December 2012 by Cash & Carry Management

DECEMBER 2012

Celebrate Chinese New Year ®

with Uncle Ben’s

Martyn Ward on how P&H is getting closer to customers Management appointments announced for Brakes Effectiveness questioned of £1 packs and price-marking

10th February 2013

Top suppliers recognised at AWARDS presentation

For information on all our ranges and recipes contact us on 0800 952 0011 or alternatively visit

www.mars-foodservice.co.uk

The business magazine for cash & carry/delivered wholesalers

contents

The show that didn’t go on You missed a trick, FWD, at your annual Gold Medal Awards dinner at Old Billingsgate in the City! Instead of paying thousands for the services of an aspiring comedian to regale the good and the great of the trade, you had a ready-made cast among the 600-plus guests who would have been only too pleased to provide their services for nothing. Topping the bill? Who else but former matinée idol John Mills (now with Intercontinental Brands), who could have shown one of his old black & white Pinewood-made films. And comedy actor Alan Davies (Finlay Beverages) could have told some of his best gags. Two major US film stars were also there: James Stewart, with his trademark drawl (now employed by Mars Petcare) and funny man Steve Martin (Chilli Marketing). Russell Grant, of Blakemore Wholesale, could have gone from table to table telling suppliers and C&C/wholesalers what the future holds, while ex-Arsenal star Charlie George (who now ‘plays’ for Booker) would gladly have shown footage of his best goals. Top talent spotter Simon Cowell was there, too. Only a one-letter misprint put him down as Simon Codell, of Booker. Another literal in the programme would have p***ed off risqué comic Jim Davidson, spelt as Jim Davison, of SHS. And in the portals of the old London fish market, who better to have rounded off proceedings than Kate Salmon, first lady of the SWA? Merry Christmas and a Happy New Year to all our readers.

Cliveden was the venue for Cash & Carry Management’s AWARDS ... see pp.22–29

news

The FWD’s Guy Farrant and top young wholesaler Stuart Harrison ... see p.21

4–8 Booker has to wait on Makro deal ... Hancock brothers bow out ... All DBC freeholds sold ... North-east depot for Bidvest ... P&H shake-up ... Blakemore passes £1bn mark.

delivered

spotlight

supplier strategy silver anniversary interview fwd awards awards winners

18–20 21 22–29 30

in focus

ethnic foods & sauces

34–36

achievers

38–42

products & promotions

44–46

Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford Publishing Director

Martin Lovell

4,560 July 2011–June 2012

www.cashandcarrymanagement.co.uk

customer cares

Editor

Mervyn Gilbert editor

14–15

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

Cash & Carry Management is available on subscription at £52 per year (single copies £5). Overseas subscription: £80.

Cash & Carry Management

• December 2012 • 3

news

IN BRIEF Booker role Helena Andreas, 37, Vodafone’s group head of retail & distribution, and a former marketing and operations executive at Tesco, has become a Booker Group non-executive director.

Ice cream post Noel Clarke is the new brand building director – ice cream at Unilever UK & Ireland. He replaces Peter Barbour, who has taken a senior appointment at the company’s US division. Clarke, formerly head of marketing at Britvic, is responsible for such brands as Wall’s, Magnum and Ben & Jerry’s. He reports to vice president brand building – foods & ice cream, Jon Goldstone.

Beer deal OK The Office of Fair Trading has cleared the proposed $20bn bid by AnheuserBusch InBev for the 50% stake in Mexican beer supplier Grupo Modelo which it does not already own. The deal gives AB InBev total control of the manufacturer, which claims 63% of its domestic beer market.

9% Costco rise Costco’s international sales (including those for the 22 UK branches) rose by 9% in the 12 weeks to 25 November.

Booker sweats on Makro referral Booker will have to wait well into the new year – possibly until the end of April – before an official adjudication is made on whether its £140m bid for Makro (Cash & Carry Management: June) can proceed. The Office of Fair Trading’s decision last month to refer the proposed takeover to the Competition Commission was influenced by the fact that the two are competitors in supplying the catering trade. It says: “The merger would bring together two close cash & carry operators and reduce the number of national operators from four (Booker, Makro, Bestway and Costco) to three.” Following a survey

among 4,000 customers in 22 areas, the OFT found that there were 13 locations where the parties overlap. The organisation’s chief economist Amelia Fletcher commented: “We are concerned that the loss of rivalry due to the merger may result in higher prices or a reduction in service to both retailers and caterers, and, ultimately, to consumers. “Although the parties did offer to divest some outlets to address some local area concerns, it was not sufficient to remove our competition concerns at the national level or, indeed, all of the local areas in which we have concerns.” Tel: Booker Group (01933) 371000.

No cork popping A statement issued by Deloitte executives Daniel Butters and Bill Dawson, joint administrators of Waverley TBS, shows that the failed drinks business had debts of £64.6m in respect of unsecured creditors. Trade suppliers were owed over £40m, including Diageo (£6.1m), Heineken (£4.3m), AB InBev (£3.5m), Bacardi (£2.9m), Miller Brands (£1.7m), Kingsland Wines (£1.3m) and Molson Coors (£1.1m). In the eight months to 31 August, pre-tax losses were £4.4m on sales of £195m. Nearly all the staff of more than 800 have been made redundant. Tel: Deloitte 020-7303 3000.

Hancocks buyout Specialist confectionery cash & carry operator Hancocks has come under the control of private equity firm H2 Equity Partners and a management buyout team headed by chief executive officer Mark Watson. The deal is reckoned to value the C&C concern at around £50m. Former owner and chairman Andrew Hancock and his brother Adrian, whose father Ray founded the Loughborough-based business 50 years ago, are stepping down. Operating from 18 sites and with a turnover of £106m, the company has a staff of around 300. While C&C has been the foundation of its business, which has around 20,000 customers, online sales, with

• Cash & Carry Management • December 2012

follow-up deliveries, have recently been playing a greater role. It is this side that H2 Equity Partners will be developing, although more branches – particularly in locations close to conventional cash & carries – will be considered. The private equity concern, now the majority Hancocks shareholder, will also be looking at the balance between branded products and own label, largely pick ’n’ mix lines. Watson commented: “I am delighted to be leading such a strong company, which has the prospect of becoming a much bigger player within confectionery wholesaling.” Tel: Hancocks Cash & Carry (01509) 216644.

Drew makes a comeback Bryan Drew, who two years ago left Booker, where he was commercial director, ‘to pursue other things’, has been appointed managing director of Makro – due to become part of his former company (see main story on this page). He replaces Juergen Schwarze, who is leaving along with finance director Jens Koeppen. Tel: Makro (0844) 445 7445.

www.cashandcarrymanagement.co.uk

news

Newcastle finally goes All four freehold properties that were owned by DBC Foodservice have now been sold, the last being the Newcastle-upon-Tyne depot which was sold for £400,000 at auction towards the end of last month. A spokesman for the wholesaler’s administrators

Profit dip While Landmark Wholesale West Midlands member East End Foods increased turnover in the year to 30 April, there was a decline in pre-tax profit, largely due to higher commodity prices. The profit figure dipped by 11.3% to £4.7m on sales 16.4% higher at £146.6m. The C&C operator trades from three locations: Smethwick, Birmingham and the newest, a 120,000 sq ft depot at Aston Cross – a site close to the M6 motorway which cost £10m to develop and which replaced a former HP Sauce factory. Tel: East End Foods 0121359 2199.

Baker Tilly Restructuring & Recovery told Cash & Carry Management that disposal of the 43,000 sq ft northeast depot had not raised a viable offer, so it went to auction. In addition to the two branches that had already been sold, for a total of almost £3 million – Exeter and All four remaining freeholds sold. Newmarket – the 107,000 sq ft Petersfield unit was bought The Baker Tilly spokesby Vestey Group, the comman said the total deficiency pany which had occupied and money owed to sharethe site on a temporary basis holders was around £97m – since the DBC problems first a figure which did not take become known. The purinto account claims by forchase price was £2.4 million. mer DBC employees. As reported (Cash & The largest creditor is Carry Management: July), DBC’s pension protection the 43,000 sq ft Exeter unit fund, which is owed £37m. is now operating as N&B At the time of the report Foods, which also has being published (23 October) delivered wholesale sites in about £848,000 was due to Swindon and Reading. trade creditors. The report The Newmarket site was also shows that the adminisbought by a company called trators were paid £2.2m for Roll Over Investments, which their work. in turn sold it to courier servTel: Baker Tilly 0161-830 ice, Hermes Parcelnet. 4000.

NE site for Bidvest Bidvest Logistics is to open a 30,000 unit on the Aycliffe Business Park in Newton Aycliffe, Co Durham, as a satellite for its multi-temp depot at Royton, near Oldham. Site owner Stiller will provide the distribution concern with loading and unloading staff, 10 multi-temp vehicles plus maintenance, enabling delivery to be made to around 160 locations in the region. Shaun Foley, Bidvest Logistics’ chief operating officer, said: “This is the perfect location for our first satellite depot. Newton Aycliffe is the optimal centre of gravity for distribution to the whole of the north-east. And there is an additional 14 acres on which to expand.” Among the distributor’s national customers are Burger King, Compass, KFC, Green King, Nandos, Pizza Hut and Pret a Manger. Tel: Bidvest Logistics (01295) 208888.

Scottish cash & carry drive Highland Spring is looking to increase its presence in the Scottish cash & carry/wholesale channel with the appointment of Scot Serve. The producer will work in

£600 overweight JJ Food Service pleaded guilty by letter to a charge that one of its vehicles contravened weight restrictions when it was passing through Ilkeston, Derbyshire. The delivered wholesaler was fined £600.

At the junction where the offence took place, there is a 7.5-tonne weight limit. But the vehicle concerned had a maximum gross weight of 18 tonnes. Tel: JJ Food Service (0871) 973 0999.

www.cashandcarrymanagement.co.uk

partnership with the food & drinks sales and marketing consultancy to service national C&C accounts north of the border. Scot Serve’s expertise in auditing and compliance, merchandising and brand development will help what is claimed to be the UK’s largest bottled water brand to continue to focus on these key accounts at a time when many other brands are said to be removing support at depot level. Graeme Clark, the consultancy’s managing director,

said: “Our role is to complement Highland Spring’s existing sales operation. However, our expertise in wholesale will create new opportunities and assist in driving their plans to increase market share.” Ian McKeown, Highland Spring Group’s channel director, commented: “While sales have increased significantly over the last 12 months, we believe there is still significant development potential in Scotland.” Tel: Highland Spring (01259) 720800.

