CCM Sept 13 by Cash & Carry Management

SEPTEMBER 2013

Fukhera Khalid of Elbrook on success through superior service

It’s all happening at Rosemount Estate right now. Amongst other things we’re excited about the arrival of the new Founders Edition, which replaces the Founder’s Selection.

BWG secures 12m euro deal with the Irish Prison Service

It’s a packaging refresh that brings the much loved Australian wine brand bang up to date – something we know will be a big hit with your customers.

Stock up now!

Boost Drinks highlights its commitment to independents

OLD PACKAGING

A T

NEW PACKAGING UNT ES MO T

WIN

ERY

Rosemount winery has won over 230 awards in 2012 as well as James Halliday’s Five Star Winery in 2013

Spotlight on Iain Johnston of Shetland-based JW Gray & Co

The business magazine for cash & carry/delivered wholesalers

Freephone 0800 444 236 for more information

More choice for your customers.

• Another first from Pall Mall – introducing capsule across the entire range!*

More sales for you!

• Now, your customers can choose to enjoy their regular Pall Mall or click to add a subtle fresh taste at the same great Pall Mall price.

For tobacco trade use only – not to be left within sight of consumers. *New Pall Mall Click On range replaces the existing Pall Mall range.

Smoking kills

contents

Will red tape be a solution? The British summer keeps on going. Just when you think it’s run out of steam another few days of sunshine come along, sales go up again, and wholesalers keep smiling – even if one London operator did remark to me that it would have been better to have the sunshine in May, before everyone went on holiday. But while this good weather is a fillip for the industry, there is one running sore that just won’t heal and is a constant drain on the health of businesses in the sector, and that is all the smuggled tobacco and alcohol flooding into the country. Ever since the government started ratcheting up duty rates on tobacco, smuggling has been big business, with an estimated 22% of all the tobacco consumed in the UK being non duty paid. And in recent years, the criminal gangs who were getting rich on the proceeds realised they could make huge profits from alcohol too. HM Revenue & Customs and successive Governments have seemed powerless to stop this drain on the legitimate industry – and on the Exchequer – despite intense lobbying from the trade, so the news that HMRC is consulting on proposals for a registration scheme for drinks wholesalers, as advocated by the FWD, must be welcomed. It would introduce a new administrative burden for law-abiding businesses, but if it meant that the illegitimate operators were driven out of business it would be worth it. Whether HMRC is up to policing such a scheme is another matter.

Michael Lorimer joins DCS as head of a new foodservice division ... see p.6

news

Brian Joffé: Margins were ‘well managed’ by 3663 ... see p.6

4–7

delivered

interview

10–12

spotlight

customer cares

top 25 suppliers awards

supplier strategy

achievers employment law

20–21 22

products & promotions

27–28

promo checker

29–31

sales/marketing & brokerage

32–34

buying groups

36–46

Managing Editor

Kirsti Sharratt

Editor

John Wood

News Editor

Mervyn Gilbert

Features Editor

Amber Aitken

Media Sales Manager

Clare Phillips

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE Tel (01342) 712100

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Publishing Director

Email mail.winlove@btconnect.com

Martin Lovell

4,565 July 2012–June 2013 John Wood editor

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ISSN 1352-254X

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Cash & Carry Management

• September 2013 • 3

news IN BRIEF

All-clear for buying link-up

IT upgrade Fegan’s Foodservice, established in 1925 and operating from two sites in Dublin, has invested in an Accord web ordering system from BCP (Business Computer Projects). This is an upgrade of an Accord package that the Irish wholesaler installed five years ago. It enables the company to have centralised control of the two depots.

Monthly boost Martin Williams, managing director of Landmark Wholesale, described July results as “a good performance”, with a 15.5% upward movement compared with the previous corresponding month. Licensed goods did particularly well, advancing by 23.5%. Williams expects growth to continue over the coming months.

Relaunch Booker, which has closed its Sheffield C&C and moved into the nearby Makro premises, officially opens its ‘new and improved’ site in the steel city on 2 October.

Sterling Sterling Supergroup’s annual conference takes place on 26-27 September at Slaley Hall, Hexham, Northumberland.

Six months after a joint buying group was announced by Palmer & Harvey and Costcutter Supermarkets Group (Cash & Carry Management: March), the Office of Fair Trading has given clearance for the partnership to proceed. It’s now ‘full steam ahead’ for The Buyco, a £5bn amalgam (£4bn P&H, £1bn Costcutter) which chief executive officer Martyn Ward claims will be able to “offer retailers the most competitive prices and promotions, as well as an industry leading range. We will serve the buying needs of P&H’s existing retail customer base, as well

as those of Costcutter.” The OFT clearance means that the 800 Mace, Supershop and Your Store outlets serviced by Hovebased P&H will now be managed by Costcutter, based in York. Its chief executive officer Darcy Willson-Rymer said: “By necessity, the OFT investigation delayed the Mace, Supershop and Your Store brands moving across to Costcutter. We will now press ahead at pace.” P&H chief executive Chris Etherington commented: “We will now be able to focus on our core strengths and extend the delivery benefits and excellent national

service standards already enjoyed by our existing customers to the wider Costcutter Group. And our symbol retailers will have access to Costcutter’s widely acclaimed retail service and support.” He added that he hoped to welcome as many retailers as possible who are trading under the three P&H fascias at a Costcutter exhibition in Manchester this month. P&H first became associated with Mace 14 years ago when former franchised wholesaler Booker sold its delivered business. In 2005 it increased its Mace distribution by acquiring the rights in Scotland from Somerfield. Under the Costcutter arrangement, P&H will continue to deliver to all Mace, Supershop and Your Store outlets from its 14 UK depots. Costcutter’s current distribution arrangement with Nisa ends next year. Tel: Palmer & Harvey (01273) 222100. Tel: Costcutter (01904) 488663.

It’s CR (Coral Rose) Group! After months of searching for a new managing director, Country Range Group has looked no further than its own staff by selecting former group marketing & projects manager Coral Rose (right). On 1 November she takes over from Colin Birchall, who announced some time ago that he wished to step down. CRG, with 16 wholesale members, recently celebrated its 21st anniversary by reporting turnover up by 26% to £320m. Rose commented: “Colin is a founder member of CRG

• Cash & Carry Management • September 2013

and, over the last 21 years, has done a fantastic job in establishing it as the leading group in the UK and the Channel Islands. While we continue to see impressive growth, there is still a lot of unexploited potential.” Rose began in foodservice as marketing controller for Watson & Philip, then moved to Ranks Hovis McDougall. Before joining CRG in

2010 she was a consultant for such companies as Premier Foods, Farm Frites and DBC. Birchall takes on the new role of chairman, with Mike Watson as trading director. Over the past 18 months, the group has recruited Hendersons, Valley Foods, Caterfood and Dunns Food & Drinks. Tel: Country Range Group (0845) 209 3777.

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news

More for kids to chew over

Brown: ‘Back to school is an important time for retailers.’

Buddies, the recently launched kids’ confectionery range from Bestway, has been extended in time for the new school term. All single packs have a price point of 1p, 5p or 10p. There are also jars, tubs, and sharing and pick ’n’ mix bags, all with a minimum 50% profit on return. New additions to the 5p

Marketing role Richard Booth has become Bestway marketing controller, replacing Jason Baker who has left the company. Previously deputy trading controller, Booth has been with the C&C/wholesaler for

nine years. Before that he was Landmark’s trading controller for seven years, prior to which he held a similar post at Nurdin & Peacock, also for seven years. Tel: Bestway 020-8453 1234.

‘Next step’ in expansion Confex, based in Chipping Norton, Oxon, for 12 years, has moved to new 6,000 sq ft offices in Moreton-in-Marsh, Glos. Guests at the official opening included local mayor, Colin Hancox. Managing director Nicky White told Cash & Carry Management: “The leasehold building, which was formerly occupied by a retail saddlery business, is home to our 18 members of staff.

“What we have here is more space, better meeting facilities and a more welcoming reception area. This move represents the next step in our growth strategy and gives us the modernity required to take us forward.” Full address of the group, whose turnover is well over £1.6 billion, is: Cotswold Business Village, London Road, Moreton-in-Marsh, Glos GL56 0JQ. Tel: Confex (01608) 652333.

tubs include Fried Eggs, Twin Cherries and Fizzy Belts, while Giant Spiders, Freaky Frogs and fruit-flavoured Pencils, in both strawberry and apple flavours, complete the new-look 10p range. Also in the selection are Jelly Beans, Friendship Rings, Fruit Jellies, Gummy Bears, Fizzy Mix and Strawberry Hearts. All sharing bags are pricemarked at 69p for 140g. The new 3kg bags include Giant Fizzys, Nut Brittle, Assorted Toffees, Chocolate Covered Nuts and Fruit Flavoured Bonbons. “Back to school is an important time for retailers as their stores are once more a destination for school kids wanting to buy sweets with their pocket money,” said Nick Brown, Best-in buying manager. Tel: Bestway Group 0208453 1234.

New website Landmark Wholesale has launched a new website for Lifestyle Express (lifestyleexpress.co.uk). In addition to being the main channel of communication between group retailers, wholesalers and cash & carries, the website is aimed at recruiting new symbol retailers. Tel: Landmark Wholesale (01908) 255300.

HMRC plan welcomed FWD chief executive James Bielby has approved an HM Revenue & Customs move to “take forward” a proposal about drinks duty fraud made by the trade body. An HMRC registration scheme for C&C/wholesalers of alcohol ensures that criminals cannot deal in dutyevaded beers, wines & spirits. Bielby said this would build on the scheme proposed by the FWD as a means of preventing the £1.2bn loss in duty revenue to the illicit trade and “massive loss of business to our member wholesalers”. Around 10% of beer and 5% of spirits is currently distributed by criminals. “We are working with HMRC to ensure that the new regime will do the job that it is intended to do. “Although it will place an administrative burden on FWD members, it is one they are prepared to bear if it means that no-one is able to purchase and sell dutyavoided stock. “It is absolutely vital that the scheme does not legitimise operators who are currently trading illegally. “We will be pushing for strict criteria which ensure that only law-abiding wholesalers are approved for registration.” Tel: FWD (01323) 724952.

Turner joins Hancocks

No chance of visitors missing the new building!

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Danny Turner, formerly senior controller – non-licensed at United Wholesale Grocers, Glasgow, and before that senior trading controller for CJ Lang’s wholesale division,

has become assistant manager of Hancocks’ Dundee cash & carry, where the manager is John Jack. Tel: Hancocks (01509) 216644.

Cash & Carry Management

• September 2013 • 5

Why Coffee? Lynn Little, Standard Ingredients CBU Lead at NESTLÉ PROFESSIONAL® (in her first of five monthly columns) makes the case for coffee and sets out the opportunity that exists for cash and carries… Coffee is hot property. It’s trending, it’s making the headlines, we’re talking about it, we’re drinking it, and significantly, the out of home sector is helping drive its relevance and growth. Let’s take a look at the facts… As a nation, we consume 9.85 billion cups of coffee in an OOH environment every year,i which represents c30% of total drinks consumed out of home. Testament to its growing popularity, the tea: coffee ratio in the OOH market now stands at 1:1.ii Branded coffee shops are driving this growth with a 5.3% outlet increase last year.iii The pub and retail sectors are also contributing, with exponential growth witnessed by key high street brands like Marstons and Marks and Spencer. Furthermore, some 17.6% of meals consumed OOH now include a hot drink iv (up 2% on last year) and significantly, consumers are less likely to trade down on coffee than food. In a nutshell, the market is growing exponentially. The outcome? Whether it’s to boost sales, attract new customers or simply keep staff happy and motivated, businesses including workplaces, pubs, cafés and restaurants are taking a fresh look at their hot beverage offering. At the end of the day, the figures speak for themselves. There’s no denying there’s a real opportunity for cash and carries to capitalise on the nation’s ongoing love affair with coffee. To find out how, read my column in next month’s issue.

helping you add value At NESTLÉ PROFESSIONAL® we have the knowledge & complete range of solutions to help you to satisfy consumers and drive beverage profits. Find out more at nestleprofessional.co.uk or call 0800 745 845 and quote ‘cash&carry’. Incite, 2013 Kantar Worldpanel Usage, Out of Home Consumption, 12 m/e Feb 2012) iii Allegra Strategies, Nov / Dec 2012 iv NPD Group / Crest YE Feb 2013) i

NESTLÉ PROFESSIONAL® is a registered trademark of Société des Produits Nestlé S.A.

