C&C Management October 15 by Cash & Carry Management

SPOTLIGHT: JAMES LOFFET, DISTRIBUTION DIRECTOR AT CONFEX

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS WHOLESALING CONFERENCE

OPTIMISING OPPORTUNITIES Are you adapting to customer demands?

NATIONAL ACCOUNTS

Caterforce sets sights on larger contracts

Nisa Retail signs £250 million deal with Ramsden International

OCTOBER 2015

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

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Contents

October 2015

This month don’t miss... 6 11

JJ Food Service announces record-breaking pre-tax profits.

Are price-marked packs losing value? Retailers seem to think so.

Why the café culture revolution is reshaping the hot drinks market.

ESSENTIALS 07 08 20 41

Editor’s Comment Industry News Achievers Products & Promotions

FEATURES 14

IGD Conference A comprehensive round-up of all the major talking points.

Spotlight featuring James Loffet, distribution director at Confex.

In Focus Revealed! Blakemore Trade Partners set to benefit from ‘game-changing’ marketing and digital investments.

Big ambitions: National accounts division set to change the face of foodservice distribution for Caterforce.

Special Report Caterforce sets sights on national contracts with new division.

Product of the month

OPINION 19

Employment Law Disciplinaries: employees’ rights.

CATEGORY INSIGHT 22 30 36 39

Hot Beverages Biscuits OTC Remedies Confectionery

James Loffet talks properties, ponies and lollipops.

Party central! New hangover relief drink debuts in the UK.

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October 2015

[ EDITOR’S COMMENT ]

Every cloud has a silver lining ith Christmas now less than two months away, suppliers, cash & carry/ delivered wholesalers and multiple retailers will be fine-tuning their plans for what is always the most lucrative time of the year. In our sector, operators will be determined to ensure, for example, that they don’t make the same mistake as last time when they went overboard on a secondary brand of mince pies instead of majoring on the brand leader. Meanwhile, independent retailers will need no reminding that hiding away the leading spirits behind an own-label range might not always be the best ploy. Then there’s the question of the weather, and how beneficial or harmful it can be to their takings. That uncontrollable factor, of course, is not just relevant to the days leading up to Christmas. Rain, hail, snow, storms and blizzards can hit takings drastically any time of the year. It makes sense, therefore, to have the meteorologists on your side, offering their guidance well in advance so that, for instance, transport rotas can be adjusted if delivery times are likely to be severely interrupted. Now, not only can businesses so reliant on the weather and road conditions – delivered wholesalers in particular – simply watch forecasters on TV, but they also have access to a new service from the Met Office.

SPOTLIGHT: JAMES LOFFET, DISTRIBUTION DIRECTOR AT CONFEX

WHOLESALING CONFERENCE

OPTIMISING OPPORTUNITIES Are you adapting to customer demands?

NATIONAL ACCOUNTS

Caterforce sets sights on larger contracts

Hazard Forecast is claimed to ‘improve supply chain efficiencies, providing tailored, contextual weather forecast information’. We are also told it ‘helps to ensure the safe and timely delivery of goods’. The service can even provide valuable information for specific depot locations. Arrangements can be made for interested parties to have detailed information transmitted to them up to six days ahead of a specified date, or on a daily basis if required. The advice can take into account the effect of inclement weather on motorways and bridges and whether detours are advisable. The cost to the likes of Brakes, Bidvest, Bestway and Blakemore is flexible, said a Met Office spokesperson, and is only determined once the organisation and wholesaler agree what is required, how frequently information is needed, and over what area of the country. While companies such as these will already be doing their homework on the impact of driving conditions on their takings, few will deny that advice from the experts could be invaluable, albeit at a cost. It’s certainly a great idea – as long as no-one at the weather organisation mentions hurricanes!

Mervyn Gilbert News Editor

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October 2015

[ INDUSTRY NEWS ]

‘Frustrating’ AWRS delay The Federation of Wholesale Distributors has described as ‘frustrating’ the decision by HM Revenue & Customs to delay the launch of the Alcohol Wholesaler Registration Scheme (AWRS) application process until 1 January 2016. The three-month application window was originally scheduled to run from the start of this month. More than 20,000 businesses are expected to apply for registration under the scheme, which is intended to prevent criminals trading in duty-evaded beers, wines and spirits. Only ‘fit and proper’ alcohol traders will be able to carry on their business. The delay was sanctioned

by Treasury Minister Damian Hinds after HMRC officials requested more time to prepare the online application process. IT issues also led to concerns about some of the data input, particularly in the case of group applications. FWD chief executive James Bielby (pictured) said:

“This late change, coming less than a week before the expected start date for applications, is very frustrating for us and our members. “They volunteered to test the application process over the past six months, and we have put considerable effort into informing them and other stakeholders of their obligations and the original timeline. “However, we appreciate that the application process must be absolutely watertight before it is launched, and the delay will give HMRC time to ensure that applications are recorded and processed correctly and help deliver an effective registration scheme.” a FWD (01323) 724952

More than 400 drinks listed Blakemore Fine Foods has launched a new catalogue that showcases leading British ales, ciders, wines and spirits. Caoire Blakemore, commercial director, said that the company had scoured the country for ‘the largest range of quality British alcohol’. The book features more than 400 drinks from over 80 distilleries, cider mills and breweries. Blakemore commented: “Britain now has more breweries per person than anywhere else in the world and we want to help raise the profile of these producers and give them access to a wider market. “The craftsmanship demonstrated by the manufacturers that we have listed is of the highest quality.” She added that, while sales to the ‘mature, traditional 08

October 2015

real ale drinker’ remain strong, there is also growing demand from the younger, non-gender-specific ale drinker increasingly being spotted at craft beer festivals nationwide. Non-beer lines featured include Penderyn Welsh malt whisky, Two Birds absinthe

and Chase Marmalade Vodka. The catalogue is being distributed to 1,500 retailers, independent pubs and farm shops. Key lines will also be sold into SPAR stores and the Blakemore C&C chain. a Blakemore Fine Foods (01902) 366066

Scottish scampi Brakes has launched what it claims to be the first wholesale range of 100% Scottish scampi. Using only langoustines caught and packed north of the border by the wholesaler’s partner, Dawnfresh, the new selection has been benchmarked against those of competitors. The range has been reduced from the former 12 scampi lines to six, with a clear tiering structure to make it easier for customers to understand how different qualities can be featured on a variety of menus. Menu suggestions have been created by Dawnfresh’s development chef team, in conjunction with Brakes. The wholesaler’s category manager Andrew Crawford said: “It brings us huge pride to be able to offer our customers great tasting scampi with a truly unique provenance message. “The new product tiering structure also makes it easier than ever before for caterers to identify the right scampi for their business.” a Brakes Group (01233) 206000

New site

With some of the wide range of drinks are (left to right): trading controller Patrice Garrigues, sales controller Neal Harris and commercial director Caoire Blakemore.

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JJ Food Service has launched a new website enabling ordering to be made more quickly and with a more impactful design. For use on mobile phones and tablets, it offers access to key categories, special offers, promotional brochures, branches and the ability to track orders in real time. a JJ Food Service (0843) 309 0991

[ INDUSTRY NEWS ]

Importance of foodservice Own-label Speaking to delegates at Today’s Group’s annual conference in Monte Carlo, head of trading David Sabin stressed the importance to the group of the foodservice market. After telling them that it represented “a £10 billion opportunity for wholesalers over the next five years”, he added that the brands in this sector have enjoyed up to 58% growth through the group. Total sales through Today’s foodservice arm have grown by 5% over the past year. Simon Millar, foodservice director at Premier Foods, spoke about key areas for group wholesalers, particularly nursing homes – due to the rising number of elderly people – and schools, with the introduction of free meals earlier this year.

Also in the foodservice sector, Today’s member Glasgow-based Fáilte Foods has won new contracts in schools and with local authorities. It has also doubled its fresh produce range and absorbed this category into its 18,500 sq ft depot in Glasgow’s fresh fruit & vegetable market. Today’s chairman Mark Windebank told delegates that the grocery & food-

Sabin: ‘A £10 billion opportunity.’

service wholesaling channel is expected to grow to £32 billion in value by next year. Scottish Wholesale Association director Kate Salmon and chief executive of the Federation of Wholesale Distributors James Bielby spoke about the work both their organisations are doing in terms of education, lobbying and training. The following were recognised in Today’s annual supplier awards: Licensed supplier, Concha y Toro; impulse, Nestlé Confectionery; grocery and foodservice, Premier Foods; own-label, Aston Manor Brewery; on-trade, Heineken; partnership, DCS Group; support service, Maxim Communications; and a special recognition award went to Steve Lidgate, who has spent 30 years in the confectionery trade. a Today’s Group (0844) 247 0700

Bidvest reports on its green efforts Bidvest Foodservice’s newly published Sustainability Report focuses on the company’s collaboration with bodies such as Foodservice Footprint, Planet Mark, WRAP (Waste & Resources

Action Programme), suppliers, customers and charities. It also reflects the views of key stakeholders and outlines its past 12 months’ activities, including the introduction of 237 Euro vehicles,

with fewer emissions than previous transport; ensuring that 44% of products in the own-brand range meet, or exceed, the Government’s 2017 salt target; ensuring that all own-brand lines are in packaging complying with EU regulations; and achieving an 8.7% rise in company cars delivering carbon emissions under 100g/km. Head of sustainability Shirley Duncalf said: “Our vision is to be the best foodservice provider, and leading the industry’s sustainability and social responsibility agenda is a key part of this.” a Bidvest Foodservice (0370) 3663 000

display

Hancocks Cash & Carry has introduced a new stand for retailers carrying its Kingsway pick ‘n’ mix range. It can accommodate 20 varieties of sweets. About 2,000mm high, 900mm wide and 700mm deep, the stand comes on wheels.

The Kingsway label, which was created in the ’60s, includes more than 300 products that can produce margins of up to 76%. The brand is worth around £100 million at rsp. The company also offers a Kingsway branded share bag stand. Hancocks’ purchasing director Jonathan Summerley said: “The Kingsway branded pick & mix stand is available in all 20 cash & carries. “As part of the launch, until the end of this year we are offering retailers the stand package, including 20 outers of product, for just £599 ex-VAT. “This really is an excellent deal, as the retail value of the sweets alone is over £500.” a Hancocks Cash & Carry (01509) 216644

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October 2015

[ INDUSTRY NEWS ]

£250 million contract renewal

Heagney (left) is welcomed by Ramsden.

Dee Bee consultant Dee Bee, Grimsby-based member of Today’s Group, has named John Heagney as a consultant. The C&C/wholesaler’s MD Nick Ramsden said: “John’s appointment is a significant move for us as we seek to expand.” Heagney, who has more than 40 years’ experience in retail, formerly worked for Nisa for many years, latterly as group symbol director. His brief will be to identify and select existing c-stores or new sites for Dee Bee (part of the Ramsden Group) to purchase and then franchise to retailers. a Dee Bee Cash & Carry (01472) 313200

Retirement Barry Parish (pictured) has retired after 32 years with Confex. He joined as business development director from Food Brokers. Confex managing director Nicky White said: “Barry’s understanding of the wholesale sector and business acumen have been key ingredients in our success.” a Confex Group (01608) 652333 10

October 2015

Delivered wholesaler Nisa Retail has agreed a five-year contract with Grimsby-based exporter Ramsden International, worth up to £250 million. The contract represents an extension to the pair’s longstanding partnership, which involves Nisa supplying its grocery lines and Heritage own-label products to Ramsden International. Sean Ramsden, chief executive of Ramsden International, said: “This new contract gives us the flexibility and levels of service which will ensure that we continue to deliver the best possible support to our customers across the globe.” The company exports more than 23,000 UK food products to over 130 countries.