Cash & Carry Management

• December 2012 • 5

news

Landmark honours 18 BA Cash & Carry and Molson Coors took gold at Landmark Wholesale’s annual awards, held in Birmingham. In total, 18 prizes, across various categories, were presented by managing director Martin Williams and business development director Chris Doyle. BA Cash & Carry took the accolade for member of the year while the business partner award went to Molson Coors for the second year in a row. The foodservice partner prize was awarded to Unilever Food Solutions for a second time, while William Yule & Son collected the delivered depot of the year title for the sixth year running. For the second year in a row, Unilever Food Solutions also collected the foodservice project prize. Most improved foodservice supplier was PepsiCo International and Nestlé Professional won the new foodservice partner of the year award. Molson Coors picked up two further prizes by winning the tobacco/licensed business partner and retail core range project titles. Other supplier awards: most improved business

Up 10% Landmark Wholesale’s own brand sales rose by 10% in October compared with the same month last year. Business development director Chris Doyle highlighted the gains made by the group’s No 3 tobacco products and LSV sports & energy drinks. Tel: Landmark Wholesale (01908) 255300.

partner, HJ Heinz; grocery business partner, Kellogg’s; impulse business partner, Coca-Cola Enterprises; new business partner, Mars Chocolate UK. The suppliers’ depot award went to BA Cash & Carry, Cardiff; AG Parfett & Sons, Somercotes, won the own-brand depot and best

large depot awards, and Parfett’s Halifax branch won the best small C&C prize. Central office employee of the year was Craig Bourne for his contribution to the group and the Lifestyle Express retail development programme. Tel: Landmark Wholesale (01908) 255300.

Martin Williams (left) and Chris Doyle (right) with Mike Patterson, md of top delivered depot, William Yule & Son.

Depot defrauded A former worker at Booker’s Dundee cash & carry was spared jail after being convicted at Dundee Sheriff Court of fraudulently cashing more than £1.5m worth of cheques at his place of work. Steven Brady, 37, carried out the deceit over a period of 18 months after running up heavy gambling debts. After detection, he handed a bag containing £46,000 in cash to Booker’s area manager. Several other staff at the C&C were initially suspended but were later reinstated. Brady received a twoyear community payback order (community service). Tel: Booker Group (01933) 371000.

Britvic and Barr mix drinks Assuming there is no government intervention and the deal is officially approved by shareholders, the £1.4bn merger of Britvic and AG Barr will go ahead. Barr Britvic, as the new concern would be called, would be owned 63% by Britvic and 37% by Barr. In total, the two soft drink suppliers have 4,300 staff, although up to 12% could go if the deal is approved. The amalgamation is expected to result in annual cost savings of about £35m. Meanwhile, executives from Barr and developer, Gazeley, visited Milton Keynes to see how work is progressing on the new 265,000 sq ft manufacturing and logistics facility for the soft drinks concern. The group, including Gazeley directors, Nigel

• Cash & Carry Management • December 2012

Godfrey and Alex Verbeek, and Barr operations director, Andrew Memmott, and head of financial planning, Peter Waddell, were joined by members of the council for a tour of the Magna Park site. The £41m warehouse,

production facility and offices will create 100 new jobs. Construction is due for completion in February and the site is expected to be operational by the summer. Tel: Britvic (0845) 758 1781. Tel: AG Barr (01204) 664295.

Top changes at Brakes Currently chief executive officer of bakery chain Greggs, Ken McMeikan (right), will join Brakes Group in a similar capacity early next year. Philip Jansen, who presently holds the CEO position at the foodservice wholesaler, will become chairman on 1 April, replacing Dwight Poler, who wil remain on the board.

Brakes, owned by Bain Capital and with a turnover of more than £2.6 billion and a payroll of 10,000, has operations in Ireland, France and Sweden, as well as the UK. It is in the process of a £250 million, five-year investment programme. Tel: Brakes Group (01233) 206000.

www.cashandcarrymanagement.co.uk

news

Blakemore tops £1bn AF Blakemore & Son, which this year celebrates its 50th anniversary, saw pre-tax profit slip marginally from £9.4m to £9.3m in the year to 30 April on sales 26% higher at £1.15bn. The results come a year after the SPAR wholesaler and Landmark Wholesale member paid just over £37m for fellow SPAR wholesaler Capper & Co, resulting in integration costs of £1.8m. Chairman Gwendoline

Blakemore said: “The Capper acquisition has been a resounding success, and we have achieved significant synergies as a result of the integration. “Economic conditions have continued to be difficult in the current financial year, not helped by poor weather over our important

Graham Carson

Employee-owned cash & carry operator AG Parfett & Sons achieved record pre-tax profit of £4.27m in the year to 30 June. That compares with £2.8m in the previous corresponding period, when there

The death has been announced of Scottish businessman Graham Carson, who started in the family food import firm, Moorhead Sons and Co. He later set up the Food Hold Group, which grew quickly in the ‘60s and ‘70s by acquisition. His involvement in wholesaling began with the purchase of Buchan & Macaulay and Geo P May in 1966. Subsequent acquisitions included William Yule & Son, J MacNab and James Mutch. While the cash & carry businesses were later sold, William Yule, now owned by one of Carson’s daughters, still trades successfully. Food Hold’s interests were expanded in the ‘70s with the purchase of rice miller Harvie & McGavin (now Moorhead & McGavin). Carson was a council member of the Scottish Wholesale Association for many years and a member of Landmark. Until recently, he was still operating three Spar shops, as well as other businesses.

summer trading period.” Tel: AF Blakemore & Son (01902) 366066.

Record Parfetts profit

‘Exciting plans’

were exceptional costs of more than £720,000 relating to 64 redundancies in May. Turnover of the sixbranch Landmark Wholesale member rose from £301.4m to just over £304m. Managing director David Grimes said that he and his fellow directors were delighted with the results in what was an “extremely challenging year”. He added that there are “exciting plans” ahead to relaunch Parfetts’ Go Local customer promotional club. Tel: AG Parfett & Sons 0161429 0429.

Charity posters Bestway Group is extending its support for GroceryAid by displaying posters for the food trade charity – including details of its Help Line (0808 802 1122) – in all 62 Bestway and Batleys branches. The company is one of several C&C/wholesalers which contribute financially and in other ways to the organisation, which was formed by the recent merger of Caravan and Sweet Charity. Other benefactors include Booker, Parfetts and Palmer & Harvey. Bestway Group chief executive officer Zameer Choudrey has been a trustee of the charity for three years. Announcing the arrangement at the company’s north-west London headquarters, Cathy Mercer, GroceryAid’s welfare development director, said that of more than 5,000 instances of assistance this year for those in need, over one-third were for people from the independent sector. Tel: Bestway Group 0208453 1234.

Fresh buy

Support for students Glasgow wholesaler JW Filshill, which supplies KeyStore outlets in Scotland and the north of England, has joined forces with Reid Kerr College in Paisley to provide students on a work placement programme with retail skills and experience. It is collaborating with three unemployed young people, who will receive their SQA Certification on Employability Award and Customer Care on completion of the 18-week course.

www.cashandcarrymanagement.co.uk

After four weeks in college, they will spend 14 hours a week with the wholesaler, working across different areas of the business, particularly KeyStore. Filshill managing director Simon Hannah said: “We have a strong corporate social responsibility agenda and place huge importance on our people, so this programme really struck a chord with us.” Tel: JW Filshill 0141-883 2224.

Oliver Kay, a Bolton-based company which places itself fifth among suppliers of fresh produce to the foodservice sector, has been acquired by BidFresh, part of 3663 owner Bidvest. Operating from a 44,000 sq ft refrigerated warehouse, it distributes fruit & veg, frozen foods, ambient goods, delicatessen, dairy products and oils & fats. Tel: Bidvest UK 020-7689 9900. Tel: Oliver Kay 0844 847 9790.

Cash & Carry Management

• December 2012 • 7

news

Nine top executives going Palmer & Harvey has confirmed details of a leaked report that, following a shake-up at its Hove head office, nine senior staff have either left the company or are in the process of going. Although the company would not disclose the names, they are understood to include marketing director Richard Hayhoe, national operations director Martin Davies, customer service director Alex Petas, multiple sales director Martin Jones and supply chain & logistics director Richard Slater. A brief statement issued on behalf of the wholesaler referred to a process of “aligning ourselves closer to

our customers and suppliers, which involves a review of our management structures. “As a result, we are in consultation with a small number of individuals. We cannot comment further at this stage.” The moves come 18 months after the appointment

Healthy growth Leading health, beauty & household products wholesaler DCS Europe has expanded capacity by 50% at its Stratford-upon-Avon site. Having seen substantial growth this year, it has agreed a lease on a 75,000 sq ft warehouse at St Modwen’s Long Marston Business Park, adding to the existing 150,000 sq ft depot. Chief executive officer Denys Shortt said the company aims to hit £200m sales by the end of 2015, creating 30 additional jobs.

For this year, the projected figure is £150m. He commented: “A sign of business success is when orders exceed the capacity of the site you own. We will be investing over £250,000 in the site, with racking and forklift trucks. “We recently moved to Barclays Bank, and their extra funding has really accelerated our growth.” Jim Quantrill, Barclays’ retail & wholesale relationship director for the corporate banking division, said: “DCS is a tremendous success story, with a highly respected management team with drive and vision.” Tel: DCS Europe (01789) 208000.

Shortt: Over £250,000 invested by DCS.

• Cash & Carry Management • December 2012

of Martyn Ward as sales & marketing director, replacing commercial director Peter Austen, who left the company. At around the same time, ex-sales director Paul Hagon assumed the new role of group strategy & development director. Headed by chief executive Chris Etherington, P&H has a turnover of £4.2bn. It recently opened a £6.5m, 168,000 sq ft site in Hemel Hempstead, Herts, and announced that it would be converting some of its van sales business into a foodservice operation. Tel: Palmer & Harvey (01273) 222100.

