August Issue Cash and Carry Management by Cash & Carry Management

p.1 Cover Aug 11.qxd:Cover Jan 06 04/08/2011 16:19 Page 1

AUGUST 2011

NEW! N EW!

Tetley Green 20s Eastenders fights back after two closures Another licensed specialist for Landmark

Incredible value at 5p per bag Fastest growing tea sector in GB* Best selling green teas in the UK*

Great value for your shoppers, Great profits for you! That’s better. That’s Tetley. www.teaexperts.co.uk

Restaurant chain in £150m deal with 3663 Bidvest stays quiet about mystery bidder

*Volume Sales, Ac Nielsen Scantrack 11.6.2011

The business magazine for cash & carry/delivered wholesalers

A growing range from Britain’s No.1 Frozen 1 Dessert Brand

NEW

NEW NEW With an extended range of new Cheesecakes – including Banoffee, Rocky Road, Chocolate, Reduced-fat Mandarin, Toffee Swirl & Lemon Swirl Plus Chocolate Fudge Cake & Lemon Meringue Pie www.Coppenrath-Wiese.com Kantar Worldpanel. Total Frozen Desserts ex. IC., Total Brand Spend, 12 w/e 12/06/11

contents Stepping up to the rostrum Trade bodies have been around for as long as I have been associated with the food industry (nearly 50 years) – and probably a lot longer. They have had their ups and downs, with some surviving – and thriving – under a new identity, and others going in the opposite direction like the ill-fated Wholesale Confectionery & Tobacco Alliance. One deserving of mention in terms of longevity is the Association of Convenience Stores, once known as the National Grocers’ Federation. Then, it had a staff of two – the chief executive and a secretary. Now, as well as the current CEO James Lowman, there are nine personnel listed on the website. Members, whose subs pay the ACS staffers’ salaries, obviously think it’s worth it. The same applies to the Scottish Wholesale Association and the Federation of Wholesale Distributors which, in several guises, have had a long and illustrious life. The present FWD chief executive, James Bielby, follows a line of distinguished incumbents, notably the late Len Jackson. After a ‘gently gently’ start, Bielby is now beginning to make his presence felt. No longer is he walking on hot coals at conferences; he is showing his mettle and speaking with authority, as witnessed at last month’s FWD annual conference in London. Following his arrival two years ago, he has generated a high-profile approach with the appointment of a press officer and a crime intelligence officer to add to the other services the FWD provides, including a duty fraud specialist. Government take notice!

What’s happening in catering? ... see pp.28–36

news

Eastenders C&C hit, but not down ... another branch for JJ Food Service ... New md for Makro ... Latest on NisaToday’s demerger ... Appleby Westward md goes ... Coventry operator joins Landmark ... T.G.I. Friday’s picks 3663 again ... Bidvest ponders foodservice bid.

delivered

anniversary

fwd conference

eating in update

in focus

packaging waste

tobacco

17–24

top 25 suppliers awards

26–27

catering

28–36

products & promotions

38–39

Editor

Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Media Sales Manager

Clare Phillips

Business Development Manager David Ford Publishing Director

Mervyn Gilbert editor

4–8

Martin Lovell

4,555 July 2010–June 2011

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE Tel (01342) 712100 Fax (01342) 712101 Email mail.winlove@btconnect.com ISSN 1352-254X

Cash & Carry Management is available on subscription of £46 per year (single copies £5).

Cash & Carry Management August 2011

news IN BRIEF Trading role New Landmark Wholesale trading controller for confectionery, cereals, beverages and pet products is Simon King, previously with Costco and with 12 years’ buying experience in confectionery, tobacco, grocery, fresh produce and bakery. King, who is part of the group’s recently-formed branded team, reports to Jim Brown, head of branded products.

School support 3663, as well as gaining a new account for the Priory primary school in Slough (ambient, chilled, frozen and non-foods), installed a new kitchen at the school. The delivered wholesaler has its own equipment operation.

Making up for lost ground Eastenders Cash & Carry, whose business has taken a knock since recent investigations by HM Revenue & Customs regarding alleged licensed goods irregularities, has departed from its second branch in a matter of months. However, it has already made efforts to retrieve some of the lost trade. As reported (Cash & Carry Management: June), its 40,000 sq ft branch in Barking, Essex, has been vacated and new occupant Gardner Shaw has moved in. Since then, Eastenders has also moved from its 30,000 sq ft Coventry site, to be replaced by a new

licensed business trading as Coventry Cash & Carry (see p.6). Explaining the shift from Coventry, company secre-

tary Jack Singh said: “For us, Coventry was always a very small branch and it was also leasehold, so moving from there was always in the pipeline. “On the positive side, we are waiting to move into a 33,000 sq ft building in Leicester, which could be open by the end of October. “We have also taken a

SW/South Wales push by JJ... our next priority.” The wholesaler, with a turnover of more than £140m, also operates from Enfield (head office), Basingstoke, Doncaster, Manchester, Aston (Birmingham) and Sidcup. Tel: JJ Food Service (0871) 973 0999.

More wine SPAR UK’s core wine range increased sales by 11% during the group’s recent Wine Festival promotion compared with takings at the same event last year. Income from promoted varieties grew by 38% during the sixweek period.

Group event Confex’s golf tournament and charity dinner will be held on the day before the annual trade show on 26 April 2012 and not on the day after, as stated last month.

12,000 sq ft additional building alongside our Croydon cash & carry, bringing the total area to 36,000 sq ft. And at our Leyton, east London, site, where we have our head office, we have acquired a 10,000 sq ft unit, bringing the total to 46,000 sq ft.” Singh admitted that, with all the problems the company has been experiencing, sales have dived from £150m to £80m – “but we are picking up”. In addition to Leyton and Croydon, Eastenders is operating from Birmingham and Slough. Tel: Eastenders C&C 0208558 1226.

Bristol next for foodservice wholesaler.

JJ Food Service will open its seventh branch later this year – in Bristol in November. Mustafa Kiamil, managing director, paid £3.2 million for the near-36,000 sq ft site in Emersons Green and said he would spend a further £2 million fitting out the warehouse. The freehold building had been unoccupied for two years. Group general manager

Terry Larkin said the plan is for 100 people to be employed at the site when it is fully operational, utilising up to 20 vehicles. The catchment area is the whole of the south-west and parts of South Wales. Larkin added: “We are currently actively looking at properties between 35,000 sq ft and 45,000 sq ft in Glasgow and Edinburgh. So you can see that Scotland is

...and extra hours Customers of JJ Food Service now have extra time to place their orders with telesales. Instead of closing at 6pm, the department will stay open until 10pm (Sunday to Thursday). The wholesaler has also extended collecting times to 6am-6pm from Monday to Saturday and 8am-4pm on Sunday.

Cash & Carry Management August 2011

news

Man in Makro hot seat Klaus Raettig, who was last month named as the new managing director of Makro UK, will not be occupying that role for much longer. It has been announced that the post will be filled – on 1 October – by Juergen Schwarze (pictured), who joined parent company Metro Group three years ago as corporate head of internal audit. As reported last month, following the departure of Makro md Hannes Floto and other senior management, Raettig was one of four executives brought in from turnaround specialist AlixPartners in a bid to restore the ailing company.

Letter Sir, Your Leader last month on the troubled times at Makro caused me some amusement – specifically: “How can outsiders, with no direct knowledge of the domestic C&C scene, work the oracle?” Well, it’s been done before. In November 1993 (I think) a bunch of ‘mad’ Americans opened a 130,000 square foot warehouse in Thurrock stocking just 3,500 lines, one of which was large muffins packed in 12s. At roughly the same time, Nurdin & Peacock, who, taking your point above, knew the domestic C&C market inside out, opened Cargo warehouse clubs. They also offered American style muffins in 12s, but quickly changed that to 6s then 3s. Meanwhile, their limited inventory rapidly expanded

The three others – Jens Koeppen, who is in charge of finance, Dan Murphy (assortment and stock management) and Martin Schumacher (operations) remain with the cash & carry concern. Before joining Metro, Schwarze, 43, was manager, business administration, and group director corporate audit at Haniel Group, a major stakeholder of Metro. He had also been a transaction, consultancy and restructuring specialist at Price WaterhouseCoopers and Ernst & Young. Commenting on the daunting task ahead at a

until Cargo looked like – well – an N&P. Cargo was a disaster as a trading concept! I would love to know how many thousands of muffins they threw away in Thurrock and then in Watford. And so on... But today, Costco have 22 warehouse clubs operating in the UK, and I believe others are in the planning stage. They still sell muffins in dozens, and I would be prepared to bet they still only have 3,500 lines! Costco had, and still have, a clear strategy, and stick to it for as long as it takes. Maybe a lack of knowledge will actually help the turnaround specialists find a much-needed way of adding value to both Makro’s customers & suppliers. If they find it, they too will have to stick at it. Steve Denny, former chief executive, Landmark Cash & Carry Group.

Cash & Carry Management August 2011

company which had pre-tax losses of £44.7m two years ago, he said: “I am very much looking forward to getting into this important position and working together with all the colleagues in the UK on the turnaround of our business.” He added: “We all know that we have a challenging job ahead, but I am absolutely confident that there is a lot of potential and many options, as long as we fully focus on the needs of our customers.” Tel: Makro UK 0161-788 844.

AW’s md to leave SPAR south-west wholesaler Appleby Westward is in the process of finding a new managing director following the announcement that John Pattison (pictured) is to leave next month. Pattison joined the Saltash-based company three years ago as business director and was appointed md soon afterwards when Ian Connell retired after nine years in the job. Pattison was previously with Somerfield as retail managing director, having worked for the chain for 17 years. The wholesaler, which also has a chilled foods facility in Cullompton, Devon, has a turnover of around £140m. Tel: Appleby Westward (01752) 854000.

Demerger taking time The plan to separate the Today’s Group of cash & carry operators and delivered wholesalers from the Nisa retail chain might not reach a conclusion – positive or otherwise – until early next year. That was made clear in an update issued last month. It said that about two-thirds of the C&C/wholesale membership had responded to the proposal to demerge, with ‘well over 90%’ of these concerns voting in the affirmative. The statement added that a separate wholesale company would “continue to trade with central distribution, and joint buying or distribution opportunities would still be pursued”. It continued: “The NisaToday’s board voted unanimously for the separation to proceed to the next stage. “The board will meet again on 1 September to formally consider the matter, which, if granted, will result in a recommendation to shareholders to vote for the separation at a general meeting on 28 September (the date of the agm). “If that occurs, members will receive full details of the proposal early in September. “For the separation to go ahead, a simple majority of shareholders voting at the general meeting – ie 50% plus one – will be required. “If the separation occurs, it is likely that it will happen during the first quarter of 2012.” Tel: Nisa-Today’s (01724) 282028.

news

Drinks firm joins Landmark

Newly-formed Coventry Cash & Carry, specialising in beers, wines & spirits, is the sixth operator to join Landmark Wholesale this year. Currently concentrating on the off-trade, the plan is to provide an additional service delivering to the on-trade. Owner Andy Paver told Cash & Carry Management: “While my background is in the motor trade, I have a

strong team around me who were in the booze business. “Our 30,000 sq ft depot was at one time occupied by Sky Blue C&C and then Eastenders C&C (see p.4). “Our target is for £5m turnover by the end of the first year and then to double that in the following 12 months.” Paver added: “Initially, the bulk of the business will be in cash & carry, but we will be

Costco growing June trading figures for Costco show that the global business increased sales to $8.69bn compared with $7.33bn for the previous corresponding month. It also brought takings for the 44 weeks to 3 July to

$73.44bn – 14% up. In the year so far, US sales grew by 7% and international business (including the 22 branches in the UK) by 16%. Tel: Costco UK (01923) 213113.