Nisa’s head of independent & specialist James Roberts said: “We’ve worked very closely with the Ramsden International team for many years for our mutual benefit.” Nisa Retail has also signed a £1 billion five-year agreement to deliver to the

new My Local estate of 140 stores. The wholesaler supplies over 2,500 outlets across the UK. Some operate under the Nisa brand and others under their own name. a Nisa Retail (01724) 282028 a Ramsden International (01472) 315610

Bestway chain makes its bow Bestway Group has earmarked over 400 liveried vehicles to carry goods to the former Co-op Pharmacy stores which it bought for £620 million a year ago. As well as the delivery fleet, the Well Pharmacy

name now appears on nearly all 774 outlets. While Bestway executives have been supervising operations, the majority of Well Pharmacy senior staff are those who worked there under the Co-op regime.

New signage now appears on nearly all the branches.

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A spokesman for the C&C/wholesaler commented: “Well Pharmacy has its own management team that run the day-to-day operations. Bestway oversees the business from a more strategic perspective.” Asked whether the chain would carry own-label pharmaceutical lines or snack foods, the spokesman said: “This is under consideration.” It is also unclear whether all the acquired pharmacies are being retained, some have been closed or others are destined for a change of use. The chemists’ chain, which has a total staff of around 6,500, has its own Manchester headquarters. a Bestway Group 020-8453 1234

[ INDUSTRY NEWS ]

Emphasis on world foods Bestway has launched world food departments in 12 of its cash & carries, recognising a UK market that is worth over £1.5 billion, and growing. The sections include food from seven key regions: the Caribbean, Europe, the Mediterranean, Africa, the Middle East, South Asia and the Far East. Category controller Umar Sheikh said: “The vast majority of true, authentic world foods is consumed by the various ethnic groups. “As the UK becomes more multi-cultural, there is a greater need for familiar, trusted products that have authentic, provincial flavours as consumers yearn for the taste of home.” He added that television programmes like MasterChef have helped create even greater interest in ethnic foods. “Having over 15 years of experience in the restaurant industry, including being a chef, the one thing I know is that everybody wants a shot at being a gourmet at home. “At Bestway and Batleys, we want to make this possible by showing our continued support for the independent sector in servicing the consumer,” said Sheikh.

Record profits Sheikh: World foods are beneficial for margins and footfall.

The project, which has taken 12 months to implement, has resulted in world foods aisles being installed in 10 Bestway C&Cs and two Batleys depots. Products are grouped by area of origin rather than by category. Sheikh commented: “This is a great category to get into for retailers. Firstly, it’s great for margins. Consumers are willing to pay a premium for authenticity and, as a relatively new category, there is no preconceived idea about price in the mind of the customer. That’s not to say you ‘insult price’ but it does offer scope for increased margin. “Secondly, a good fixture will bring more customers into a store. They, in turn will buy other products, increasing profitability.

“Thirdly, retailers don’t have to go to the ends of the earth wasting time and money searching out specialist wholesalers.” Among the many ethnic brands stocked by the group are Laila, Greenfields, Akash, Elephant and Gits. While all Bestway and Batleys depots carry an extensive range of world foods, the 12 featured stock a much wider selection – more than 800 specialist product lines. The hub depots are: Bestway Southall, Hackney, Park Royal, Croydon, Luton, Lewisham, Leeds, Leicester, Manchester and Birmingham, and Batleys in Bradford and Glasgow. a Bestway Group 020-8453 1234

A winning format for Blakemore ‘Match Day Winners’, the name of Blakemore revived ‘Deal of Wholesale’s the Week’ promotion, continues until the end of this month. The aim of the sevenweek activity is to help independent retailers compete with the major multiples during what is a heavy sporting period – notably the Rugby

World Cup, sponsored by Heineken.

Managing director Craig O’Connor said: “Deal of the Week has always delivered amazing results for Blakemore Wholesale. “Our customers tell us that these competitive deals have a real and positive effect on their sales and margins.” a Blakemore Wholesale (01902) 366066

Despite seeing turnover slip slightly from £182.6 million to £181.6 million in the year to 31 March, JJ Food Service – which is to open two new branches – increased pre-tax profit by 55% to a record £11.9 million. Mustafa Kiamil, managing director, said: “Our increase in profit is down to being able to source high-quality products from the UK and the rest of the world at competitive prices. “We have also continued to increase efficiency and achieve significant cost savings by investing in new technology.” The two additional depots, at a cost of £10 million, will be in Newcastle upon Tyne early next year and in Dagenham, Essex, where a purpose-built operation will begin trading next summer. There will then be 10 outlets in the JJ estate. The operator has also spent £500,000 on solar panels at its Enfield and Sidcup branches. That might not be the end of expansion. Said Kiamil: “We are always on the lookout for new branches.” JJ has also continued to invest in its FOODIT software venture, first developed in 2013 to help independent restaurants get online and optimise their presence in search engines. a JJ Food Service (0843) 309 0991

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October 2015

[ INDUSTRY NEWS ]

Basmati relaunch MAP Trading, the world food wholesaling division of Bestway Group, has relaunched its Shahzada (meaning prince) basmati rice brand. Positioned as a ‘value proposition’, it joins the group’s White Pearl rice range. Grown in Punjab, and with extra long grains, Shahzada is aged for a minimum of 18 months to produce a fragrant aroma and taste. The brand’s new pack depicts a prince on horseback and the tagline ‘Rice Fit For a Prince’. The sizes are: 2kg (£2.49), 5kg (£5.49), 10kg (£8.99) and 20kg (£17.99). The product is also available at most large world foods distributors as well as in Bestway and Batleys C&Cs. a MAP Trading 020-8965 0193

Best for chilled The Pantry Go Local Extra store in Sheffield was adjudged chilled retailer of the year at a recent retail industry awards ceremony. The symbol shop – part of Parfetts Wholesale’s 1,000strong retail club – increased sales of chilled foods by 33% over the past 12 months, despite being situated next door to a Sainsbury’s Local outlet. a Parfetts Wholesale (0161) 429 0429 12

October 2015

Wholesalers rewarded In a successful first quarter for Confex, more than 125 members reached the group’s ‘Growth Incentive’ target for the year. Of these, 82 achieved an incremental increase year on year, with 22 winning a fourday Portugal break, which was also attended by 28 suppliers. Business development manager Tom Gittins told Cash & Carry Management that among the members who showed growth across multiple suppliers were Lansdell Soft Drinks, of Chestfield, near Whitstable, Kent; Hull-based Alpine Fine Foods; and Millennium Wholesale, of Barking, Essex. Lansdell, which operates with 12 vehicles from a 26,000 sq ft depot, increased turnover in the past year by

One of the top Confex performers.

8% to almost £9 million. Gittins said: “Member businesses were invited on the trip, with two complimentary places sponsored by the supplier with whom they topped the respective growth incentive league table.” New members attending included Z&H Distribution, of Slough; M1 Confectioners, of Belfast; and soft drinks and snack foods specialist, Murdens of Hull. As well as leisure activities,

the visit to Portugal included speed dating-style meetings with suppliers. Referring to the retirement of business development director Barry Parish (see p.10), Gittins said: “In the short term, he will not be replaced. The business development team remains in the hands of me and David Lunt. Our two group directors are Nicky White and James Loffet.” a Confex Group (01608) 652333

JJ renews charity drive JJ Food Service has relaunched its VIVAT spring water charitable scheme which donates money made through sales of the product to charities voted for by customers. The company’s general manager Terry Larkin said:

“We will be kicking the fundraiser off by giving five different charities the chance to win £1,000 each between now and December.” Nomination forms are available via JJ and VIVAT websites and social media. Over the past few years

the business has already donated in excess of £10,000 to charities via VIVAT water sales. Votes for the beneficiaries can be made between now and 28 December. a JJ Food Service (0843) 309 0991

Bidvest helps the needy Bidvest Foodservice played a leading hand in more than 25,000 dishes being served to around 5,000 vulnerable people across London. The ‘Knead & Feed’ charity meal event took place at Allianz Park, north-west London, and also involved staff from media agency MEC and other hungerfighting organisations.

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Cooking was under the control of Shaun Hill.

The wholesaler was represented by business manager Mike Harris, field sales manager at the High

Wycombe depot Tom Emsley and chef Shaun Hill, who led two of the teams of cooks. The ‘Knead & Feed’ menu included beef lasagne, tagine, butternut, leek and goat’s cheese tarts, garlic & rosemary focaccia and apple & berry crumble. a Bidvest Foodservice (0370) 3663 000

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

Overcoming barriers to growth Since the turn of the year, the wholesale industry has been jolted by unfavourable legislation and constrained consumer demand in the retail channel. But as the IGD Wholesaling conference illustrated, the sector’s resilience shows no signs of abating. s conferences go, the IGD Wholesaling summit would not have been complete without one speaker reinforcing the importance of ‘working together’. It seems to be the go-to phrase during many presentations, and one which was especially pertinent as wholesalers were warned to expect “big challenges” over the coming months. In his opening address, IGD chief economist James Walton informed delegates that changes to legislation, particularly those relating to Sunday trading, tobacco and the national minimum wage, will have an “accumulative effect across the supply chain”. Far from sugar coating the harsh reality, FWD chairman Martin Williams revealed that one Landmark member has estimated that the new national living wage could cost his business “£3 million straight off the bottom line”. Williams added: “This is a crucial issue for our industry because it could have serious repercussions on wholesalers, suppliers and their customers. Wholesalers run lean businesses, and the living wage will eat into margins. The ability to reinvest could be wiped out.”

October 2015

Williams’ views are shared almost universally across the industry. In a statement issued last month, ACS chairman James Lowman said that the compulsory measures could have a “devastating impact” on the sector. But is it all doom and gloom? According to Walton, entrepreneurs continue to invest in the foodservice and convenience channels, despite the many policy changes.

A change for the better “Wholesalers can make it easier for retailers purchasing online and in depot. Our demands are changing and we now want to know what our [purchasing] patterns are. We don’t have the time or resources to create our own algorithms and software – that’s where wholesalers and suppliers come in. We want to be educated about latest trends and we need that information to become more data driven.” Raaj Chandarana, Tara’s News, High Wycombe

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What’s more, the convenience sector is forecasted to grow by £6.4 billion over the next five years. “Our research shows us that shoppers are continuing to favour frequent, lower value and more local transactions,” claimed Walton. As a result of increased consumer spending, the IGD predicts that the total wholesale sector will grow from £29.8 billion at the end of 2014 to £32.3 billion in 2019. Turning his attention to the out-ofhome market, Walton pinpointed the opportunities presented by the growth of fresh and chilled categories. Wholesale growth stood at 1% in 2014, but fresh and chilled were the star performers – far outstripping overall levels. Walton expects this trend to continue over the next few years, as more wholesalers increase their investments in fresh and chilled food and find new ways to meet customer demands. Blakemore Wholesale recently invested £3.5 million in a new meat processing plant, while Palmer and Harvey (P&H) has added new chilled and frozen facilities in Belfast and Avonmouth. “As a wholesale trade, we all need to

[ IGD CONFERENCE ] Revolutionary app set to reduce operational costs Time Wholesale Services has pioneered the launch of shopsmrt – a free mobile application – to help reduce the operational costs attached to a new product launch or promotion. Explaining the reasoning behind the concept, managing director Sony Bihal pointed to a gap in the market for a single platform that can connect brand owners directly with consumers by sharing hyperlocal data and confirming value chain sales. Bihal told Cash & Carry Management exclusively: “The basic

respond to the needs of the customer base,” advised Paul Hagon, group strategy and development director at P&H. “When you look at the market dynamics, there is a lot going for and against us. The legislations are going to impact our profitability and bring increasing pressure for convenience stores.” With this in mind, P&H recently opened a national distribution centre in Leeds to hold its slow moving lines. “We are focused on removing complexities and investing in technology to help our customer base survive and thrive,” explained Hagon.