Two win awards Fukhera Khalid won the entrepreneur of the year title at the World Food Awards in London last month. Managing director of Elbrook Cash & Carry in Mitcham, with a turnover of £124m, he also owns CHAK89, a banqueting and restaurant complex on the same site. The judges said they were impressed by the range and diversity of Khalid’s businesses. This is the second time that he has been successful, having won the best wholesaler accolade last year. Another winner at the World Food Awards was delivered wholesaler JJ Food Service. For the third year running the company was judged wholesaler/catering supplier of the year. Tel: Elbrook C&C 020-8646 6502. Tel: JJ Food Service (08719) 730888.

Marketing head Dave Hughes (pictured) has been appointed UK marketing director for Brakes. The former marketing chief of the Game video games business, which went into receivership earlier this year, and who before that was director of M&S Direct, takes over from James Armitage, who now fills the newly-created role of independent marketing director. Armitage, who took over

as marketing director of the foodservice wholesaler five years ago, reports to Hughes. In another appointment, Adam Martin, previously with Mitchells & Butler, has been named as Brakes’ customer solutions director. The changes come almost a year after the departure of Brakes’ former UK chief executive, Stefan Barden. Tel: Brakes (01233) 206000.

www.cashandcarrymanagement.co.uk

IT news ‘The Only Way is STL’ for Essex Wholesaler Barking-based Chetan Wholesale has gained centralised control of its stock after going live with an integrated solution from STL. Comprising the STL MMS merchandise management system, five STL tills with central cash capability, and a chip & PIN system, this solution replaces Chetan’s ageing legacy system, which was underperforming. Chetan’s Director, Kishore Mandalia, said, ‘Effective stock management is our core business imperative. By giving us greater visibility and control of this operation, STL’s solution will help us to order more cost-efficiently, be in a position to take advantage of special offers, and ensure we are giving our customers what they want.’ As part of the roll-over, STL migrated all of Chetan’s existing product data onto STL MMS – which minimised disruption to trading. Furthermore, because STL’s solutions are designed specifically for wholesalers, they are intuitive and easy to train staff on - which limits errors while speeding up orders, stock checks and transactions. Mr Mandalia, said, ‘STL offers a combination of constantly evolving solutions, responsive service and a forward-thinking team that is staffed by experts in wholesaling as well as IT. For us, the only way is STL.’

New Initiative to Improve Clients’ ROI In early 2013, STL will launch a new Professional Services initiative designed to make its user training and consultancy services more affordable and accessible. It will be headed up by the highly experienced IT and wholesale sector expert, STL’s Training Consultant Jayne Leonard, who said, ‘It’s an exciting new programme that will help our clients to get the very most out of their IT investments.’ Detailed information will be issued to all STL clients shortly. If you’d like to be added to this mailing list, please email Jayne.leonard@stl-solutions.com

Scottish Success Very well done to long-standing STL client, United Wholesale Grocers, whose Springburn depot recently won the Asian Trader Wholesale Depot of the Year Award 2012.

Dhamecha Expands Congratulations to Dhamecha Group which has opened its seventh depot in Lewisham.

STL Sponsors Brave Youngster

As at the cash & carry giant’s other six depots, Dhamecha is managing its new depot with the aid of STL’s Merchandise 1 4 Management System (STL MMS), STL’s tilling and 3 central cash solution, and 6 2 STL’s in-store mobile terminals.

Donations welcome via www.georgeclaxtontrust.com

STL is supporting a young boy who was paralysed earlier this year while playing for the Blackburn RUFC Under 15s squad, but whose upbeat spirit is inspiring all around him.

0844 472 4727 sales@stl-solutions.com

@STLTechSolution www.stl-solutions.com

delivered

Symbol’s fresher approach Reducing SPAR UK is rolling out its Fresh For Less promotional activity into stores across the country. Special mobile display units, which can be situated either at the front of, or outside the front of, stores, have been arriving at members’ premises. Retailers will stock only fresh produce on the units, offering five types of fresh

fruit and vegetables at £1 for each pack and pre-packaged goods price-marked to highlight deals. The fresh food will be seasonally relevant, with products sourced by each region’s wholesaler. Rebecca Whitmore, SPAR UK marketing manager, said: “Fresh is a key area of growth for us, as we know consumers want to buy

more fresh food from convenience stores. “By ensuring that the stands are placed in key areas at different times of the day, retailers will help to ensure customers don’t miss out on these deals.” The activity is being supported by PoS material, explaining portion size for five a day and seasonality. Tel: SPAR UK 020-8426 3700.

Extended range

‘Most innovative’ JW Filshill has received the title of ‘Scotland’s most innovative haulier’ in a competition mounted by trade publication Transport News. The Glasgow-based C&C/ wholesaler delivers to KeyStore retailers in Scotland and the north of England. It has slashed £130,000 from its annual running costs after introducing advanced vehicle routing software four years ago, and improved its vehicle utilisation by 20%. The award also came on the back of the company’s commitment to SAFED (Safe & Fuel Efficient Driving), which has contributed to reduced fuel costs, emissions and journey times, boosting its environmental credentials and enabling the wholesaler to take two 26tonne vehicles off the road.

Robin Spalding, transport manager, said: “Since introducing the Optrak system, efficiencies have improved because the system removes the guesswork. Its smart technology builds our loads for us and removes any margin for error. “It was a huge challenge for us, however. Before rolling out the system we had to invest considerable time in data capture and information gathering for each customer’s delivery location. “We also launched an online ordering facility at the same time, offering customers an 11am cut-off time for next day deliveries.” Filshill operates 26 vehicles covering an area from Wick to Leeds. Tel: JW Filshill 0141-883 2224.

• Cash & Carry Management • December 2012

Kerry Foods Direct to Store, the convenience, chilled and fresh delivery service arm of Kerry Foods, is expanding its range of Millers fresh pastry products to include 12 new variants of sausage rolls, pies, slices and pasties. The development follows the launch of a limited pastry range into convenience stores earlier this year. The new single and multipack formats include a sausage roll, two hot pies, four pastry slices, two pasties and pork pies. Rsps range from 85p for an individual minced beef & onion hot pie to £1.75 for a five-pack of sausage rolls. All lines allow for over 25% profit on return. Tel: Kerry Foods Direct to Store (0800) 121 4688.

One of the Kerry vans with Cheestrings livery.

waste Palmer & Harvey, with the help of waste management company, ACM Environmental, of Waltham Abbey, Herts, is encouraging customers to reduce food waste and follow best environmental practice when making disposals. At its new Hemel Hempstead site, P&H is taking back out-of-date food and, by working with ACM Environmental, is sending it to an anaerobic digestion plant, which creates a source of renewable energy and a feedstock for agricultural fertilisers. P&H is also sourcing cardboard and plastic, compacting them into mill-sized bales which are stored and removed only when there is a full curtain-side lorry load. By doing this, it not only cuts Co2 emissions through reduced transportation runs, but also allows the waste to avoid further processing and achieves a better quality material for recycling. All other recyclable material is captured in a dry mixed recyclable waste stream and compacted. ACM Environmental is also educating the wholesaler in ways of ensuring general waste is kept to a minimum. The wholesaler claims to have achieved a recycling level of 92%, of which 67% is reused and 25% is recovered as renewable energy. P&H risk & safety manager Gary Weatherhead said: “With ACM, we have implemented environmental best practice and are delighted to have achieved such high recycling levels.” Tel: Palmer & Harvey (01273) 222100.

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

spotlight

‘Learn from good and bad’ This month’s article features Bill Laird, managing director of Today’s Wholesale Services. What most frustrates you in business (and in life generally)? I am most frustrated by wasters: time-wasters, talent-wasters and opportunity-wasters. Indecision is a manager’s worst enemy and so too is procrastination. Meetings for meetingssake and cold callers on the telephone are my pet hates. If you were able to retire tomorrow, would you, and if so, how would you spend your time? I’m not too sure if Mrs L would be too pleased to have me at home all day, every day! But if I had the time and the opportunity, I would buy round-the-world tickets for me and my family and spend the next five years visiting all of the places on my ‘bucket list’ with them, before my children think it is ‘uncool’ to go on holiday with their parents! What advice would you give someone starting his/her first job? First of all, ensure it is a job you really want – then give it 110% every day. Learn from the good AND the bad, then remember to do the good and avoid the bad as you grow and develop.

Bill Laird and ‘Mrs L’ on holiday in Florida!

What has been the major milestone or turning point of your career? I have had a highly enjoyable career to date with many more highs than low points. One highlight was being the recipient of the Retail Week ‘Best Use of Technology in a Customer Environment’ award for the introduction of self scan checkouts whilst with Oxford, Swindon & Gloucester Co-op. We were up against M&S, Sainsbury, et al. Later that night, we were presented with the Deloitte ‘Outstanding European Customer Initiative of the Year’ award. Given that we were not even the largest Co-op Society in the UK, to be recognised by the industry twice in the same evening was a huge achievement for us. Who has been the biggest inspiration to you? I have been very fortunate to have worked with a range of inspirational managers and colleagues. To single out just one would be unfair. How do you maintain a work/life balance and how have developments in technology affected this? Unfortunately, like a great many in our industry, I am very often in overdraft at the ‘bank of home’ and in credit at the ‘bank of work!’ I love technology both in the workplace and around the home. The best gadget ever is the smartphone: we can be in touch with everyone everywhere 24/7! The smartphone is also the worst gadget – everyone everywhere can be in touch with you 24/7!

• Cash & Carry Management • December 2012

What type of business would you have gone into if it wasn’t C&C/wholesale? When I was at school I was keen to become a graphic designer but circumstances did not allow it and, like most in the industry, I fell into retail more by accident than design. I have now been in this industry for around 35 years and I could not contemplate working anywhere else or doing anything else – I must be mad! If you had a million pounds to invest in business, how would you spend the money? That’s a tough one to answer! My Scottish prudence would probably tell me to put it in the bank or in a biscuit tin under the bed – comparable interest rates! However I would probably invest it in gold bars and keep it for all for a really rainy day. Or maybe vintage wines, or classic cars, or designer watches or perhaps even adopt the ‘George Best investment philosophy’!