Another for DBC New business sales manager at DBC Foodservice is Peter Raycraft (below), who has more than 30 years’ senior management experience in the food and drink industry. Most recently, he spent five years with Brakes as a trading director. Before that he was a business unit director at the now

defunct Food Brokers and sales & marketing director at Food Brands Group. Raycraft reports to Tony Rowlands, DBC’s recently appointed sales director. Said managing director Chris Horne: “We have worked hard to put a new team in place and Peter’s role in developing our new business pipeline is a key part of achieving continued success.” Tel: DBC Foodservice (01707) 323421.

developing the delivered side.” The Coventry operator will be carrying Landmark’s Vintners Collection wines, White Storm cider, Prince Consort spirits and LSV sport & energy drinks. Commenting on becoming a member of Landmark, Paver said: “The group has very high standards for joining and its business ethics are unquestionable. “Its proven track record, together with great own brands, high level of service, competitive pricing and quick direct access to suppliers, were key factors in the decision to join.” Landmark md Martin Williams commented: “Six new members in just six months is an outstanding achievement and testimony to the strength of the group.” Tel: Coventry Cash & Carry (02476) 632979. Tel: Landmark Wholesale (01908) 255300.

Focus on summer Today’s Group’s category advice initiative, Plan for Profit, has published its ‘Summer Special’ brochure. Available through the member cash & carries, it provides information on a range of seasonal ‘must stock’ lines across ice cream, soft drinks, beer, lager, cider and pre-mixed drinks. It also contains recommendations on how retailers can merchandise fixtures to make the most of available selling space. “The summer represents a key trading opportunity for independents,” said group retail development director Raj Krishan. “The Plan for Profit ‘Summer Special’ edition highlights the best-selling lines in the categories that really come into their own during this period.” Tel: Today’s Group (01724) 282028.

Booker presses on Booker Group chief executive Charles Wilson told shareholders at last month’s annual general meeting that sales in the 12 weeks to 17 June grew by 9.5% compared with the previous corresponding period (up 7.4% on a like-for-like basis). The event was held at the company’s St Pancras, north London, branch. Tobacco sales rose by 10.1%, with non-tobacco income up 9.1% (5.7% likefor-like). “The first 12 weeks included the impact of Easter phasing, an extra bank holiday, favourable weather and a large increase in tobacco

duty,” Wilson said. “Booker is on course to meet expectations for the year ending March 2012.” Tel: Booker Group (01933) 371000.

Fish pledge Budgens is guaranteeing fresh fish into stores less than 36 hours after being caught. Said to be a better service than that provided by the supermarkets, it demonstrates the chain’s commitment to ‘real food for today’s communities’. Tel: Musgrave Retail Partners (0800) 298 0758.

Cash & Carry Management August 2011

news

£150m contact for 3663 3663 has won a five-year extension to its food and drink contract with T.G.I. Friday’s. The deal is worth more than £30m a year. The foodservice wholesaler, which will supply food, non-food, wines, beers & spirits, has been associated with the restaurant chain since 2008. Paul Smith, 3663 sales manager, said: “We’re thrilled to have extended this significant contract. We’re also supporting the business, and re-investing in our partnership, by recycling their waste

cooking oil to convert into bio-diesel for our fleet.” The wholesaler collects waste oil from customers and then processes it to create the bio-diesel that fuels its vehicles. In the five months to the end of May, T.G.I. Friday’s, which has 49 UK branches, saved more than 160 tonnes

Gold Star IT system Sanderson has won a contract to supply its Swords business solution to newlyformed Gold Star Cash & Carry, of Harrow, Middlesex. The C&C/wholesaler, a member of Today’s Group, sells grocery, confectionery, beers, wines & spirits, petfoods and speciality food items from the 33,000 sq ft refurbished depot. The company chose Swords to manage all areas

of the business after managing director Vijay Thanwani saw the benefits of the system when he worked at Natco Cash & Carry. Sanderson, which claims to be the preferred supplier to Nisa-Today’s, is also implementing its Swords Radio Frequency solution, using hand-held scanners, at the Harrow site. Tel: Sanderson (0247) 655 5466.

Barking branch opens

Jubilant management at Landmark member Restaurant Wholesale cut the cake to mark the opening of the company’s new 35,000 sq ft depot in Barking, Essex. It also operates from a 40,000 sq ft unit in Manchester, where turnover is £12m.

Cash & Carry Management August 2011

of carbon dioxide with 3663. Commenting on the contract renewal, Alyson Scott, head of supply chain at T.G.I. Friday’s UK, said: “Over the past three years, the service levels provided by 3663 have always been well above 99%.” Tel: 3663 (0370) 3663 000. Sister company Bidvest Logistics has secured a fiveyear renewal on its contract to supply Tragus Group, which operates 300 restaurants under such names as Café Rouge, Bella Italia and Strada.

•

Belfast relocation The Belfast-based delivered licensed wholesaler Drinks Inc, which has announced an increase in annual turnover of 18% to £40m, will, later this year, relocate to the Boucher Road, also in Belfast. The new location has 75,000 sq ft of warehousing and 8,000 sq ft of office accommodation. It also offers improved access and close proximity to the M1/M2 motorway axis and is a significant upgrade on the current site. Founder Paul Camplisson claimed that customers of the new Landmark Wholesale member would benefit from better stockholding and stock management, reduced out of stocks and expanded ranges. The company has also taken possession of five new Volvo FL6 Urban Artics. A new website (www.drinksinc.com) went live last month. Tel: Drinks Inc (02890) 667744.

Record payout Nisa-Today’s is paying out a record sum of £5m to group members in the form of surplus and dividend payments. This follows a best-ever performance in sales and volume, with the company achieving turnover of more than £1.5bn and annual volume of 108.4 million cases. Surplus distribution to the members, totalling £4.5m, repays the support and loyalty shown to the group through its Central Distribution Service, said chief executive Neil Turton. The dividend payment – around £500,000 – equates to £8 per share. Turton commented: “We have had another fantastic year, reaching a number of milestones for the business.” There are now more than 800 Nisa symbol stores, a figure boosted by the launch of the group’s first national television advertising campaign. Tel: Nisa-Today’s (01724) 282028.

More drink Bestway Group has expanded its Best-in Stimulation Drink range. The new styles are Enigee, in orange and cherry, and price-marked at 45p, and American Cola, also with a 45p flash on the 500ml bottle. They offer retailers a profit on return of 33.5% when purchased at £2.99 per tray of 12 during the launch period. Additionally, a tropical flavour has been added to the Best-in Isotonic range (price-marked at 49p). Tel: Bestway Group 0208453 1234.

news

Bid for foodservice business

Ready to unload UK business?

As this issue of Cash & Carry Management went to press, there was still no official announcement from Bidvest in Johannesburg as to who has made an approach for the company’s foodservice business, which in the UK is represented by 3663. Brief details emerged last month that an offer was on

the table in a statement from Alex Fisher, 3663 managing director. But neither the name of the bidder nor the value of the bid were divulged. Neither was it disclosed whether the unidentified party was interested in the whole of the foodservice business or just part.

More consolidation? The possible approach for 3663 could hail the beginning of further consolidation in the ‘traditionally fragmented’ foodservice sector, believes analyst Peter Backman (below), managing director of Horizons. He said: “Already the major players, Brakes and 3663, have been acquiring foodservice distribution businesses throughout Europe in growth markets such as Sweden and Poland, as well as smallerscale strategic acquisitions in the UK to fill in their geographic or sector gaps. “There is also much potential growth in China and other countries in the Far East.” Backman said the market remained tough for smaller

players, citing 3G, a northeast frozen food distributor which closed two years ago. He added: “The recession has forced the foodservice supply chain to become increasingly lean and competitive and, while margins are tight, cash flow makes the sector a promising one for investors who can pick off the distributors with strong management, efficient warehousing and logistics, big supply contracts, economies of scale and the ability to reach a wide range of customers. “In the UK, while sales through delivered wholesalers in 2010 accounted for 53.5% of the market, many smaller customers have been switching their allegiance from delivered wholesalers to cash & carries so that they can make smaller purchases.” Tel: Horizons 020-8349 0162.

However, further information could be released at the group’s year-end results presentation, which takes place on 29 August. Many names have been banded around, including that of Brakes. In addition to 3663, with sales of around £1.7bn, Bidvest has foodservice interests in Australasia, China, Hong Kong, Belgium, the Netherlands, Czech Republic, Slovakia, Poland, United Arab Emirates and Saudi Arabia. In the year to 30 June 2010, Bidvest’s total foodservice turnover was R58.4bn (around £5.3bn) with European business (also including the UAE and Saudi Arabia) accounting for R35.5bn (around £3.2bn). In his 2010 results statement, group chief executive Brian Joffé referred to the “intensification of double-dip recession fears in Europe and the UK”. Tel: Bidvest UK 020-7493 4733.

Buyers at DBC

Laura Bull

Max Wright

Max Wright, formerly senior trading controller at Landmark Wholesale, has moved to DBC Foodservice as buyer for non-food and alcohol, both of which were previously only available to a few customers. Wright will also have responsibility for expanding the ‘dbc label’ range. Another new recruit, Laura Bull, has been named as a buyer for frozen bakery, frozen desserts and ice cream. She joins from Sainsbury’s, where she was a buyer for bakery. Bull and Wright report to buying and marketing director Sue Cronin-Jones. Tel: DBC Foodservice (01707) 323421.

Biscuits for Hancocks Burton’s Foods has secured a supply agreement with Hancocks Cash & Carry – the first time that the confectionery C&C operator, with 18 branches, has stocked a core range of biscuit brands from a UK manufacturer. The producer is supplying Cadbury biscuits, Maryland cookies, Jammie and Toffee Dodgers, Wagon Wheels, Viscount mint rounds and Toffypops. Some will be price-marked. Graeme Mair, Burton’s Foods’ business unit head – wholesale, said that the company is outperforming other

biscuit manufacturers in the impulse sector, growing at 3.1% compared to market growth of 2.7% (IRI value sales 12 weeks to 11 June). Jonathan Summerley, Hancocks’ purchasing director, commented: “Burton’s skus are the best-selling brands offered at prices that will appeal to today’s pricesensitive consumers. Importantly, they will help our customers to maximise sales and profits.” Tel: Burton’s Foods (01727) 899700. Tel: Hancocks Cash & Carry (01509) 216644.