The end of an era? At the same event two years ago, former FWD chairman Guy Farrant declared that price-marked packs (PMPs) were “absolutely critical”. Fast forward 24 months and his successor Martin Williams was far less complimentary, even proclaiming that “they have now reached a saturation point”. The topic was brought up in a retailer panel discussion and the verdict was consensual. Kamal Thaker from Stop Shop News in Edgware, Middlesex, summarised: “I am all in favour of price-marked packs, but I have noticed that margins are eroding. We have to be especially mindful about the margins we enjoy, especially as our costs are rising. “Once a price mark is removed,

cost of executing a 48 case deal for 30 retail club members comes to around £6,000 on average. “This money can be better used to buy and sell more cases, which can ultimately benefit the wholesaler and retailer, and add value for a brand owner. “We have developed an industry solution which is not only scalable and has a low cost of entry, but also acts as a marketing tool to ensure incremental sales pay for value chain compliance and execution.”

customers can baulk at the recommended retail price. It is a doubleedged sword and perhaps we have now reached a saturation point.” Although the price-marking debate has been reopened, repeated discussions about embracing technology appear to have finally coaxed wholesalers into action. Dawood Pervez, group marketing director at Bestway, commented: “It is impossible to quantify the change in technology, but it is changing the way we work and live. “In 2011, 65% of the UK population had a smartphone. This figure has risen to 80%. As a result, m-commerce is increasing dramatically.” Bestway is now taking over £2 million worth of orders every month via its app, while P&H is currently redeveloping its own app to enable ordering on any android device. Earlier this year, Bestway also became the first wholesaler to implement iBeacons throughout its estate – a device which the group now hopes to roll out across its Best-One stores. Pervez added: “The next stage is to take the signal and link the information we know about each individual customer via their app usage. This will enable us to send targeted offers, which could act as a very powerful tool from a commercial perspective. “But investment in technology alone does not make you a winner. Its efficacy relies on offering customers a higher level of service by engaging with them at every level.

“They need to see the wholesaler as a partner in their business, rather than a shed full of stock. We cannot always be the cheapest at everything, so we need to form strong relationships to help our customers grow.” Time Wholesale Services also puts the customer at the heart of its business plan. This year, the company has invested in 4,000 new SKUs and now offers a chilled, grocery and frozen range. “Over the last three years, the business has expanded by 25% year on year,” reported Sony Bihal, managing director at Time. “We have reached a threshold where we have maxed out the depot and there is now a definite need for us to expand.” Bihal’s ambition is to achieve a £100 million turnover in two-and-a-half years. The company has already invested £250,000 in launching a new online ordering service, and will be opening a new depot in March next year. Depending on its success, Bihal has plans to open a third site in 2017. In the meantime, Bihal’s primary focus remains on creating a “better lifestyle for retailers”.

Scaling new heights: Sony Bihal hopes to open two new depots before 2018.

Martin Race, group trading director at Bestway, noted that the industry is becoming more complicated because the new generation of wholesale customers want to trade in different ways. James Russell (pictured left), managing director at Blakemore, highlighted as much during his presentation. However, Russell believes any opportunities for growth will be dependent on how the sector collectively tackles new regulations and market trends. As he later insisted, the power of partnerships and mutual interdependence CCM is “more important than ever”.

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October 2015

[ SPOTLIGHT ]

sponsored by

James Loffet, distribution director at wholesale trading group Confex mobile for a week or so and put up a ‘Do Not Disturb’ notice. What most frustrates you in business (and in life generally)? People working in big companies who ignore emails asking for information, even when they are sent for the third time and typed all in red! If you were able to retire tomorrow, how would you spend your time? I would buy some cattle for the farm and become a cowboy.

‘Willy Wonka dad was my inspiration’ What has been the major milestone or turning point of your career? Selling my own retail business and joining Confex in 2007. Who has been the biggest inspiration to you? My late father. He spent his whole working life in our industry, initially as a manufacturer. He was never afraid to have a go in business. I remember the sight of colourful lollipops dropping out at the end of his production line – very exciting for a small boy. My school friends used to think my dad was Willy Wonka. How do you maintain a work/life balance and how have developments in technology affected this? As the biggest part of my job is on the financial side, I am fortunate to be able to work flexible hours, which means that I can spend some time working on our smallholding at home. I am often still in the office at 8pm though! We all spend most weekends at competitions for my daughter’s pony (Loffet is 16

October 2015

pictured above with his daughter and her mount), so we get lots of family time. Smartphones mean you are never really ‘away from your desk‘; personally, I like that as you can deal with so many things straight away, which helps customers and means problems don’t build up into a big pile. I don’t need to leave my work behind when I leave the office: I love it. The exception is our annual holiday when I do turn off the

What advice would you give someone starting his/her first job? Don’t be afraid to look for ways to improve the way the company works and suggest them to your boss – don’t just grumble about it to everyone in the staff tea room. Employers are always looking for bright sparks – the cream always rises to the top. What type of business would you go into if it wasn’t C&C/wholesale? Property management. I started off my career in commercial property and found it very rewarding. If you had a million pounds to invest in business, how would you spend the money? Buy property! I was always told: ‘They are not making any more land’. Property has always been a good investment in CCM anything but the very short term.

Entrepreneurship instead of university James Loffet left school after finishing his A Levels with a desire to be an entrepreneur. He thought university would be a waste of time, though he would love to go now! He exported luxury horseboxes to the USA, published books and built houses. Some things worked, some didn’t! But he learned all about risk and how to get a business off the ground from scratch. He ended up with a retail business

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that he spent 10 years developing and then sold it to a national player looking to expand. Loffet joined Confex in 2007 to develop a Polish food project. That never really came to anything but it was the first time Confex had ever actually bought and sold product. From that experience it developed Central Distribution, and this now forms an integral part of the group’s strategy.

[ IN FOCUS ]

AF Blakemore calls on partners to think long-term and re-evaluate their business nother trade show and conference, and yet another trip to the West Midlands. After playing host to ProRetail and the Country Range Group Conference & Exhibition earlier this summer, the Telford International Centre completed a hat-trick as it welcomed a record-breaking 1,000 delegates for this year’s Blakemore Trade Partners SPAR Retail Show. In truth, the timing could not have been more appropriate. While Twickenham is currently reinforcing its status as ‘the home of rugby’, the Telford International Centre is close to establishing itself as the equivalent in wholesale and retail terms. There was also cause for celebration at AF Blakemore, as the group marked the 10th edition of its conference by announcing that profits are projected to rise by £9 million at the end of 2015. “In the context of the market, it has been a successful year,” claimed Jerry Marwood, managing director of Blakemore Trade Partners. “We have a long-term plan and we are very unique in the way we operate. Two per cent of any profit is given to our foundation and the other 98% is reinvested in our business network.” Sales director Neil Mercer and head of marketing Sarah Ellis highlighted brand new initiatives to help improve store efficiencies, and urged SPAR retailers to ‘Take a Fresh Look’ at how they operate to capture increased basket spend and reduce business costs. Mercer told a packed auditorium: “This financial year, Blakemore Trade Partners has made a £1.5 million investment in its Retail Partners Scheme, reducing wholesale prices for core retail partners to ensure that we have the strongest prices on key retail lines. “Store investment also continues to be at the fore of our thinking, and each year we set aside £2 million to co-invest in developments across our estate.” Mercer then outlined the latest developments in the business’s foodservice offering, with this February seeing the launch of SPAR’s new foodservice brand, Daily Deli. It was later

Stat attack: SPAR brand sales have grown by 3% in wholesale terms since May 2015.

revealed that SPAR retailers are piloting a new partnership with Insomnia, an Irish coffee brand, which will be trialled at stores in Cardiff and Market Harborough, Leicestershire. Ellis followed with an update on a new marketing programme, which now includes a free marketing audit for every SPAR store to help enhance the group’s national promotional strategy.

‘Two per cent of any profit is given to our foundation and the other 98% is reinvested in our business network’ Jerry Marwood, managing director She explained: “We have launched a brand new marketing club that will enable retailers to further increase their local marketing activity. “We are currently testing a number of business-to-consumer digital initiatives and developing a new online customer relationship management system and digital business-to-business strategy, as well as new retail technology that will provide retailers with improved access to sales data.” Delegates also heard from six SPAR retailers, who highlighted opportunities for growth in fresh produce, food-to-go CCM and own-label.

Christmas comes early for SPAR retailers SPAR UK has announced the introduction of its first-ever ‘12 Deals of Christmas’ campaign, offering shoppers money-off deals and new promotions every week until Christmas Eve. Bespoke offers will run on topbranded products from selected suppliers, as well as on Christmas essentials and SPAR brand’s awardwinning SKUs. The campaign, which is expected to generate a sales opportunity of £12 million, will be supported by a raft of marketing initiatives, including national newspaper adverts and SPAR Live radio, website and social media publicity. This continues a massive investment in the SPAR brand, with eight of its best sellers currently featuring as part of a new media campaign this autumn. A series of TV adverts is being supported with sampling, sponsorship and PoS activity. Brand director Susan Darbyshire predicts that this could unlock a “£7 million retail sales opportunity”. Eight new products have also joined Spar’s Evening Meals range, with all ready meals and pizzas now displaying an ‘any two for £5’ deal.

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October 2015

[ SPECIAL REPORT ] Lynas Foodservice breaks the £100 million barrier Lynas Foodservice has announced a double-digit increase in annual turnover, up from £90 million in 2014 to almost £110 million this year. A new conveyor belt system has been instrumental in expanding the Northern Irish wholesaler’s product range, so much so that managing director Andrew Lynas hopes to expand the company’s footprint across the whole of Ireland before the end of 2018. To do so, Lynas plans to invest in new IT systems and infrastructure to align with the business’s new strapline: ‘Delivering You More’. A third Lynas Food Outlet opened in Derry, Northern Ireland, last month and Lynas has already set his sights on opening a further seven new sites over the next four years.

Hunt’s Foodservice revamps delivery system Hunt’s Foodservice has installed a new Microlise telematics programme across its fleet of 70 vehicles to improve delivery accuracy and efficiency. The hardware, which provides fleet visibility for the first time in the company’s 60-year history, comprises journey management, delivery tracking, temperature monitoring and electronic proof of delivery. Routing software, called Paragon, has also been implemented to reduce mileage runs and identify alternative delivery routes to avoid traffic congestion.

Caterforce in numbers 7% foodservice market share. £36 million own-brand sales. 27% branded growth since 2013. 68,000 deliveries by 600 multitemperature vehicles every week. 46,333 customers serviced in 2014, up 10% year on year. £26.45 million worth of member investments between 2013 and 2015.

October 2015

National coverage the next step for Caterforce It was a case of friends reunited at Caterforce’s first Supplier Conference since 2013, as managing director Nick Redford marked the occasion by unveiling a customer-driven strategy to become the “third option” for foodservice distribution across the whole of the UK.