‘Resilient’ performance ‘Resilient’ is how Brian Joffé, chief executive of Johannesburg-based Bidvest Group, describes the performance of 3663 in the year to the end of June. Trading profit increased and sales volume rose despite ‘challenging’ trading conditions and wet spring weather, while margins were ‘well managed’. The associated Bidvest Logistics business exceeded sales and profit targets and achieved a volume record of 57.8 million cases. The UK logistics concern also set up an annualised hourly contract with drivers at all sites. Bidvest Fresh, which incorporates Seafood Holdings (acquired in 2010) and more recent purchase fresh produce supplier Oliver Kay, also increased trading profit and sales due to rising salmon prices and ‘a dedicated focus on customer requirements’. These foodservice activities, plus those elsewhere on the continent, enabled Bidvest Europe to increase trading profit by 2.6% to R936.2m (£58m) on sales

ahead by 17.1% to R48.2bn (£2.99bn). UK returns contrasted with those in the Netherlands, where Deli XL faced continued pressure on margins in a competitive environment, mainly in the institutional sector. Foodservice also remained flat in the Czech Republic and Slovakia, where bad weather hit trading. There were also disappointing results from Farutex in Poland, although improvements were achieved by Deli XL in Belgium, where new acquisitions drove growth through hotels and restaurants, and by Bidvest Baltics, which increased its chilled and ambient ranges. Bidvest Middle East expanded in Turkey with the

Own brands up 7% Landmark Wholesale’s own brands did well during July – the third month of the group’s financial year – with sales into depots up 7% compared with the previous corresponding period. Those highlighted by group business development director Chris Doyle were LSV energy drinks, No3 cigarettes and licensed products. He commented: “These figures are very pleasing; they are on top of strong

own-brand sales last year. But trading conditions are still tough. “All members remain committed to the future of our own brands, which offer great value and excellent margins to retailers. “With our commitment to new product development, pricing and promotions, we are helping to create loyalty with retailers, caterers and consumers.” Tel: Landmark Wholesale (01908) 255300.

purchase of a majority stake in Aktaes – ‘a medium sized distribution business’. Asia Pacific foodservice increased trading profit from just over R1bn to more than R1.2bn, on sales up from R23.5bn to R28.6bn, and the South African operation rose from R309.32m to R340.5m on sales of R5.9bn (R5.7bn). Tel: Bidvest UK 020-7493 4733.

Lorimer joins DCS DCS Europe has named Michael Lorimer as head of strategy and head of a new foodservice division. Formerly managing director of Henderson Foodservice (a Country Range Group member since early last year), he is also a previous vice chairman of Landmark Wholesale and has worked for Mars Confectionery. Part of his DCS Foodservice role will be to develop a complete range of cleaning and health & beauty products for delivered wholesalers and foodservice buying groups. He will also be working alongside the DCS board in his role as head of strategy for the group. Tel: DCS Europe (01789) 208000.

news

Preparing for Christmas Brakes has launched a Christmas guide and ‘toolkit’, together with a dedicated website and new product range. Head of food marketing Neil Smith said the new support package would enable businesses to “stand out from the competition and thrive over the festive months”. The Christmas Your Way brochure details ways operators can plan and prepare in advance. The Christmas micro-site went live this month, with catering outlets able to download various aspects of the guide and access marketing and promotional

material, such as posters and menus. Smith said: “Christmas is one of the most important periods for caterers. It is critical that operators prepare now in order to best utilise the opportunity so that they don’t lose out to the competition. “Planning early enables them to put themselves in

the best place to drive a high footfall and maximise profit.” He added: “Our research shows that decisions about Christmas social events begin to be made as soon as summer is over.” New products introduced by Brakes include Braised Beef with Portobello Mushroom, Red Cabbage & Balsamic Jus and Salted Caramel Rocky Road Brownie dessert. Operators can also select from three suggested price points: Classic, Deluxe and Ultimate. Tel: Brakes Group (01233) 206000.

Retailers given £50 Each shopkeeper who attended the Bestway retail development seminars in Scotland was given a £50 voucher for Best-in stock as a ‘thank you’ for demonstrating commitment to the C&C operator, including the Batleys chain. “The seminars offered customers the opportunity to listen and learn from presentations given by our partner suppliers and retail development team,” said group marketing director Rizwan Pervez (below).

Scope for even more? Tim Patel, owner of Yorkshire operator TB Cash & Carry, has doubled his charitable donations in a year by raising £10,000 for Scope Response, which provides support and advice to disabled people, their families and carers. He has already donated around £5,000 each to the Halifax Society for the Blind and Calderdale Dart, a disabled advice resource team.

Patel’s C&C operation has sales of £27m.

TB Cash & Carry, a member of Sugro, has two branches – a 20-year-old 5,000 sq ft unit in Bradford and a 17,000 sq ft depot in the Wortley district of Leeds, which opened three years ago. Annual turnover of the business is around £27m.

Patel told Cash & Carry Management: “At Leeds, there is an additional 9,000 sq ft of space which we are not utilising. I am looking for a tenant who may want to rent this part of the building.” Tel: TB Cash & Carry (01274) 740555.

within the UK, with nationally recognised accreditations, such as Red Tractor and Freedom Foods. “Seeing schoolchildren as customers who will only use the service, and persuade their parents to use it, if good enough, is another interesting perspective offered by the report.” Tel: Brakes Group (01233) 206000.

“However we realise that retailers are extremely busy and we wanted to offer them a token of our appreciation for taking time out to attend.” With an average 30% POR on the Best-in range, the company’s generosity equated to an additional £65 for the Scottish traders. Because of the success of the scheme, not only will it be repeated in Scotland next year, but it will also be extended to the north and south of England. The Bestway Performance Awards, now in their 13th year, will be held in central London on 31 October. The winners will be those retailers who have put into practice the knowledge gained at the seminars. Tel: Bestway Group 0208453 1234.

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• September 2013 • 7

A tick for school plan A new School Food Plan, issued by the Department of Education, has been welcomed by Brakes’ business unit director Wayne Tessier. He commented: “We support the findings and will be doing everything we can to help bring the vision to fruition. “The plan focuses on the quality of ingredients, increasingly sourced from

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delivered

12m euros locked away Irish wholesaler and Value Centre cash & carry operator BWG Foods has entered into a two-year contract with the Irish Prison Service. The company will deliver a range of food and non-food to 14 prison tuck shops in the Republic – a deal worth 12m euros over the two years. The goods include toothpaste, shower gel, shampoo, tobacco, cigarettes, confectionery, biscuits, chocolate and soft drinks.

An IPS spokesman told Cash & Carry Management: “There is an option for the contract with BWG to be extended by a further two years. “This is the first time we have awarded a contract centrally for the provision of tuck shop supplies; in the

Hospice donation St Richard’s Hospice, Worcester, has received £428 from SPAR’s Malvern Springs Service Station to support patients’ care. Included in the donation was £150 through the Blakemore Foundation Independent Retailer Scheme.

AF Blakemore extended the offering of its charitable trust in May to recognise the community activity undertaken by independent SPAR stores throughout the group’s Meridian & Welsh Guild. Tel: AF Blakemore & Son (01902) 366066.

Small screen return SPAR UK next month returns to television screens for the first time in four years, as part of a £5m national multimedia campaign. TV ads will appear until December. The symbol group, which is also using digital advertising, a customer magazine and instore communications, will highlight its convenience, value, product range and fresh produce. Philippe Rondepierre, UK head of marketing, said: “There is an enormous amount of warmth towards the brand, which we would like to communicate. “SPAR is customer driven; we understand and listen to customers’ needs and are continuously striving

‘Convenience, range and fresh produce.’

to give them what they want and to deliver the very best service. “The campaign will bring our ‘There for You’ strapline to the fore.” Tel: SPAR UK 020-8842 3690.

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past, responsibility for sourcing rested with each prison individually. “The tuck shop is a vital resource for the prisoners.” The spokesman added he was confident the new arrangement would improve efficiency and provide significant cost reductions. The product range will be standard across the prison estate. Profits generated from tuck shop sales are used to support the prisoners. Tel: BWG Foods (003531) 409 0300.

Flavoured water SPAR UK has introduced three new water varieties: strawberry & kiwi, lemon & lime, and apple, raspberry & blueberry. The 500ml still waters have an rsp of 65p and carry the flash ‘two for £1’. The symbol chain is also adding a new variant to its ambient juice selection – apple & blackcurrant in 3 x 100ml packs (rsp £1.69). Packaging for the whole range has been redesigned. Tel: SPAR UK 020-8426 3690.

Easier ordering Toiletries and household goods distributor Regal Wholesale has installed the latest web ordering system from Sanderson. Based in Bromborough, the Wirral, the delivered wholesaler supplies major discounters, convenience stores and supermarkets. It also deals with 35 countries outside the UK. The new system has enabled it to strengthen its customer service by offering a faster ordering process with more choice and control over delivery schedules and order tracking. The company is a longstanding Sanderson customer and user of the Swords wholesale solution. Customers can now place orders 24 hours a day. Features of the Sanderson system include an advanced product search facility with category and brand filtering, updated order screens displaying individual product images and next available delivery dates, plus a real-time

shopping basket. Additionally, an improved ‘favourites’ page stores frequently ordered items for customers to include at the click of a button. Regal Wholesale managing director Chris Hughes, said: “The website ordering system looks great and works very well and, most importantly, our customers agree. It’s a big success!“ Tel: Regal Wholesale 0151346 1420. Tel: Sanderson (0333) 123 1400.

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interview

Bollywood glamour and C&C Fukhera Khalid, director of Elbrook Cash & Carry, tells John Wood how his company has managed to grow and how he has diversified in some unusual directions. While Fukhera Khalid’s Elbrook Cash & Carry is very tightly focused on the market sector it serves, some of his other activities are well beyond the confines of supplying independent retailers and caterers, taking in film studios and even supplying Asda. His first taste of business was helping out in his parents’ Freshco Stores supermarket in Leyton, east London, after school. The business was successful and his father bought two neighbouring stores and set up a small cash & carry. Khalid explains: “I learned from the experience of helping dad and got to know about the suppliers. I decided to do something on my own, and was given my dad’s blessing.” His first cash & carry was a small depot in nearby Stratford, which he took over in 1984. The business concentrated on the CTN sector – mainly selling confectionery and soft drinks. Khalid says: “We did OK but not fantastic. Then the council decided to take the lease back because they wanted to knock the building down and build a library there, so in 1985 we moved to Barking in Essex.” At this point he started to look around for support from a buying group, and Sterling was the one he chose. He adds: “I stayed with them a long time. People were soon advising me that I should move to a bigger group, but I stayed because of my friendship with the chief executive Anne Tomlinson.” The expansion of the business began in 1987/88 when alcohol was added to the sales mix. Khalid says: “It worked really well for us, to the extent that by the beginning of the 1990s our turnover hit £90m.” He decided the business needed to expand, and in 1993 it opened a second depot at Mitcham, south London, at the site of the current Elbrook premises.