Cash & Carry Management August 2011

delivered

Better than current method? 3663 has launched its first electric vehicle – operating out of its Battersea, south London, depot – as part of its long-term commitment to reduce carbon emissions. The 12-tonne Smith Newton lorry can transport up to three tonnes of goods. Joanna Pegg, fleet controller, said: “These green trucks are not only quicker and easier to maintain, but they also create zero tailpipe pollution, meaning no nitrogen oxide, no carbon monoxide and no carbon dioxide is emitted from the vehicle. It also runs very quietly, reducing the level of noise pollution.” Business unit controller at the Battersea depot, Andrew McManus added: “This is a

step in the right direction for urban sites, where the electric vehicle will make a real positive difference to both our drivers and customers, and more importantly, the environment. “Smaller, quieter and energy efficient, it will make deliveries much easier for our drivers, who regularly have to stop-start their engines in one of the busiest parts of the city.” The ‘plug in and go’ truck takes just seven hours to fully charge and can be topped up when required for quick power boosts. It runs effectively in closed urban areas with lower mileage and multiple drops. Pegg told Cash & Carry Management: “In all, we

First of its kind in group fleet.

have 38 trucks operating from Battersea. The electric one is about three times the cost of one of our standard diesel vehicles. “Incorporating it into this depot, as part of a comprehensive trial, allows us to consider how it compares against our standard delivery

The best of British Brakes Group has combined with John Lewis to launch its ‘Best of British’ chef competition in conjunction with British Food Fortnight. The contest, open to all chefs in the department store chain, gives entrants the chance to showcase their skills by creating two dishes – one main and one dessert – using British ingredients and sustainable fish and seafood supplied by the foodservice wholesaler. Three finalists will be selected and invited to attend the Brakes Food Innovation Centre in London’s Covent Garden next month for a live ‘cook off’ to recreate their menu. The most innovative will be chosen by

a team of judges from Brakes Group and John Lewis, the winner receiving lunch for two at Heston Blumenthal’s Mandarin Oriental Restaurant in London. The winner will also have his/her dishes included on the menu at the Place to Eat restaurant and Partners’

Cash & Carry Management August 2011

Dining Room at the store chain’s new branch in Stratford, east London, during British Food Fortnight, which takes place from 17 September to 2 October. Each of the runners-up will receive a knife set. It is the seventh year running that the wholesaler has been involved with the two-week event. Head of food marketing Sally Sturley said: “Brakes Group is committed to sourcing and supplying the best British ingredients for our customers. We are a big supporter of seasonal produce and work in conjunction with the best British farmers and suppliers.” Tel: Brakes Group (0845) 606 9090.

vehicles.” Pegg added: “We will look at how well it performs in terms of carbon emissions, speed, maintenance, vehicle capacity and ease for our drivers. Then we will be able to accurately weigh up the benefits.” Tel: 3663 (0370) 3663 000.

Birmingham triumphs in Toque d’Or Winner of Nestlé’s Toque d’Or student catering competition was the College of Food, University of Birmingham, which collected its award at a ceremony held last month at London’s Dorchester Hotel. Nestlé Professional managing director Neil Stephens said: “The standard of entries this year surpassed that of previous years. The winners and all the finalists have shown strength of character and skill beyond their years.” He added: “It is our responsibility as an industry to find ways to encourage and nurture tomorrow’s talent and Nestlé Toque d’Or is a great example of this.” Tel: Nestlé Professional (0800) 742842.

anniversary

Manish Dhamecha (left) and Pradip Dhamecha (right) with the C&C operator’s trading director Mukesh Vithlani.

Coral and ruby dual celebration A snake charmer with a Burmese python that had recently been associated since opening in Wembley in 1976. He said: shed its skin paraded round 640 guests, along with two “We treasure such relationships.” artistes on stilts. But it was the directors of Dhamecha Foods Several account managers from leading suppliers in the who were walking tall at the sparkling West End event to hall acknowledged that Dhamecha was a ‘toughie’ when it mark the C&C operator’s 35th year in business, writes came to bargaining, but no less so than other leading conMervyn Gilbert. cerns. And for many, the C&C operator was among their top Playing host at the party – five years after the company three in terms of sales. celebrated in similar style at its 30th anniversary bash – were “This is the first trade do I’ve been to for ages where I chief executive Pradip Dhamecha and director Manish, his haven’t been asked for any money,” one of them quipped. cousin. In a final amusing reference to suppliers, Pradip said: Pradip told suppliers, staff and trade press: “This is not “While we value you so much, we would do so even more if just to honour our 35 years in business but also the 40th year we received better discounts!” since the Dhamecha family came to the UK from Kenya. The There was no mention of the long-awaited seventh C&C company would never have been started if it were not for our that the Dhamechas have been speaking of for some time, father KR and uncles SR and JR.” but Pradip has confirmed that it is being planned for 2012/13 He proudly announced that the Wembley-based C&C and that it will be within the M25 perimeter. operator, with five other branches, It was only left for guests to had broken through the £500,000 gorge themselves on the generous turnover barrier for the year to helpings of food from around the March, adding jokingly: “It sounds world, indulge in a game of roulette even more impressive if you say – for fun, of course – and listen to almost $1bn! music from a jazz band whose “When we started, there were no members barely had time for a pina such things as EPoS and scanners, colada. no internet, no emails and no mobile phones. We have built the business on hard, honest and fair relationships with staff and suppliWembley 100,000 sq ft ers. Cell phones might be becoming Barking 100,000 sq ft more sophisticated, but nothing can Enfield 55,000 sq ft replace the personal touch.” Croydon 80,000 sq ft Pradip made particular mention Hayes 75,000 sq ft of the C&C operator’s auditors Pradip Dhamecha: ‘Give us better discounts.’ Watford 70,000 sq ft KLSA with whom Dhamecha has

Depot locations

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Cash & Carry Management August 2011

fwd conference

Strategies for growth Mervyn Gilbert reports from the FWD’s annual conference in London. Closer ties between suppliers, C&C/wholesalers and retailers; efforts being made to influence government thinking on the food and drink trade; the latest industry data; and what steps should be taken to counter the negative effect on transport during the Olympics – all were subject to lively debate at the FWD Strategies for Growth event. Did the near-200 delegates hear anything that they had not heard before, something they could introduce into their decision-making? Maybe, maybe not. But there was no arguing that the guest list was a fairly comprehensive representation of the major players in this channel. As FWD chief executive James Bielby said in his opening speech: “Welcome to this new-look event and thoughtprovoking day.” Providing guests with an update of the FWD’s activities, he told them: “We are strongly positioned in the conduit between members and the Government. We have arranged seven MP visits to depots this year, we have been involved in the AllParty Parliamentary Group, we have been working on food standards red tape and we have published a new downloadable booklet on carbon emissions. “Next month (August) a Government official will be visiting a 3663 depot to see what progress has been made on carbon emisGlennon: ‘People sions.” want low prices, a David Glennon, retail services wider range and fresh products.’ manager UK at AC Nielsen, said that in the current period of rising inflation, “the idea of shopping local is gaining momentum”. He told delegates that, in a survey conducted among 50,000 people in 20 countries, 25% said they had no spare cash and that what they wanted was low prices, a wider range and fresh products. “These are the types of areas where C&C/wholesalers and retailers can work together,” said Glennon. Referring to ongoing Nielsen activity, he commented: “All the growth, we have found, is coming from value, not volume, and sales at small stores have been growing faster than those at out-of-town stores for the first time. “Since Easter, grocery multiples have gone into the negative. Over 40% of product going through this sector is being bought on promotion.” The research giant has also deduced that 47% of shoppers will change stores to get what they want and that 53% of them want local products. “Small stores are big in beers, wines & spirits and cigarettes, but in frozen and fresh foods and bakery products they have a very low share.”

Cash & Carry Management August 2011

A major problem for independents, said Glennon, was the growing number of high street shops being opened by the leading multiples. Over the past 10 years, the major chains have opened 1,800 small stores producing £4.5bn of sales. “And when you add the number opened by other multiples, this doubles to £9bn.” Nielsen research also found that in the £7bn foodservice sector, sales growth was around 2%. Guest speaker Luke Johnson, chairman of Risk Capital Partners, told guests that he was once involved in a business now owned by 3663. He also founded Pizza Express. “The choice and quality of eating out in the UK has been transformed over the past 30 years,” he said. “We have all sorts of nationalities here, whereas in Paris, if you don’t want French cuisine you’re in trouble!” He added: ”The UK eating-out market will continue to grow, despite the downturn. This is a hugely entrepreneurial business. “What you must do is get into the minds of your customers and have a great relationship with your staff. It’s also worth remembering that two-thirds of all complaints in foodservice involve poor service.” Guy Farrant, Booker’s managing director cash & carry, told delegates that most new customers of the company ‘joined’ because of recommendation. Another factor was the range of own-label lines offering a viable alternative to branded products – such as energy drinks price-marked at 35p sitting alongside Red Bull. “Many customers want to sell both,” he said. “Our Euroshopper selection provides retailers with a fantastic value proposition at less than £5 a time. “Our fruit & veg sales have grown from £15m to £50m in 18 months, while our 2,600 Premier retailers are producing turnover of £700m – up more than 10%.”

Martin Williams (second right), Landmark Wholesale managing director, delightedly accepts the award for top wholesale group voted for by retailers from David Everett, sales director off-trade at sponsor Maxxium UK. On the left is FWD chief executive James Bielby and on the right Tom Fender, sales & marketing director of him!, which hosted the awards programme. Other award winners were: delivered wholesaler (retail) Palmer & Harvey, delivered wholesaler (catering) 3663, C&C wholesaler (catering) Booker and suppliers Cadbury and Coca-Cola Enterprises.

eating in update

Apart from the mains... Aside from the wining and dining-in proposition being expounded by some of the leading retail operators, there are other aspects of the in-home experience being exploited by some of the major suppliers. Mars, for instance, has embarked on a major promotion to encourage snacking while consumers watch some of the leading movie blockbusters. In collaboration with 20th Century Fox, it has launched an on-pack scheme, with one million DVDs being given away to members of the public who find a winning code on their bag of bitesize confectionery. The ‘Bag a Million Movies’ activity follows three other film initiatives offered by the confectionery manufacturer over the past six years, including a ‘Win a DVD’ scheme and a ‘Bag a Free Film’ opportunity. The supplier is spending £1m on television to publicise the promotion. The six films included in the deal include Ice Age 3. Entrants will be allowed to list three of the movies from which a choice will be made. Trade communications manager Bep Dhaliwal says: “This is our biggest DVD giveaway and plays perfectly to the trend of the ‘big night in’, which continues to grow.” The on-pack deal is being publicised on 46 million packs of Mars bitesize singles, pouches and ‘More to Share’ pouches, including Maltesers, said to be the UK’s No 1 bitesize brand. It will also feature on packs of new Galaxy Bites (rsp £1.89). The manufacturer claims to have a 52% share of the bitesize market, with five of the top 10 products.