25 years t may have kept a low profile over the last two years, but Caterforce re-entered the spotlight earlier this month by revealing ambitious plans to launch a new national accounts division and break Brakes’ and Bidvest Foodservice’s stranglehold on the foodservice market. “We believe that this group is in a unique position,” said Redford (pictured). “It has the geographical framework and the support of all eight members to invest in an opportunity that is huge. We believe the market wants us and we believe the supplier base wants us.” All eight members have committed investments to the initiative, which was first outlined as part of the group’s strategic plan in 2010, and three steering groups are now being put in place to focus on buying, marketing and sales. Redford’s expectation is that the new division will help each member to retain contracts with customers who are looking to expand outside their delivered area, rather than losing them to national operators like Brakes and Bidvest. He added: “The response has been overwhelming. Our goal, as a group, is about synergy. It’s not about how much turnover we have. We are great believers that synergy precedes size and all our members are focused on reinvesting in their businesses to achieve growth. We know that service is the difference, and fortunately we are now in a position to execute national accounts.” Until now, Caterforce had taken a backseat while other buying groups actively promoted their latest business ventures and member achievements. There was little indication, either, about the announcement prior to the group’s conference in Hinckley, Leicestershire.

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Caterforce will celebrate its silver anniversary in 2016. The biggest talking po seemed to be reserved for the development of a new sales data system, providing suppliers with access to aggregated sales information every week from January 2016. In truth, there is much to admire about Caterforce’s understated approach. But while publicity has been kept to a bare minimum, the group has continued to evolve. Members have delivered 36.5% growth since 2013, and like-for-like sales have also increased by 26.3% (excluding kff) during this period. “In 2011, we had just six members and we were plodding along with £165 million annual turnover,” said Redford. “Two years later, turnover hit £314 million and then in 2014, kff rejoined the group. We estimated that we had £426 million in annual revenue last year. Our latest projections place this figure close to £480 million for 2015.” Looking ahead, purchasing director Gary Mullineux forecasts that annual turnover will eclipse half a million next year and reach £550 million in 2017. Although Mullineux has ruled out any new members joining the group, a £33 million investment will be set aside for new member developments over the next two years. In the meantime, the recruitment process for the national account team will start now and will be focused on “getting the best people in the industry”. Although specific accounts have yet to be identified, the first sales are expected CCM in January 2017.

[ EMPLOYMENT LAW ]

Disciplinary hearings: the right to be accompanied accompanied should be carefully considered in the context of the facts in question.

Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

he extent of an employee’s right to be accompanied at meetings during a disciplinary process was clarified in a recent case (Stevens v University of Birmingham). The High Court decided that an employer’s refusal to allow the employee’s choice of companion to attend a disciplinary investigation meeting was a breach of the implied term of mutual trust and confidence. Workers and employees have the right to be accompanied where a disciplinary meeting could result in: a a formal warning being issued (ie a warning that will be placed on the employee’s record). a the taking of some other disciplinary action (eg suspension without pay, a demotion or dismissal). a the confirmation of a warning or some other disciplinary action (eg in an appeal hearing). This statutory right does not extend to disciplinary investigation meetings because they will not themselves result in disciplinary action.

this was unreasonable and a breach of the implied term of mutual trust and confidence. Legal advisers ordinarily fall outside the scope of the statutory definition of companion but if the employee in question is disabled, it could be considered as a reasonable adjustment to allow him or her to be accompanied by the legal adviser, so any employee request to be

121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need further guidance about disciplinaries or any other HR matter, please contact Cate at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Top tips for employers Review the employment contract and the company’s disciplinary procedure to check what is said about companions (if anything).

Remind the employee of their right to be accompanied in any letter inviting them to a relevant meeting.

Who can the companion be? The companion may be a fellow worker, a trade union representative or an official employed by a trade union. Obviously, employers are free to allow an individual who is not in this category to act as a companion but they are not obliged to. However, in this recent case the courts have suggested that the employee should have been allowed to be accompanied by a person who does not fall under the statutory definition and that the employer’s refusal to allow

What is the role of the companion? The role of the companion is limited. He or she is allowed to address the disciplinary hearing to put and sum up the employee’s case, to respond on behalf of the employee to any views expressed at the meeting and to confer with the employee during the hearing. However, the companion is not allowed to answer questions on the employee’s behalf, address the hearing if the worker does not want that, or prevent the employer from explaining CCM their case.

If the employee makes a request to be accompanied by someone outside of the three statutory categories, carefully consider (taking into account all of the facts and circumstances) whether to grant the request.

If the request is to be accompanied at an investigatory meeting, consider if allowing the proposed companion

to attend would make the process overall fairer. a If the employee is disabled, consider what reasonable adjustments should be made.

If the employee is unaccompanied at a disciplinary hearing, the chair of the meeting should remind the employee at the outset of their right to be accompanied and check if they want to postpone the meeting. a

a Try to ensure that the companion can participate as fully as possible in the hearing. Remember that they are there to support and assist the companion, but not to act as an advocate.

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October 2015

[ ACHIEVERS ]

AUGUST PERFORMANCE

First round results

October 2015

POSITION

COMPANY

SCORE (max. 50)

C&C Group

39.23

Heineken

39.03

Imperial Tobacco

38.87

Diageo

38.82

AG Barr

38.80

JTI

38.73

Tunnock’s

38.64

Red Bull

38.17

Maxxium

37.25

Premier Foods

36.85

Coca-Cola Enterprises

36.44

Tata

36.41

Britvic Soft Drinks

36.38

Müller Wiseman

36.13

Whyte & Mackay

35.94

Mars

35.86

Lucozade Ribena Suntory

35.77

Tayto

35.72

Nestlé 1st Choice

35.46

KP Snacks

35.26

SHS

35.00

Kellogg’s

34.74

Pernod Ricard

34.39

United Biscuits

34.29

AB InBev

33.83

Carlsberg

33.33

PepsiCo

33.24

Bacardi Brown-Forman

32.73

Mondelez

32.67

Danone

32.00

Molson Coors

31.94

Heinz

28.49

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[ ACHIEVERS ]

Second stage scores SEPTEMBER PERFORMANCE

Deliveries inc Admin Support (max. 20 points) N/A if not direct

Wholesaler Support (max. 20 points)

Channel/Customer Support (max. 10 points)

TOTAL (max. 50)

AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Danone Diageo Heineken Heinz Imperial Tobacco JTI Kellogg’s KP Snacks Lucozade Ribena Suntory Mars Maxxium Molson Coors Mondelez Müller Wiseman Nestlé 1st Choice PepsiCo

(retail/confec)

(inc Walkers)

Pernod Ricard Premier Foods

(inc Foodservice)

Red Bull SHS Tata

(Tetley)

Tayto

(Golden Wonder)

Tunnock’s United Biscuits

(McVitie’s)

Whyte & Mackay

Contact name & company ..............................................................................................

Please email your completed form to: kirsti.sharratt@btinternet.com

[ HOT BEVERAGES ] Top 10 best selling coffee variants in convenience (MAT 16/08/15)

Tea accounts for 40% of all hot beverages consumed out of home

Nescafé Coffee

Nescafé Gold Blend Coffee

Kenco Coffee (Rich and Smooth)

Nescafé Original Instant Coffee

Douwe Egberts Coffee

Carte Noire Coffee

Nescafé Cappuccino Coffee

Nescafé Go Coffee

Taylors Coffee

Kenco Freeze Dried Coffee Top 10 best-selling tea brands in convenience (MAT 16/08/15)

Tetley Tea

PG Tips Tea

Yorkshire Tea

PG Tips Pyramid Tea

Typhoo Tea

Twinings Tea

Tetley Resealable Tea

Ahmad Tea of London

Twinings Infusions Tea

Miles Tea

Cuppa load of that! Whether at home, on the go or at a local coffee shop, a morning cuppa has been rooted in British culture for generations. But whereas traditional concepts once monopolised the category, the emergence of a café culture has since transformed consumer expectations and opened the door to a wave of trendy flavours, writes Michael Catling. he heaters are on, the overcoats are out and the sun cream is back in the cupboard. Talk of an Indian summer failed to materialise and we are once again braced for the cold mornings and dreary evenings. But as delivered wholesalers and cash & carries gear up for the Christmas rush, retailers and caterers are hurriedly stocking up on packs of tea and coffee as consumers seek a morning or afternoon brew to fight the winter chill. Terry Larkin, general manager at JJ Food Service, admits that it has become customary for coffee and tea sales to fall during the summer months, as consumers turn to fizzy drinks, water and juices to quench their thirst. ”The weather plays such a key factor in the performance of the [hot drinks] category,” says Larkin. “Fortunately, we are now about to enter one of our busiest periods in terms of volume sales.”

All data unless otherwise stated: IRI

October 2015

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Tea continues to be an everyday essential buy and remains the beverage of choice for consumption, both in and out of home. In Britain, tea remains the second most consumed drink after tap water – only Ireland drinks more per head of population (UK Tea & Infusions Association). The traditional ‘builder’s brew’ – ironically brickdust-like in colour – accounts for 77% of UK convenience sales (Nielsen), but recent evidence suggests Brits are increasingly turning to fruit or herbal concoctions. Value sales of normal black tea dropped by 6.1% in the 52 weeks to 1 August 2015, according to IRI, with total category turnover suffering a 2.5% hit and falling to £576 million. “Standard black tea is struggling to maintain consumers’ interest amid growing competition from other drinks – held back by a rather uninspiring image,” says Emma Clifford, senior food and drink analyst at Mintel.

Grow sales with the No.1 Premium Brand,* supported by a new ÂŁ7m media campaign.

[ HOT BEVERAGES ] Unilever Partners for Growth How to maximise your tea sales...

All data unless otherwise stated: Nielsen

“Tea is bought by 88% of households and is a key distress and top-up item in convenience stores. It is imperative that wholesalers ensure they are stocking the leading brands and provide sufficient space to avoid out of stocks. Tea shoppers are generally brand-loyal and would rather choose a larger pack of their favourite brand than switch to an alternative. “Tea tastes have also evolved in recent years, with many people introducing fruit & herbal, specialty or green tea into their repertoire. Space permitting, cash & carries should cater for these sub categories and allow for regional differences when putting their range together. London and Southern England over-trades in the smaller tea sectors of fruit & herbal, green and specialty. Northern regions have the strongest share in normal tea, although fruit & herbal, green and speciality teas are also growing in those areas.” Nick Widdowson, range & merchandising manager

“This has translated into the downfall of the tea category overall. People are now branching away from standard teabags towards more interesting alternatives.” Between 2012 and 2014, sales of fruit & herbal teabags rocketed by 31% from £58 million to £76 million. Likewise, green tea bags also experienced a hike in popularity, with revenue rising by a whopping 50% to £36 million (Mintel). Tata Global Beverages has two of the top five best-selling SKUs in the green tea market (Tetley Pure Green Tea and Tetley Green Tea Lemon), while Tetley Decaf is ranked as the most popular decaf line in convenience. Prompted by the popularity of its decaf tea out of home, Tata has recently added packs of 440s specifically for caterers. Tata advises wholesalers to stock between seven and eight different blends to take full advantage of the doubledigit growth in the decaf, green and fruit & herbal segments. These should be supplemented by takeaway options, such as Tetley On The Go, and Tata’s new collection of enveloped Tetley teas. Launching in November, the 10-strong enveloped range is exclusive to foodservice operators and comprises an assortment of top-selling natural blends and new and improved fruit & herbal and green variants. The new flavours include Raspberry & Pomegranate, Lemon & Ginger, Mint Fusion and Green Mango. Existing 24

October 2015

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In the green and decaf sectors, volume sales have risen by 21% and 11.4% respectively in the convenience channel.

favourites, such as Camomile, English Breakfast and awardwinning Decaffeinated and Pure Green Tea blends, also feature alongside the new additions. The premium range comes in cases of 6 x 25 individuallywrapped tea bags, with formats including mixed variety and single blend pallets. The launch will be supported by an extensive promotional campaign, including sampling, PR and advertising activity across trade media titles and digital platforms. Earlier this year, the company released Tetley Super Green Teas into the retail multiples channel – the first functional green teas in the UK with proven health benefits. The range, which is now entering the wholesale environment at an rsp of £1.59, has one of the highest repeat purchase rates of any NPD and is supported by European Food Standards Agency approved health claims. Available in packs of 20, Tetley Super Green Tea Immune contains vitamin C and comes in two flavours: Tropical and Lemon & Honey. A Super Green Tea Boost variant is also obtainable in two blends – Berry Burst and Lime flavours – and includes vitamin B6. “Consumer tastes in tea are changing and smaller niche sectors of the market are worth exploring for sale to retail and foodservice customers,” suggests Brett Grimshaw, business sector controller for Tata. “Wholesalers need to find ways to encourage customers to linger for longer in the tea aisle to explore the smaller segments in tea that are delivering growth in the market. “This can be done through shopper engagement in depot and at fixture, as well as value-added promotions such as offering free PoS to the retailer.”

