cranberry & Yoghurt or Peanut & Sunflower Seed variants (rsp £2.89). The latter flavour is also obtainable in 20g single bars, with an rsp of 69p. A study by Mintel has revealed that 22% of snackers are seeking single portion packs to aid a healthy lifestyle. With 15% of consumers surveyed also admitting that they are

June 2015

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actively looking for smaller, calorie-controlled ‘eat-in-one-go’ packs, R M Curtis has developed a Snacking Essentials Shot Pack range of dried fruits, nuts and seeds. Available to the on and off-trade in Pomegranate Promise, Fruit & Nut Fusion, Choccy Orange Cheer and Sinless Seeds 25g bags (rsp 59p), each portion is packaged in the UK’s first horizontal pack and is designed to be merchandised alongside cereal bars and chocolate bars as a healthier alternative.

Mars Chocolate UK cites promotions as an integral part of encouraging an additional, off-list purchase. “Impactful PoS units for new or seasonal products are proven to drive impulse sales,” says Bep Dhaliwal, trade communications manager at Mars. “Multifacing bestselling lines, such as Snickers, drives an additional 23% sales as they create standout and impact, allowing consumers to find the product more easily. “We know that the number one frustration for retailers is poor availability, so it’s really important to ensure that all popular lines are prominently displayed and fully stocked.” To capitalise on 7.1% sales growth in the total chocolate market, Mars and Nestlé Confectionery have revamped their respective Snickers and Aero brands by releasing new line extensions.

Mondelez merchandising tips a

Ensure NPD and promotional products are stocked in advance of consumer media exposure to meet demand and maximise the opportunity. Consider cross-category promotions/displays that inspire retailers to create bespoke breakfast and lunchtime displays. Advise retailers about their spending strategy: some stores opt for products with the highest profit margins, but that’s not always the best approach. No one wants a great margin on a product that doesn’t sell!

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Lipton Ice Tea is a soft drink with tea extract and fruit juice Lipton and the Lipton mark are registered trademarks of

and are used under licence

Available now, Snickers & Hazelnut bar features the UK’s favourite nut flavour (Mintel) and is available in a single bar and multipacks of four, with an rsp of 55p and £1.79 respectively. Meanwhile, Nestlé has introduced an indulgent Aero Mousse chocolate bar in both a single countline (rsp 62p) and 150g sharing block (rsp £2). Ferrero has unveiled a new on-pack promotion across its entire Kinder range. Dubbed ‘Make your little one’s art famous’, the campaign embraces the strapline ‘Invented for kids, approved by mums’ by encouraging children to get creative for a chance to have their photographs and selfportraits printed on UK Kinder Chocolate packs next year. Running until the end of August, the competition features three tiers of prizes for entrants. All three initiatives from Mars, Nestlé Confectionery and Ferrero are backed by significant media investments, incorporating digital and out-of-home advertising.

• Cold hot drinks is the UK’s fastest growing soft drinks category and still growing 1 • Lipton is the UK’s No.1 ice tea 2 • Lipton has reduced the sugar content and calories by over 30% across the range

Stock up now A REFRESHING BLEND WI TH FRUI T JUICE AND ICE TE A Source: 1. Nielsen Total Coverage, value sales vs YA 52 w/e 14.3.15, 2. Nielsen Total Coverage, Value share of Ice Tea 52 w/e 15.3.15 BRV306491_15

Keeping up with the lunchtime rush In terms of specific meal occasions, the lunch-to-go mission remains the most popular, according to him!, with 7% of shoppers using convenience for this occasion. With over 600 bagged snacks available, deciding which products to stock can be a very difficult decision, admits KP Snacks. As part of its SnacKPartners initiative, the manufacturer offers category advice to both retailers and wholesalers to drive sales of crisps, snacks and nuts. To help increase shelf standout, KP Snacks has modernised its entire McCoy’s portfolio with a complete packaging overhaul – the brand’s first identity change in 15 years. Designed to appeal to younger male consumers, the new positioning coincides with the launch of beef-flavoured Space Raiders in a grab bag (rsp 55p). Space Raiders ranks as the fastest selling handy-pack snack on the market, worth £7.3 million in retail sales value annually.

Elsewhere, Burton’s Biscuit Company has expanded its Fish ‘n’ Chips savoury snack brand by introducing two fish and chip shop favourites – Pickled Onion and Curry Sauce. The new range, which comes after the brand reached £12.3 million in value sales at the end of March – less than a year after its reintroduction, is available in 40g grab bags (rsp 59p), 5 x 25g multipacks (rsp £1.59) and 125g share bags (rsp £1.39).