Wide commercial experience Bill Laird began his career in retail at 17 years old, gaining wide commercial experience working through the ranks in a range of well-known companies, including Asda, Woolworths, Somerfield and Co-op. He joined NisaToday’s in early 2009 as managing director of Today’s Group. When Today’s separated from Nisa in January 2012, he became managing director of the newly created Today’s Wholesale Services, which continues to trade as Today’s Group.

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supplier strategy

More coffee for air passengers? Mervyn Gilbert meets Neil Stephens, managing director of Nestlé Professional. If you have an aversion to heights and lifts, the chances of you having had a meeting with a Nestlé executive on the top floor of the 22-storey St George’s House in Croydon during its 46-year life are highly unlikely. Thankfully for those phobics quaking at the thought, that scenario could now never take place, with the 850 staff who worked in the food and beverage business’s former building being relocated 25 miles down the road to Gatwick. Mind you, if you also fear aircraft... The food supplier is now located in the three-storey exBRT structure close to the airport. Only Nestlé’s York-based confectionery business, Cereal Partners in Welwyn Garden City, and Movenpick in Guildford, are not based there, although the ice cream supplier will be switching shortly. Neil Stephens, managing director of Nestlé Professional, one of the subsidiaries in the new home, doesn’t rule out the possibility of even more group activities making the switch. “We certainly have the room,” he says. “A big advantage for us here is that we know where everyone is. In Croydon, where my division occupied two floors, you might not see someone for ages!” Stephens, who has been with Nestlé for 10 years and in February will have been md of the Professional (previously Foodservice) UK & Ireland operation for three years, is looking forward to the opening of what he describes as a “professional culinary centre” at Gatwick.

“We will have five chefs – one more than we had at Croydon. “They will be considering, for example, what the trends are in food for pub operators and how our mashed potato can be more widely used in schools. It now has less salt and can have multi uses.” Stephens, and his sales director George Vezza, who has been with Nestlé for 20 years, are firm believers in creating applications for the 250-300 skus marketed by the foodservice specialist. Says Stephens: “Three years ago we would just have sold the products and ingredients to the C&C/wholesale channel. That wasn’t good enough. We had to learn more about the likes of pubs and health authorities. Now it’s all about solutions. “We have to ask C&C/wholesalers: ‘How can we do more to help you reach these operators?’ “In coffee, for example, which accounts for around 50% of our business, we have been offering category management advice.” Head of beverage products Wendy Christensen takes up the story. “Two years ago we devised a marketing plan, with five core drivers. In C&C/wholesale, we offered a category management programme to concerns such as Booker, Brakes, 3663, Sterling Supergroup and Hyperama. One of them has achieved 9% growth since adopting our advice, while others have also shown improvement. “We use a third party to determine what each operator needs according to its customers, what its optimum range is and whether it should buy online. “One of the things we noticed was that many in the workplace were leaving the premises to buy coffee rather than having it on site.” It’s one of the reasons Nestlé Professional is actively pursuing ways of getting more of its coffee machines into places of employment. That cuts both ways, however, because some of these work environments are high street coffee bars, like Costa and Starbucks, which are largely responsible for luring staff from their building at lunchtime. The company markets three styles of hot beverage machine: Milano, Milano Lounge and Allegria A510. Milano, aimed at the high street, quality coffee sector, produces a cup selling for between £1.60 and £2.40. The two-litre container is the sort that could be used in a Starbucks or Costa outlet and would cost either between £99 and £129 or be subject to a minimum three-year agreement.

Neil Stephens has been with Nestlé for 10 years and managing director of Professional for nearly three years.

• Cash & Carry Management • December 2012

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supplier strategy The less expensive Allegria 510 unit, with an 800ml capacity, is aimed at small work places serving around 10 cups of coffee a day. Each cartridge of micro-grind coffee can make five styles and between 40 or 140 drinks, depending on the choice of either cappuccino, latté macchiato, espresso, lungo or Americano. Milano Lounge is a ‘premium self-serve coffee solution’, offering over 400 drink combinations. Stephens says the company’s machine sales are growing by more than 50% a year. Refinements are often being considered because “consumers are getting more demanding and users want something more simple to operate”. Nestlé Professional’s coffee comes in 1kg, 750g and 500g tins of Nescafé Gold Blend, Nescafé Original and Decaffeinated. The trade can also purchase packs of 200 sticks containing Coffee accounts for half of Nestlé Professional’s turnover. Nescafé Original granules and Gold Blend as well as individual on-the-go cups with coffee bags, which can sell for around £1. A recent addition is Nestlé Docelle. The Austrian-made The company also markets &GO machines and cups, prerange of packet dessert mixes can be used either as a base dominantly in the convenience channel, with 12oz doubleor with fresh ingredients to create customised desserts. walled paper cups, pre-dosed and foil sealed in a range of six The 780g Chocolate Fondant pack can make 12 servings; hot drinks (tea, Aero hot chocolate, cappuccino and black, Panna Cotta (600g) can create 48 helpings; and Creme Brulée white and decaf Gold Blend). (1kg) 100 desserts. Referring to the company’s customer list, Stephens says Vending plays a part in the business, too, with Nestlé it used to include DBC Foodservice. “It was a medium-sized Professional utilising many of the top brands in the group’s customer. If it had survived, who knows, in five years’ time it confectionery range, headed by Kit Kat. might have been much bigger for us. Among the fast food “In addition to the big foodservice chains it deals with is KFC, wholesalers, we do a lot of business supplying MilkyBar Buttons with independent operators. for use in the Krushem “The divisions between all these desserts range. companies are blurring now. It’s not “We also sell to Hilton so easy to split C&Cs who are dealing hotels and Marston pubs,” Neil Stephens, managing director mainly with retailers and wholesalers says Stephens. “However, Nestlé Professional dealing with other customers. The hotels are still a relatively whole trade is changing apace.” unexploited area for us. Stephens can call on a sales team of about 100, split There is a lot of opportunity through this channel – as well as almost equally between those visiting C&C/wholesalers, through pubs – by adding value.” those calling on contract caterers and those specialising in He adds that the US dominates territorially for Nestlé hotels, pubs, restaurants and leisure outlets. Professional, but outside of that region, the UK is the biggest Asked whether there is a policy of moving staff around in player. the business, to give them a broader grounding of what’s “We do packing in various parts of Europe, including going on, Stephens says: “I believe in consistency, not Germany, Austria, Switzerland, Finland and Denmark. A lot of switching people. Two or three years ago we did this sort of our coffee is assembled in the UK – at the same sites as the thing too much.” retail packs.” Nestlé Professional is described by him as “a mediumSpeaking in the leasehold building that also includes size business with a UK & Ireland turnover of around £150m”. Nestle’s retail beverage and food business, the Purina petAlthough coffee dominates in income terms, food and foods operation and corporate functions such as legal, confectionery-led products play a major role, too. human resources and central buying, he reflects on the comTwo leading, long-established names are Chef and Maggi. pany’s attitude to hospitality. Stephens comments: “Chef is aimed at fine dining estab“We have used the London O2 Centre for nearly five years lishments while Maggi is for the lower end, mainstream and view it as more of an investment than paying for itself. It chefs who want more prepared products.” works in our favour, too, because we sell product to the The company added to its range this year when it bought venue and can also advertise there.” Switzerland-based Oscar, which specialises in stocks and You get the impression that Stephens would have you sauces for use in various dishes, including those featuring believe it’s Nestle Professional’s products that take centre chicken, beef and fish. It also offers ethnic styles, notably Thai. stage at the entertainment site, not the global stars!

‘Three years ago we would just have sold the products to C&Cs. Now it’s all about solutions.’

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Cash & Carry Management

• December 2012 • 15

silver anniversary

Flying high at the Emirates North London operator Imperial Cash & Carry entertained more than 300 at Arsenal’s stadium to mark its 25th birthday. “It’s a resounding testament that, through sheer hard work, you are capable of anything.” That’s how Nikkita Mulchandani, who launched Imperial’s retail club two years ago, summed up the achievements of a family whose third generation is now making an impact on the business. “My dad and uncle have worked so unbelievably hard to take us from rags to riches,” she told guests, who were entertained by a variety of jugglers, stilt walkers, magicians and acrobats. It was an emotional managing director John (Nikkita’s father) and director Kali, John’s brother, who took the stage to relate the Mulchandani story, begun by their father Ghanshamdas. “I’m not sure I’ll be able to get through this,” said John, his voice cracking as he addressed the gathering, including suppliers, company staff, Today’s Group head office, notably managing director Bill Laird, local MP Andy Love and the Mayor, Kate Anolue. “It’s been a long, hard road to reach this milestone, and it’s a very special evening for our family. We couldn’t have done it without our exceptional staff.” In this respect, he made a number of presentations, including those to head buyer Neil Govind and general manager Doug Nicolaou, of whom he said: “There’s no one at Imperial who is as hard working as Doug or as totally committed. He can be at our place at four in the morning if the alarm should go off.

Nikkita Mulchandani opens proceedings.

“I also want to thank all our suppliers, without whose support we wouldn’t have got where we are, and all our customers, many of whom are here tonight.” In another poignant reference in his speech, John told guests: “Our mother would have been 78 today. She was a driving force in the family. “At Imperial, we have seen growth for every year of our 25 years – a feat that would have had our mother bursting with pride.” Guests at the event also included former Arsenal star Charlie George, who helped drum up support for the charity auction, whose two beneficiaries were Macmillan Cancer and the Edmonton Homeless Resources Centre. Thanks to his efforts, and contributions from the raffle and from the Mulchandani family, £10,000 was presented to each of the charities. In the hallowed portals of one of the two north London Premiership football clubs, how anachronistic that one of the Mulchandani presentations should have been made to drinks supplier Tottenham Wines and that the manageress of the highly efficient Arsenal banqueting staff should admit on the QT to our reporter that she was a lifelong supporter of the blue & white team down the road!