[ HOT BEVERAGES ] Merchandising advice – top tips a

Stat attack: More than three quarters (76%) of Brits drank standard tea in the month to April 2015 (Mintel).

All data unless otherwise stated: Explorer Research

Bucking the trend Despite the year-on-year decline of black tea sales, Yorkshire Tea continues to outperform the total market and is currently up by 5.3% in volume terms year on year. Taylors of Harrogate attributes the brand’s success to a combination of offering the right pack formats, a mix of price marks and extra fills for promotion, and investment in the overall category. John Sutcliffe, channel controller – out of home & convenience at Taylors, comments: “The category as a whole benefits from strategic promotions and price-marked packs. We have seen more retailers adopting a price-mark strategy across more categories and especially within hot beverages in the past few years. “As there are normally three sale points prior to the consumer picking it up, we need to ensure the promotion is compelling commercially to both the wholesaler and retailer/end user. “We have standard and price-mark packs available across our core range of Yorkshire Tea 40s and 80s, as well as other blends including Decaf and Yorkshire Gold. We leave the choice up to the wholesaler and retailer, and we work in collaboration to ensure that they can make the necessary margins they need to thrive in this challenging market.” From a merchandising perspective, Taylors of Harrogate wants more wholesalers to engage with its sales force and to use its category management website (brewview.co.uk) to help deliver improved service quality. “We recently used Brewview to merchandise a retailer’s fixture and they achieved sales growth of 11% following the switch,” reports Sutcliffe. “It’s important that wholesalers work with suppliers to broaden their category understanding and to start educating the retailer and consumer.” To help maintain interest and shopper loyalty, Sutcliffe urges every depot manager to make sure the category is 26

October 2015

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Ensure that growing sectors are well represented within your range, and use tasting notes to encourage trial. Focus on top sellers, with brands consumers know and trust, and offer a mix of pack sizes to suit foodservice and retail customers. Use PoS to promote associated categories such as sugar and milk. Consider holding staff tasting sessions when you introduce new lines, so they can talk with confidence about the different types of tea and coffee available. Don’t let lack of space be an excuse. A wide range of tastes can be catered for in two or three shelves.

kept up to date by changing promotions regularly and introducing new products. He continues: “If some retailers only purchase on promotion, then make sure that the promotions are staggered and changed every two to three weeks. Too many products on promotion can confuse the shopper and create a value decline in the category.” Yorkshire Tea will benefit from a £3.2 million above-theline investment over the next 18 months, as well as increased wholesaler engagement through cash & carry sampling. The ‘Brewtopia’ advert is now back on TV screens and Sutcliffe believes that wholesalers and their customers should focus on the brands that are investing in the category with above-the-line activity. He adds: “Packs of 40 and 80 are the right sizes to focus on as shelf space is at a premium in convenience stores. For catering, a one-cup offer in envelopes and bulk polybags are two of the key pack formats. “Although you need to mindful about the growth potential of decaf, fruit and herbal and green teas, it is important to focus on the best performing retail and catering products. “The UK tea market is primarily in black tea and this should be reflected by stocking best sellers, such as Yorkshire Tea, PG and Tetley.” To compete with Yorkshire Tea’s promotional push, Tetley is currently undergoing a complete brand refresh. The new pack designs will roll out, in phases, across all shopper channels and will help to remove any existing ambiguities by clearly segmenting types of tea into different product families, as well as detailing how many bags are in a pack. “We know that shoppers spend less time at the tea fixture than for any other packaged grocery goods,” explains Grimshaw. “Forty seven per cent spend less than 30 seconds and are unaware of the tea sectors beyond everyday black. Our new packs have been shown to cut product search and selection times by around 25%.” The new look forms part of a complete programme to revitalise and modernise the brand. TV, print and poster advertising, product sampling and instore support will be rolling out at the end of the year.

[ HOT BEVERAGES ]

Stat attack: Nescafé is the leading brand in the instant coffee market, with its Original and Gold brands accounting for 35% of total sales in the segment (Mintel).

All data unless otherwise stated: Nielsen

Steaming success Although sales of tea continue to outstrip coffee, the booming café culture in Britain suggests times may be changing. Allegra predicts that the total UK coffee shop market will exceed 27,000 outlets and £16.5 billion turnover by 2020. “The UK coffee shop industry is showing consistent strong growth in both sales and outlets,” says Jeffrey Young, managing director at Allegra. “Britain is fast becoming a nation of coffee connoisseurs. The UK consumer increasingly appreciates a quality cup of coffee, and operators must continue to deliver innovation and fantastic quality.” JJ Food Service has the luxury of being the nominated foodservice supplier to distribute Lavazza coffee – an agreement which Terry Larkin lauds as a “unique point of difference”. With 36% of consumers regularly eating and drinking on the go in convenience stores (him!), Nestlé Professional believes that busy lifestyles are driving a convenience revolution. Lynn Little, category business unit lead for standard ingredients at Nestlé Professional, comments: “With work, socialising, children and hobbies taking priority, we now expect our favourite drink anywhere, anytime, and takeaway has become routine.” To help cash & carry customers improve their quality of offer, Nestlé has recently upgraded its Nescafé &Go machine, providing retailers and operators with an opportunity to potentially generate up to £6,336 in annual turnover. The countertop units, which are currently in operation in an estimated 10,000 UK stores, offer consumers a choice of up to 11 drinks, including Nescafé Gold Blend, Nescafé Cappuccino, Aero Hot Chocolate and Tetley tea. Recent developments suggest suppliers are now actively investing in new solutions to help caterers differentiate their offer from the bigger coffee shop chains. Grace Keenan, brand manager for DaVinci Gourmet, claims that flavouring syrups are driving growth in the hot beverage category, as a result of consumers “developing increasingly explorative tastes”. 28

October 2015

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“Consumers are no longer satisfied with the generic black or milky coffee, and this has created the opportunity for wholesalers to profit from speciality hot beverage lines,” says Keenan. “By stocking on-trend flavours, such as vanilla, caramel, hazelnut and gingerbread syrups, wholesalers can help caterers create seasonal and limited-time offers to boost profits and bring in the crowds.” At the same time, consumers are looking to replicate outof-home experiences and now expect products at home that are both easy to make and of similar quality to those of their favourite coffee chain. Taylors of Harrogate expects roast and ground coffee to feature regularly on the shopper’s agenda, and Sutcliffe has revealed that new Taylors pack concepts will be trialled later this year. “For consumers with a high frequency of visits to coffee shops, switching back to standard instant coffee in the home may not be appealing,” says Douglas Faughnan, senior food and drink analyst at Mintel. In 2014, 30% of people said that they drank instant coffee more than once a day. This figure has dropped to 21% in the past 12 months (Mintel). Instead, higher quality formats such as wholebean instant are experiencing double-digit growth (18%). “This premiumisation trend is something that wholesalers should look to take advantage of by stocking innovative wholebean instant formats such as Kenco Millicano,” says Martin Andreasen, marketing director for retail at Jacobs Douwe Egberts. Ranked as the number one wholebean instant brand, Kenco Millicano is currently valued at £30 million (Nielsen) and has a 39% share of the category (Kantar). “The premiumisation trend doesn’t necessarily mean that consumers are turning away from their firm favourites; many still continue to choose brands they know and trust for that little bit of everyday indulgence,” notes Andreasen. “Wholesalers can ensure they are unlocking the potential in this highly lucrative segment by stocking freeze-dried ranges such as Kenco Premium and Douwe Egberts Pure.” The Kenco Premium range, consisting of Kenco Decaf, Rich and Smooth, is available in 100g and 200g jars and has recently undergone a packaging update, featuring 7% less glass. The latter two variants fall within the top 10 instant coffee CCM SKUs and are worth £5.4 million in impulse.

For further information: DaVinci Gourmet (01784) 430777 Jacobs Douwe Egberts (0800) 470 8031 Nestlé Professional (0800) 745845 Tata Global Beverages 020-8338 4000 Taylors of Harrogate (01423) 814000 Unilever Partners for Growth (0800) 731 1597

[ BISCUITS ]

Crunch time for wholesalers Although biscuits were once classified as a sweet treat, manufacturers have been riding on the coattails of the healthy-eating revolution, expanding their portfolios with savoury and ‘better for you’ alternatives. But with so many variations to choose from, coupled with the average retail store only stocking 32 biscuit SKUs, optimising the range in depot has perhaps never been tougher. Michael Catling reports. s a nation we love biscuits, illustrated by the fact that an estimated 99% of UK households buy biscuits at least once a year. The popularity of the Great British Bake Off has also heightened Britain’s love affair with sweet and savoury snacks, so much so that consumers are now exhibiting greater adventure and hunting for tastier treats to excite their family. “Biscuits are an integral part of a convenience store,” says Kay Patel at Best One, Stratford. “The biscuit fixture is placed at the front of our store because biscuits appeal to all demographics and walks of life. We now have multiple sites for offers which help to generate additional purchases and impulse buys.” The total biscuits market is valued at £2.32 billion in the UK, according to Nielsen, making it one of the largest and most significant snacking categories. “Biscuits are more than just tasty treats or quick fixes on the go; they represent a huge growth opportunity, particularly in the context of current consumer trends,” claims Hena Chandarana, trade communications controller at United Biscuits (UB).

All data unless otherwise stated: UB estimates

October 2015

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“The fact that they are largely baked, as opposed to fried, gives them a unique advantage over other snacking products, namely confectionery and crisps.” Although the sugar debate replaced saturated fats as the primary health concern in the media last year, sweet-toothed Brits spent a whopping £4.4 billion on take-home biscuits and cakes in 2014 (Kantar). Key Note forecasts that the market will grow by 9.3% over the next four years. Much of this growth, however, is expected to come from savoury and healthier alternatives, as more consumers and parents become mindful about reducing their sugar intake. With this in mind, Mondelez International recently pioneered the launch of Ritz Crisp & Thin – a four-strong range of baked potato snacks. Backed by a £10 million brand campaign this year, Ritz Crisp & Thin comes in sharing and single bags to meet both entertaining and on-the-go occasions. “Snacks and treats don’t have to be sweet, and Ritz can be a great alternative to crisps,” notes Susan Nash, trade communications manager at Mondelez.