The bitesize and sharing segment is worth £320m – 18% up on the figure for 2009. Bitesize alone has grown by 41% over the past five years. In a separate development, Mars has opened a mammoth M&M’s themed site in the centre of London. The £10 million enterprise is manned by a staff of 170 and follows similar operations in the United States – New York, Las Vegas and Orlando.

In three flavours United Biscuits UK has introduced Hula Hoops Big Hoops to help the trade capitalise on the growing demand for sharing formats of bagged snacks. The three core flavours are: original, sour cream & chive and sweet chilli, all with an rsp of £1.93. George Johnston, bagged snacks marketing director, says: “These are the same Hula Hoops that consumers know and love, just a ‘hole’ lot bigger (160g).“ The supplier is also launching a 100g BBQ price-marked pack at £1 for the convenience channel. The total Hula Hoops range is currently worth £81m at rsp and is growing by 3%. Johnston comments: “Sharing formats are doing great business for retailers at the moment and are worth £633m across all channels. “However, it is interesting to note that they are growing even faster in impulse – at 15% – than grocery, which is up by 11%. This demonstrates that consumers want to pick up a snack at their local convenience store that they can share with family and friends. It is very much in line with the growing demand for ‘big night in’ products.” Johnston continues: “Research has shown that consumers would purchase Big Hoops, and a significant proportion would also buy it in addition to their normal requirements.” All data AC Nielsen week ended 18/6/11.

For further information: Mars Chocolate UK (01753) 550055 United Biscuits UK 020-8234 5000 One of many Mars bitesize packs featuring the movie deal.

Cash & Carry Management August 2011

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in focus

Growing inside and outside Unilever’s Partners for Growth operation is expanding in several directions, as Mervyn Gilbert finds out. It speaks volumes for the efficacy of Partners for Growth that the Unilever retail advisory service is valued by Nisa-Today’s, even though the group has its own highly regarded Plan for Profit package. Others with whom there has been co-operation are Steve Fox at Booker, who is responsible for the Premier symbol chain, and James Hall at Bestway, who controls the Best-one group. Partners for Growth divides its activities into three segments: retail, cash & carry and wholesale/distributive. It is certainly living up to its name. Not only is it attracting more interested parties to its comprehensive website, but it has also added to its number of staff and and is considering stretching the net to encompass more than the nine product categories it currently handles – ice cream, toiletries, household, cooking sauces, table sauces, tea, spreads, laundry and pot snacks. Tom Hazleden, one of two relative new boys in the team – he is retail execution manager, convenience sector – says: “We have recently received enquiries to extend into wines, breakfast cereals and soft drinks.” Whether anything comes of that is speculative because the retail service has always specialised – since its formation eight years ago – in categories in which Unilever is involved. So the three new possibles would take it into uncharted territory.

Hazleden and his colleagues work for one of the most respected advisory services for retailers.

Hazleden moved to P for G a year ago after spending around 15 years in the multinational’s frozen food business – Birds Eye, now owned by private equity group Permira, and Wall’s, which remains an intrinsic part of the company. The other P for G newcomer is Ian Toft, who became convenience sector cash & carry controller at the beginning of the year, replacing Keith Hutchinson. Toft has been with Unilever for 11 years, occupying a number of roles, latterly category manager for household cleaning products. Referring to the rise in the number of hits on the website from independents anxious to follow the service’s advice, Hazleden says: “We attract around 7,500 a month, whereas in 2008 it was less than half that. Ice cream is the category that creates most interest, with 17.3% of website visits downloading information on this category. “Next come toiletries (13.6%), cooking sauces (13%) and tea and household (both approaching 11%).” In addition to offering information by means of planograms and merchandising, the service has enlarged its knowledge base by creating a retailers forum of six awardwinning independents who meet members of the P for G team every three months. The P for G representatives include Hazleden, Stephen Moodie (customer director for Unilever’s convenience sector), Kimberley Green (retail execution executive) and Steven Rogers, director of the service’s PR agency Rogers & Rogers. Says Hazleden: “What we do is blend the retailers’ expertise with our product knowledge, discussing the pressures, issues, challenges and opportunities in convenience retailing. Subjects we discuss include EPoS, theft and seasonal goods.” Another string to the service’s bow is the Reach outsourcing organisation which sends out a team of 32 people to monitor what goes on in around 4,500 independents each month and relays those trends back to P for G. Says Hazleden: “The survey conducted on our behalf showed that last year 63% of the 1,000 surveyed were aware of our existence, 83% thought the advice was fair, 18% followed the advice in full, 71% followed it in part and just 1% didn’t go along with it at all, either because the retailers said they didn’t have time, received guidance from reps or simply didn’t see it as relevant.” This annual data was in the process of being updated as Cash & Carry Management went to press. Hazleden adds: “We must also ensure that goods are available in cash & carries, otherwise our advice falls down at the first hurdle. If I’m in a particular area, I will visit a C&C as well as several independents.” While P for G operates as an impartial service for retailers, its efforts are highly regarded within Unilever, providing a valuable source of income. As Hazleden points out: “Group sales through all channels have achieved growth 14 quarters in a row, but in the convenience sector alone (retail, C&C and wholesale/distributive) there have been 24 successive quarterly increases.”

Cash & Carry Management August 2011

p.15 Packaging Waste Aug 11.qxd:Batteries half page 05/08/2011 09:34 Page 1

packaging waste

Easing a legal headache Foodservice wholesaler William Yule and Son and bottled water producer Highland Spring Group are the latest clients of a service launched last year by waste management specialist consultancy Greenstreets. Wastepack Data Service is a collaboration between Greenstreets and the Wastepack Group and is available to any firm with packaging waste obligations, whether a member of a compliance scheme or a direct registrant. Central to the service is GRIPSTM – software that links packaging specifications to accounts or stock control systems. The system’s database contains more than 100,000 different packaging weights and it can also be used to calculate the weight of bespoke packaging.

Joyce Johnstone, admin director at Kirkcaldy-based William Yule, switched to Wastepack Data Service after being unhappy with the company that previously handled the wholesaler’s data collection. “Many of our 3,000 product lines change from year to year and I felt that this issue was not being properly addressed before,” Johnstone explains. “By comparison, working with Wastepack Data Services was very straightforward: they asked me questions, I sent them some data, and they sorted it all out. I had no worries about accuracy or meeting the deadline. They were less expensive too.” Wastepack Data Service submitted William Yule’s returns by post and electronically in a timely and accurate manner. The wholesaler has the reassurance that a representative of the service will be on hand in the event of a packaging audit by the Scottish Environment Protection Agency (SEPA). It also has the back-up of a full audit trail, which gives details of source data, assumptions and methodology used. Highland Spring Group appointed Greenstreets to take over responsibility for identifying its packaging data requirements and preparing its annual return. It also asked the company to respond to the packaging data enquiries from its customers. The bottled water manufacturer has five sites in the UK and around 100 product lines. At Ochils in Scotland where the Highland Spring brand is produced, 90,000 bottles are made every hour using the on-site bottle blowing facility. Before using Wastepack Data Service, Highland Spring had to verify that all packaging data submitted was correct. It therefore had to contact suppliers to obtain this information. In turn, the manufacturer was asked by many of its own customers to provide similar packaging specification details. Bryan McCluskey, head of technical at Highland Spring, had previously reported the company’s obligations on an annual basis. “I spent a couple of weeks on the data provision alone,” he says. “Handling ad hoc queries from customers could easily

Cash & Carry Management August 2011

add at least another week’s worth of work for my team.” He comments: “Although we spent 30 hours working with Wastepack Data Service to get the new system up and running, on an ongoing basis we will have to dedicate very little time to this task. The big advantage will be not having to deal with customer requests – we have been getting 30-40 of these a year, with the number increasing annually and many customers requiring different reporting formats.” McCluskey ran Highland Spring’s in-house system in parallel with the new process to test its robustness. “The results were incredibly close,” he remarks. “I was impressed by Greenstreets’ knowledge and experience. They were also extremely accommodating and understood the pressures we face. The service they give is very effective in terms of quality and in reducing our overheads.” Greenstreets, with offices in Ireland and Australia, has more than 10 years’ experience in providing data collection services and its client base includes Cadbury, Coca-Cola HBC Northern Ireland, GlaxoSmithKline, Pfizer and Primark. Michael O’Byrne, chief executive officer at Greenstreets, comments: “Our goal is to reduce or eliminate the administration workload for companies with packaging waste obligations, whichever sector they are in.” Tel: Greenstreets (003531) 4100618.

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Market grows by 6% According to Imperial Tobacco estimates, total turnover of the tobacco sector grew by 6% to £14.58bn in the year to May. Of this, cigarettes accounted for £12.9bn (up 5%), roll-your-own tobacco £1.4bn (plus 18%), miniature cigars £121m (10% higher), small cigars £140m (down 8%) and large cigars £14m (minus 13%). Imperial Tobacco continues to find ways to refresh the market. In April, it launched JPS Roll Your Own tobacco, which provides tobacco shoppers with value for money while retaining the reassurance of quality and heritage offered by the JPS name. Consumer marketing manager Sue Tranter says: “We continually research the preferences of those 12 million UK adults who choose to smoke, and the insights gained allow us to launch new brands in a timely and confident manner. “The RYO segment has seen tremendous and consistent growth in recent years. This is largely due to the successful performances of brands in the lower-priced sector where JPS RYO is positioned.” Tranter adds: “Many UK cigarette smokers also ‘dual’ with RYO tobacco, meaning they may smoke RYO during the

Part of the new cigarette making kit.