• Cash & Carry Management • September 2013

He says: “The plan was to open lots of cash & carries all over London, but in 1994 one of my sons was diagnosed with severe autism and I felt that I couldn’t really expand because I knew I would have to give him more time than the business.” Khalid decided he couldn’t keep two cash & carries because he was finding it difficult to look after both of them, so he chose to dispose of the Barking depot because it was the smaller of the two. The next major change in the business took place in January 2005 and was sparked, he says, by a discussion with close friends at Imperial Cash & Carry – who were members of the Today’s Group – during a trip to America with Anheuser-Busch. He says: “We got talking about the benefits of different buying groups. When we spoke about prices I felt really good because the prices we were paying weren’t so bad. However, when they mentioned other aspects like advertising allowances, I realised my business was not benefiting from being in Sterling. It suddenly dawned on me that friendship is good but my friendship was costing me money. I talked to Landmark and they were very interested because Bestway had just left, and I decided to give them a go.” He says that Landmark membership initially worked well but after a time he began to feel that some things weren’t right for his business. One factor was that, apart from Times Cash & Carry, there weren’t any other cash & carry members of the group in London that specialised in alcohol. “Landmark was looking after me very well,” he says, “but when it came to promotions they were mainly based on Midlands cash & carries and as a London cash & carry I didn’t really fall into their remit. The alcohol promotions were

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interview not as strong as Today’s and there was a lot of emphasis on own label, which I couldn’t sell in London because it was so dominated by Today’s. “I realised I needed to change. Landmark was a good group but I felt I was disadvantaged compared to other London cash & carries when looking at the promotions and the way the group was geared up.” In 2010 he made the decision to leave the group and handed in his notice. He adds: “I then talked to Today’s Group managing director Bill Laird about his operation and where he wanted to take it, and I felt that it did fit with my business. Landmark had pushed me as far as it possibly could but this could take me to a new level. Being in Today’s would really help my business, even though I would be in the same group as just about everyone else in London. “Also, all these people who were my competitors, such as Imperial and HT, were my friends at the same time, and they were advising me to join them. In a way, although we are in the same market, we don’t affect each other much because we are in different parts of London.” He joined Today’s in early 2011 and turnover started to increase. “Bill went out of his way to ensure suppliers supported my business fully, which helped a lot, and as a result Fukhera Khalid: a wide range of interests in addition to C&C. we started competing better. Turnover rose from £100m in 2010 to £112m in 2011, £129m in 2012, and £136m for the year to 31 July 2013.” And this was achieved in an intensely He adds: “My office is right next to the cash office and competitive part of London where all the major players, as customers will knock on the door, shake hands and say hi. As well as other strong independents, have depots. soon as you shake hands with anyone they respect you “Everyone has to look at their own business and decide more. They like to meet the owner, have a chat about busiwhat fits them best. I had a great five years with Landmark ness, football, a bit of Mickey taking. and made some great friends, but I feel with Today’s it has “When I talk to them it keeps me in touch. They tell me improved.” what’s it’s like out there and I try to give them advice. I With growing sales, Khalid would like to expand the always tell them: don’t clutter your shop, cut the variety 26,000 sq ft depot, but he says: “We can increase our stordown, make your shop look presentable. age area but not our sales area. Right at the back of our build“We have a retail club, but we don’t concentrate on it as ing there is a substation so we can’t go any further back. We much as we did a few years ago. The problem is making sure have lots of warehouses here so someone complies with a retail storage is a not an issue, but if club. In London especially, there next door ever comes up for sale are so many choices people have we might do something there.” and they tend to join every retail This constraint is one of the club and cherry pick the best reasons he is not keen to extend deals, but not pass them on. the range much beyond alcohol, “People will already be in three confectionery, soft drinks and retail clubs, they’ll sign up but they Fukhera Khalid, director, tobacco. He says: “We are thinking won’t want your fascia, and they’ll Elbrook Cash & Carry of doing a little bit of catering, but just take advantage of the offers we don’t have any extra space and and sell the products at full price. It the danger is concentrating on other things and then messmight be easier to control if you deliver and offer credit but ing up what we already have. I know that quite a lot of cash we don’t do that.” & carries try to dabble in everything. Sometimes it works but Another of Elbrook’s strengths, he says, is how quickly it other times it doesn’t, and it has hurt some businesses.” can react. “We are capable of making quick decisions and we Overall, Khalid believes it is the level of service Elbrook can improvise. A lot of the bigger boys find it more difficult provides and its friendly welcome for customers which has to react. If someone local decides to do a crazy offer we can secured its success. He says: “It can be quite quiet and then react the same day, but we are not going to follow them over get really busy, and the speed we can get people out of the the cliff.” door is amazing. There can be a queue and we will all go on He says that, particularly at Christmas, some cash & carto the shop floor and help push it through. ries will make no money on alcohol or even make a loss to “People like that. They want to be in and out and back in get people into their depots, but that is not a route he is willtheir shop. We realise it is important that they are in their ing to follow. “I prefer a warm summer to Christmas because shop selling their goods.” it’s much better for sales,” he says. This summer has

‘We are capable of making quick decisions and we can improvise. A lot of the bigger boys find it difficult to react’

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Cash & Carry Management

• September 2013 • 11

interview been good, he adds, but it is better to have the heat in May rather than mid July and August, when many more consumers are away on their holidays. While Khalid has kept Elbrook as a tightly focused cash & carry, he has diversified his business interests in other ways. Having disposed of the Barking depot he was looking for other ways to generate revenue, and in 2001 he invested in some blue-chip properties. These are still let on long leases and bring in rental now. Then after talking to Ruislip-based Crown Cash & Carry about the success it had with a banqueting hall over its warehouse, he began to consider his options. Over the next few years he developed Chak89 over his storage depots, and it now consists of high quality banqueting suites that can accommodate up to 600 people and a restaurant that can seat 110. Khalid says his cash & carry negotiating skills came in handy when he managed to persuade Bollywood superstar Shahrukh Khan to become Chak89’s brand ambassador. Chak89 has now become one of the leading banqueting halls in London, and has also branched out into providing events management and catering for many other venues. The restaurant has won a number of national awards, and Chak89 has more than 500,000 followers on Twitter, with the number rising by thousands every week. The development of the brand brought it to the attention of Asda in 2011, and the supermarket giant wanted to put Chak89 deli-style concessions in four of its largest London stores. Khalid says: “As a result I decided to build a production kitchen, so I spent £1m on that.”

After the initial success of Chak89 in Mitcham, Khalid was keen to try to replicate it in north-west London, and in 2006 he bought film studios in Hayes for £8m with the intention of converting them into banqueting facilities. However, after an unsuccessful four-year battle for planning permission with the local council, he kept them empty while he concentrated on other parts of the business. But demand has recently soared for studio space so he has returned the buildings to their original use. A film called The Imitation Game, starring Keira Knightley and Benedict Cumberbatch, is due to start filming there shortly. Khalid says: “It’s very exciting that we had something that was doing nothing and now it’s doing really well.” Khalid has also found time to raise significant sums for charity. It began in 2010 when he decided to mark Elbrook’s 25th anniversary with events culminating in a gala dinner, which raised a total of £25,000. It was so successful that it has become an annual event, contributing £51,000 over 2011 and 2012 for national and local charities, and Khalid says it is looking good for this year’s beneficiary, the National Autistic Society. “Raising money for charity is a good thing and something in my religion, but it is also something I enjoy doing,” he says. “There is no better feeling than to hand over a cheque – it makes a change from giving it to a supplier or the taxman. That’s one cheque I don’t mind writing out.” Despite all his other interests, Khalid says that Elbrook is still the foundation of his business. He comments: “The cash & carry is our bread and butter and it wouldn’t be possible without the support of the Today’s Group and suppliers.”

Chak89 has a Bollywood star as its brand ambassador and more than half a million followers on Twitter.

• Cash & Carry Management • September 2013

www.cashandcarrymanagement.co.uk

Celebrating Sterlingâ&#x20AC;&#x2122;s status as NO.1* CIGARETTE BRAND IN THE UK. While stock lasts.

*Nielsen MarketTrack June 2013

STOCK UP NOW!

spotlight

Inspired by local characters This month’s article features Iain Johnston, director of Shetland-based JW Gray & Co. appealing to me as we all enjoy a great rapport with each other at JWG and I would miss that. However, ideally more days off will come during the year when I can spend more time with my family. I also enjoy sea angling and boating in general – owning my own motorboat has always been an ambition. What advice would you give someone starting his/her first job? Keep your head down and work hard: the rest will come. What type of business would you have gone into if it wasn’t C&C/wholesale? There are several small local businesses in Shetland which I would love to try, given the opportunity. Suffice to say, I can’t give the game away in this article! As a 12 year old, Iain Johnston was Junior Guizer Jarl at the Up Helly Aa Viking fire festival. He is pictured here with the burning galley in the background.

What has been the major milestone or turning point of your career? Joining JW Gray & Co in 2000 after many years working on boats as mate or skipper. (See ‘Skipper turned wholesaler’, opposite.) Who has been the biggest inspiration to you? There are many local characters in Shetland who inspire me, ranging from local business people to fishing industry leaders. Generally, anyone who has done well under his own steam is an inspiration. I also have great admiration for anyone who works hard and brings up a family. How do you maintain a work/life balance and how have developments in technology affected this? It’s not easy, and the continual beep from the iphone highlighting emails and texts doesn’t help. What most frustrates you in business (and in life generally)? Suppliers misleading me in terms of price. If you were able to retire tomorrow, would you, and if so, how would you spend your time? The thought of completely retiring doesn’t sound too

• Cash & Carry Management • September 2013

If you had a million pounds to invest in business, how would you spend the money? I would walk into our bank and hand it over to our local business manager!

Skipper turned wholesaler It was always Iain Johnston’s intention to be a deck officer in the Merchant Navy. However, during his Higher year at school (and much to his parents’ horror), he managed to get a trip on the MV Vega, which at the time was the UK’s highest earning whitefish trawler. He was completely hooked after that trip, and at 15 he persuaded the owners to give him the cook’s job. As the years followed and before the age of 22, Johnston gained all his skippers qualifications and worked on several boats (including his own 80ft trawler), sailing as either mate or skipper. As the fishing industry hit a critical point in the late ’90s, most of the local fleet was sold. Consequently, he had to make a decision to convert his qualifications to Merchant or to obtain a post on shore. He was offered a job working for the local boats agents and then was asked to join JW Gray & Co. That was in 2000; four years later he was made a director.

www.cashandcarrymanagement.co.uk

choice Why not offer your customers more?

Introducing our new 250ml Coke can, designed to offer more choice to your customers. Smaller and more affordable†, it offers a potential 26% incremental volume sales opportunity when stocked alongside 330ml and 500ml formats.* Available in plain packs of Coca-Cola, Diet Coke and Coke Zero, as well as 45p price marked pack, the new format will be backed by a heavyweight digital campaign. Stock up now. Visit www.cokecce.co.uk/250mlCoke for a chance to win three cases of the new slimline can.** Terms & Conditions apply

Coca-Cola, Coke, the design of the Coca-Cola Contour Bottle and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company. *TCCC Incite IC BPPE Research 2010. Spotify is a registered trademark of Spotify AB ©2013 The Coca-Cola Company. Coca-Cola, Coca-Cola zero, and the Contour Bottle are registered trademarks of The Coca-Cola Company. †The cost per 100ml of 250ml can is equivalent to 330ml, based on our MSSPs of 49p and 65p respectively. **Open to convenience retailers within GB/Isle of Man only. Promotion closes 30 September 2013. See www.cokecce.co.uk/250mlCoke for full prize description, entry routes and Ts&Cs. Promoter: Coca-Cola Enterprises Ltd, Enterprises House, Uxbridge, Middlesex, UB8 1EZ’

customer cares

sponsored by

Speed matters This month John Wood is in Liverpool to talk to traders about which wholesalers they use.

Rajah Rasa will pay more for speedy service.

Plus points: New Delhi provides a really good service. It takes orders for next-day delivery right up until it closes, so theoretically I could place my order every day and it would deliver early the next day. I order once a week over the phone but I know I can get a delivery if I run out of something. I generally receive what I order and it comes early in the day before I get busy. I am on the top floor and the delivery driver carries it up the stairs for me. I don’t have a lot of interaction with the New Delhi staff but they seem very cheerful. Suggestions for improvement: I find that Booker’s prices aren’t very competitive compared with New Delhi and the supermarkets. I started buying litre cartons of custard from the supermarkets rather than Booker because they were a lot cheaper.

Rajah Rasa SA News & Convenience

John Miller J&S Food Market

Wholesalers used: I go to Bestway and Costco, but Parfetts is the cash & carry I use most.

Wholesalers used: Parfetts is my favourite cash & carry at the moment, but I also shop at Bestway and use a local delivered wholesaler, Regal, which specialises in toiletries. I go to Parfetts and Bestway about twice a week and I also visit Makro, but only for its promotions.