Kali (left) and John Mulchandani present a cheque for £10,000 to Rachel Kingston on behalf of Macmillan Cancer. A similar amount went to local charity, the Edmonton Homeless Resources Centre.

• Cash & Carry Management • December 2012

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interview

Delivering insightful changes Martyn Ward, managing director commercial & sales at Palmer & Harvey, tells John Wood why streamlining the management structure should lead to better service for customers. Palmer & Harvey is benefiting from a refocus on its customers’ needs which has helped it significantly increase sales in a very tough market, according to Martyn Ward, managing director commercial & sales. For the first half of its financial year to the end of September, like-for-like non-tobacco sales were up more than 5% compared with the same period last year. Ward explains: “We’ve made changes in the past 18 months where we have really listened to our customers and suppliers. We’ve done our biggest ever piece of research with our customers and shopper research to ensure the advice we are giving is right for retailers and for consumers. We’ve realigned ourselves so we are closer to our customers and suppliers and we are becoming an insight-led organisation. “Rather than an organisation that is doing things that it thinks are right, we are now doing things we know are right and are supported by qualitative and quantitative research.” As a result, he says, the company has challenged perceptions that it was expensive with a price match against cash & carries, and made its promotions much harder hitting.

• Cash & Carry Management • December 2012

“We’ve reverse engineered our promotions so we are actually starting with what the consumer offer needs to be rather than just accepting what the suppliers come in and offer us. We are being very strong in terms of what the retailers need to be able to compete.” Another initiative as a result of the research is a move to streamline the management structure (see News p.8). Ward says: “I can’t talk about individuals because we are still in consultation on exactly what the structure will look like afterwards, but we did undergo a full review of our business based on the research we carried out, and while that was saying all our relationships with customers and suppliers were good, my view is we were not close enough as a board and a senior management team to really understand and work on their issues with them. “The structure in the business had a number of levels of management and I think that hampered the board from being as close to the issues as it should be and also the speed of our decision making, so what we have done is realign that to make us easier to get hold of, easier to report to in terms of decision making, and most importantly a lot more customer

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interview and supplier facing. Research tells us that both our and we will be looking at what services we can supply to customers and suppliers see us as very approachable and them, and how we can help them enhance their businesses. good at listening, but I think we can do better.” Walkers had been doing work on ensuring the right sales mix Another part of the business which has undergone major was available in fast-food outlets and pubs and P&H will changes is P&H’s van sales operation, Sweets Direct and continue to develop it to capitalise on the opportunity.” Snacks Direct, which earlier this year added the Walkers Looking at Palmer & Harvey’s overall delivery network, operation to its fleet. Ward says that particularly in the curWard says it currently provides good geographical coverage rent economic climate some customers prefer to pay cash across England, Scotland, Wales and Ireland, and there are and want a local service and that is no plans to follow up the new exactly what the van service does. depot at Hemel Hempstead with There was very little overlap in any additional sites. However he the customer base of the P&H and adds: “In Ireland it depends how Walkers operations, so the deal has our business develops. If it given the company even greater becomes a much bigger business coverage. “We now have the then we may need some more biggest salesforce in the country, infrastructure there, but generally Martyn Ward, managing director calling on more than 50,000 outlets speaking with the depots we have commercial & sales, P&H every other week, and that reach is we are no more than two-and-aof significant interest to suppliers.” half hours from any customer, we The arrangement has also benefited customers as they are in every postcode every day and we’ve got a very local are now offered a greater range, with former Walkers vans service which is unlike any of our competitors. gaining from the P&H range and Snacks Direct vans offering “A lot of our competitors work from a lot fewer depots, Walkers products that were not previously available. but we believe having more depots allows us to be more The Walkers deal is also helping P&H develop its service flexible. It’s also important in areas such as customers buildto more catering outlets. Ward says: “We are not interested ing a relationship with their depot managers and their teams, in delivered foodservice because it is not our heartland, but so we really provide a locally focused service with all the we are looking at the numerous places on the high street and support of a national infrastructure.” in local communities that sell food to go but probably haven’t The new depot at Hemel Hempstead began ambient delivgot the right range of crisps and snacks and soft drinks. eries in September and is on schedule to be fully operational “Walkers was already dealing with many of those outlets with a multi-temperature service to 5,500 customers by

‘Our customers and suppliers see us as very approachable and good at listening but I think we can do better’

P&H’s depot network means it is no more than two-and-a-half hours from any customer.

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Cash & Carry Management

• December 2012 • 19

interview January. Ward says it provides extra capacity to serve the south east, which is an area of growing business for P&H, and where its other depots were already working flat out. He adds: “Unlike many companies in the tough economic climate we had the guts to say we were going to invest in a major new piece of infrastructure. A lot of companies would have tried to make do with what they’d got but that’s not us and that says everything about the financial position of Palmer & Harvey.” And although there are no plans for new depots, he says P&H will update its existing infrastructure with developments such as automation of tobacco picking at its sites. Insight from its research has also fed into P&H’s symbol operation. Ward says the focus of the 900-strong Mace group this year has been on raising standards and compliance rather than adding numbers. Feedback from suppliers has been good and the increased standards are leading to sales growth. Ward says P&H’s Supershop group is also adapting in the light of feedback. It has a fascia but CTNs gain a lot from being local so he says fascias ought to reflect the fact that stores are locally owned and part of community. What CTN owners need is a tailored support programme, not just in marketing but also in areas such as coping with anti-social behaviour and crime, and getting the best utility deals for them, so Supershop is becoming more of a marketing and support club than a fascia. As the biggest single player in the market in terms of turnover (£4.2 billion), Palmer & Harvey takes its leadership role very seriously, says Ward. Chief executive Chris Etherington is a former chairman of the FWD, and the company has recently published major research projects highlighting the issues facing its forecourt and CTN customers,

Although there are no plans for new depots, P&H will update its existing infrastructure.

and is working with bodies such as the ACS and FWD to generate industry solutions for them. “For instance,” he says, “crime and anti-social behaviour are industry issues, not areas of competitive advantage. We need to support bodies like the FWD and ACS and do our own work in a bid to find industry solutions.”

The new Hemel Hempstead depot will be fully operational with a multi-temperature service to 5,500 customers by January.

• Cash & Carry Management • December 2012

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fwd awards

‘Engine room’ for recovery Old Billingsgate in the City of London was the setting for the FWD’s 23rd annual event. Cash & carry/wholesalers are “the lifeblood for small to medium-sized business, and we will be the engine room for economic recovery,” FWD chairman Guy Farrant told nearly 650 guests at the FWD’s annual Gold Medal Awards dinner. The Booker cash & carry managing director added: “We have an invaluable connection with hundreds of thousands of entrepreneurial small businesses who contribute millions to the Exchequer. We also provide a vital route to market for suppliers.” Bill Laird, managing director of Today’s Group, which sponsored five of the awards, not only paid tribute to his own group, founded 25 years ago by Peter Garvin and Dudley Ramsden, but also to Landmark Wholesale, which is celebrating its 40th anniversary. Reflecting on the growth of Today’s, Laird listed the following members’ developments: Dhamecha’s new 70,000 sq ft Lewisham cash & carry Laird: tribute to rival. 80,000 sq ft Tewkesbury depot for Intamarque Abra Wholesale’s 120,000 sq ft premises in east London Birmingham redevelopment and expansion by Wing Yip Acquisition by Birmingham-based Giro Foods of Key Caterers New 30,000 sq ft depot for M9 at Grangemouth 45,000 sq ft Wirral branch for Regal Wholesale Extension and redevelopment of United Wholesale Scotland’s Maxwell Road depot New 80,000 sq ft building for Blackburn-based Khanjra C&C Imperial Cash & Carry’s 25th birthday.

• •

Lifetime achievement awards were presented to Mike Sonia, of Sugro UK (second left), and Jim Davison (second right), of SHS Sales & Marketing). They are pictured with Guy Farrant (left), FWD chairman, and James Bielby, chief executive.

Drinks brand (Today’s Group): Stella Cidre, AB InBev UK. Foodservice brand (Today’s Group): Nescafé, Nestlé Professional. Service to retail (Today’s Group): Coca-Cola Enterprises. Service to foodservice (Today’s Group): Nestlé Professional. Actionable insight (SalesOut): Heineken UK.

• • • • • • • •

Award winners Cash & carry depot (sponsored by AG Barr): Blakemore, Middlesbrough. Young wholesaler (JTI): Stuart Harrison, JW Filshill. Delivered depot manager (Magners GB): Fida Hussain, Bestway, Swansea. C&C manager independent (Britvic Soft Drinks): Kali Mulchandani, Imperial Cash & Carry, north London. C&C manager multiple (PepsiCo UK & Ireland): Amrez Akhtar, Bestway, Stockport. Shop floor worker (Cott Beverages): Less Cutts, AG Parfett & Sons. Delivered driver (him!): Michael Capps, Booker, Kettering. Wholesale service to retail (Ferrero/Kinder): Bestway Wholesale. Wholesale service to foodservice (Unilever Foodsolutions): JJ Food Service. Grocery brand (Today’s Group): Boost Energy.

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Cash & Carry Management

• December 2012 • 21

awards winners

Suppliers honoured at Cliveden Cash & Carry Management’s Top 25 Suppliers exclusive AWARDS lunch was this year held at Cliveden House, which has played host to virtually every British monarch since George I.