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[ BISCUITS ] What the retailer thinks...

“It’s a growing brand that customers love, and wholesalers should make the most of Ritz, the world’s number one savoury biscuit, by including it as part of their biscuit offering.” David Costello, head of customer category management at Burton’s Biscuit Company, believes there is clear evidence that shoppers in the independent retail channel are actively seeking the brands they know and trust. He comments: “Retailers are looking to cash & carries to help them focus on shopper missions, as they try and give more shelf space to the treatier and savoury biscuits that are driving growth.” Burton’s Fish ’n’ Chips and Cathedral City Baked Bites have been instrumental in driving rate of sale (RoS) within savoury snacks – an area which has “traditional underperformed within impulse”, according to Costello. This is reflected by the fact that Burton’s is driving 42% of the total growth in this segment. The company has since added to the success of Fish ‘n’ Chips by introducing two fish & chip shop favourites – Curry Sauce and Pickled Onion. “We strongly advise our cash & carry/wholesale partners to ensure that they do not miss out on the savoury biscuits opportunity,” says Costello. “It’s a big area of growth, proving exceptionally successful in convenience, and will complement sweet biscuit sales with shoppers.” Although the savoury side is currently growing at the fastest rate in the biscuits category [+4.6%], the sweet segment accounts for the lion’s share of the market and is worth almost £1.4 billion. Mondelez maintains that the impulsive nature of the category makes both sub-categories highly relevant for the convenience trade.

All data unless otherwise stated: Nielsen

Top 10 biscuits in impulse (RoS – last 12 weeks) 1

McVitie’s Chocolate Digestives Milk 300g

KitKat Milk (eight-pack)

Burton’s Fish ‘n’ Chips Salt & Vinegar 40g

McVitie’s Jaffa Cakes 150g

McVitie’s Chocolate Hobnobs Milk 250g

Maryland Choc Chip Cookies 145g

Cadbury Fingers Milk 114g

Fox’s Chunkie Extremely Chocolatey 175g

Oreo Vanilla 154g

McVitie’s Digestives 400g

October 2015

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“I think that cash & carries generally merchandise biscuit fixtures correctly. However, this is usually due to account managers spending time with the depot managers and staff. One recurring problem is that many cash & carries stock a very large range, which is often confusing and difficult to navigate for the retailer. “Collectively, we want to see what the best sellers are so that we can make an informed choice. Perhaps a ‘Top of the Pops’ initiative could be introduced on the most popular biscuit lines to clearly highlight the ‘must-stock’ SKUs in the convenience channel. “From a delivered perspective, I think one of the biggest issues is that the staff do not rotate the stock often enough so customers end up with short-dated or damaged products. Availability is crucial and if the products aren’t up to standard, loyalty will go out of the window.” Ralph Patel, president at the National Federation of Retail Newsagents

As a result, wholesalers are advised to make sure they capitalise on the versatility of biscuits, particularly those that fall under the top-up and on-the-go missions. Nash explains: “The trend towards shopping little and often means that consumers are increasingly using convenience stores to top up on traditional grocery items (him!). “On the go also continues to be a strong trend for shoppers in the convenience sector, as consumers grab snacks to keep them going during a busy day.” Last summer, Mondelez introduced 30g packs of Barny into the convenience channel for the first time. Since then, the brand has grown by 33.6% (Nielsen) and was ranked in the top 5% of all new biscuit launches between 2011 and 2014 (him!). More recently, Mondelez released belVita Breakfast Crunchy Hazelnut in single-serve 50g portion packs, following its success as a multipack. “These smaller packs are ideal for consumption on the move, providing a more enticing offer for small store shoppers and a good solution for retailers with limited space,” adds Nash. “By stocking on-the-go formats, wholesalers can help retailers to facilitate that impulsive snacking purchase which is key to driving revenue.” Mondelez may be responsible for 70% of the total biscuit growth, but Burton’s has been increasingly active in driving the agenda for biscuits in on-the-go snacking. Last year, the company introduced a range of multipack and single-serve snack bags. Available in standard

PRIC£ marked

PACKS BOOST your

SALES • PMPs are worth £22m in Convenience & Impulse1 • PMPs growing at 23%2

Stock up now!

Sources: 1.Litmus, 52 w/e 23/03/14 2. Year-on-year. © All Cadbury trademarks and copyright are owned by Mondelez International Group and used under licence

[ BISCUITS ] (rsp 45p) and 39p price-marked formats, the range includes a 30g Maryland Gooeys twin snack pack and a 40g bag of bite size Maryland Choc Chip Cookies. “As permissibility and portion control remain high on the shopper agenda, this represents a great opportunity for the biscuit category,” claims Costello. “Sweet biscuits are already the number one choice for snacking in the home, but people have a very limited offer of traditional biscuits when they’re on the move, so we’ve enabled retailers to plug a huge gap in the market with our single-serve range.” General Mills UK is also aiming to capitalise on the foodto-go trend by investing in a national field sales team to drive distribution of Nature Valley snacking bars. Starting now, the team will be stopping off at thousands of independent retailers nationwide, offering tailored merchandising, PoS support, category advice and key insights on the latest shopper trends. During each visit, stores will be able to take advantage of special promotional deals, including the new Nature Valley ‘30 for 25’ mixed singles case. Developed exclusively for the convenience channel, the mixed case is available in both standard and 59p pricemarked packs and includes a selection of Canadian Maple Syrup, Oats & Honey and Oats & Chocolate varieties. The initiative is similar to a strategy employed by Bahlsen earlier this year, whereby retailers were issued with PoS displays to help drive product trial and visibility of Pick Me Up! This, coupled with a TV campaign in February, has been instrumental in strengthening the brand’s household penetration, which reached 4.4% in August (Kantar). Bahlsen expects this growth to continue into 2016, following an agreement to sponsor Sky 1 TV shows Mount Pleasant, Trollied, After Hours and Stella. The partnership with Comedy on Sky 1, which is forecasted to reach eight million individuals and 1.4 million housewives with children, is part of a £4 million marketing investment for Pick Me Up!, which also includes social, PR and experiential activity. When it comes to big-money investments, however, United Biscuits immediately springs to mind. The company relaunched two of its core brands – McVitie’s and Jacob’s – as part of a £22 million masterbrand strategy last year.

Wholesalers should make the most of manufacturers’ promotions and media investment by stocking and prominently displaying products when activity is running.

The outlay was used on brand awareness campaigns to bring all savoury biscuits and baked snacks (excluding Carr’s) under the single banner of Jacob’s, and sweet products (excluding go ahead!) under the McVitie’s megabrand. This year, much of the company’s focus has been on working with its retail and wholesale partners to create simpler, better segmented fixtures. As part of its ‘Better Biscuits, Better Business’ initiative, UB has identified a £188 million opportunity for biscuits in the convenience and impulse channel. Speaking at the IGD Conference earlier this month, UB impulse director Phil Nicolle told guests that wholesalers need “to focus on getting the basics right” by “optimising the current range of 582 SKUs in the independent market to those with the best cash rate of sale”. He added: “A wall of biscuits does not help the decision making for the retailer. Instead, it actually poses challenges [for wholesalers] in stock management, wastage and promotional execution. “Last year, we developed a depot tour activation programme, which provides a great way to execute above-theline initiatives, rack-end displays and incremental fixtures at the front of depot. Not only that, it’s an ideal platform to communicate and engage with retailers around the core range and the products they should be listing.” As a result, Nicolle urges wholesalers to make use of these promotional opportunities and to work more closely with suppliers and retailers to optimise the fixture and unlock CCM new usage occasions.

For further information: Bahlsen (01923) 728500 Burton’s Biscuit Company (01727) 899700 General Mills UK (01895) 201100 Mondelez International (08702) 400861 United Biscuits 020-234 5000

October 2015

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aww,

take a look at the

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we have wonâ&#x20AC;Ś

www.betterbiscuits.com Tips, tools and advice from UB betterbiscuits@unitedbiscuits.com 020 8234 5010

[ OTC REMEDIES ]

A chance not to be sniffed at Over-the-counter remedies offer wholesalers and their customers a significant opportunity as consumers increasingly choose to buy them at their local store. he cold and flu category was worth £142.5 million in the year to 20 June 2015, and sales across the winter medicines categories were up by 19% year on year. More and more people are self-medicating for cold and flu but there is still huge potential for C&C/wholesalers and their customers, as 48% of the population are still turning to their GPs for advice and symptom relief, according to the Proprietary Association of Great Britain (PAGB) and Pharmacy Voice. Government advice is focused on self-treatment, and this is backed up by a campaign by the PAGB. Independent retailers – as well as pharmacies – therefore have an opportunity to secure a significant increase in sales across the winter remedies category, points out Craig Shaw, category marketing director at Reckitt Benckiser (RB). When buying winter medicines, 66% of shoppers look for brand names, followed by 46% who look at price and 41% who look for format (TNS). “Trusted brands mean sales and RB has the brands that consumers look for across cold, flu and cough – Lemsip, Nurofen and Strepsils,” says Shaw. “We will be launching our biggest ever consumer marketing campaign, with all our cold and flu brands on TV throughout the season.” RB’s advice to C&C/wholesalers’ retail customers is to stock these five OTC cold and flu/winter remedy items when space is at a premium: a Lemsip Max All in One Cold & Flu. Available as both a hot drink – in Lemon and Wild Berry & Hot Orange variants – and cold and flu capsules, Lemsip’s best-ever range has recently been relaunched with a new premium look to increase shelf standout. RB is supporting the relaunch across TV and digital platforms, as well as in store. a Nurofen Cold & Flu Relief (16s) tablets, which target aches and pains, helping to relieve fever and congestion. a Lemsip Cough range, which provide effective relief for every type of cough. The 2014/15 season saw more consumers treating their coughs, and this area saw the biggest increase in penetration. a Strepsils Extra Triple Action Blackcurrant lozenges. These relieve pain, fight infection and soothe sore throats. Medicated sore throat lozenges are the key value driver in the sore throat remedy category, with the Strepsils Extra range growing by over 17% last season. a Nurofen for Children Cold, Pain and Fever, Strawberry Flavour. This relieves fever for up to eight hours.

All data unless otherwise stated: Nielsen

October 2015

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One of two new Nurofen products to treat sinus pain and congestion, backed by a £4 million promotional campaign.

A new addition to RB’s portfolio is the Nurofen Sinus range, comprising Nurofen Sinus & Blocked Nose and Nurofen Sinus Pain Relief. Both come in packs of 16 tablets with an rsp of £5.49. The Nurofen Sinus range features the only ibuprofenbased General Sale List (GSL) products available for sinus pain and congestion. The two new lines are being supported by a £4 million promotional campaign until January 2016. Another innovation from RB is bonjela Invisible Cold Sore Cream (rsp £5.99). Unlike other cold sore creams that dry white and crusty and draw attention to the lips, the new bonjela product turns invisible upon application.