All data unless otherwise stated: IRI

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Lipton Ice Tea is a soft drink with tea extract and fruit juice Lipton and the Lipton mark are registered trademarks of

In the soft drinks category, IRI reports that single-serve packaging grew significantly in the convenience channel last year, with ready-to-drink energy drinks and water up 7.1% and 4.6% respectively. Nearly a third (30%) of sport & energy drinks are purchased for on-the-go consumption (Nielsen), with the energy segment holding a 26% market share of the total soft drinks market in the convenience channel. Red Bull advises cash & carries to split their range accordingly, with educational messages displayed in-store to communicate the value of merchandising energy drinks in chillers and by need state: refresh, stimulate and hydrate. Gavin Lissimore, head of category marketing at Red Bull, comments: “By ensuring sales fundamentals are correct in-store, such as educating customers on price, strong promotions, effective range and merchandising, wholesalers can help retailers boost incremental sales and benefit from this latest insight into consumer behaviours.” Sports & energy brands have been a driving factor in the growth of soft drinks, delivering over 40% of category expansion since 2012 and becoming the biggest segment in all off-premise channels except the major multiples. The trend is forecasted to continue over the next five years, with energy drink sales predicted to rise by 24% (Mintel). To help leverage this growth, Red Bull has unveiled a new limited-edition can, in anticipation of Red Bull Air Race World Championship, which returns to Ascot Racecourse on 15-16 August. Standard and £1.19 price-marked Red Bull 250ml cans, the number one energy SKU, will feature specially designed artwork promoting the sporting series, which is forecasted to attract 55,000 visitors from across the globe.

and are used under licence

Re-energising the meal deal

[ FOOD & BEVERAGES ON THE MOVE ]

All data unless otherwise stated: Nielsen

Last year, Red Bull Air Race 355ml cans delivered a 31% higher rate of sale than the plain packs.

Supported by a product education-linked sampling campaign and a multi-platform advertising programme, the event is also backed by cash & carry-specific PoS material, such as 3D displays and pallet wrap units, which are available from Red Bull’s sales representatives to help maximise visibility. Meanwhile, Britvic Soft Drinks has unveiled two new summer campaigns to help maximise impulse purchases across several of its brands. Returning for a second year, Britvic’s Taste of Summer promotion incorporates PoS and media activity, and revolves around 15 core SKUs from its Tango, 7Up, Lipton Ice Tea, Mountain Dew, Ballygowan and Juicy Drench brands. This coincides with the launch of a multi-channel campaign for Lipton, which consists of a series of London-based events, adverts and digital promotions to help publicise the brand’s new-look range and raspberry-flavoured variant. According to Kantar research, two thirds of on-thego soft drinks sales fall between March and October, with a direct correlation between temperature and consumers’ need to quench their thirst. Britvic’s on-the-go value sales repeatedly display strong over-performance in this period, rising by 14.5% between spring and summer in 2014. Coca-Cola Enterprises (CCE) has been increasingly active in developing smaller pack formats and innovative concepts that are convenient and easy to carry. To tap into the growth of the bottled water segment, which grew by 7.5% within independents and symbols in the year to April 2015, the company introduced Oasis Mighty Drops – a super-concentrated squash that is presented in 56ml bottles. CCE’s wholesale sales director Simon Harrison says: “For those consumers looking to keep hydrated on the move, water enhancers are a great way to liven up a bottle of 42

June 2015

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water whilst on the go. This type of product is a growing consumer trend, and offers wholesalers the opportunity to drive incremental growth as retailers look to stock products to meet the need of busy consumers.” CCE has unveiled a new CapriSun ‘Squeeze the Day’ on-pack promotion, to increase the appeal of 330ml packs to its target 20-35 year old ‘millennials’ demographic. The monthly promotion offers consumers the opportunity to win their own bucket list adventures, worth £2,000, via an on-pack sticker. The social media-led campaign, which runs until the end of August, will also reward nine consumers with prizes totalling £100 each. Employing a similar strategy, AG Barr has announced a new on-pack promotion across 10 million 500ml cans of Rockstar. The campaign, which is linked with the big screen spinoff of American comedy TV series Entourage, offers shoppers the chance to win a VIP trip for four people to Los Angeles via a text-and-win mechanic. Hundreds of limited-edition Rockstar Entourage t-shirts are also up for grabs. Running until the end of July, the promotion is featured on both plain and 99p price-marked packs of Rockstar Original, Punched Guava, Xdurance Blueberry and Xdurance Electric Fruits variants. The Scottish manufacturer has also released a new Barr special-edition tropical variant, which has been developed especially for the summer. Tropicoola comes in 39p price-marked 330ml cans and 69p price-marked 500ml bottles, and is being supported by consumer and digital activity throughout June. The can is available in cases of 24, while the bottle is CCM supplied in 12s.

For further information: AG Barr (01204) 664295 Britvic Soft Drinks (0845) 758 1781 Burton’s Biscuit Company (01727) 899700 Coca-Cola Enterprises (0845) 722 7222 Ferrero (01923) 690300 Kepak Convenience Foods (01772) 688300 KP Snacks (0845) 601 7583 Mars Chocolate UK (01753) 550055 Mondelez International (08702) 400861 Nestlé Confectionery 020-8686 3333 Nestlé Professional (0800) 745845 Red Bull (0203) 117 2000 R M Curtis 020-7274 0717 Tata Global Beverages (0800) 387227 United Biscuits 020-234 5000

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