• Cash & Carry Management • December 2012

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awards winners

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Cash & Carry Management

• December 2012 • 23

awards winners

The value of the £ and PMPs At Cash & Carry Management’s AWARDS lunch, guests had an opportunity to hear from four excellent speakers about the value of the pound and price-marked packs within their businesses. “We at Bestway Group support price marking on packs, towards which there has been a major market shift,” said the company’s operations director David Gilroy. While the general consensus is that price marking is valued, he said the question had to be asked: “Is it elastic or inelastic?” He maintained that the independents were “famous for putting excessive price margins on their products. But consumers want value. They won’t accept prices that are substantially higher than those in the supermarkets. Never before has the matter of price been so transparent.” Quoting examples where there is a gulf in retail pricing, Gilroy said he would normally expect to pay 55p for a Kit Kat, “but I’ve seen it for 90p at WH Smith in Welcome Break! “I can also get Hellmann’s Salad Mayo for £1 in a pound shop, and I’d be unhappy being expected to pay £1.89 for this in a convenience store.” Gilroy said that, given the benefits of PMPs, Bestway still did not support them in an unqualified way. “Price marking must be fair to consumers and deliver a reasonable profit on return for our customers. Yet it has a role to play, because we cannot rely on independents to set appropriate selling prices for prevailing market conditions.” Gilroy insisted that retailers’ margins on price-marked cigarettes are too low. “Suppliers have systematically reduced them to below 5% – this is unacceptable.” As an example of the impact of PMPs on Bestway and Batleys’ customers, he said that when Maryland Cookies carried a price mark of 99p, sales were just steady, but when they were changed to 69p, they were “flying off the shelves”. Price adjustments made for Oreo cookies and Wagon Wheels had had a similar effect. Stating that he was a “huge admirer” of pound shops, he commented: “Consumers are now going into pound shops

Chetan Patel: “The price-marking concept is certainly of benefit to small retailers.”

• Cash & Carry Management • December 2012

David Gilroy: “Once that £1 price mark is established in the consumer’s mind, there is no going back.”

in a big way, but £1 lines are the crack cocaine of the UK grocery trade. After decades of carefully stewarding their brands, suppliers have commoditised them to hit the £1 price point. Once that £1 price mark is established in the consumer’s mind, there is no going back.”

Consumer confidence Putting the importance of price-marked packs from the independent retailer’s perspective was Chetan Patel, owner of The Felbridge Village Store near East Grinstead, West Sussex. He commented: “The biggest ongoing challenge for us is being competitive on price. “Price-marked packaging has enabled me to alter the perception most of my customers have that they can only get the best value for money at large supermarkets. It gives them confidence of not being overcharged.” While newspapers & magazines is the major area of price marking for his store, tobacco (with 65% of the products sold in this category being price-marked), frozen (54%) and soft drinks (48%) are also vital elements. Presenting a graph showing average profit margins for PMPs and non-priced variants at rsp, he said: “Price-marked packs work really well for us for the top selling products within the soft drinks and household categories. “However, price-marked packs can be restrictive within other key categories – areas such as alcohol, groceries and confectionery can definitely improve in terms of profitability.” Patel added: “While non-priced packs account for 74% of our revenue, that still leaves 26% for PMPs.” He said that over the past three years there has been an increase in the percentage of price-marked products in his store. “This has also coincided with an increase in turnover and profit margin.

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awards winners “The price-marking concept is certainly of benefit to small retailers. It has helped my business enormously.” Chetan concluded with a plea to manufacturers and suppliers: “I hope that you continue working to ensure that price-marked products are increasingly available at profit margins that are beneficial for retailers such as myself.”

Brand leadership Malcolm Grantham, sales director of Crown Crest, with a turnover of over £300m, based the first part of his talk on his 20 years’ experience working for the Tetley tea business, latterly as sales controller. There, he discovered a ‘tired trading strategy’. He explained: “I detected that a string of innovations was required and, as part of this, I met the good and the great in the trade. Price-marked packs was the one constant that came out of the discussions.” What bothered Grantham about this strategy, however, was shared margin, “which has to work for everybody”. Showing a £1m PMP of gravy granules, he said: “This is not an immediate gimmee. You have to think of such things as dedicated factory production time and bar code changes. Then there’s forecast planning and financial modelling.” Grantham said that Tetley went gradually about its task, introducing just one PMP, then another, eventually creating a portfolio. The products covered the cash & carry, C&C catering and convenience sectors. “Our strategy delivered brand leadership in all supported channels,” he said. “It created less volume volatility and more sales. “We found that among the negatives was the impact on the supply chain and on production planning. And after 18 months, we decided we had to rejuvenate.” Grantham reiterated the need to focus on value. He said: “Value at point of purchase is arguably ever more important today and, overall, PMPs remain a compelling way of driving sales of both branded and private label products.” The key to getting it right, he added, is a combination of a competitive rsp, a motivational shared margin, and a clear on-pack price message.

Malcolm Grantham: “£1 is a vogue price point. It is simple and it works.”

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Philip Jenkins: “So many suppliers have come out of the woodwork to support QuidzIn.”

Turning to the pound retail chains, Grantham commented: “£1 is a vogue price point. It is simple and it works, and it fits well with current austerity.” Apart from Crown Crest’s Poundstretcher chain, with around 400 outlets, consumers could go to stores carrying the Poundland, Poundworld and 99p Stores fascia. “While I cannot foresee the pound message not being in vogue, it will be tougher to deliver at this price. How long will it be before we see the £1.50 shop? Probably not for five years. Meanwhile in Ireland there are the euro shops. “I believe the concept will be with us for a long time.”

£30m turnover Philip Jenkins, managing director of the 56-member Sugro, discussed the emergence of Quidzin, the group’s new pound promotional scheme launched earlier this year. “Yes, it might be a corny name, but it does the job and produces masses and masses of volume for us. It is multipacks driven and is the star of the show right now.” Jenkins commented: “So many suppliers have come out of the woodwork to support us. We run promotions every six weeks and just leave the retailers to get on with it.” He added that, with the products showing 240% growth and with turnover of £30m from nothing, “we’re annoying a lot of other wholesalers with this”. Jenkins, who said he believed multipacks were here to stay in the independent/convenience sector, questioned the value of price marking. He offered the following example: Units 100 x 60p = £60.00 @ 27% = £16.20 Units 100 x 49p = £49.00 @ 33% = £16.17 In other words, a 5% higher margin is needed to maintain a cash neutral position. Either that, or the retailer would need to sell 123 units at 49p = £60.27. This equates to a 23% increase in purchases, which is unlikely. Jenkins commented: “It’s not simply a matter of shifting volumes around. I love the strategy, but we need to get the mathematics right. The value proposition is to demonstrate value, not compromise the total proposition.” Reflecting on the growth of pound stores, he asked: “When will Poundland become TwoPoundland?”

Cash & Carry Management

• December 2012 • 25

awards winners

Suppliers’ final scores

TOP 25 SUPPLIERS

Thanks go to everyone who voted on the Top 25 Suppliers during this year’s AWARDS scheme. Here is the league table of the companies deemed to give the very best standards of service to cash & carry/delivered wholesalers in England, Wales and Ireland.

Position

Company

Score (max. 30)

August results

Coca-Cola Enterprises

23.14

22.73

(2)

Kraft Foods

22.93

22.61

(3)

Imperial Tobacco

22.86

23.12

(1)

Nestlé

22.84

22.35

(5)

GlaxoSmithKline

22.46

22.58

(4)

Kellogg’s

22.34

22.29

(6)

PepsiCo

22.31

21.42

(=13)

Mars

22.13

21.66

(10)

Tate & Lyle

22.03

21.71

(8)

JTI

21.88

21.27

(16)

United Biscuits

21.87

21.58

(11)

Unilever

21.86

21.67

(9)

Carlsberg

21.84

21.78

(7)

Tata

21.82

21.28

(15)

Britvic Soft Drinks

21.73

21.42

(=13)

Diageo

21.67

20.92

(18)

Robinson Young

21.25

21.51

(12)

AB InBev

21.17

20.82

(19)

Molson Coors

21.14

20.95

(17)

Red Bull

21.01

20.77

(20)

Johnson & Johnson

20.91

20.38

(21)

Heinz

20.61

19.39

(23)

Kerry Foods

20.31

19.45

(22)

Accolade Wines

20.25

19.08

(24)

Premier Foods

19.51

18.60

(25)

• Cash & Carry Management • December 2012

www.cashandcarrymanagement.co.uk

awards winners

Coca-Cola Enterprises is No.1 The Cash & Carry Management Top 25 Suppliers AWARDS, as judged by cash & carries and delivered wholesalers in England, Wales and Ireland, have been won by Coca-Cola Enterprises, which was also victorious in the Best Sales Development Support category (see p.29).

WINNER: Coca-Cola Enterprises 23.14 out of 30 “We are thrilled at winning the top award – sitting at the top of 25 major suppliers. It’s great that our commitment to the cash & carry/wholesale channel is recognised in this way. This is a tremendously important area of growth for us.” Darren Goldney, sales & customer development director, Coca-Cola Enterprises

Kraft Foods’ senior customer development manager Amy Sheer and customer development controller – RTM Fin Coffey are presented with the runner-up award by Martin Lovell.

RUNNER-UP: Kraft Foods 22.93 out of 30 “We are delighted to accept this award, as well as the award for Best Promotions for Long-Term Growth. We believe they are a reflection of our hard work, dedication, commitment and teamwork and, because they are independent and unbiased, the awards are highly regarded within industry and our business. Being nominated in these awards helps to further drive our focus to provide services designed to help our trade customers prosper in these tough times.” Fin Coffey, customer development controller, Kraft Foods Accepting the top award from Cash & Carry Management’s managing director Martin Lovell (left) is Darren Goldney, sales & customer development director at Coca-Cola Enterprises.

HIGHLY COMMENDED: Imperial Tobacco 22.86 out of 30 “We are pleased with our position of third overall – the same place we finished last year. It‘s an important accolade because of the way the voting is done, giving it greater credibility than other awards. We are extremely positive that we are moving in the right direction, and we would be disappointed not to finish No.1 next year. It’s certainly something to aim for.” Tom Portingale, media relations executive, Imperial Tobacco

www.cashandcarrymanagement.co.uk

Imperial Tobacco’s media relations executive Tom Portingale (left) and business development manager Ian Horton receive the highly commended award from Martin Lovell.

Cash & Carry Management

• December 2012 • 27

awards winners

Tributes for wholesale focus Cliveden House was the impressive setting for Cash & Carry Management’s AWARDS lunch, where suppliers received worthy recognition for their service to the cash & carry/wholesale trade.