Cash & Carry Management August 2011

week and cigarettes at the weekend. “This trend has become more pronounced over the last few years as the value for money and control offered by RYO tobacco grows in popularity. “JPS RYO offers smokers a brand steeped in heritage with a quality reassurance. Its price point gives great value for money in these tough economic times when many smokers are tempted to buy cheap tobacco from illegal sources.” The tobacco comes in 12.5g and 25g packs, in both standard and price-marked formats. Another recent introduction from Imperial Tobacco is the JPS cigarette-making kit. Says Tranter: “In the current economic climate, the prevalent value-seeking trend has accelerated as more adult smokers are moving down through the cigarette price sectors. A significant number now prefer cheaper options. “The cigarette maker allows smokers to create 20 quality king-size cigarettes for £3.87.” Comprising a 14g pack of JPS tobacco, 100 king size cigarette filter tubes and a cigarette maker, it has an rsp of £6.99. The company’s UK communications manager Iain Watkins, commenting on new industry regulations, says: “Plain packaging legislation has never been implemented by any government in the world. We firmly believe that plain packaging measures are unnecessary, unreasonable and unjustified. “We will continue to robustly challenge them, including in court, if necessary. We don’t engage lightly in legal challenges, but we will do so in the case of plain packaging in order to protect our brands and the right of our consumers.” Watkins also refers to the fact that removal of all logos, graphics and designs would make it much easier for counterfeiters. “Our Government needs to take a step back and decide whether it wants tobacco products to be sold by responsible, legitimate businesses or by organised crime gangs who disregard regulations and are happy to sell tobacco products to children.” Turning to the display ban, Watkins says: “The elements affecting tobacco retailers contained within the Health Act and the Tobacco and Primary Medical Services (Scotland) Act are unjustified and unnecessary. “The legislation is unwanted by thousands of retailers whose businesses will be adversely affected to no purpose.” He maintains that a ban would exacerbate the already significant amount of illicit trade taking place in the UK. “Illicit trade undermines public health objectives, damages legitimate business and results in substantial revenue losses to HM Treasury through creating a market that is uncontrolled, untaxed and unaccountable. “It is dangerous to assume that Imperial Tobacco will pay for retailers’ shops to be adjusted in the event of the display ban. “If the Government is intent on introducing such unnecessary and ill-conceived legislation then it should be prepared to help retailers implement it.”

tobacco Patrick Toms, head of Imperial’s distributive channel, refers to the burgeoning economy cigarette segment, which grew by 43% last year. “It contains brands such as Windsor Blue and the JPS Silver range, which both hold a share of more than 5%. One in four adult cigarette smokers now chooses brands from this sector. “Our Lambert & Butler king size occupies No.1 market position with a share of around 11%.” He claims that Imperial has over 50% of the RYO market and, in the year to May, adult smokers spent over £700 million on the company’s range in this segment. This also resulted in sales of more than £100 million on rolling paper in retail outlets. “UK cigar smokers spend around £80m on our cigar range, which includes Classic, Panama, Castella Panatellas, King Edward Coronets and King Edward Crowns.” All data TGI 2010 and internal estimates.

Biggest launch this year JTI last month launched Benson & Hedges (B&H) White, a new cigarette in the sub-premium sector. The company’s biggest launch of the year, it is designed to take advantage of the growth of the lower tar segment, which is worth £4.4bn to the retail trade (internal estimate). It has an rsp of £6.42 and is only available in a 20s slide pack. This month sees the end of a four-week limited edition pack design for Mayfair, claimed to be the UK’s leading midprice cigarette brand. The packs have been available nationally in all channels. The mid-price sector makes up almost one-third of the total cigarette market and Mayfair is said to be outperforming its competitors with a 43.6% total share of the sector.

According to Jeremy Blackburn, JTI’s UK head of communications, Mayfair accounts for a 13% share of the total cigarette market. In cigars, Blackburn says the company’s brands (Hamlet, Calisto and King Six) represent 34.8% volume of the market. He stresses: “It is a category retailers can capitalise on from a profit perspective, and effective merchandising and ranging can pay dividends.” Hamlet alone is claimed to account for 33.1% of category volume, and last year it generated retail sales of more than £110m. “It has been at the top of the cigar market for over 36 years,” says Blackburn, “and it is the only brand which offers cigars in both the large and miniature formats. The core range includes 5s, Miniature 10s and Smooth 10s.” Regarding seasonal influences, he comments: “Summer is a very important period for cigars and a time when there is a noticeable increase in sales. In recent years, a third of all cigars have been bought during the summer months. “The warmer weather brings an increase in the number of adults who choose to smoke outside. Anecdotal evidence suggests it is for this reason that the share of sales in large cigars in particular grows during the summer. “Christmas provides a number of different celebratory and cigar smoking occasions. Last year, volume sales in December increased by over 7% compared to the preceding month. “Hamlet is the largest contributor to additional cigar sales over Christmas, accounting for 1.3m extra cigars sold.” Calisto, launched in April, meets the growing demand for micro-sized cigars. Each tin contains 10 cigars protected by a transparent inner liner. The cigars (in outers of five and with an rsp of £3.54) combine tobacco sourced from Brazil, Java and Cuba. All data Nielsen Market Track unless shown.

The leading cigar brand in the JTI range.

Cash & Carry Management August 2011

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tobacco biggest volume of share in the cigar category compared to other sizes. “The smalls segment has not evolved like miniatures in recent years. “In smalls, where has the trend for tins been addressed? Where has the trend of a smooth smoke been met? Where has the trend of consumer image in products been catered for? There was an opportunity for a smooth, imported brand, like Café Crème, to come in and make an impact on the size segment.” The group’s cigar range also includes Henri Wintermans – “for those adult smokers who want to upgrade from miniatures to discover a real cigar taste and experience”. The selection includes miniatures, ‘royales’, slims, half coronas and corona de luxe. The Henri Wintermans half corona continues to be the top-selling brand in the medium/large segment, says Williams, with a 50% market share. “While the UK cigar market is declining by around 5% annually, sales of our brands continue to grow.”

Industry challenges Worldwide distribution Scandinavian Tobacco Group, one of the largest tobacco companies in the world, markets its products in more than 115 countries. Best known in the UK for the Café Crème and Henri Wintermans range of cigars, ST Group UK also includes an array of products in its portfolio. The group claims to be the leading player globally in pipe tobacco as well as Europe’s largest – and the world’s third largest – in cigars. Domestically, the Café Crème family is worth over £67m annually. Trade marketing & communications manager Alastair Williams says: “Miniature cigars, such as Café Crème, are a must stock for C&C/wholesalers, with the segment growing by 3% and making up nearly 60% of all volume sales.” He says that ST Group UK has five out of the top 10 selling miniature cigars and that more than one in every three miniature cigars sold is a Café Crème Blue. “Small cigars are the next biggest segment, approaching 40% market share in terms of volume. Cigar volume is growing in both grocery multiples (2.9%) and in independent channels (0.4%).” Willams adds that miniatures are the only segment in growth and that Café Crème is market leader with 63% of total sales. Blue alone has 34.9%. ST Group UK recently announced the launch of Café Crème Grande, a range of small cigars that will ‘shake up the smalls segment’. With an rsp of £4.24, it comes in a blue crushproof tin of five cigars (5 x 5 outers). Says Williams: “Historically, the smalls segment has been dominated by British brands, but they have not innovated in this size segment for decades, which has meant it has got pretty stale for both retailers and consumers. “As cigar category leader, it is important that we address this lack of innovation as small cigars continue to lose the

Referring to issues affecting the industry, he comments: “C&C/wholesalers and retailers with a tobacco offering are currently facing a number of challenges. Unsurprisingly, there has been a trend for manufacturers to increase the number of value-for-money products to ease the burden on consumers’ pockets, but at the same time, these have eaten into retailers’ already fragile profit margins. “The threat of counterfeit tobacco continues to loom large. Genuine innovation and new product launches are few and far between, as manufacturers do not seem to want to jeopardise their position on retailers’ gantries.” Williams adds: “Undoubtedly, the biggest hurdle facing C&C/wholesalers is the forthcoming legislation banning the display of tobacco products. “The ‘dark market’ legislation will mean that retailers will not only have to absorb the cost of updating their store, but also suffer from lost revenue, as adult smokers will find it increasingly difficult to make an informed choice in this new environment and purchase the brands they want. “Lawmakers claim the dark market will help battle against underage smokers. However, STG subsidiaries in regions such as Canada and Ireland can testify that the legislation has had little or no impact on reducing this number.” Although, the ‘dark market’ does not come into full effect until 2013, Williams advises C&C/wholesalers: Engagement with your customers is key. Continue to bring them up to date on new products and legislation Educate staff. Ensure they know what exactly the ‘dark market’ is, when it’s coming into effect and what actions they must take to ensure compliance Talk to your ST Group UK sales rep. He has a wealth of knowledge about merchandising, stock rotation and ‘dark market’ legislation Stock cigars, cigarettes, pipe tobacco and RYO brands that are popular with customers that will deliver satisfaction and loyalty.

• • • •

All data Nielsen Scantrack May 2011

Cash & Carry Management August 2011

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tobacco It’s all change Republic Technologies UK has unveiled a major development for the Swan range of roll-your-own filters, papers and smoking accessories. The move – the first of its kind for more than a decade – includes restyled packaging, a new brand logo for all skus and new product development. The supplier is backing the changes with a £1m consumer marketing campaign, representing the largest annual brand investment for Swan. “The brand refresh is our biggest brand development for over a decade,” says UK marketing manager Mark Alldred. “We’ve redesigned and improved the packaging and the bolder, brighter, new look will increase the iconic Swan brand’s presence on shelf, which in turn will promote sales to a larger audience. “Our in-depth research has confirmed that the new designs appeal more to existing and new customers and we’re confident we’ll attract new shoppers to the brand. “As retailers sell more Swan branded products, they’ll be looking to the cash & carry trade to stock the products their customers are looking for.” Referring to the state of the market, Alldred comments: “Roll your own is already the best-performing sector of the tobacco market, with the move to RYO accelerating following the Budget. “Swan is Britain’s fastest growing brand in rolling papers, up 21%, and the major brand refresh and marketing support will provide even more sales impetus for the category. “There is a major move towards value-added products, such as combi packs (papers and filters) and multipacks. Our multipacks are available in a number of formats (king size and regular) and paper weights (green, blue and silver). Combi packs are perceived to offer better value; they’re also convenient and, perhaps most importantly for retailers, all Swan branded combi packs offer over 50% margin.” Citing Nielsen May 2011 data, Alldred says the filter tips market has expanded by 14%, with Swan growing by 16.5%. And in convenience and independent stores, while overall sales rose by 15.6%, Swan’s grew in this channel by 17.2%.

Lack of choice Independents account for just 22.7% of the filter market and 26.7% for rolling paper, which Alldred attributes to the lack of choice in the ranges on offer. “Whereas multiples have expanded their ranges in line with consumer needs and market growth, independents have yet to offer the choice their customers want.” RYO multipacks offer another growth opportunity for C&C/wholesalers, Alldred believes. Currently, independent stores account for just 2% of overall sales of RYO multipacks against a UK average for multipacks of 24% – an example of how expanding ranges can help independents to capitalise on changing trends in the tobacco market. “Our silver (ultra fine weight) sales are doing well across

Me? I’m just swanning around!

the UK in general, but are down in independents, who are missing out on a sales opportunity. “The rolling paper market experienced minimal growth, but Swan is up 21%, making it Britain’s fastest growing brand.” Republic Technologies hopes to accelerate this growth by applying its innovative approach in NPD to papers. It is highlighting the difference in its new rolling papers with the introduction of a textile paper which, according to independent market research, consumers prefer. “Textile papers are easier to roll, smoother and slower burning than 100% wood papers and these are all factors that people look for in RYO products,” says Alldred. “Around 50% of our sales are through the cash & carry/ wholesale channel. We spend a lot of time and energy working with our partners in this channel. Feedback on where we can improve and support further is appreciated and acted upon. “Republic Technologies invests heavily in supporting the C&C/wholesale trade. We have a field sales team which provides merchandising support, a national account team and a marketing team to work on promotions. All of this is geared towards increasing profits from products that are driving the growth of the dynamic RYO sector.” All data Nielsen Market Track – May 2011.