Plus points: Parfetts is near to my shop, about one mile away, so it is very convenient. I visit every day. The service is very good, but the prices are often 20p to a pound cheaper at Bestway. I sell grocery, alcohol and cigarettes, and Parfetts has everything I need. I like its LifeStyle products but I also buy some of the Best-in products from Bestway and I go there about twice a week. I visit Costco weekly or fortnightly because its drinks prices are lower. Suggestions for improvement: Although the prices are better at Bestway, I go to Parfetts because the service is better and I don’t have to wait. At Parfetts I can check out immediately but in Bestway the service is slower and the staff don’t seem to care quite as much. If I am in the line for the till, I have to ask them to scan my products. At Parfetts there is a lady with a walkie talkie and the service is very quick at the counter and at the tills.

Plus points: The quality of the service is the main reason for choosing Parfetts – the staff are very good. The prices and the promotions are also good. It’s not because it’s the nearest wholesaler (Bestway is about two miles away and Parfetts four miles away). The range is fine, but then they all seem to have the same range, and the promotions are similar too. The good thing about Bestway being close is that if I ever run out of anything I can just pop in there. Suggestions for improvement: Bestway’s service is a bit muddled and confused. In Parfetts you can go in, get your stuff and you’re out of the door. It never seems to work that way with Bestway.

Si Gerrish The Egg Vegetarian Café Wholesalers used: I use a local delivered wholesaler, New Delhi, and the cash & carry side of Booker. I also go to supermarkets. I use a lot of vegetables and get them delivered daily by a local greengrocer, Green Vale. New Delhi is my main food wholesaler and I shop at Booker for a few bulk items like cream. I don’t get a lot of stuff from supermarkets – it’s just day-to-day topping up, mainly of sundries.

• Cash & Carry Management • September 2013

Bestway is conveniently close for John Miller.

www.cashandcarrymanagement.co.uk

TOP 25 SUPPLIERS Please email your scores to mail.winlove@btconnect.com or post this page (no stamp required) to: Winlove Publications Ltd FREEPOST NAT 15060 PO Box 366 East Grinstead RH19 4BR

Now in their 10th 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 (max. 30 points) Britvic Soft Drinks Carlsberg Coca-Cola Enterprises

your votes

Danone Diageo GlaxoSmithKline

The top 25 suppliers in England, Wales and Ireland, as voted by readers of Cash & Carry Management, are listed opposite.

Heineken Heinz

Each month for the next three months, readers are invited to award each supplier points based on the previous month’s performance.

Imperial Tobacco Johnson & Johnson

Please consider the following when assessing your top 25 suppliers:

JTI

•

Kellogg’s

•

Operations: deliveries, supplier contact, admin support, complaint handling Support: marketing and promotional activity, advice on merchandising and ranging, customer development Wholesale focus: right products, competitive pricing, appropriate packaging, understanding of wholesale marketplace

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

Kerry Foods Mars Molson Coors Mondelez Nestlé

(including Cadbury)

(including Professional)

PepsiCo Pernod Ricard

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

Premier Foods

Company.......................................................

Red Bull

Address ......................................................... ..................................................................... .....................................................................

Tata

(Tetley)

Tate & Lyle Unilever United Biscuits

supplier strategy

Champion of the independents Boost wants more people in the trade to know about its focus on the independent channel. Drinks company Boost is almost unique among food and drink suppliers because it is a substantial national player – it’s no.2 in energy drinks and 12th overall in soft drinks – whose product is only sold through the independent channel. Sales director Al Gunn sums it up: “Independent cash & carries, wholesale and retail are what we do. It’s what we have always done and it’s what we will continue to do.” During its 13-year history, this specialisation has helped Boost form a special relationship with the trade. And its understanding of what is needed has assisted it in developing a distinctive brand, good margins and a market positioning in the ‘better’ segment of the ‘value-better-best’ categorisation for functional drinks. But while some customers understand what marks out Boost, Gunn says that many others are not aware. To understand more about this, Boost commissioned research from industry analyst him! which quizzed 400 independent retailers about their knowledge and views on the company. Among its findings were that 68% of current stockists did not know Boost was only sold in independent stores, 77% thought this was a good thing, and 66% of those that didn’t know would be encouraged to stock Boost because of this stance. Gunn says anecdotal feedback from the wholesale trade was just as positive. These findings have prompted Boost to launch a new long-term campaign across the trade highlighting its role as

Developed with an insight into independents’ needs.

• Cash & Carry Management • September 2013

Gunn: excited about the prospects.

the ‘Champion of the Independents’. The first stage, which is under way now, is designed to inform wholesalers and retailers about the strategy and what it means. Gunn says Boost will be publicising its support for the independent sector through a range of media, but will also be looking for feedback from both the cash & carry/wholesale sector and retailers on how to get the message across. He says the company has already received a very positive response from senior people in the trade. To help it communicate the message, Boost has enhanced its website for the trade and will be launching LinkedIn and Twitter activity for retailers, including direct access to the company’s founder Simon Gray. Gunn adds: “We will have a level of engagement where we will be able to use some of these retailers as brand ambassadors.” In addition there is Booster, a newsletter which goes out to key ‘touch points’ in the trade every 6-8 weeks. It is a downloadable bulletin about the brand that contains advice for retailers, and this will also be used to spread the message. In depot, the campaign will be supported by a range of PoS material, such as shelf wobblers, laminated posters and bus stop signs. Boost is looking at getting the messages translated into other languages for retailers whose first language is not English. Cases are also being shrinkwrapped with strong imagery to make the product stand out in depot. Gunn says that when he has been presenting the plans in meetings, the reception has been very positive, with the only negativity being from people who have said: “I don’t understand why you haven’t done it before”. He adds that over the next six months the company will be looking to develop joint business plans with its trade partners. It is also stepping up its calls on stores and is aiming to work with wholesalers and cash & carries to target retailers. Gunn concludes: “Within the wholesale and cash & carry arena we have phenomenal support. We are very excited about where we are as a brand and where the journey is going over the next few years.”

www.cashandcarrymanagement.co.uk

Best Cash & Carry Depot

Achievers Awards Dinner Corporate Responsibility Award

Thursday 13 February 2014 Sheraton Grand, Edinburgh Best Symbol Group

Best Delivered Operation - Retail

Best Delivered Operation - On-Trade

Now in its 12th year, Scottish Wholesale Achievers, operated by the Scottish Wholesale Association (SWA) in partnership with Cash & Carry Management incorporating Delivered Wholesaler, continues to raise standards and reward outstanding performance across the trade in Scotland. This unique scheme will culminate in a prestigious awards dinner, to be held on Thursday 13 February 2014 at the Sheraton Grand, Edinburgh. Dress is black tie. To secure your table, complete the form below and return to Kate Salmon, SWA executive director. Please note that this event always sells out within a few weeks of tickets going on sale.

Best Delivered Operation - Foodservice

BOOKING FORM Table of 10: £2,500 + VAT of £500. Total cost £3,000

Great Place to Work

Single ticket: £275 + VAT of £55. Total cost £330 NAME OF COMPANY............................................................................................................................................ ADDRESS..............................................................................................................................................................

Best Marketing Initiative

............................................................................................................................................................................ PERSON DEALING WITH BOOKING...................................................................................................................... TEL NO......................................................................... EMAIL ............................................................................

Employee of the Year

Champion of Champions

Number of tables

£3,000 per table of 10 (inc. VAT @ 20%)

Number of single tickets

£330 per single ticket (inc. VAT @ 20%)

Total cost

To book accommodation at the special SWA rate, contact Yvonne Cashin at YCashin Events. E-mail: ycashinevents@aol.com

Supplier Sales Executive of the Year

Send form with remittance to Kate Salmon, Executive Director, Scottish Wholesale Association, 30 McDonald Place, Edinburgh, EH7 4NH VAT registration number: 269 2437 33

achievers

In contention for top supplier Here are the 26 suppliers shortlisted for the Achievers 2014 ‘Best Overall Service’ award. Wholesalers in Scotland are asked to score each company based on its performance in August. AUGUST PERFORMANCE

Deliveries inc Admin (max. 15 points) write N/A if not direct

Supplier Contact (max. 15 points)

Scottish Focus (max. 15 points)

Packaging & Merchandising (max. 5 points)

TOTAL (max. 50 points)

AG Barr Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Cott Beverages Diageo GlaxoSmithKline Heineken Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Mars Maxxium Mondelez Nestlé 1st Choice PepsiCo

(retail/confec)

(inc Walkers)

Red Bull SHS Tayto

(Golden Wonder)

Tunnock’s Unilever United Biscuits Whyte & Mackay

Company: ................................................................ Contact name: .........................................................

• Cash & Carry Management • September 2013

Please email your completed form to: kirsti.sharratt@virgin.net or fax to 01334 479695 Closing date: Friday 20 September

www.cashandcarrymanagement.co.uk

achievers

Judging criteria Cash & carries and delivered wholesalers in Scotland awarding points to the top 26 suppliers (see p.20) are asked to use the detailed criteria below over the four-month judging period. Those wholesalers receiving deliveries from a central depot should not give points for deliveries (including admin support). The scores will then be adjusted pro rata. All suppliers in the top 26 will be sent their results and encouraged to act on the findings to enhance their service.

Points to be awarded for: DELIVERIES (INCLUDING ADMIN SUPPORT)

For each supplier, if you receive deliveries from your own company’s central warehouse, write N/A

maximum 15 points Order versus quantities delivered Accuracy of paperwork Accuracy of invoices Timescale of deliveries Attitude and helpfulness of driver Effective returns process Helpfulness of staff

4 3 3 2 1 1 1

SUPPLIER CONTACT

maximum 15 points Ability to make key decisions Written/oral communications Query handling and problem resolution Frequency of contact Proactive attitude Field resource

3 3 3 2 2 2

SCOTTISH FOCUS

maximum 15 points Category/market information Scottish marketing focus No conflicting direct-to-retail sales Dedicated Scottish direct/indirect sales team

PACKAGING & MERCHANDISING

4 4 4 3

maximum 5 points Relevant pack strategy Merchandising support Stand-out on shelf

2 2 1 Maximum total marks 50

Any queries, please contact Kirsti Sharratt on (01334) 479695

www.cashandcarrymanagement.co.uk

Cash & Carry Management

• September 2013 • 21

employment law

Benefits: your obligations HR expert Cate Ritchie (below) answers your questions on employment law.

We offer enhanced maternity benefit of nine months’ full pay and three months’ unpaid leave. We have an employee who is coming to the end of her nine months of paid leave and who currently makes maximum contributions towards childcare vouchers through a salary sacrifice (£243 per month) scheme. There has been no problem with this while she was receiving full pay. Do we have an obligation to pay all of this on her behalf when she goes onto zero pay? (ie we continue to buy the vouchers but she does not reimburse us).

As the employee has “sacrificed” part of her salary for the childcare voucher scheme benefit, this is classed as a company benefit and ALL benefits continue when an employee is on maternity leave – regardless of whether or not it is paid. This means that you are obliged to continue to pay the £243 during her unpaid maternity leave.

We have employees who work on a casual basis. Their work is infrequent and their hours of work vary from week to week. Can you confirm if they are entitled to holiday and, if so, how should this be calculated?

Workers are subject to the Working Time Regulations and are entitled to holidays. Working out holiday entitlement for casual staff can be problematic, given the often irregular and intermittent nature of their hours. There is a strictly legal answer to your question and a more commercial approach that you might find easier to apply and manage. Legally, all workers are entitled to receive a minimum of 5.6 weeks’ holiday. What they are paid during any period of holiday depends on their average weekly earnings in the 12 weeks that the individual worked prior to the period in which the leave is taken (or due to be paid if being paid as accrued holiday pay). Employers may find it easier to consider the statutory 5.6 weeks’ (or 28 days’) annual holiday entitlement (including bank holidays), which is available for full-time staff to accrue at a rate of 12.07%, and calculate the holiday entitlement for a casual worker as follows: 5.6 weeks’ holiday must be accrued by the remaining 46.4 weeks worked. Holiday is therefore calculated: 5.6/46.4 = 12.07%. So, if an employee works, say, four hours one week, seven the next week, zero the next week, and three the following week, he or she accrues holiday as follows: 4+7+3 hours = 14 hours 14 hours x 12.07% = 1.68 hours, or 1 hour 41 minutes Therefore this casual worker will have accrued one hour and 41 minutes’ holiday (or the equivalent monetary value) during the time he or she worked.