‘Best Merchandising Advice‘ WINNER: Unilever

‘Most Innovative‘ WINNER: Britvic Soft Drinks

WHICH OF THE TOP 25 COMPANIES GIVES THE BEST MERCHANDISING ADVICE? Winner Unilever 15.4% Runner-up Coca-Cola Enterprises 14.3% 3rd Kraft Foods 8.2% 4th Nestlé 7.1% 5th PepsiCo 5.1%

Accepting the ‘Most Innovative’ award from Martin Lovell (centre) are (l to r) Britvic’s regional sales manager Martin Simms, business development manager Nolan Stokes, commercial controller wholesale Clare Bocking, and customer development manager Andrew Cope.

WHICH OF THE TOP 25 COMPANIES IS THE MOST INNOVATIVE?

Unilever’s retail execution manager c-sector Tom Hazelden (left) and channel controller Ian Toft (right) are presented with the ‘Best Merchandising Advice’ award by Martin Lovell, managing director of Cash & Carry Management.

• Cash & Carry Management • December 2012

Winner Britvic Soft Drinks 12.4% Runner-up Coca-Cola Enterprises 11.2% 3rd Nestlé 10.2% Joint 4th Kraft Foods 6.1% PepsiCo 6.1%

www.cashandcarrymanagement.co.uk

awards winners HOW EFFECTIVE ARE PRICE-MARKED PACKS? When Cash & Carry Management asked C&C/wholesalers about the effectiveness of price-marked packs:

• Nearly

45% said that price-marking works for all

categories.

• A further 9% said that they work well on all types of products as long as they offer a decent margin.

• Only 4% said that price-marked packs don’t work for them at all.

‘Best Quality Representation‘ WINNER: Nestlé WHICH OF THE TOP 25 COMPANIES PROVIDES THE BEST QUALITY REPRESENTATION IN DEPOT? Winner Nestlé 18.4% Runner-up Coca-Cola Enterprises 17.1% 3rd Kraft Foods 13.2% 4th GlaxoSmithKline 9.2% 5th Unilever 7.9%

‘Best Sales Development Support‘ WINNER: Coca-Cola Enterprises WHICH OF THE TOP 25 COMPANIES OFFERS THE BEST SALES DEVELOPMENT SUPPORT? Winner Coca-Cola Enterprises 25% Runner-up Kraft Foods 18.4% Equal 3rd Britvic Soft Drinks 6.6% GlaxoSmithKline 6.6% Nestlé 6.6%

Accepting the ‘Best Quality Representation’ award from Martin Lovell are business account executives at Nestlé, Samantha Howard (left) and Alex Bailey.

‘Best Promotions for Long-Term Growth‘ WINNER: Kraft Foods

Darren Goldney, sales & customer development director at Coca-Cola Enterprises (left), is presented with the ‘Best Sales Development Support’ award by Martin Lovell.

WHICH OF THE TOP 25 COMPANIES IS BEST AT GEARING PROMOTIONS TO ACHIEVING LONG-TERM GROWTH? Winner Kraft Foods 23.7% Runner-up Coca-Cola Enterprises 21.1% 3rd Unilever 9.2% 4th Nestlé 7.9% 5th GlaxoSmithKline 6.6%

www.cashandcarrymanagement.co.uk

Kraft Foods’ senior customer development manager Amy Sheer and customer development controller – RTM Fin Coffey (right) receive the ‘Best Promotions for Long-Term Growth’ award from Martin Lovell.

Cash & Carry Management

• December 2012 • 29

customer cares

sponsored by

Four-way fight in Cardiff This month, John Wood is in Cardiff to talk to traders about the wholesalers they use. Waheeda Sattar Millennium Off Licence Wholesalers used: We use Bestway, Booker, Global Foods and BA. We don’t have one main cash & carry, because they are each good on different things: Booker on its own brand, Bestway on its brand and general grocery, and BA on beers. Plus points: It’s my husband who goes to the cash & carry mainly. He generally visits every other day. Distance isn’t a factor as they are all within a 10-15 minute drive. The service that the wholesalers provide has improved over the years. My husband says he is much happier with them now than he was a few years ago. There was a period when I was popping in and dropping off the order because my husband had had an operation. They would get it ready for me and load it up in the car. They were as good as gold. It was mainly BA that I was using. They were very helpful when I needed it. It was a nice personal touch.

Erdal Kaya Cafe Fresco (caterer) Wholesalers used: Booker is the only cash & carry I use. I go three times a week. Plus points: There’s a number of reasons I go there rather than anywhere else. It’s close to me so it’s convenient. I have options about the quality of products I want as they have a big collection of items suitable for my café. Also, the staff are helpful and there is good availability. Suggestions for improvement: I think the service could be quicker and more professional when the cashier is serving the customer at the till. I also think the promotions could be improved. I do buy some of them but there are not enough and they are not big enough. They don’t do ‘wow’ promotions.

Tahir Majid Salisbury Store (convenience store) Wholesalers used: I use Bestway, Global, BA and Booker, and out of the four I would say Bestway and Global are the main ones. I usually go once a week, but sometimes twice. Plus points: Bestway has good offers and the service is good. It’s easy to see the manager and they will usually sort you out with a deal if there are any on. All the staff are very good down there. I can’t pinpoint any one person. From management down, they all work well. They go that extra mile compared to normal cash & carries where you just have to go in and buy your stuff. They’ve got some cracking deals. They’ve got a massive range of offers running over Christmas and New Year. They also have a good range of products in Bestway – I don’t think anyone could beat it. Availability is also good. Nine out of 10 times it’s there. You’re never going to get a cash & carry with 10 out of 10, so nine out of 10 is as close as you’ll get. They nailed a few things in the past that did need improvement. There were problems with the service and stock availability and, also, some of the deals weren’t coming through, but all those things have been rectified.

• Cash & Carry Management • December 2012

Has a number of reasons for choosing Booker as its C&C.

Naran Ladhani Cyfarthfa Stores (convenience store) Wholesalers used: We use Bestway, Booker and one of the local cash & carries, BA. We go to BA every day, Bestway about five times a week and Booker about twice a week. We need to shop every day because we get things like bread and milk from the cash & carry. Also we don’t really have any space for storage so it’s more convenient to let them be our back room. Plus points: For us, price is the most important factor. BA has the best prices and it also has the biggest range of any of them – it’s the biggest cash & carry in Cardiff. Location isn’t a factor because all three are on the same road. BA also has a lot of good deals, and it has a good trade day around Christmas. Booker and Bestway have deals too, but it only seems to be a couple of products every week.

www.cashandcarrymanagement.co.uk

r o s n o p s o t d u o r p e r a

d e r e v i l e D t ‘Bes ’ e d a r T n O Operation - sale Achievers e l o h W h s i t for Scot

Profit from

s d n a r b g n i our top sell

95 2 4 6 6 4 0 2 1 Call us on: 0 T H TASTE OF BRITAIN THE TH

in focus

Gaining a double first One of the leading drinks concerns has good reason to gloat. It might seem like a pompous, and perhaps unjustified, title to many, but First Drinks can substantiate its choice of name twice over. In Glenfiddich – its major sales generator – it has what business unit director John Moore claims to be the leading UK malt whisky in the off-trade, with a 20.2% share of the market and showing MAT growth of 13.9%. “We also have Disaronno, the No.1 non-cream liqueur in the off-trade, with a 19.5% segment.” Moore, who has been with the Hook, Hants, drinks business for 18 years, also focuses on other leading brands in the portfolio, like Grant’s whisky, which has seen 3% off-trade growth; Three Barrels brandy, up 14.3%; and Rémy Martin cognac, 10.9% higher. “We also have the seventh John Moore heads the C&C/wholesale channel. leading champagne brand with Piper Heidsieck, while Mateus Rosé wine is our second biggest drink.” And, just for good measure, Moore throws into the pot Hendrick’s gin, which although having a modest share compared with the likes of Gordon’s, is claimed to have achieved 54% off-trade growth in value terms.

Sales responsibility First Drinks has a sales force of 45, of whom 11 come under Moore’s control. “My brief covers symbol businesses, independents, convenience stores and prestige outlets like Harrods. My job also involves the C&C/wholesale channel.” He adds: “With Dhamecha, we have been doing a lot of category management work, while for Landmark Wholesale we have been supplying planograms.” Four months ago, the supplier introduced a 50cl sku for Three Barrels, joining the same size Grant’s bottle which has been on the market for about a year. “This size is growing in independents,” says Moore. “Some 60% of all spirits sales in this channel are fractional sizes (50cl or less). And on the subject of indies, we have also launched Disarronno in a 35cl bottle, adding it to the 50cl and 70cl sizes. “Grocery is the biggest channel for First Drinks, accounting for around 60% of business, 25% covers the channels I represent and 15% is the on-trade.” Both Grant’s and Three Barrels are being featured in C&C promotional activity, while the whisky brand has also launched seasonal gift tins for the independent trade.

• Cash & Carry Management • December 2012

In addition to a £2m tv campaign for Disaronno and a three-month tv drive for Tia Maria coffee liqueur, First Drinks signed a £2m Grant’s sponsorship agreement with ITV4, which went live in October. The brand appears on advertising bumpers under the title of ‘Grant’s Sponsors TV of Character on ITV4’ during programmes such as Minder, The Saint and The Professionals, as well as comedy and factual documentaries. The year-long fully-integrated sponsorship package includes broadcast, online and licensing exposure. Oliver Dickson, Grant’s senior brand manager, says: “ITV4 provides us with the ideal platform to reach our target consumers and shoppers. The campaign will have fantastic reach against our core male demographic, with over 50% of our buyers having watched the channel. “Furthermore, we know that nearly three million blended whisky consumers have watched the channel over the last year, so ITV4 is a great fit for the brand.