Cash & Carry Management August 2011

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The Nisa-Today’s trade show at Stoneleigh, Warks, gave BAT the chance to meet existing and prospective customers.

‘Demi-slim’ cigarette The latest significant launch from BAT UK this year was the Vogue Perle brand, said to be the ‘first demi-slim cigarette to be launched in the UK market’. Says a spokesman for the company: “A premium quality offering in the mid-priced segment, Vogue Perle delivers a new modern format for the smoker. It provides an experience similar to standard king-size cigarettes, but designed in a new format. “The new packaging, designed in Paris, also reflects the more refined, yet accessible, cigarette size, with rounded edges and a tactile texture.” Vogue Perle was introduced nationally across all channels in two variants, Bronze and Menthe, both in a 7mg 20s pack. The new cigarette is more slender and taller than king size, yet is slightly shorter and broader than Vogue Signature super-slims. “It therefore offers a casual, yet refined, everyday alternative in the mid-price segment to premium priced king size cigarettes,” the spokesman adds. Vogue Perle has been available nationally since May with

Market shares

an rsp of £6.20 for a pack of 20. To support the C&C/wholesale channel, BAT UK ran a ‘£5 off’ offer on Vogue Perle. In addition to this launch, the company early this year unveiled Pall Mall Roll Your Own (RYO) across all channels. The spokesman comments: “We are committed to developing products for UK adult smokers, and the Pall Mall RYO tobacco blend was specifically developed for this market. Pall Mall is an established international brand that offers adult smokers a quality blend at an affordable price.” The RYO tobacco is available in two sizes: 12.5g (rsp £3.27) and 25g (£6.40), in both price-marked packs and nonpriced formats. BAT UK has just refreshed the packaging of its Pall Mall cigarettes with a new metallic look. The packs are available in price-marked packs as well as non-priced packs. The spokesman adds: “The C&C/wholesale channel is vitally important to BAT UK. Last year 74.1% of our total volume went through the distributive channel, split almost equally between delivered wholesale and cash & carry. In C&C alone the percentage has grown from 32% in 2009 to 37%. This is possibly due to the massive growth in sales of price-marked packs, which are traditionally stronger in C&C than in delivered wholesale.”

Cigarettes: Imperial Tobacco 45%; JTI (Gallaher) 39%; Philip Morris 7%; BAT 7%

For further information:

Roll-your-own tobacco: Imperial Tobacco 52%; JTI (Gallaher) 35%; BAT 12%

BAT UK (01296) 335000 Imperial Tobacco (0117) 963 6636 JTI (Gallaher) (0800) 163503 Republic Technologies UK (01494) 533300 Scandinavian Tobacco Group UK 020-8731 3400

Small cigars: JTI (Gallaher) 56%; Imperial Tobacco 37% Data: Imperial Tobacco estimates 11/5/11

Cash & Carry Management August 2011

L OOK! I MPORTANT P RODUCT

NEWS FOR YOUR SHOP

WHAT IS LIP? LIP stands for “Lower Ignition Propensity”. The LIP standards are new European Union (EU) safety standards which are set to be introduced to the market from 17 November 2011. All cigarettes placed in the market from that date are expected to comply with the new standards. The EU considers that LIP cigarettes are less likely than regular cigarettes to continue burning when left unattended. JTI uses special cigarette paper with bands that act as “speed bumps” and slow down the burning. JTI has designed LIP cigarettes to ensure there is no noticeable impact on taste.

ACTION REQUIRED • JTI is committed to placing only LIP cigarettes on the market as of 17 November 2011 and we will start supplying wholesalers and retailers with LIP cigarettes well in advance of this date. • Retailers should exercise best practice in stock rotation to achieve ‘sell-through’ to attain a full range of LIP compliant cigarettes in their shop.

If you have any further questions please speak to your local JTI representative or call the Customer Care Line on:

FURTHER INFORMATION • Consumers should remember that there is no such thing as a “fire-safe” cigarette. • Cigarettes that comply with the LIP standards will not necessarily self-extinguish under conditions of use. • Careless use and disposal of cigarettes can cause fires. Cigarettes must not be left unattended and must be disposed of with care. Consumers should use an ashtray to dispose of their cigarettes.

0800 163 503

Tobacco smugglers stealing your business? If so, contact: Customs Hotline 0800 59 5000

TJD032_LIPC AD_C&C MAN_A4.indd 1

02/08/2011 14:27

Top 25 Suppliers

JUNE RESULTS

TOP 25 SUPPLIERS Position

Company

Coca-Cola Enterprises

26.27

Cadbury

23.77

Nestlé

23.03

Imperial Tobacco

22.81

PepsiCo

22.73

United Biscuits

22.15

Kellogg’s

22.14

Mars

22.08

Unilever

22.08

GlaxoSmithKline

21.96

Tata

21.91

Heinz

21.81

Procter & Gamble

21.57

Tate & Lyle

21.40

Kerry Foods

21.17

JTI

21.15

Red Bull

21.08

Danone

20.94

Robinson Young

20.90

Britvic Soft Drinks

20.83

Carlsberg

20.66

Johnson & Johnson

20.64

Aimia Foods

20.54

Molson Coors

20.24

Premier Foods

19.68

(including Professional)

(Tetley)

Score (max. 30)

SCORING The scores are adjusted to take into account the fact that not all wholesalers deal with all suppliers. For example, if 100 wholesalers vote, but only 95 deal with a certain supplier, that supplier’s total is divided by 95.

TOP 25 SUPPLIERS Please post (no stamp required) to: Winlove Publications Ltd FREEPOST NAT 15060 PO Box 366 East Grinstead RH19 4BR

Now in their eighth year, Cash & Carry Management’s AWARDS recognise and reward the efforts of the best suppliers to the trade and are entirely judged by C&Cs/delivered wholesalers.

Top 25 Suppliers July performance

(max. 30 points)

Aimia Foods Britvic Soft Drinks Cadbury Carlsberg

your votes

Coca-Cola Enterprises Danone

The top 25 suppliers in England, Wales and Ireland, as voted by readers of Cash & Carry Management, are listed opposite. Each month for the next three months, readers are invited to award each supplier points based on the previous month’s performance. Please consider the following when assessing your top 25 suppliers: • Operations: deliveries, depot contact, admin support, complaint handling • Support: marketing and promotional activity, advice on merchandising and ranging, customer development • Wholesale focus: competitive pricing, right products, appropriate packaging, understanding of wholesale marketplace

GlaxoSmithKline Heinz Imperial Tobacco Johnson & Johnson JTI Kellogg’s Kerry Foods Mars Molson Coors Nestlé

(including Professional)

PepsiCo Premier Foods

IF YOU DO NOT DEAL WITH A SUPPLIER, PLEASE ENTER N/A

Name ............................................................

Procter & Gamble Red Bull Robinson Young Tata

Company....................................................... Address ......................................................... .....................................................................

(Tetley)

Tate & Lyle Unilever United Biscuits

ADDITIONAL QUESTIONS: 1. What impact do you think the Olympics will have on your business? ............................................................................................................... 2. Which of the above companies offers the best sales development support? ..................................................................................................... 3. Are you happy with the level of sales representation you receive from suppliers in depot? ................................................................................ 4. Which of the above suppliers provides the best quality representation in depot? .............................................................................................. 5. Do you welcome price-marked packs?...........................................................................................................................................................

catering

Eat, drink, clean up Leading suppliers to the catering trade air their views on what counts in this lucrative sector. “Hot beverages can be one of the biggest revenue streams on caterers’ menus,” says a spokesperson for Kraft Foods, whose wide range is headed by products carrying the Kenco and Cadbury labels. She adds: “We focus on quality brands, sustainability and value – three considerations that are key to consumers buying hot drinks away from home. “Quality is at the heart of the Kenco brand. The coffee beans go through rigorous quality checks throughout their journey, from harvesting to roasting, blending and finally packing to ensure, whichever format is purchased, Kenco reaches the end user in perfect condition.” She claims that in a recent survey conducted for Kraft Foods (RBI Research 2010), 69% of caterers believed their customers were prepared to pay for a ‘better tasting’ coffee. “This means that quality coffee can really help drive revenue,” the spokesperson comments. She adds that this belief is supported by retail data, which shows that premium brands hold the largest proportion of the total market, with 38% (AC Nielsen Total MAT week ended 21/5/11). Kenco has been running a promotion called ‘Believe in the Taste’, helping customers to get the most out of their premium coffee sales. It is offering a money back guarantee on

away-from-home packs of freeze dried coffee. The packs, which feature new Kenco branding, “will enable operators to purchase a tin or stick case to try. Then, if they are not completely satisfied, they can return it.” Cadbury remains the No.1 manufacturer in hot chocolate, holding a 65% market share in foodservice (Maude Roxby 2010 UK Foodservice Market Overview). Says the Kraft spokesperson: “It includes a range of products that fit all serving methods – instant ‘add water’ products for manual mix servings and dispense hot chocolate for table top dispense machines, as well as Cadbury Drinking Chocolate, which is ideal for use with a traditional steam arm coffee machine. “The product just needs to be mixed with milk to give consumers a truly indulgent hot chocolate drink experience.” The spokesperson recalls Kraft Foods research two years ago which identified that 65% of consumers considered that an outlet which offers sustainably farmed or ethically sourced hot beverages created a positive impression. “So choosing brands that are ethically sourced, without compromise to quality, is a real advantage. “All beans sourced for the Kenco range come from Rainforest Alliance Certified farms and all Cadbury Highlight Hot Chocolate packs have been Fairtrade since 2010.”

Several styles in the Kenco out-of-home coffee range.

Cash & Carry Management August 2011

• IT is Small because it’s concentrated. • IT is Mighty, because it’s concentrated. • IT delivers great wash results, because it’s Persil small & mighty.

A mighty 114 washes per 4L bottle, easy dosing and unbeatable cleaning. All in a small 30 minutes.

Concentrate. Think about IT and you’ll get IT IT!! *Better value per wash than big box powders. Persil is a registered trademark of Unilever.

catering

What you want, where you want it.

Says Olivier Kutz, Heinz Foodservice brand manager: “For establishments wanting to attract as much footfall as possible, associating with a highly regarded brand is a great way to do this. “Utilising Heinz merchandising solutions such as the table-top caddy allows outlets to create a brand association and help bolster customer perceptions of the establishment. “We are dedicated to ensuring customer satisfaction. This is the latest example of our commitment to caterers and their customers and the company’s continued investment in foodservice.” The new two and four-piece table-top caddies were created after research revealed a demand for a sleek and contemporary merchandising solution to help reduce tabletop clutter. By featuring prominent Heinz branding, they allow outlets to associate themselves with a trusted brand. Since its launch five months ago, the caddies have received a high volume of interest. An advantage is that, by having them on the table, proprietors are able to free staff time by removing the need to bring condiments and menus to the table for each customer, so more time can be spent on ‘up-selling’ and customer service. The caddy also provides a convenient and compact solution for consumers, ensuring they are never without great tasting, quality sauces. It can also be customised to meet individual needs. The standard caddy includes menu and salt & pepper holders, as well as space for Heinz condiments, including Tomato Ketchup, Mustard, Mayonnaise and HP sauce. There are also two add-ons: an extra holder for two extra bottles and a black sachet holder.