Convenience channel opportunity With a total value of £26.8 million in the independents & symbols channel, medicated confectionery provides a great opportunity for convenience retailers, insists Mondelez International. Halls is available in a range of flavours and variants: Extra Strong, Blackcurrant and Sugar-Free Original, Cherry and Assorted Citrus, as well as Soothers Blackcurrant, Cherry, Peach & Raspberry, and Strawberry. Mondelez’ portfolio also includes Bassetts Vitamins, which were relaunched in August. They are now segmented by age – six to 36 months, three to six years, seven to 11 years, 12-18 years and adults – and feature natural flavours and colours, with no added sugar. The company also introduced a Bassetts Vitamins liquid multivitamin in Strawberry flavour for infants from six to 36 months. “Following consumer testing, Bassetts Vitamins found that one of the biggest barriers to purchase is simple confusion at fixture,” explains trade communications manager

BR FL NE AND AV W OU R

LOOK WHAT OUR TRAWLER’S LANDED FOR YOU THIS WINTER

NEW HONEY AND LEMON FLAVOUR • Honey & Lemon ﬂavour accounts for 18.2% of all medicated confectionery sales in the U.K* • Honey & Lemon is the most popular fruit ﬂavour with a 34.1% share* • Total brand sales soaring in Convenience – up +10% in value** • Biggest-ever marketing campaign, including TV sponsorship, digital, social media and PR

GET ON BOARD & STOCK UP NOW WWW.FISHERMANSFRIEND.CO.UK U.K. Distributor – Ceuta Healthcare: 0844 243 6661 *Nielsen, December 2014 **Ceuta Healthcare Ltd, in market sales data

[ OTC REMEDIES ] Susan Nash. “We are addressing this by unifying the brand on shelf and providing clearer age signposts, all while using a fun layout to help mum select the right product more easily and setting the brand’s well-loved Jelly character as our proud emblem.” A Honey & Lemon variant of Fisherman’s Friend, from Lofthouse of Fleetwood, has just been launched into the wholesale and convenience channel. Introduced exclusively into the pharmacy sector last September, Honey & Lemon is now the brand’s second topselling fruit flavour in the UK.

“Research has shown that flavour is a key purchase driver for our consumers, so the success of Honey & Lemon in pharmacy comes as no surprise,” says Martin Stimson, area business manager for Fisherman’s Friend in the UK. “Honey & Lemon flavours now account for 18.2% of all UK medicated confectionery sales, standing out as the most popular fruit flavour with a 34.1% market share (Let’s Talk Fresh consumer research).”

All data unless otherwise stated: Nielsen

Strong performance Sales of Fisherman’s Friend are up 10% year on year, according to Ceuta Healthcare, which distributes the brand. Original Extra Strong is still the most popular variant in the UK, with value sales rising by 4% year on year. This is followed by Blackcurrant, Honey & Lemon, Aniseed and Cherry. “The cash & carry channel is absolutely crucial for growing sales of medicated confectionery,” says Stimson. “Our ongoing success demonstrates that medicated sweets can be a key sales driver for convenience and impulse retailers if they make sure they have a well-stocked selection.” The impulse sector accounts for almost half of Fisherman’s Friends total sales, Stimson reports. “With the over-the-counter medicines market now worth £179 million in impulse – growing at 11% year on year – it’s more crucial than ever for retailers to focus on those brands which are driving footfall, and for wholesalers to capitalise on this opportunity by stocking the right options for their customers,” he says. “Wholesalers should advise retailers to merchandise these products in a prime position to maximise exposure and sales. Front of counter naturally allows for greater visibility, but self-selection is also a key purchasing driver.” Fisherman’s Friend is aiming to make its brand even more compelling to wholesalers and their customers this winter with a ‘24 for 22’ promotion on wholesale packs of its 38

October 2015

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Original Extra Strong, Cherry and Aniseed variants, and a ‘24 for 20’ (20% off) offer on Blackcurrant and Honey & Lemon. Fisherman’s Friends’ visibility will be bolstered with a new round of TV sponsorship on the Discovery Network. Running until March 2016, the £300,000 initiative will feature on-air idents and digital advertising, reinforced by an integrated marketing campaign including PR, social media and sampling of the Honey & Lemon variant. Fisherman’s Friend has an rsp of 79p for a 25g packet, £2.19 for a 3 x 25g multi-carton, and £1.45 for a 45g box. Also available from Ceuta in the medicated confectionery category is Jakemans. The brand has been extended with two new stick-pack variants – Throat & Chest and Honey & Lemon – in convenient 10-count outers. Jakemans is being backed by targeted TV, PR and sampling activity. The festive season is the peak time for over-indulgence, and indigestion remedies form the fifth largest category of all medicines within the convenience channel. Tablets make up the vast majority of sales, and four out of the top five selling SKUs in convenience outlets are Rennie branded. Peppermint is the leading variant, while Orange is the number one flavoured indigestion tablet. Meanwhile, Alka Seltzer remains the top-selling brand within the upset stomach category. SHS Sales & Marketing, which sells and distributes Johnson & Johnson products in the wholesale and convenience channel, reports that cough medicine generates over £5.5 million in annual sales in the impulse sector and is growing by 13%, driven by leading brands like Benylin (ACN). With a 42% share of category sales and growing at 21%, Benylin comes in a variety of formats. To increase awareness, it will feature in a TV campaign between November and January supported by digital activity. This represents an investment of more than £2.5 million. Sudafed will also be boosted by a £2.5 million advertising campaign. Decongestants have seen a 17% sales rise to deliver over £2.7 million in sales to the channel (ACN). Although three-quarters of all allergy products are sold during the key spring/hayfever season, it is out-of-season sales that are driving sector growth (+9.5%, ACN). Almost one in five people suffer from household allergies such as pets, mites and dust, and Benadryl will be backed by poster and press advertising during the winter to explain how to CCM treat symptoms with a household cause.

For further information: Ceuta Healthcare (0844) 2436661 Mondelez International (08702) 400861 Reckitt Benckiser (01753) 217800 SHS Sales & Marketing (01452) 378500

[ CONFECTIONERY ]

Attracting impulsive shoppers NPD and big brand promotions continue to energise the confectionery market. he total confectionery market is worth over £4.8 billion. Chocolate accounts for 72% of confectionery sales, and chocolate sharing bags have seen growth of 11.9% year on year (AYR). Furthermore, evening snacking has become a huge growth area in recent years, with in-home chocolate occasions increasing by 20% since 2009 (Kantar). Bep Dhaliwal, trade communications manager at Mars Chocolate UK, says: “Sharing favourites like the M&M’s pouch have seen massive success. M&M’s is the fastest growing brand in the top 20 of confectionery brands at +26%, and this growth is expected to continue.” Throughout 2015, a media investment of £8 million has been driving support for M&M’s, while Galaxy has been backed by a £12 million package. With 35 weeks on TV, it is the most advertised chocolate brand in the UK. Galaxy has also benefited from NPD: Galaxy Salted Caramel and Galaxy Duet are permanent additions to the range. Other innovations this year from Mars have included Snickers & Hazelnut bar. Dhaliwal says: “The combination of a best-selling bar brand and NPD, which is the biggest driver of category growth, provided a great formula for what has become a popular new product.”

Mars’ advice for wholesalers 1. One in four retailers buy on impulse at the depot (him!), with promotions a key factor in encouraging retailers to make an impulse purchase. The number one frustration for retailers at the depot is poor availability (him!) so it’s key to ensure that all popular lines are prominently displayed and fully stocked.

All data unless otherwise stated: Nielsen

2. Wholesalers should place popular lines at both ends of the fixture to drive retailers down the aisle and use seasonal PoS to create theatre. A total of 60% of retailers have a set routine when they shop for confectionery in depot (him!), and implementing disruptive displays off shelves will draw their interest. It is also important to allocate space according to sales to help reduce stockholding on slower selling lines. 3. When putting together displays, wholesalers should make it easier for retailers to shop by placing similar products and brands together – helping them envision how they might build their fixture in store. 4. Promotional tools, such as price-marked packs (PMP), are a key route to driving sales. A total of 23% of retailers’ confectionery purchases are in PMPs (him!) and PMPs account for 60% of large sharing block sales in independent stores (IRI), so availability is crucial.

Snickers, Mars bar and Maltesers have all benefited from multi-million-pound support packages, including advertising and on-pack promotions. For example, Maltesers is currently leading the ‘Sweet Sundays’ cinema giveaway. Mondelez International is also investing heavily in its portfolio, and now claims a 35.5% value share of the chocolate market and 20.3% of the candy confectionery sector. Trade communications manager Susan Nash comments: “NPD has been vital in energising the chocolate category and recruiting new shoppers. Cadbury Dairy Milk has constantly delivered innovation to drive category growth, including Marvellous Creations and Oreo, which were incremental at 72% and 67% at launch respectively. Cadbury Dairy Milk Puddles is set to bring further growth this year, with 62% of consumers revealing that this would be an incremental purchase in testing.” Candy bags contribute considerable value to the confectionery category at £572.6 million, and Mondelez’ candy bags are worth almost £108 million. New to the range this year was Bassetts Jelly Babies Berry Mix. More recently, the company launched Trebor Softmints Lemon Mint (rsp 51p) in outers of 40 rolls. This addition features a contemporary new pack design that was implemented across the Softmints range last month. Mondelez has produced PoS units to support the launch of Softmints Lemon Mint, and is continuing to invest in TV marketing for the Trebor brand.

www.cashandcarrymanagement.co.uk

October 2015

All data unless otherwise stated: Nielsen

[ CONFECTIONERY] Family company Walker’s Nonsuch has been specialising in making toffee for over 100 years. It has always used fine ingredients like whole milk and butter, as well as Belgian chocolate in its éclairs, and its products contain no artificial colours, preservatives or hydrogenated vegetable oils. The range features 10 varieties of toffees and chocolate éclairs for pick & mix, as well as traditional toffee 100g bars in seven varieties, including consumer favourites Original Creamy and Brazil Nut. The bars come in a traditional tin toffee tray, which offers a point of difference for the retailer. A new clear tray keeps each bar in shape and easy to break. Smaller Dreamy Creamy 50g bars are also available. Walker’s Nonsuch also offers 150g bags in eight varieties, including Banana Split Éclairs and new Mint Toffees, for convenience shoppers. The bags come in shelf-ready boxes making them easy to display. Perfetti van Melle has unveiled a Chupa Chups Star Wars range to link with the film Star Wars VII: The Force Awakens, which is released in December. Available now are limitededition Chupa Chups Star Wars sharing bags, as well as drinking cups in three designs, each containing 10 lollipops. November will see the launch of a ‘Who Says No To Mentos’ campaign, which includes national TV advertising and an outdoor campaign in the Midlands. Meanwhile, Smint has unveiled a new variety as part of its partnership with Breast Cancer Care. Smint Strawberry Mix (rsp £1.15) is now the brand’s signature charity product, with a 5p donation being made from the sale of each pack. Nestlé Confectionery has launched a price promotion exclusively for the wholesale and convenience channel. The company is offering Yorkie Milk, Yorkie Raisin & Biscuit, Toffee Crisp, Rolo and Drifter impulse lines at ‘two for £1’ in price-marked packs. Unpriced packs are also available.

October 2015

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Children’s sugar confectionery sales are 23% higher over Christmas versus the year-round average. Last year, Swizzels was the fastest growing manufacturer, with value sales growing by 14% year on year. The top performing sugar confectionery tin was the Swizzels Sweet Shop Favourites which, along with the Sweet Shop Favourites gift box, is filled with a selection of the company’s most popular sweets such as Drumstick Lollies, Love Hearts, Refreshers Chews, Double Lollies and Fruity Pops. New for this Christmas is the Sweet Treats tub. It joins Sweet Extravaganza, an extra-long tube available in a shelfready box or a freestanding display unit, and Drumstick, Love Hearts, New Refreshers and Parma Violets festive gift tubes. Storck UK has introduced a new pack design for Werther’s Original. Bolder variant names and colour coding are designed to help consumers navigate the range, which includes Butter Candies, Creamy Filling, Creamy Toffees, Eclairs and Butter Mints, as well as the Sugar Free range. Just in time for Christmas, Haribo Dunhills has launched a Haribo Duo tub, which includes Starmix and Tangfastics in separate compartments. Double branded and brightly CCM coloured, the resealable tub has an rsp of £5.