• •

If you wish to talk to Cate about maternity benefit, holiday entitlement or any other HR issue, you can contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

• Cash & Carry Management • September 2013

www.cashandcarrymanagement.co.uk

Success with IT Page 2 Express Foodservice makes costeffective purchasing decisions with Swords

Page 3 Save time, streamline operations & improve cash flow with latest solutions

Page 4 Sanderson customers smash previous records at Today’s Group Awards

CASH & CARRY AND WHOLESALE NEWS Issue 13

Regal Wholesale boosts customer satisfaction – thanks to Sanderson Based in The Wirral, multi award-winning Regal Wholesale is a leading wholesaler and distributor of toiletries and household goods, supplying major discount stores, convenience stores and supermarkets, locally and nationally. The company is a long-standing Sanderson customer and user of its wholesale solution, Swords, and continues to gain substantial benefits from the solution across its business. The very latest web ordering system has been implemented at Regal Wholesale, enabling the company to strengthen customer service by offering a faster, streamlined ordering process with more choice and control over delivery schedules and order tracking. The recently launched web ordering system enables Regal Wholesale’s customers to place orders at their convenience, 24 hours a day. New

responded positively. As a result, Regal Wholesale is expecting more customers to order online, increasing their sales further.

features include an advanced product search facility with category and brand filtering, updated order screens displaying individual product images and next available delivery dates and a real-time shopping basket. These enhancements further streamline the customer ordering process, saving valuable time. Furthermore, an improved ‘Favourites’ page stores frequently ordered items for customers to include at the click of a button. Following the implementation, an amazing 89% of customers have

Chris Hughes, Managing Director of Regal Wholesale, comments: “I think the Sanderson website ordering system looks great and works very well, and most importantly our customers agree. It’s a big success! Customers have said the website is easy to use and displays products in a clearer way. Having a user-friendly website is essential for helping us to retain customers and grow sales.” About Regal Wholesale Established for over 25 years, Regal Wholesale is a leading discount wholesaler of household, toiletries, grocery and paper products. The company supplies the retail and wholesale trade. Regal Wholesale has also been serving customers outside of the UK for over 20 years in over 35 countries worldwide.

Page 1

Success with IT

Express Foodservice achieves swift success with Sanderson wholesale solution Based in Derry/Londonderry, fast growing frozen food wholesaler Express Foodservice operates a busy cash & carry operation and offers a delivered service throughout Northern Ireland, supplying an extensive product range. Express Foodservice selected the Sanderson wholesale IT solution, Swords, as the best integrated wholesale distribution system for its requirements. The solution is helping the company to increase sales and improve efficiencies by streamlining processes, such as sales order processing. The Swords system integrates all areas of the company, providing improved visibility of information across the business. The telesales team is benefiting from instant access to real-time stock and pricing information and current promotions,

highlights discrepancies – eliminating costly errors and ensuring 100% stock accuracy.

providing opportunities to up-sell and cross-sell. Furthermore, accurate stock information is helping Express Foodservice to make cost-effective purchasing decisions, maximising its use of available warehouse space. Additionally the company has selected Business Intelligence which offers powerful reporting tools allowing Express Foodservice to accurately measure business performance at any time, ensuring an immediate quick response to any potential issues. The company has also implemented Swords Radio Frequency scanners (RF) at goods-in, which instantly matches deliveries against purchase orders and

Gerard Lafferty, Managing Director of Express Foodservice, comments: “We have seen real business benefits following our implementation of the Sanderson system. The Swords system has streamlined our processes, and with improved visibility of stock information we have boosted our customer service levels.” About Express Foodservice Express Foodservice (NI) was created when Gerard Lafferty purchased a successful wholesale business (Bap Express) in Derry/Londonderry in 2012. Express Foodservice has recently partnered with Landmark Wholesale as a sole distributor of Landmark products in Northern Ireland.

Sanderson is a publicly owned UK provider of software solutions to the delivered wholesale and cash & carry industries. Its wholesale IT solution integrates all business operations, reduces administrative costs, improves customer service and strengthens operations for future growth. Incorporating over 20 years of industry experience, the Sanderson wholesale distribution system, Swords, is a single integrated system, and is used by more than 150 wholesale and cash & carry businesses across the UK to manage operations and reduce costly efficiencies. Swords provides essential management information to support business decisions, improve efficiencies, save time and enhance customer service levels.

Page 2

The latest solutions include Voice Order Picking – which reduces costly picking errors; Mobile CRM – boosting staff productivity with remote access to Swords away from the office; and Web trading – helping wholesalers to boost sales with an additional channel.

RF solution. RF technology records stock at goods-in with 100% accuracy by matching deliveries against purchase orders, minimising disruption and lost sales, and maximising customer satisfaction with up-to-date stock information.

More wholesalers are choosing Swords

Free Trade Beers & Minerals Ltd has chosen the Sanderson wholesale solution to support business growth. The company selected Swords to improve stock management and integrate their financial accounts.

Foodservice wholesaler Turner-Price Ltd has enhanced its warehouse operations with the latest Sanderson

Success with IT

Temple Wines flourishes with Sanderson wholesale solution London based Temple Wines is an established cash & carry supplying specialist wines, beers and spirits. The company has recently experienced significant growth and required a single integrated IT solution to boost business efficiencies. The Sanderson wholesale IT system, Swords, stood out in the marketplace as the best choice for Temple Wines.

from group buying power and improved industry links.

system further benefits the company by replacing time consuming manual processes with an automated system. With fast sales order processing and real-time stock information, Temple Wines delivers a high quality service to its valuable customers. Sanderson is a preferred supplier to the Today’s Group, of which Temple Wines is a member, so it also benefits

The solution integrates all areas of the company’s supply chain, providing visibility of information across the business and monitors the performance of key operational areas. Instantly available stock information enables Temple Wines to make effective replenishment decisions, protecting essential cash flow. The

Vimal Kataria, Operations Manager of Temple Wines, comments: “We were confident we made the right choice with Sanderson. We learned of the efficiencies other members gained with Sanderson which reinforced our decision further. The Sanderson solution is central to our operations and we’re already seeing the benefits with better stock visibility and real-time business information.” About Temple Wines Established in 1977, Temple Wines grew from a single off-licence to a busy cash & carry, serving London and surrounding areas.

Save time & improve cash flow with latest solutions Purchase Invoice Querying This latest solution saves you time by automating the invoice querying process, removing manual paperwork. You can quickly match invoices to Goods Received Notes (GRNs), identify and process queries, increasing your operational efficiency. The solution: Reduces costs by identifying stock and price queries, ensuring you are notified in advance of price discrepancies Improves accuracy with EDI invoice matching to GRNs Increases operational efficiency with instant redirection of queries back to your buyer, and generation of supplier claim letters

• • •

Supplier Claims This new solution manages claims and streamlines the processes for claiming supplier rebates and allowances. The solution: Improves cash flow as claims and rebates are completed quickly and efficiently Saves time by streamlining administrative processes Increases productivity by automating processes and removing manual paperwork, increasing the number of queries/claims processed per day

• • •

“The recording and monitoring of supplier claims has become so simple and easy since we implemented Supplier Claims. We can instantly see what retrospective payments are still waiting to be claimed, with their value, which makes it so much easier to account for outstanding claims.” Grace Brown, Director, Dee Bee.

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Success with IT

More Sanderson customers WIN at Today’s Group Awards Sanderson customers have smashed previous records by winning an outstanding EIGHT awards for business excellence at the Today’s Group Awards Dinner 2013. The Awards acknowledge the contribution and overall performance of the Today’s Group Wholesale Members. Sanderson customers were triumphant in a range of awards which recognise exceptional commitment and hard work undertaken by all the winners. Regal Wholesale celebrates with two awards as Winner for Best Supporting Wholesaler and Winner of Best Member Award. HT & Co (Drinks) Ltd won the award for Best IT Initiative of the Year, closely followed by Dee Bee Cash & Carry which deservedly received the Highly Commended award. Savage & Whitten won the Best Retail Development Award and Thames Cash & Carry was prized with a Highly Commended award in the same category. The Best Corporate Social Responsibility Award went to

HT & Co (Drinks) managing director Prakash Thakrar and head of buying Dharmesh Trivedi, with John Schofield and Rodney Hunt of Today’s Group.

J.W. Filshill and Imperial Cash & Carry was Highly Commended. The award-winning Sanderson customers use the Swords IT system to manage their business operations, from telesales and purchasing to warehouse management and stock control, with fully integrated

Members of wholesale buying groups generate efficiencies with the Sanderson Wholesale solution, Swords: “Staff used to have to go through the warehouse to check and manually record which specific items of stock had been sold. With Swords we have accurate stock visibility, enabling us to buy more efficiently.” Dinesh Mody, Director, Ghandi Oriental Foods

“A huge benefit for us is that, as a member of Stonehouse and Horeca who are also using Swords, linking into its group system is now a simple process. Swords will grow with our business.” Michael McBride, Director, John McBride Ltd

“Our entire operation is built on a highly responsive service which is impossible to provide without the right information. The reports from Swords are critical.” Darren Labbett, Managing Director, Woods Foodservice

Page 4

Regal Wholesale managing director Chris Hughes and chairman Bill Hughes, with John Schofield and Rodney Hunt of Today’s Group.

financials. Swords is a modular system so customers can extend functionality as their business requires. HT & Co (Drinks) Ltd comments: “The Swords software solution provides the best platform in terms of functionality and support for our long-term growth. Swords Business Intelligence is most useful for us – we can review company performance at any time and utilise management reports for effective decision making.”

Publishing Director: Martin Lovell Published by Winlove Publications Ltd on behalf of: Sanderson Sanderson House, Manor Road, Coventry, CV1 2GF Tel: 0333 123 1400 Fax: 0333 123 1401 Email: info@sanderson.com www.sanderson.com/swords

products & promotions Makeover

Gold bar – MONDELEZ INTERNATIONAL Cadbury’s Unwrap Gold on-pack promotion returns to a range of the bestselling singles with bigger prizes. Eight lucky consumers who find a gold-foil wrapped chocolate bar will win an iconic Cadbury bar sculpted out of 18ct gold. The chocolate replicas, which will be presented at an exclusive Cadbury event, are valued at up to £22,000 (depending on the size and shape of the chocolate bar and the current price of gold on the international market), and winners will benefit from a consultation with a specialist gold adviser on how to invest their windfall. Every eighth bar also contains a winning code for prizes including cinema tickets and Cadbury chocolate. The Unwrap Gold promotional bars feature eye-catching packaging and are supported by a £4 million marketing investment, including television, outdoor, PR, experiential, in-store and digital activity. Tel: Mondelez International (08702) 400861.

Price-marked FIRST DRINKS – Price-marked 35cl packs of Grant’s Family Reserve Scotch whisky and Three Barrels VSOP French Grape Brandy are now available exclusively to the convenience, specialist and wholesale channels. Research found that 70% of shoppers view PMPs to be a promotion (him! price-marked packs study 2011), driving impulse sales as consumers increasingly look for value. In addition, 72% of 35cl shoppers only buy that size (Dunnhumby January 2013), highlighting shopper loyalty and spending habits. Tel: First Drinks (01256) 748100.

WANIS – Food and drinks brand Tropical Sun has revamped its packaging design, making it easier for consumers to navigate the busy and sometimes confusing ethnic foods aisle, whilst still retaining the brand’s identity. The new-look packaging features a strip of the brand’s traditional mottled yellow along with the prominent Tropical Sun logo, and the name of each product has been made clearer. The design and colour scheme are intended to ensure that existing customers continue to choose Tropical Sun, whilst new customers are invited to try the range. Tropical Sun’s new packaging also features more visible quality-credential logos and messaging. Its range of six table sauces is one of the first to be rolled out with the new look and features a green stamp of quality and ‘no artificial colours, flavours or preservatives’ logo. Additionally, the sauces have been upgraded with an improved recipe. Tel: Wanis Ltd 020-8988 1100.