Sauce dominance It is claimed that eight of the top 10 sauces sold in the UK are made by Heinz, with annual volume of more than 165 million bottles (AC Nielsen total coverage unit sales year to 25/12/10). Research conducted by Cambridge Direction shows that caterers remain fiercely loyal to the brand, whether it’s because of their own deep-rooted liking or because they do not want to alienate customers. The findings also show it to be one of the UK’s most loved food brands among consumers. In March, Heinz Foodservice introduced a Heinz Beanz Fridge Pack. The resealable bottle, available in a 1kg format (outers of six), can be stored in the refrigerator after opening, allowing caterers to deal with leftover beans easily with no hassle or wastage. Brand manager Emily Frank says: “The iconic Heinz Beanz portfolio has a rich history of innovation and the Fridge Pack is no exception. It has added value to the market and opened up new channels, particularly across B&Bs, independent cafés and leisure outlets. “The pack is especially useful for small to medium volume breakfast servings, in addition to lunch servings such as jacket potatoes.“ The foodservice business has also launched an improved table-top caddy, offering enhanced convenience and versatility.

Convenience at your fingertips.

Cash & Carry Management August 2011

Quality Frozen Seafood

Sea Products International Limited (SPI) is part of an International Seafood Group, specialising in the sourcing of fish & seafood from around the world. Established for over 35 years our strength lies in our long term relationships with leading producers from around the globe. We service the UKâ&#x20AC;&#x2122;s delivered wholesale, cash & carry, retail and food manufacturing trades with a wide variety of frozen & chilled items. Working closely with major distributors and key catering operators ensures that our product range continues to match the current and future requirements of the UKâ&#x20AC;&#x2122;s Catering Industry. Whether you require commodity products, added value or bespoke product solutions please contact us to discuss your requirements.

Sea Products International Ltd, Ocean House, Wholesale Markets Precinct, Pershore Street, Birmingham, B5 6UU, UK. Tel: +44 (0)121 622 5111, Fax: +44 (0)121 622 6123 www.seaproductsint.com

catering John Sutcliffe (left), convenience & foodservice manager, gladly accepts a cup of refreshing tea from Nick West, national account executive.

Foodservice move Taylors of Harrogate is generally known for its prominent position in the retail trade, with several major products in both the tea and coffee sectors. It is, however, also making its presence felt in foodservice. Says John Sutcliffe, convenience & foodservice channel manager: “While the majority of our business goes through the retail channel, we have been developing our convenience and wholesale interests across the past two years, and we are now embarking on developing a broader presence in foodservice. “We already work with a number of the key foodservice wholesalers, including 3663, DBC Foodservice and the Country Range Group. And although we are only just developing a foothold, we have secured customers such as the National Trust, Hotel du Vin, Malmaison and the rejuvenated Little Chef. “We are also bringing a proper brew to commuters on the east coast railway line via Rail Gourmet.” Sutcliffe adds: “The foodservice and cash & carry channels are very important to our business and we will continue to build our range, distribution and consumer awareness of of our brands across the next 12 months. “Within C&C, we will aim to keep our promotional strategy simple and ensure that the consumer has the right packs at

the right price available.” Taylors of Harrogate has enlisted the support of specialist foodservice agency FusionFSM to assist in developing its out-of-home presence. Says Sutcliffe: ”We feel there is a major opportunity to offer both our customers and consumers a one-stop shop from a business that has mainstream black tea, speciality tea and roast & ground coffee products. “The blends across our total range are of a very high quality, which ensures the end consumer has the benefit of great tasting products from which to choose. “Coupled with our above-the-line marketing activity being maintained across the next 12 months (a budget of £5m), we are optimistic we can continue to build on our current growth and ensure that the total hot beverage category benefits from this. “We are also currently supporting the Sky Arts channel within our Taylors of Harrogate roast & ground coffee range.” In retail, the Yorkshire Tea brand is worth £66m and is growing at 20% year on year. The supplier claims it is the third largest brand in standard black teabags, with a 12.8% value share. Its leading skus in this segment are: Yorkshire Tea 80s (in 7th place), 160s (8th), 240s (11th), Gold 80s (16th) and Hard Water 80s (17th). Sutcliffe comments: “Aside from these, we also produce Original, Hard Water and Gold (our premium blend) in a loose tea format. Our teas are sourced from the best gardens in Assam, East Africa and Sri Lanka.” In coffee, the company is represented by its Lifestyle and Gourmet ranges, as well as beans. The total value is £26.6m at rsp, with the supplier claiming to be brand leader in the roast and ground coffee segments. Says Sutcliffe: “We source coffee from Central America, South America and Africa, and we collaborate with independent certifying bodies. “We recognise that Rainforest Alliance, Fairtrade and UTZ Certified all do great work and have had a huge impact on improving social and environmental standards.” All data AC Nielsen year to 11/6/11.

Cash & Carry Management August 2011

THERE’S A BETTER WAY OF MAKING YOUR SAUCES LOOK GLAMOROUS

S OCK UP ON HEINZ SUMMER SAUCES STOCK & GET YOUR FREE MERCHANDISING KIT Good sauces are important to your o customers. omers. And your business is important to Heinz. That’s why we’re offering you a free e case of 4 of our Hold Me merchandisers when you buy 4 mixed cases of Heinz sauces.* Simply fill out the form below and send to the FREEPOST address along with your proof of purchase e from your normal wholesaler. You’ll then be sent your free merchandising kit and another free gift off offer. er. Don’t wait until the summer is over, get your sauces sorted today.

Outlet

Addr ddres esss

Foodservice

I agree to become eligible for the summer

Name

2011 free gift off ffe er from H.J.Heinz that follows Pos osttcode

BE RIGHT, IT HAS TO B HAS TO E IF IT

Tel

on from this promotion and receive details about it with my free mer merchandising chandising kit.

Freepost address: Heinz Foodservice, FREEPOST, SWB10200, Taunton, TA2 6BR. Please include proof of purchase with this form to receive your free merchandisers. *Off ffe er available on HP Sauce portions and all Heinz sauce portions, excluding the 80 sachet Cash & Carry bag, with a maximum of 2 cases of Heinz Tomato Ketchup per application. For full terms and conditions please visit www.heinzsight.co.uk and click on Promotions.

HEI0086_AD_C&CM_AW2.indd 1

CCM

28/07/2011 12:30

catering Crab cakes – one of many valued-added products available from Sea Products International.

Many C&C/wholesalers supplied Sea Products International is based in Birmingham, where it has offices for a staff of 30 and a cold store than can hold up to 2,000 pallets. “We supply the major foodservice wholesalers, leading oriental C&C operators and other independent C&C concerns,” says director Tom Hansen. “We also supply a large number of restaurant chains.” Fellow director Oliver Giblin comments: “Our major products are prawns and king prawns, but we also handle just about every variety of fish from the planet Earth. “We also supply a wide variety – millions of pieces – of value-added products, such as coated prawns, crab cakes and salmon Wellington.” SPI uses a firm of outside hauliers to distribute product throughout the UK and to the Republic of Ireland. “We have a turnover of around £25m,” says Hansen, “and are continuing to grow organically and through new customers. We offer them a mixed pallet service and can deliver container loads.”

The company’s major brand is Ocean Pearl, but it also has a number of secondary labels. Goods are also marketed under a variety of customer labels. Sustainability is a vital element of the way the company operates, with Hansen and Giblin referring to the fact that these days a lot of prawns are farmed. “We don’t sell things like shark steaks,” they add. SPI’s major sources of supply for prawns are Iceland, Norway, India, Vietnam and Thailand.

School chef success

This year’s SCOTY (School Chef of the Year) winner was Louise Witterick, of Solihull Catering Services in Birmingham. She teamed up with Nestlé Professional brand Maggi to create her award-winning dishes: beef stifado with a trio of root vegetables, minted spinach & broccoli and a spicy butternut squash tart for dessert. Maggi Multi-Use Tomato Sauce and Mash were both included in the preparation. After her success Witterick said: “Competitions like SCOTY give us the opportunity to promote school meals to the masses. “I was delighted to have my hard work rewarded and my skills recognised. It makes such a difference to overall job satisfaction! Utilising tools such as Maggi’s range of sauces and gravies, not to mention the abundance of recipes on the brand’s Menu Solutions, all make a real difference.” In another competition involving Nestlé Professional, the Craft Guild of Chefs’ banqueting and events award winner was David Summerell, of the Royal College of Physicians. Says Emma Walker, Chef brand manager: “It’s been a challenging economic environment. “Finding new ways to operate, protecting existing revenue streams and identifying new ones is not easy. David Summerell and his team have made decisions which have helped them to adapt and move with the climate. “This kind of innovation is somePart of the award-winning menu served up by Louise Witterick. thing our sector is great at.”

Cash & Carry Management August 2011

Letâ&#x20AC;&#x2122;s have a proper brew

catering industry leading brands, developed specifically for small businesses and professional users who need exceptional quality and value for money at their local cash & carry’. A spokesman highlights new Persil four-litre Small & Mighty in biological, non-biological and colour formats. He comments: “Small & Mighty offers incredible value for money, providing 114 washes and with an easy-to-use dosing cap for both convenience and cost effectiveness. “The product has added pre-treaters to improve cleaning performance. It is great at attacking stains caused by grease, oil and blood. It has also been designed to wash clothes as low as 15 deg, leading to performance and energy efficiency in a cycle of just 30 minutes.” Another leading corporate product is Suma VISPO (6kg), which removes grease and baked-on foods. The pack features instructions in Mandarin and Bengali, as well as English, for easy use among caterers operating Oriental and Indian restaurants and takeaways. The spokesman adds that Diversey continues to innovate and will be announcing more products in the near future. Chef has launched Jus en flocons (flakes), described as ‘a unique product in the UK’. The flake shape of the product ensures premium end quality and operational benefits for chefs, according to brand manager Emma Walker. “It dissolves quicker and better than powder while enabling increased creativity.” Every flake contains 100% of the original ingredients present in the stock, so whatever the quantity used, each one releases the total bouquet of flavours and aromas. The format is said to be more versatile than powder and enables chefs to prepare more than jus; it can be used to create flavoured biscuits, meat crusts, pannés, jellies and marinades. The product is available in six flavours: veal, beef, lamb, chicken, duck and pork. There is no monosodium glutamate. Walker comments: “The launch of Chef Flakes marks the culmination of several years of research. It really is a new generation convenience product that will not only allow chefs to deliver the finest in haute cuisine, but also help them to create a total sensory experience in texture, flavour and taste. “We know that chefs are under extraordinary pressure to deliver exceptional quality every time, and that means our products must match their high standards. “Chef constantly strives to develop its product range, using the highest quality raw ingredients to deliver the most authentic tastes.”