For further information: Haribo Dunhills (01977) 600266 Mars Chocolate UK (01844) 262517 Mondelez International (08702) 400861 Nestlé Confectionery 020-8636 3333 Perfetti van Melle (01753) 442100 Storck UK (01932) 372000 Swizzels (01663) 744144 Walker’s Nonsuch (01782) 321525

All data unless otherwise stated: IRI

[ PRODUCTS & PROMOTIONS ]

Snack saving

Top value

Flexible solution

Dairy Crest has expanded its Cathedral City Selections Mini Bag portfolio by introducing a £1 PMP. Created specifically for the convenience channel, the new addition sits alongside the standard Mini Bag pack, which was launched in June. The Cathedral City Selections Mini Bag contains five individually-wrapped 12g pieces of the nation’s favourite branded cheddar, including Mature, Extra Mature and Vintage variants. Growing by 9.7% in volume terms, Cathedral City adult snacks continue to outperform the market. The Selections range was up 10% in household penetration in the 52 weeks to August (Kantar). a Dairy Crest (01372) 472200

Tampax, the UK’s leading tampon brand (IRI) from Proctor & Gamble, is now available in price-marked Compak Regular, Super and SuperPlus packs of 20. A £2.99 price point will be publicised via a nationwide marketing campaign, which will also raise awareness about the product’s smooth plastic applicator. Christina Turner, Tampax brand manager at P&G, says: “We know that compared to shoppers who buy cardboard applicator tampons, the average Compak shopper spends more per trip when visiting her local convenience store. This presents a real opportunity to grow sales by encouraging repeat purchases through PMPs.” a Proctor & Gamble (01932) 896000

Dairygold Food Ingredients (DFI) UK has launched its popular mozzarella in a stick format to help offer chefs greater flexibility. The 2.25kg sticks of mozzarella are suitable for multiple usage occasions, enabling foodservice operators to dice, slice or grate the product to suit their own specifications. “DFI prides itself on creating innovative solutions to help foodservice operators deliver high quality and costeffective dishes,” says Svitlana Binns, customer relationship manager. “The packs are also compact and stackable, making them ideal where refrigeration space is limited.” a DFI (01270) 589136

Nostalgic touch

Double promotion

New artwork

Imperial Tobacco has unveiled a “dazzling” packaging redesign for Golden Virginia, which draws on the brand’s 138-year heritage. The new look, which puts the gold back into Golden Virginia, features on 12.5g, 25g (including papers) and 50g (including papers) pouches, with an rsp of £5.05, £9.56 and £18.91 respectively. All three formats are also available in PMPs at £4.77, £9.15, and £18.09 respectively, while stocks last. Madeleine Pearce, brand manager at Imperial, highlights the 12.5g pack as a “must-stock” SKU, with retailers benefitting from POR rates of 10.56%. a Imperial Tobacco (0117) 963 6636

Following the success of Walkers 50p price-marked grab bags, PepsiCo has introduced a replicable price point on three Doritos variants – Tangy Cheese, Cool Original and Chilli Heatwave. The 40g PMPs also display PepsiCo’s latest #GAMEREADY promotion, which celebrates its sponsorship of the UEFA Champions League by giving away matchday trips. Consumers can win two tickets and money to help cover expenses. PepsiCo is also distributing a Walkers-branded three-case stacker with the aim of helping retailers engage more shoppers. a PepsiCo (0118) 930 6666

Philip Morris has upgraded the packaging on Chesterfield Red, Blue and Menthol variants to highlight the brand’s quality and £6.19 price-mark – the lowest in the super-low category. The new artwork, which is displayed on stick counts of 19, features the prominent ‘duality crown’ icon and several references to the brand’s heritage. Additional icons have also been incorporated to reinforce the smooth Virginia taste. The investment includes trade media advertising and a bespoke PoS toolkit for cash & carries, containing display units and shelf barkers. a Philip Morris 020-7076 6000

www.cashandcarrymanagement.co.uk

October 2015

[ PRODUCTS & PROMOTIONS ]

Innovations expand Sunmagic’s juice range Takeaway treat

All data unless otherwise stated: IRI

Kerry Foods has sought to strengthen Sharwood’s stranglehold on the ethnic frozen ready meal market by launching the first branded Takeaway range. The new selection, which taps into the £4.2 billion takeaway market (Mintel), consists of 12 dishes, offering consumers the chance to mix and match their favourite takeaway choices. The average Brit eats 19 takeaways per year. Charlotte Bourne, frozen ready meal brand manager, comments: “The new Sharwood’s range is designed to tap into this market, encouraging new shoppers into the frozen ready meal aisle by offering them a range from a brand they can trust.” Sharwood’s is the market leader in the Indian and Chinese frozen ready meal category, as well as the No.1 Asian food brand in cooking sauces, kits & accompaniments. The new 350g main dishes retail at around £1.79 and comprise: Chicken Korma, Chicken Tikka Masala, Chicken Madras, Chicken Jalfrezi, Sweet & Sour Chicken, Black Bean Chicken, Chinese Chicken Curry, Chicken Chow Mein, Chicken Fried Rice and Special Fried Rice. Pilau Rice and Egg Fried Rice are offered as 300g side dishes and have an rsp of £1.09. Sharwood’s Takeaway ‘menu’ is supported by in-store and online activity, plus a meal deal option (two mains and one side for £4) for retailers. a Kerry Foods (01784) 430777

October 2015

Multiple Marketing has bolstered its Sunmagic portfolio by developing two premium juice lines. The first new range represents Sunmagic’s maiden Not From Concentrate (NFC) offering and comes in a choice of three flavours: Seriously Smooth Orange, Orange Juice with Juicy Bits, and Cloudy Pressed Apple Juice. The variants are packaged in one-

litre Elopak Curve cartons (rsp £2) and can be stored and supplied as ambient stable. In addition to this, a Sunmagic Cold Pressed fruit juice range has been introduced. The products are made using a high pressure processing technology to extend the shelf life from seven to 45 days. Freshly Squeezed Orange Juice is presented in 250ml and 750ml PET bottles, retailing at around £1.09 and £2.69 respectively, and Pressed Cloudy Apple Juice is available in the 250ml size. The smaller bottles are already being listed by JJ Food Service nationwide. a Multiple Marketing 020-7274 6090

New drinks brand set to cure hangovers forever? Overhang, a new premium soft drinks brand designed to help relieve the symptoms of a hangover, has debuted in the UK. The pick-me-up beverage is flavoured with orange, ginger and lime, and contains a host of vitamins and botanicals, such as milk thistle, to help combat the after-effects of a ‘heavy night’. Retailing at around £1.99, the 500ml PET bottles are obtainable in pallets of 126 cases, each containing 12 bottles. William Wilkinson, director of Overhang Drinks, says: “Hangovers result in 17 million working days lost annually (Institute of Alcohol Studies) and the average adult spends more than a year of their life with a hangover (Macmillan Cancer Support). ”With no other soft drink focused specifically on relieving the symptoms of a hangover, this is a potentially huge and relatively untapped market.”

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PRODUCT OF THE MONTH

The marketing strategy for Overhang will focus initially on targeting males between the ages of 18 to 34. A social media, advertising and promotional campaign will be implemented later this year. a Overhang Drinks (0800 number TBC) enquiries@overhangdrinks.com

[ PRODUCTS & PROMOTIONS ]

New Heineken advert fronted by James Bond! As part of its integrated global Spectre campaign, Heineken has released a new TV advert, starring Daniel Craig as James Bond in a high-speed boat chase. Spectre is the brand’s largest global marketing platform of 2015 and the new creative is currently being aired on TV and cinema screens worldwide. For its digital campaign, Heineken has partnered with Urthecast to take ultra HD imagery using its camera on the Deimos satellite, currently in orbit 600km above the Earth’s surface. Via a relay of technology, Heineken will create a selfie for a lucky group of attendees, recruited from around the world, at the brand’s exclusive Spectre screening event in a secret location next month. The Spyfie content will be bespoke for each attendee of the experiential event, and will be sent to their mobile

device for publication on social media. To conclude its advertising investment, Heineken has produced half a billion special-edition Spectre bottles to give fans the chance to access exclusive Spectre content, including behindthe-scenes footage from five locations around the world. Spectre, the 24th James Bond film, will be released in the UK on 26 October. a Heineken 0131-528 1000

Substantial soups

Name change

Easy cleaning

Premier Foods has extended its Batchelors portfolio by introducing a premium range of ‘Deliciously Thick’ Cup a Soups. The thicker soups respond to consumer trends for world-inspired flavour combinations and come in a choice of four variants. These comprise: Thai Inspired Chicken & Sweet Potato; Mediterranean Style Tomato & Red Pepper; Southern Style Pulled Pork; and Classic Carrot & Coriander. Retailing at around £1.49 for a pack of four sachets, the range will be bolstered by TV advertising this winter. a Premier Foods (01727) 815850

JTI has revealed a new look for Holborn Smooth Taste and rebranded the range as Holborn Yellow. The yellow house modernisation features two rotational inner designs explaining the origins of the Holborn name and its iconic elephant motif. The new design is displayed on 9g, 20g (non-PMP and PMP) and 40g SKUs, all including papers, and is being supported by bespoke PoS and promotions in the wholesale channel. A retailer promotional deal will be launched in November for three to four weeks, offering £5 off each outer of Holborn Yellow 9g or 20g. a JTI (01932) 372000

SCA has expanded its collection of Plenty household products by launching a range of versatile Easy Clean Wipes into the convenience sector. The range, which was first launched in Asda at the end of April, comes in Multi-Purpose, Anti-Bacterial and Bathroom variants and is backed by a £2 million marketing package, comprising out-of-store branding, online, magazine and in-store activity. All three formats are available as part of a Starter Kit containing 30 wipes and a dispenser (rsp £2.99). A refill pack featuring 30 wipes is also obtainable at an rsp of £1.99. a SCA (01582) 677400

Sparkling refresh Shloer Celebration Pink Fizz and White Bubbly, the sparkling adult soft drinks from SHS Drinks, have undergone a contemporary makeover. A new bottle shape takes its cues from the style associated with prosecco, and reinforces Shloer’s image as the non-alcoholic alternative at parties. The foiled neck and popping cork have been retained to add a premium quality and theatre, while the paper front and back labels have been replaced with a clear label to showcase the liquid. The relaunch will be supplemented by a consumer press and social media campaign throughout the autumn and in the lead-up to the festive season. a SHS Drinks (01452) 378555

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October 2015

5 1 0 2 H C N LU S D R A W A E V SI LU C X E SAVE THE DATE Friday 20 November 2015 (11am to 3pm) Location: Danesfield House, Marlow, Buckinghamshire Theme: ‘Loyalty and the Cash & Carry/Wholesale Customer’ What’s on the agenda: – Guest speakers, including Hilary Nithsdale of Today’s Group and Phil Awcock of Nestlé UK – Three-course lunch – Cash & Carry Management awards ceremony

Places are strictly limited. To book, call (01342) 712100 or email: mail.winlove@btconnect.com