Trick or treat KP SNACKS – A fun-sized pack of Original Hula Hoops created specifically for trick or treaters at Halloween has been launched. Halloween is the third biggest retail event behind Christmas and Easter, providing an extra trading period between back-to-school and the festive season. With double-digit growth over the last three years, the Halloween trading period has grown 25 fold versus 10 years ago (Planet Retail, The Grocer). Marketing director George Johnston says: “This year, Hula Hoops fun-size bags will give retailers the chance to offer families their favourite Hula Hoop snack in handy little bags, ideal for the Halloween trick or treat occasion.” Tel: KP Snacks (0845) 601 7583.

www.cashandcarrymanagement.co.uk

Sweet deal BURTON’S BISCUIT COMPANY – The biscuits and snacks supplier has launched its biggest ever selection of Cadbury biscuits price-marked packs. The £1 PMP Cadbury biscuits range, available exclusively to the convenience channel, comprises nine SKUs including Cadbury Crunchie and Dairy Milk Biscuits, Cadbury Chocolate Coated Digestives, Rich Tea & Shortcake, Cadbury Mallows, Jaffa, and Cadbury Choc Chip & Double Choc Cookies. Two other best-selling Cadbury lines are also available in £1.39 PMPs: Cadbury Milk Chocolate Fingers, the nation’s number one special-treat biscuit, as well as Cadbury Fabulous Fingers, which has become a £7m subbrand (Nielsen 25 May 2013). David Costello, category and activation controller, says: “This range allows convenience shoppers to access their Cadbury biscuits favourites at an excellent value-for-money price point.” Tel: Burton’s Biscuit Company (01727) 899700.

Limited edition MARS CHOCOLATE – The limitededition Mars Caramel is now available for an exclusive period of eight weeks. The bar is filled with chewy caramel – replacing nougat in the classic Mars recipe – and covered in Mars chocolate. The bar is in the top 10 of most popular brands for driving penetration, and capitalises on the increasing popularity of caramel among consumers (KWP 12 w/e 25 November 2012 penetration top bar brands). Nicola Lacey, central sales director, says: “Limited-edition products are a great way for retailers to make the most of best-loved brands, while also enticing customers with new varieties and flavours.” Tel: Mars Chocolate (01844) 262517.

Cash & Carry Management

• September 2013 • 27

products & promotions New flavours

Wonka bars NESTLÉ – The spirit of Willy Wonka is being brought to life with the launch of three new Wonka products: Wonka’s Millionaire’s Shortbread, Wonka’s Chocolate Nice Cream, and Wonka’s Crème Brulee. The bars contain no artificial colours, flavours or preservatives and are made from 100% sustainably sourced cocoa. Stock of Millionaire’s Shortbread (36g) and Chocolate Nice Cream (37g) are available in impulse bar format with an rsp of 60p and come in 35 count outers. Stock of all three flavours will be available in 100g chocolate blocks from 23 September, rsp £1.29, packed in 20 count outers. The brand is supported by a £3.6m media campaign which includes TV advertising, digital advertising and in-store investment. Tel: Nestlé 020-8686 3333.

Promotion AG BARR – The soft drinks manufacturer is celebrating Diwali with special promotional packs of Rubicon and Sun Exotic, which will be supported by TV advertising. During this year’s festival of light, Rubicon and Sun Exotic will be available in one-litre packs price-marked at £1.29/2 for £2. The packs have been launched in response to huge demand last Diwali, when Rubicon sold 1.8m of its special price-marked packs (AG Barr sales data). “Diwali is celebrated by 1.2m people in the UK, and has the potential to deliver almost £9m at retail value (Census data 2011/estimated retail value based on AG Barr sales data),” says Adrian Troy, head of marketing. “The large pack sizes are particularly important during the Diwali period to cater for families gathering together to celebrate.” Tel: AG Barr (01204) 664200.

MULTIPLE MARKETING – Sunmagic, the 100% pure fruit juice, smoothie and juice drink brand, is launching three new products which are available to all trade channels. The new lines comprise Sunmagic Orange & Mango Juice Drink, Sunmagic Apple & Elderflower Juice Drink, and Summer Delight, a summer fruits-flavoured juice drink. The drinks are packaged in 500ml PET bottles and are available in both price-marked and non price-marked formats. The PMPs carry a 79p price-mark for a limited period only, after which they will be 99p per bottle. Sunmagic now has 13 variants within its 500ml bottle range, which is one of the biggest in the UK available to all channels. Tel: Multiple Marketing 020-7326 7623.

Luxe cream DIAGEO – Cream liqueur Baileys has launched a new premium sub-brand called Baileys Chocolat Luxe for distribution across all channels. Baileys Chocolat Luxe is made using real Belgian chocolate blended with Irish whiskey. Kerry Owens, category director, says: “Baileys Chocolat Luxe is our biggest innovation in Western Europe this year and we have invested heavily in its launch. “Its creator, Anthony Wilson, the son of the man who led the team behind Baileys Original Irish Cream, spent years experimenting with the finest ingredients before he found the perfect formula.” The launch is supported by a £5.5m UK marketing campaign that includes TV advertising, sampling and in-store activation. A new point-of-sale toolkit is also available for the on and off-trade. Tel: Diageo 0208978 6000.

• Cash & Carry Management • September 2013

Choc crunch FERRERO – The chocolate confectionery company has launched Kinder Chocolate with Cereals, a crunchy new addition to the Kinder Chocolate brand. Kinder Chocolate with Cereals combines 33% milk with the crunchiness of five different cereals and no artificial colours or preservatives. The bar is available in single packs with an rsp of 35p and four-packs with an rsp of £1.35. For the impulse channel, price-marked packs are also available to help retailers take advantage of the 44% of shoppers more likely to purchase an item on impulse when price-marked (him! July 2011) The launch is supported by a 10second TV tag featuring a new Kinder Chocolate creative, eye-catching PoS and, for the impulse channel, counter top-units with space for the NPD alongside the Kinder Chocolate single bar and Kinder Surprise. These units are available from www.ferrero-trade.co.uk. Tel: Ferrero UK (01923) 690300.

Winning chance SCANDINAVIAN TOBACCO GROUP (STG UK) – The tobacco company is giving retailers the chance to win top prizes as part of its new competition from its growing value roll-your-own (RYO) brand, Salsa. Prizes include a Citroen Berlingo LX van, worth almost £12,000, and three 32-inch Sony LCD TVs. In addition, 20 runners up will receive a half outer of Salsa’s £3.15 price-marked pack. To enter, all retailers need to do is write their name, address and phone number on the top of any outer of Salsa RYO and send it to: Berlingo Van Competition, 250 Centennial Park, Centennial Avenue, Elstree, Borehamwood, Herts, WD6 3TH. There is no limit to the number of entries allowed. Tel: STG UK 020-8731 3400.

www.cashandcarrymanagement.co.uk

A proven promotion checking service for suppliers to the C&C/wholesale sector from Cash & Carry Management For further information: www.cashandcarrymanagement.co.uk tel: 01342 712100

Cash & Carry Management is pleased to offer suppliers to the C&C/wholesale sector a trusted, reliable and easy-to-use service. With sales forces getting smaller and depot visits more infrequent, suppliers need a helping hand. Promo Checker can aid your knowledge of your brands and competitors’ brands in depot. We offer a website reporting national promotional activity from suppliers in key wholesale outlets. This site has been up and running since January 2013 after more than two years in development.

Companies already signed up include: Accolade Wines, Ceuta Healthcare, Coca-Cola Enterprises, Cott Beverages, First Drinks, Heineken, JTI, Mondelez, Nestlé, SHS Sales & Marketing, Taylors of Harrogate and Unilever We have promotional data covering the major cash & carries. You can view promotions by category, product description, manufacturer’s name, wholesaler, or promotional date. Information that you will find on this site includes WSP, RSP, POR and all deal mechanics. With Promo Checker you can check previous or current activity, as well as competitors’ promotions, and download into Excel or store offline. All data is updated monthly. Additional management reports and sector promotional overviews are available on request. A monthly newsletter is emailed to all users. This service will save you time and money and your sales people can be updated instantly.

This is a subscription service costing as little as £11.52 per week www.cashandcarrymanagement.co.uk

tel: 01342 712100

“Promo Checker is a really useful tool to identify activity within the market with minimal impact on resource. Through time, this checker will be in a position to deliver a one-stop-shop insight into wholesale activity relative to your area.” Alan Wilkinson, Business Development Manager, JTI

“Promo Checker enables me to quickly get a rounded view of all the relevant promotional and competitor activity. This is mainly down to its concise and informative format.” John Sutcliffe, Out of Home & Convenience Channel Controller, Taylors of Harrogate

“Promo Checker is a user-friendly tool that enables me to monitor competitor activity at the click of a button. It saves me a lot of time as I do not need to go through individual promotion brochures/leaflets any more.” Soraya Hussain, Customer Marketing Manager, Mondelez International

www.cashandcarrymanagement.co.uk

tel: 01342 712100

sales/marketing & brokerage

Brand support drives sales Proof that outsourcing can enhance category development. Last year SHS Sales & Marketing achieved sales of £285m. The company continues to generate strong growth across its key client base, including the addition of the Johnson & Johnson extended remit, while expanding with a number of key brands, such as Pago, Laimon Fresh and Savanna Cider. According to managing director Marcus Freer: “Our strength lies in working closely with brand owners to identify a range of services that will best meet their needs, simplify their structures and streamline processes, but most importantly deliver a strong return. “By partnering with SHS Sales & Marketing, brand owners can concentrate on their key priorities, such as NPD, while we drive sales of existing products and offer solutions in areas Marcus Freer such as sales (national account management and field sales), logistics and business support. This effectively reduces complexity, enhances performance and provides a tailored cost solution.” Brand owners can structure the relationship and support to include customer marketing, sales support, category development and insight, customer services, logistics, invoicing, credit control, risk management, quality assurance, and online management. SHS Sales & Marketing has recently welcomed a number of new brands into its portfolio. Its proven track record in developing brands such as Bottle Green and Shloer has enabled the company to secure the opportunity to work with juice brand Pago, natural carbonated drinks manufacturer Laimon Fresh, and Savanna Cider. It is working closely with these brands to unlock sustainable growth and distribution opportunities. In addition to new brands, top consumer health company Johnson & Johnson has extended its remit with SHS Sales & Marketing to drive the growth of its share of the convenience channel. With number one brands that span the consumer health, baby care and oral care categories, such as Listerine, Benadryl, Benylin, Calpol, Sudafed and Imodium, Johnson & Johnson has recognised the importance of the impulse and convenience channel and turned to SHS Sales & Marketing to help deliver ambitious growth targets over the next three years. SHS Sales & Marketing’s sales force calls on every cash & carry depot throughout the UK and is supported by a dedicated telesales function for the independent sector, which means that all opportunities are given to wholesalers and brands to maximise sales. The company works collaboratively

• Cash & Carry Management • September 2013

with wholesalers to give clear strategic direction based on insight, allowing them to make accurate sales predictions and advise wholesalers on what to stock, while reassuring brand owners of the correct route to market that will deliver results. Freer adds: “Because of our diverse portfolio of brands, wholesalers benefit from a single point of contact that is able to negotiate across a range of categories, including ambient grocery, alcohol, soft drinks, hot beverages, confectionery, healthcare and household products. We offer categoryfocused account management which means that brand owners benefit from a sales team with specialist understanding of the unique needs of the wholesale channel. They are supported by a dedicated trade marketing team who work collaboratively with brand owners to develop successful brand plans. The information gathered by the marketers also provide the necessary insights to drive category development.” SHS Sales & Marketing worked closely with Johnson & Johnson and Reckitt Benckiser on their OTC range, looking to deliver incremental sales through secondary siting. By moving the brand owner’s OTC ranges from behind the counter it delivered a 60-87% sales uplift and over £500,000 of additional sales in four months. SHS Sales & Marketing also trialled a new freestanding display unit (FSDU) in store and the stores that utilised it grew their OTC sales by 67.9%. The company was also instrumental in creating a special pricedmarked pack for the independent channel for leading sugar confectionery brand Chewits. SHS Sales & Marketing suggests that wholesalers offer advice to retailers on how to merchandise and make the most out of their range, such as giving new products prominent space with simple signage to let consumers know that there is a new product in store, and encouraging consumers to take advantage of self-merchandising and countertopready packaging to help drive impulse sales. Cross merchandising and secondary siting are equally important as they are effective in driving linked purchases.