All aspects of cleaning Cleaning products from Diversey cover every aspect of kitchen, washroom, laundry and general cleaning. The company claims to offer ‘some of the best known and

New brand image Westlers, marketed by Malton Foods, has undergone a revamp in order to build on its brand heritage. Maketing controller Robert Burns says: “We also want to convey quality, reliability and fun.” The image, which can be seen across all of the company’s products, including retail lines of hotdogs, burgers, meatballs and bean meals, was designed to be flexible enough to be used in foodservice and retail categories. The new identity uses the same royal blue and red colour palette of the previous logo, but the silver edge to the oval holding device has been added. Retail labels include Tyne, Chesswood and Westlers. A range of burgers and ready meals is available in the foodservice channel.

For further information: Diversey (0800) 525 525 Heinz Foodservice (0800) 575755 Kraft Foods (01242) 236101 Malton Foods (Westlers) (0800) 027 6336 Nestlé Professional (0800) 745845 Sea Products International 0121-622 5111 Taylors of Harrogate (01423) 814000

Cash & Carry Management August 2011

PREPRESS CHECK LIST Width 210mm Height 297mm CHECK SIZE SPELLCHECK

5190 KRAFT Believe cash n carry.pdf

22/07/2011

16:58

LASER PROOF PROOF READ OVERPRINT RASTER FX 2ND CHECK

If you would like to host a coffee morning please visit... http://coffeeregister.macmillan.org.uk/2011 http://coffeeregister.macmillan.org.uk/2011/kenco/register.asp to register

PDF CHECK HI RES SCANS CYAN MAGENTA YELLOW BLACK

Official Coffee Partner to

Sustainably farmed... All of the beans KENCO buy for its full coffee range are now 100% sourced from Rainforest Alliance CertifiedTM farms, protecting the environment, the workers and their families.

No compromise to quality... Quality is at the heart of the Kenco brand. Thatâ&#x20AC;&#x2122;s why all KENCO beans go through rigorous quality checks throughout their journey, from harvesting, roasting and blending through to packing, ensuring whatever format you need, Kenco coffee reaches you in perfect condition.

For details visit www.kencocoffeecompany.co.uk OV5190

products & promotions Golden delicious

Price-marked BURTON’S FOODS – The UK’s second largest biscuit supplier has launched Wagon Wheels as a price-marked pack. The move, said David Costello, category & activation controller, is aimed at generating incremental growth in chocolate biscuit bars – a major sector in the £350m lunchbox treat market. He added that the brand is worth £9.9m. “The launch of the £1 packs will create standout on the fixture, introducing children and adults to the brand against a backdrop of growing price sensitivity among consumers,” he commented. “Offshelf promotional effectiveness is 72%, so to maximise profits, retailers should site it offshelf where possible.” Tel: Burton’s Foods (01727) 899700.

Just for kids DAIRY CREST – Newly launched Chedds is being backed by a £3m drive, including television advertising. Made from mild Cathedral City Cheddar, it enters the kids’ cheese snacking category, which is valued at £305.6m (AC Nielsen year to 14 May 2011). Gemma Baggaley, brand manager, kids, stated: “Mums want to give their children a C h e d d a r cheese snack that’s convenient and that they will enjoy. Kids want something cool, fun and portable. “Chedds (rsp £1.99) comes in three formats: cheese & toasties (16 x 3 x 33g and 6 x 3 x 33g), nibbles (9 x 6 x 18g and 6 x 6 x 18g) and bricks (9 x 8 x 18g and 6 x 8 x 18g). We believe this is the most important kids’ cheese snacking launch in the last decade.” Tel: Dairy Crest (0845) 606 3606.

HEINEKEN UK – The drinks supplier has introduced Foster’s Gold, described as ‘a 4.8% abv crisp, clean chill filtered premium bottled lager with a refreshing, easy-drinking taste’. It is aimed at the brand’s primary target audience of 18-34 year old males ‘who are looking for a drink they can enjoy in mixed groups’. The new drink is being promoted with Foster’s ‘Good Call’ strapline. It is available in a range of skus. A sixpack, also in a pricemark format (£5.50), has been developed for the convenience channel. There are also packs of 12, 15 and 20. The launch of Foster’s Gold is being supported by a multi-million pound campaign that includes tv and outdoor advertising. Tel: Heineken UK 0131-528 1000.

Sustainable tuna PRINCES – The canned goods brand has launched a range of pole and line tuna following confirmation of the next phase of its tuna sustainability commitments. The tuna steak range selection includes three 80g twin packs, in olive oil, brine or spring water (rsp £1.99 for brine and spring water and £2.09 for olive oil), and three 160g single packs, in sunflower oil, brine or spring water (£1.89). Marketing director Ruth Simpson said: “The launch is just one part of our broader tuna action plan, and it provides consumers with increased choice.” The Liverpool-based company continues to engage with the International Seafood Sustainability Foundation, Earth Island Institute, Marine Stewardship Council, World Wildlife Fund and Greenpeace. Tel: Princes 0151-966 7000.

Three variants UNITED BISCUITS UK – The producer of biscuits, snacks and cakes is investing heavily in new McVitie’s Quirks, which joins a brand valued at £252m. The biscuits (175g) comprise a chocolatey centre enclosed in a crunchy biscuit. There are three variants: chocolate, double choc and choc & hazelnut, all of which come in a plastic tray. The rsp is £1.53. Victoria Gregory, McVitie’s marketing controller, said the new line is expected to hit sales of £30m at rsp in the next three years. The launch is being supported by a £3m marketing and advertising drive to include tv, cinema, digital and in-store support. Tel: UBUK 020-8234 5000.

Star performer CADBURY – The confectionery giant’s Wishes, which has become a £2.7m brand, is introducing a gift pack (14 x 11g pieces, rsp £3.99) in its Christmas programme. It will be supported by a £1m marketing campaign. Some 10% of all existing and future profit on sales of the chocolate starshaped product are being donated to the Make-A-Wish Foundation, which helps children with life-threatening illnesses. Cadbury has also pledged to swell the fund, with £400,000 going to the charity over a three-year period. The supplier’s seasonal schedule also sees the launch of character bags (£2.99 in outers of six) with treat-size products and selection packs (rsp £5, outers of five), created to mark the company’s status as the official treat provider at the 2012 London Olympics and Paralympic Games. Trade communications manager Susan Nash told Cash & Carry Management: “Last Christmas the Cadbury brand enjoyed 4.1% growth (AC Nielsen total coverage).” Tel: Cadbury (08702) 400861.

Cash & Carry Management August 2011

products & promotions Major relaunch

Going by tube

MÜLLER DAIRY (UK) – The chilled yogurt and pot desserts producer has embarked on the first phase of a major relaunch. This month it rolled out new packaging designs across the three key brands: Corner, Müllerlight and Müller Rice. It is also relaunching Müllerlight with a thicker and creamier tasting recipe, as well as with three additions to the range – mango & passionfruit, limited-edition coconut with chocolate sprinkles and the re-introduced lemon cheesecake yogurt. Blue is the new master colour, and the new livery will appear on all single pots, multipacks and trays of the three brands. The programme is a major element of the supplier’s £30m marketing budget this year. Marketing director Lee Rolston said: “The standout of Müller blue will act as a signpost for the category and is guaranteed to disrupt shopper behaviour, but in a very positive way. “Three quarters of households buy Müller brands – more than any other yogurt. Müller Corner is Britain’s favourite yogurt brand, Müllerlight is the top-selling fat-free yogurt brand (Nielsen Scantrack year to 11/6/11) and Müller Rice is the No.1 chilled pot dessert.” Rolston added: “This is a great position to be in. But there’s still plenty of opportunity for growth in terms of frequency of purchase. We’re confident the new livery and potential offered by block merchandising will help expand the category.”

SWIZZELS MATLOW – The children’s confectionery supplier has launched a range of sweet stocking fillers, with some of its most iconic lines appearing in 120g tubes for Christmas. The products, including Mini Love Hearts, New Refreshers and Drumstick Lollies (rsp £1.49), have festive snowflake and ribbon packaging. Marketing manager Sarah-Louise Heslop said: “This range is the perfect stocking filler or gift for that relative or friend that you’re stuck to buy something for. The gift tubes provide a refreshing alternative to chocolate.” Tel: Swizzels Matlow (01663) 744144.

All data Kantar Worldpanel year to 12/6/11 except where shown.

Tel: Müller Dairy (UK) (01630) 692000.

Sport initiative FRIESLANDCAMPINA UK – The Yazoo milkshake brand has launched an onpack promotion on its chocolate, strawberry and banana 200ml multipacks, marking its partnership with Premier Sport in Great Britain and Playball in Ireland to offer free after-school activities to children. Supported by a radio campaign, the initiative is making available a range of activities and sports, including tag rugby, cheerleading and tennis. Each 200ml four and six-pack has a unique code, which consumers will be asked to enter on the yogurt’s website. Parents will be able to make a saving of between £3 and £15 on each activity. Tel: FrieslandCampina UK (01403) 273273.

Can recycling RED BULL – The energy drink brand has become a funding partner of the ‘Every Can Counts’ programme. The pair will combine to explore ways of encouraging consumers to recycle drinks cans, including those at the supplier’s own events. Last month, for instance, the Every Can Counts events recycling team was present at the Red Bull Flugtag in Leeds. The initiative’s executive director Rick Hindley said: “Red Bull has a reputation for leading from the front, being creative and innovative in its approach to everything – from events to retail.” Red Bull UK’s md Nigel Trood added: “Joining Every Can Counts gives us the opportunity to directly support and encourage drinks can recycling among our consumers and a wider audience.” Tel: Red Bull 020-3117 2000.

Cash & Carry Management August 2011

DVD promotion ANHEUSER-BUSCH INBEV – A promotion appearing on packs of Stella Artois 5% and 4% abv lager offers consumers the chance to win one of 40 top DVDs. It runs until 30 November. Covering all off-trade channels, the activity is being supported by a marketing campaign that includes out-ofhome advertising, a digital media drive and public relations. Bespoke limited-edition packaging designed in a DVD box set format will ensure strong standout. There is also support in the form of in-store radio, gondola ends and shelf barkers. Commenting on the promotion, James Watson, European Marketing Director, said: “Stella Artois has a history steeped in film and we know that consumers who love our brand also love exceptional film entertainment. “We wanted to reward consumers this summer by bringing the best of cinema into their home. This is a perfect way of doing that.” Tel: AB InBev (01582) 391166.

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Growing the category with delicious new additions to the Galaxy range ®

Orange has topped the list of flavours in chocolate NPD from 2007-2009* Massive £14m media spend for Galaxy in 2011 ®

The total Galaxy brand is worth £250m and growing** ®

Available from 15th August *Mintel Confectionery Report, April 2010. **IRI Infoscan & TNS Worldpanel usage data September 2009. ©/®/TM/Design: Mars 2011.

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