Extended remit with SHS.

www.cashandcarrymanagement.co.uk

DEPTH OF KNOWLEDGE SHS Sales and Marketing are the UKâ&#x20AC;&#x2122;s leading sales company with the depth of expertise and understanding of the wholesale channel required to build great brands. With category specialist knowledge and insights we have the skills and resources to support Brand Owners and give them the opportunity to make an impact in competitive markets.

To see how weâ&#x20AC;&#x2122;ve been building great brands visit: www.wheregreatbrandsgrow.co.uk T: 01452 378500

E: info@shs-sales.co.uk

sales/marketing & brokerage ‘An effective solution’ Pressures on sales and distribution companies may be challenging in the current economic climate but Robinson Young, the UK’s largest non-food specialist distributor, has risen to that challenge in the last 12 months. The sales distributor has once again generated doubledigit sales growth for many of its new and long-term manufacturing partners, proving that the combination of experience and a strong track record, and the ability to embrace new technology to maximise opportunities, makes using the company an effective solution for brand owners and manufacturers looking to develop sales across the cash & carry sector. According to managing director Michael Robinson: “A benefit of being one of the oldest established distributors with over 40 years’ experience under our belt is that we’re seen as a tried and tested safe pair of hands in what are currently uncertain times for manufacturers. “The non-food market has never been so highly competitive. Therefore, for manufacturers, using a sales and distribution partner with a stable of household-named products in its portfolio is a logical solution. Our shared services model keeps costs down for manufacturers and gives them a readymade experienced sales team whose established relationships with all key cash & carry buyers delivers better results than they could Michael Robinson achieve alone.” Over 80% of Robinson Young’s manufacturing partners have been clients for over 10 years, with the business achieving consistent long-term growth for its clients’ brands. For example, sales of Zip brand Firelighters have grown by 90% since it joined the Robinson Young portfolio in 2006, and the brand is now a clear market leader with a 61% share. Similarly, T&R-owned Covina cough medicine has seen sales growth of 63% in four years, and is now the number one brand in the cash & carry market. “Being the largest specialist non-food distributor to the cash & carry market and with a strong reputation for having a sales team that delivers gives clients reassurance,” Robinson continues. “But finding ways of making the process from factory through to the consumer’s shopping basket more efficient is an ever-moving goal we constantly strive to improve upon.” One way Robinson Young has made great strides in this area has been to invest in a new £750,000 bespoke Enterprise Resource Planning (ERP) system to co-ordinate all aspects of the business, from warehouse and stock control through to forecasting. “The system is already delivering efficiency benefits for

• Cash & Carry Management • September 2013

Sales of Zip Firelighters have grown by 90% since the brand joined the Robinson Young portfolio in 2006.

both the business and our customers, with accuracy levels, response times and On Time In Full (OTIF) availability improved across all areas,” Robinson adds. In November 2011 Robinson Young branched out into the pharmaceutical business with an investment in contract sales organisation Powermed Plus. Fast forward less than 18 months and the health and beauty division is now the company’s fastest growing area. Robinson explains: “Health and beauty has been a big driver for us, partly because of new-business product wins, but partly due to organic growth. “The face of retailing has changed significantly over the last five years: the welcome growth in convenience shopping, the rise of online shopping and the growth of discounters all centre on consumers looking for value and convenience. Consumer buying habits have changed partly out of necessity but even as the economy picks up, these habits have become ingrained. “Our focus is on providing our customers with the products and ranges they need, at prices they need to be competitive, whilst giving our brand and manufacturing partners the best and most cost-effective route to market. For us it’s about understanding both our customer and their customers and then ensuring we deliver what everyone needs to grow.”

Robinson Young’s key brands Household: Zip, Bizzybee, Zoflora, Safewrap, Scotchguard. Health & beauty: Covonia, Settlers, Wilkinson Sword, Bodyform, Tena, Revlon, Rock Face, Litozin. Stationery: Energizer, Velcro, Post-it, UHU, Varsity, Rhino, Uniball, Masterlock. Catering/foodservice: Caterpack, Finesse, Scotchbrite, Solo.

For further information: Robinson Young Ltd (01284) 766261 SHS Sales & Marketing (01452) 378500

www.cashandcarrymanagement.co.uk

Your brands will flourish in our hands 40 years of success and expertise in Non Food Sales, Marketing, Logistics and Warehousing across all major channels and sectors. Now including coverage of Pharmacy channel

Robinson Young Ltd To find out how we can grow your business contact: Michael Robinson, Managing Director. 01284 766261 / m.robinson@ry.tm

THE NON FOOD SPECIALISTS Robinson Young Limited. Ibson House, Eastern Way, Bury St Edmunds, Suffolk. IP32 7AB. tel: 01284 766261 www.robinsonyoung.co.uk

buying groups

A passion for the sector What support do you offer to your members? Group annual retrospective discounts National promotional package National fascia programme Merchandising advice Wholesale marketing (events days, national exhibition, digital marketing) Retail point-of-sale kits Chill and freeze drop shipment Local sourcing Retailer loyalty schemes Preferential discounts on auxiliary business services Regular business reviews with suppliers. These are a key feature of our well-established negotiating process Along with formal presentations to our national membership, we discuss a variety of topics that are of significance to our members’ businesses We participate in a programme of research to explore opportunities for future growth. No other wholesale organisation is as committed or proactive in developing business interests as the Today’s Group – the UK’s largest independent buying group.

• • • • • • • • • • • • •

Why should suppliers want to do business with your group? We aim to create long-term, healthy, collaborative partnerships with suppliers in order to achieve a win-win situation for both parties. We are very keen to work with suppliers that want to achieve the best solution for all stakeholders rather than just taking a ‘what’s in it for us’ approach. What is your USP – why should wholesalers choose to join your group? We have an extensive range of specialists, both at central office and within our membership, which ensures a sound knowledge base of the sector. We are active in every key category. Most importantly we have an absolute passion for the future wellbeing and health of this sector. Are you looking to recruit new members? We are always delighted to talk to prospective new members. We are looking for members who share our passion, commitment and focus in ensuring the ongoing success of the independent sector. What are your plans for next year? We will continue to develop new technologies to communicate and share information better with our suppliers, members and their customers. More importantly, as it will be relationships that sustain this marketplace, we will work with key stakeholders to collaborate and strengthen relationships to determine our long-term mutual success.

• Cash & Carry Management • September 2013

Today’s Group managing director Bill Laird.

At a glance Name: Today’s Wholesale Services Ltd Address: 3 Carolina Court, Wisconsin Drive, Doncaster, South Yorkshire, DN4 5RA Contact details: email: enquiries@todays.co.uk website: www.todays.co.uk Tel: (0844) 247 0700 Number of wholesale members: 170 with over 200 depots Combined turnover of group members: £5.5bn Fascia group/number of retail members: 381 symbol group members, 1,600 in Today’s Retail Club Own label: Today’s ESSENTIALS, Today’s Select, Today’s Blue Stone Spring Water Type of business: membership covers delivered/cash & carry to retail and catering/foodservice customers History: January 2012 split from Nisa-Today’s Ltd to become the largest independent buying group in the UK 25 years old in 2012 Winners of him! Best Wholesaler for Promotions 2013 as voted for by 4,000 independent retailers Winners of him! Best Wholesaler for Availability 2012 as voted for by independent retailers Winners of CTP Best Convenience Retailer for Impulse category 2012 as voted for by consumers The launch of three new Today’s own-label brands in October 2012 - Today’s ESSENTIALS, Today’s Select and Today’s Blue Stone Spring Water The creation and launch of Today’s Retailer digital magazine in October 2012 25th anniversary conference in Nassau, Bahamas, in March 2012 25th anniversary suppliers and members lunch in January 2013.

• • • • • • • • •

www.cashandcarrymanagement.co.uk

‘

‘‘

With the help of the

Today’s Group we’ve been

a very successful business for over 25 years.

When we looked at buying groups we found Today’s were the best in the marketplace.

They’ve helped us by negotiating better prices and with regular promotional activity.

They also keep us informed of industry changes so we stay ahead of the game and I really value their personal touch and straightforward approach. I’d advise joining Today’s because I know they give the best possible package.

Kali Mulchandani Director, Imperial Cash & Carry

To be part of our future growth call 0844 247 0700. facebook.com/todaysgroup

@TodaysGroup

buying groups

A value-for-money alternative Why did Today’s Group introduce the Today’s ESSENTIALS and Select own labels? It was in direct response to feedback from our members and their retailers that as a group we needed to provide a highly competitive, value-for-money, credible alternative to the major multiples’ economy brands, as well as those offered by our direct competitors within the independent sector. How are they positioned? Today’s ESSENTIALS ‘price fighting’ range gives retailers the opportunity to offer consumers a great range of quality products at highly competitive prices. The ESSENTIALS range is highly affordable; however, it still looks great on shelf and customers are not embarrassed to have it in their basket. Today’s Select is an exceptional quality range that offers outstanding value to the customer. This makes it a genuine alternative to the mainstream big brands. At a significantly lower cost than the mainstream brands, Today’s Select still offers consumers the taste, appearance, textures and overall enjoyment that they would come to expect from the big brands but at a fantastic price point. Blue Stone Spring is a range of spring water available to independent retailers and foodservice operators. Plastic bottles are available in one-litre, 500ml and 750ml sports cap formats. Glass bottles are available for still and sparkling varieties in 750ml and 330ml sizes. How do Today’s ESSENTIALS and Select compare with other groups’ own labels? The products offer better quality, taste and flavour, value for money, price positioning, product packaging and brand values.

Blue Stone Spring water sold strongly in the recent hot spell.

What kind of reception have they had? The feedback we have received from retailers and members has been very positive, with comments such as: “With Select, retailers have fantastic quality own-brand lines that really look the part. Great concepts and a great launch. Well done all at Today’s Group.” Craig O’Connor, managing director, DeeBee Cash & Carry “The new ranges really caught my eye when I saw them at the wholesaler. Packaging is crucial and the Today’s packaging is brilliant. It suggests quality. Just because a range is about value, it doesn’t have to look basic. The ESSENTIALS lines, such as toilet tissue and cleaning products, are great. I think the presentation of the kitchen foil and cling film is the best of any product on the market.” Amardeep Singh, Today’s Local, Christchurch Road, Reading “Customers love them. The packaging is great and stands out really well next to the big brands.” Jas Bahia, Today’s Extra, Cleethorpes “It’s great to stock brands with the same label as above the shop. My cost-conscious customers are definitely picking up the ESSENTIALS products. Lower-priced brands in the shop are not selling as well as the Today’s items. We’re looking forward to more lines. Keep them coming!” Steve Trice, Chapman Store, Essex How are they progressing? Since being launched in October 2012, the Today’s ranges have performed above our expectations and continue to grow. The recent hot spell has driven sales of carbonates, juices and Blue Stone Spring water.

ESSENTIALS is the price-fighting brand.

• Cash & Carry Management • September 2013

What are your future plans for your own-label range? We have recently launched phase three of the Today’s brands development, with 34 new products. We will continue to build the range into 2014 and beyond. We are anticipating a core range of products that will reach 200 in number.

www.cashandcarrymanagement.co.uk

What a difference

make

buying groups

Helping smaller wholesalers with a diverse range What are the highlights of the last year? We ended 2012 with group sales growth of 7.9%. Hot beverages was the largest growing category, up by 23%. Our top 20 suppliers all showed growth during 2012 in some of the toughest trading conditions the wholesale sector has seen. What support do you offer to your members? Free membership Fully developed promotional programme with all the top brands in retail, catering and foodservice Fully customisable promotional sell-out leaflets, allowing members to compete with the national wholesalers such as Booker and Bestway Annual trade show Growth incentive schemes and supplier rebates.

• • • • •

Why should suppliers want to do business with your group? We provide growth year after year, and we have a thorough understanding of the wholesale sector combined with unparalleled insight into the wholesale market. We implement supplier strategy at ground level with the help of our industry-leading central distribution facility.

Tom Gittins, business development manager, outside the new head office.

At a glance Name: Confex Address: Cotswold Business Village, London Road, Moreton-in-Marsh, Glos, GL56 0JQ Contact details: Tel: (01608) 652333 Fax: (01608) 653480 website: www.confex.ltd.uk Number of wholesale members: 302 Combined turnover of group members: £1.7bn Fascia group/number of retail members: 197 Own label: Simply Type of business: delivered/cash & carry, retail, catering/foodservice, frozen/chilled/fresh/ambient with a central distribution facility offering ambient products across retail/catering/foodservice History: Started in 1972 with 11 wholesale members. Reached 100 members in 1986; 200 members in 1994. Celebrated 40 years of business in 2012. Moved to a head new office in September 2013.

• Cash & Carry Management • September 2013

What is your USP – why should wholesalers choose to join your group? At Confex there are no joining fees and no membership fees, and we can help the smaller wholesaler that other groups dismiss. We also have more supplier terms (currently 207) than other groups across the most diverse range of product categories. Are you looking to recruit new members? We are always keen to recruit new wholesale members. We have a proven track record of developing our member businesses by providing bespoke tools for growth. We have taken on 25 new members in the last 12 months and welcome all dynamic wholesalers to get in touch. What are your plans for next year?

• Trade show on 1 May 2014 • Develop our Simply own brand • Roll out the ESavers programme (customised wholesaler sell-out brochures) • Double-digit group growth • Raise £10,000 for charity through our Charity Challenge. www.cashandcarrymanagement.co.uk

Confex, the UK’s most diverse independent wholesale trading group ✔ £1.62bn Member Turnover ✔ Over 190 Ofﬁcial Suppliers ✔ Wide range of product categories ✔ Preferential Trading Terms ✔ Central Distribution facility ✔ No Membership Fee ✔ No Joining Fee ✔ ESavers bespoke brochure production ✔ Annual Trade Show ✔ Weekly Payments

Confex

CENTRAL DISTRIBUTION

Membership enquiries welcome enquiries@confex.ltd.uk Tel 01608 649000

www.confex.ltd.uk

buying groups

Developing businesses What are the highlights of the last year? All of the commercial developments that we have been putting together, such as Quidz In and our fascias, are gathering momentum. Quidz In is a huge promotional platform for us. We are at a time when value for money is crucially important, so a multipack, aisle-end display with £1 promotional activity works fantastically well, and we now have nearly 4,000 stores operating a Quidz In promotional structure on a threeweekly basis. Independent retailers have learned that multipacks bring additional turnover and profit, and value and volume to their business, and it certainly does so for the wholesalers who supply the retailers. It has been a big driving force for us in terms of volume and new customer development. Our fascia development is also making good progress. We have just completed the redesign of Nearbuy and we are monitoring the sales before and after. We know the store has grown a tremendous amount of volume over the 10 weeks since it was completed. In addition, we have the S Store fascia and that is beginning to roll out. It has clearly captured the interest of a number of individuals and organisations and there will be more exciting news about S Store later in the year which will scale it very quickly. Sweetbreak, which is a non-fascia symbol, is also going from strength to strength. There are now nearly 1,600 stores that operate our promotional cycles. What support do you offer to your members? We have a business development team on the road who work with our members’ sales forces. They help to train them and assist them in selling retail fascias or signing new accounts. Not only are they working with the wholesalers, but they are also working on a field basis when it comes to membership development, and this brings commercial value back to the whole of our membership. Why should suppliers want to do business with your group? We came first in the Advantage survey out of the wholesale buying groups, and out of all buying groups in the UK we came second. That is a supplier survey and we were recognised by them as being ahead of everybody else in terms of being a good buying group to do business with. That is based on a number of factors: how we conduct ourselves in negotiations; how we develop our commercial, promotional and marketing proposition for our wholesalers and our retail customers; and how we are compliant within that structure.

• Cash & Carry Management • September 2013

Sugro UK managing director Philip Jenkins.

What is your USP – why should wholesalers choose to join your group? We have had a lot of wholesalers joining us in the past 12 months – 15 wholesalers and nearly £160m total turnover. The reason they are joining us is they know that commercially they will gain an advantage for their business by doing so. We are actively involved in the commercial development of all our members’ businesses, and that involvement is backed up by a commercial programme that is one of the best in the wholesale buying marketplace. Are you looking to recruit new members? We have a constant flow of people applying to join the group, some of which we do not take into Sugro. We are looking for wholesalers who are willing to invest in their business and really want to grow – they can take off in our group. Some others may go into Acorn, our group for smaller businesses, because it is too early for them to join the main group. What are your plans for next year? We are looking at the personalisation and regionalisation of many of our promotional structures. We already have a regionalised national promotional leaflet for Northern Ireland and we looking at producing a greater service for our suppliers.

At a glance Name: Sugro Address: Whitewell House, 69 Crewe Road, Nantwich, Cheshire, CW5 6HX Contact details: Philip Jenkins. Tel: (01270) 628728 Number of wholesale members: 64 Combined turnover of group members: £750m Fascia group: Nearbuy and S Stores Type of business: delivered/cash & carry History: Sugro UK started trading in 1994.

www.cashandcarrymanagement.co.uk

Sugro UK Whitewell House 69 Crewe Road Nantwich Cheshire CW5 6HX. Telephone: 01270 628728 Fax: 01270 623069 For more information visit our website: www.sugro.co.uk

buying groups

Nick Redford, managing director of Caterforce: ‘Group turnover has doubled in three years.’

Working closely together What are the highlights of the last year? The addition of Castell Howell and the acquisition by Lynas of Aghadowey Food Services have given the group critical mass in the ambient sector. ‘Chefs’ Selections by Caterforce’ was launched in late 2012 and has already become a £10m+ brand. The ambient range now comprises more than 150 products, and frozen will also make the transition into Chefs’ Selections. The group has formed more than 30 additional strategic partnerships with key ambient suppliers since leaving Today’s Wholesale Services in May. What support do you offer to your members? At Caterforce we offer a consolidated buying and marketing platform for all of our members. With a high degree of coherence and collaboration within the group, we are able to execute supplier brand strategies throughout the membership. Our marketing flexibility enables us to support members with bespoke material within 48 hours, and we are currently working on customer-specific solutions for the group. We also consolidate key performance indicators from the members which allows them to compare all aspects of their businesses. Why should suppliers want to do business with your group? Caterforce consists of seven of the largest regional wholesalers who are strategically located and committed to a high degree of compliance. Our members are investing heavily in their infrastructure for the future, and our centrally co-ordinated marketing helps us provide a consistent message to the end user. What is your USP – why should wholesalers choose to join your group? Caterforce has strict geographical criteria, which allow the members to see themselves as colleagues and not competitors. This enables the group to maximise the buying and marketing synergies, and the member teams work closely, acting as support networks for each other.

• Cash & Carry Management • September 2013

Are you looking to recruit new members? We still have three geographical locations open for additional members. After that the doors will probably close. Caterforce and our members place a high value on the spirit and openness within the group. Group chairman Andrew Lynas says: “We are more than just a member. We are friends and I love the openness of the group in helping each other’s businesses get better.” In assessing the viability of any member we look for a high degree of supplier and range overlap, as well as customer-type synergies. New members have to have a certain critical mass and, most importantly, a desire to work together to make everybody better. What are your plans for next year? We have numerous projects in the pipeline which we will accelerate over the next two years. Our detailed plans will be shared at our supplier conference in October.

At a glance Name: Caterforce Address: Fence House, Fence Avenue, Macclesfield, Cheshire, SK10 1LT Contact details: Nick Redford, managing director; Gary Mullineux, group buying manager; Charlotte Thompson, marketing and promotions manager. Tel: (01625) 440188 Number of wholesale members: 7 Combined turnover of group members: £315m (forecasting £340m for 2013) Own label: Chefs’ Selections by Caterforce (ambient/ frozen), Caterforce Professional (non-food) Type of business: Delivered foodservice and three C&Cs. Predominantly frozen but expanding in all temperatures. History: Caterforce has existed for more than 20 years. Group turnover has doubled in the last three years and last year Castell Howell was added to its ranks of major regional wholesalers.

www.cashandcarrymanagement.co.uk

“

FROM SMALL ACORNS, MIGHTY OAKS GROW

”

Chefs’ Selections by Caterforce We have built a brand that we are proud to call our own. Our capability to drive sales coherently through our wholesaler members nationwide is what really sets us aside and means this range is growing at a phenomenal rate and already a firm favourite with caterers. Making the right business partnerships and building lasting supplier relationships is at our core. Contact a member of the Caterforce Buying Team if you would like to become a supplier on 01625 440188.

buying groups

Focus on own-brand growth

Martin Williams: ‘Committed to the independent sector.’

Landmark Wholesale ended its financial year to 30 April 2013 with sales 10.5% ahead of 2011/2012 and own-brand sales up by 8%. Managing director Martin Williams announced the results at the group’s annual conference in San Francisco at the end of its 40th anniversary year.

He said: “It's good to be well ahead of the market in these continuing times of austerity. Our own-brand performance is particularly encouraging, especially after the 27% growth of last year, and has benefited from regular activity throughout the year. We are fully committed to the independent sector and to providing promotions, products and pricing that will help independent operators prosper in the face of fierce competition. With continued investment in own brand, catering, foodservice and now on-trade, we’re feeling confident about the year ahead.” Williams welcomed three new members who joined the group in April. He said: “It is our members’ individual performances which give us such strength as a group. These recent acquisitions bring the total number of members up to 35 and our total turnover to over £2.67bn. “Hall’s Drinks is the latest member to join the group alongside two other recent additions, Corrib Food Products and Express Foodservice (NI) Ltd. Safeguarding the future of the independent sector will require high levels of collaboration between wholesalers, suppliers, retailers and caterers. We believe we have a winning team in place that can deliver on all fronts and bring continued success to the sector.” Tel: Landmark Wholesale (01908) 255300.

Good uptake Fairway Foodservice is a network of independent food distributors made up of family-owned businesses supplying family-owned businesses, says chief executive Chris Binge. At the end of the calendar year 2012, the members’ collective turnover was £494m, and currently there are 20 members. In the first part of 2013, Anglia Woods was bought by Holdsworth and left the group. After feedback from suppliers, members and customers, the group has rapidly increased the number of ambient ownlabel products it offers, going from nothing to 300 in nine months. Binge says: “We launched over 300 own-brand products in late 2012 and 2013, almost all in the ambient and chilled foods category, and we have seen extremely good uptake and usage by our members’ customers.” Tel: Fairway Foodservice (01422) 319100.

Chris Binge: ’We launched over 300 ownbrand products in late 2012 and 2013.’

• Cash & Carry Management • September 2013

Vanessa Cooper: ‘The group now has 42 members and turnover of about £350m.’

Period of stability Sterling Supergroup has had a period of stability following the turbulence of 2012 when its largest member Castell Howell was one of three companies to leave the group. Chief executive Vanessa Cooper says the group now has 42 members, following the addition of Charlton-based Lea Valley Foods in March. The collective turnover of the group is around £350m. Sterling was founded as Independent Cash & Carry Group (later ICCG) by five Midlands-based wholesalers in 1966, and for many years was a mainly retail-oriented group. More recently it has established a growing presence in the foodservice sector and has an own-label range called Sterling Caterers Essentials. Sterling’s annual conference will take place in Hexham on 26-28 September. Tel: Sterling Supergroup (01621) 856300.

www.cashandcarrymanagement.co.uk

Homelessness ended here for Steve,* bakery worker.

A broken marriage left Steve with no roof over his head. Not to mention a cloud of debt. Thankfully GroceryAid was here to help with some sound impartial advice and a rental deposit for a new flat. Now the future for Steve is looking a whole lot brighter. To find out more about your industry charity visit www.groceryaid.org.uk or for welfare advice call 08088 021 122. *The story is real but the names have been changed to protect identities. GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Re. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

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