Driving brand growth “The combination of a male, brand savvy audience, who are regular drinkers, along with a rich programming schedule, makes it a fantastic platform to continue driving brand growth in 2013.” In January, Grant’s will be developing a new creative for the channel with further activity for the ITV4 sponsorship. Says Dickson: “In the run-up to the key Christmas sales period, we have really stepped up investment for Grant’s and are confident this sponsorship will have a positive impact.” The announcement comes soon after the brand invested in a £5m on-pack promotion. For Tia Maria, this is the second tranche of tv advertising, following an earlier drive three months ago. The same creative showcases the revamped packaging. Ads have been appearing throughout November and continue this month. Using the strapline ‘When the Sun Goes Down’, the commercials are centred on two key serves to demonstrate the versatility of the liqueur: the Tia Espresso Martini, a mix of Tia Maria, espresso, vodka and sugar, and the Dark Maria, a combination of Tia Maria, dark rum, cola and lime. Fabio Boldini, international marketing director for the brand, says: “While Tia Maria continues to perform well, it is vital that we seek ways of recruiting new consumers while looking after the current drinkers who remain loyal to the brand. Through illustrating the flexibility of the drink and the various ways people can enjoy it, we hope to attract a new audience.” Tia Maria (rsp £14.99 for the 70cl bottle) is sold in over 60 countries and now comes in a new bottle design, created to give it greater stand-out on shelf and on back bars. In the UK, it is said to be the No.2 non-cream liqueur in the off-trade. In the on-trade, it is helping to drive the non-cream liqueurs category forward and is growing by 14% year on year (CGA MAT 4/8/12). All data Nielsen off-trade value year to 13/10/12 except where shown.

www.cashandcarrymanagement.co.uk

JTI are pleased to support

‘Best Delivered Operation - Retail’ for Scottish Wholesale Achievers In the UK we employ over 1,800 people to support the business including 300 full time professional sales personnel dedicated to supporting our trading partners.

JTI - Japan Tobacco International markets key cigarette brands in the UK, Benson & Hedges, Silk Cut, Camel, Mayfair and Sterling. We are a major player in OTP (Other Tobacco Products) arena with Hamlet cigars, Old Holborn, Amber Leaf, Benson & Hedges & Sterling ‘roll your own’ tobacco.

JTI’s UK trading company is Gallaher Limited

UK Customer Careline 0800 163 503

tobaccoretailing.com

jti.com/uk

ethnic foods & sauces

A taste of money One of the major aspects of the ethnic food market is sauces, with cooking and pasta varieties (wet and ambient) producing a turnover of £751m last year – nearly 23% up since 2006. Italian foods are epitomised by Napolina, the pasta sauces brand owned by Princes. Graham Breed, convenience sector marketing director for the parent company, says: “Convenience retailers and brands need to work together to build on the momentum that’s already been created behind premium sauces, particularly alongside pasta, which is increasingly being purchased by consumers to create restaurant quality meals at home.” He admits that pasta sauces is one of the grocery categories that is showing volume decline. However, he says that, to return the ambient sauces market to growth, consumers need to know they can quickly and easily cook Italian style meals with just a few basic ingredients. “This needs to be coupled with exciting new products to stimulate new sales and generate fresh interest in the category,” says Breed. “Brands and convenience retailers can expand the category by inspiring people and offering meal solutions – even with only limited shelf space.

Some of the varieties in the range.

“Consumers who may not be looking for an Italian meal that evening can be tempted to pick up the ingredients for a pasta dish by providing meal inspiration through careful merchandising of sauces alongside complementary products.” Regarding Napolina’s trading performance, Breed says it is outperforming the pasta sauces market with 36% year-onyear value growth. “Our ambient portfolio has expanded over the past 12 months and our distribution has improved. We have invested significantly above-the-line in order to drive awareness of the brand and Napolina’s range of products with our core target audience.” The latest campaign is called ‘Bursting with Real Napolina Passion’. It includes sponsorship on the Food Network channel as well as first-time radio advertising on Smooth Radio. There are also press ads to drive awareness of Napolina’s

• Cash & Carry Management • December 2012

range of ingredients, including pasta and sauces, as well as in-store promotions. Ads are being taken in key consumer food titles until March 2013. The tv sponsorship, radio and press advertising are being supported by store activity. This package forms part of an ongoing investment programme for the brand to drive awareness and trial of the quality and range of Italian style cooking ingredients to consumers across the UK. Marketing director Dean Towey comments: “Napolina is experiencing strong growth in brand value of 11% and enjoys a brand leading position in several major categories. We recently expanded into new categories such as pesto, balsamic vinegar, olives and pasta bakes.” All data Nielsen Scantrack.

Strong in retail and foodservice While Uncle Ben’s and Dolmio have a major say in the retail sauces market, they are also strong players in foodservice, according to Mars Foodservice. The company’s marketing manager Sarah Gray says that almost nine in every 10 people enjoyed a cooking or pasta sauce in the 12 months to August 2011, while seven in 10 ate a pasta or other Italian (non pasta) sauce in that period. She claims that caterers have also become “less precious” about admitting they sometimes use ready-made sauces, adding: “The challenge for cash & carries is knowing what type of products to stock that will work for a broad range of operations”. Referring to Uncle Ben’s and Dolmio’s place in the market, she says they account for around 25% in retail, while Dolmio alone represents almost 20% in overall terms. “In foodservice, they not only offer the reassurance of respected household brands, but a whole raft of benefits aimed specifically at caterers.” Each jar delivers between 25 and 30 portions as a culinary sauce, more than 50 portions as a dip and 75-100 as a filling. “Every sauce has undergone a major reformulation,” says Gray, “and we have seen some key activity to deliver added value to the promotional programme. “We recognise that 100% extra-free packs and promotional deals with high value prizes make selling that much easier for cash & carries. “Last year we offered a ‘buy so many jars of sauce and get a free camera’ deal to encourage end users to test drive the products.” Gray also alludes to the importance of display and awareness to highlight key products in the depot and in brochures. C&Cs, she suggests, should hold promotional days with development chefs and their teams. “Through this type of support, we can show caterers the benefits of the sauces, which is worth highlighting

www.cashandcarrymanagement.co.uk

The Perfect Ingredients. Jamie Oliver returns to our screens cooking delicious everyday recipes featuring Uncle Ben’s.

™/®/designs/© Mars 2012

Jamie’s 15-Minute Mealsart of a

p, p sponsorshi MEDIA

£12M

SPEND

ethnic foods & sauces before or at the point of sale. And if it means a cash & carry gaining a loyal customer, it’s worth showing end users how they can make real cost savings on buying a mix of products. “For Chinese New Year, for example, they can make sweet potato wedges with Uncle Ben’s Sweet Thai Chilli as an alternative to traditional prawn crackers, with pork mince meatballs rolled in this sauce and served with noodles.” Mars Foodservice has been conducting a ‘See It For Yourself’ campaign for Uncle Ben’s and Dolmio showing how much time chefs can save using the sauces. This follows a project conducted last year with University College Birmingham. The company’s top five skus in foodservice are: Dolmio tomato & basil (2 x 2.27kg) and bolognese (2 x 2.28kg); and Uncle Ben’s sweet & sour sauce (2 x 2.43kg), tikka masala sauce (2 x 2.24kg) and sweet Thai chilli (2 x 2.54kg). To mark the Chinese Year of the Snake on 10 February, the supplier is inviting cash & carries to build an Uncle Ben’s display of ready-to-use cooking sauces and rice in an activity called ‘Wok a Promotion’. The best one, as One of two major brands. captured on camera or video, will win for the depot a £500 cash prize to be spent on staff at a Chinese restaurant of their choice. Entries must be received by 28 February, addressed to marsfoodservice@proactivecompetitions.co.uk.

Brand modernised McCormick’s foodservice division has changed its name to McCormick Flavour Solutions to underline its commitment to customers to deliver the finest flavours – from sourcing the best ingredients to development of the tastiest recipes. And the Schwartz for Chef brand becomes, simply, Chef, alongside a modernised range. Commercial director of McCormick (UK) Warren Wells says: “After extensive research, it was decided to modernise the Schwartz brand to bring some uniformity across our extensive range while enabling us to make the most out of the positive association and recognition that we have with consumers. “At the same time, we have taken the opportunity to reformulate a large number of recipes in our wet range to deliver even better flavours.” The foodservice selection includes Hammond’s sauces, Bick’s relishes, Camp coffee concentrate and a variety of foods under the Noel’s name.

• Cash & Carry Management • December 2012

Intensifying flavours Tropical Sun Foods is spicing up its range of seasonings with the launch of ‘rub rub’, a set of four coarse products which have been introduced to provide ‘a more intense level of flavour’ to a variety of everyday foods. The range includes chicken, meat, fish and hot varieties. The grainy consistency of the selection means that when marinating meat, or adding flavour to a dish, the mixed-sized granules can be imbedded into food, allowing the slow release of flavour while cooking. The ‘rub rub’ items can also be used as a sprinkle instead of salt or pepper. Sales director John Payne says the seasonings have been formulated using some of the finest ingredients from across the world. “They can be mixed and matched with different food types and are also suitable for vegetarians looking for exciting flavour enhancers to boost any dish. The quality, taste and format, as well as the simplicity of use, make ‘rub rub’ a must-stock item. “The product is easy to use. The simple and memorable name means shoppers will know exactly what it is for and how to use it. We’ve invested a lot in getting the formula just right so that consumers get a unique flavour sensation. The range is sure to be a hit with foodies as well as novice cooks, especially with the great response we’ve had so far from consumers and retailers alike.” The ‘rub rub’ range has an rsp of £2.49. The meat, chicken and hot styles are offered in a 100g tub while the fish variety is available in an 80g pack. The Tropical Sun Afro-Caribbean range comprises more than 200 products, including drinks such as coconut water, and foods like jerk seasoning, herbs and spices, sauces, canned and dried peas and beans, traditional flours and powders, and ackee and callaloo vegetables. The foods are distributed by Wanis, which handles a range of ethnic foods from around the world, including the West Indies, Nigeria, Ghana and South Africa and the Far East.

For further information: Mars Foodservice (07818) 014171 McCormick (08081) 000363 Princes 0151-242 5725 Tropical Sun 020-8988 1100

www.cashandcarrymanagement.co.uk

From the brands

people love

Proud to sponsor Champion of Champions Award for Scottish Wholesale Achievers.

We treat. We fuel. We boost the day.

achievers

Vote for best advert Cash & carries and delivered wholesalers across Scotland have named their favourite advert of 2012 for the Achievers ‘Best Advertising Campaign’ category. The trade will now vote on the top nominations (see below). Other products/companies nominated were: Aero Bubbles, Cow & Gate, Foster’s Gold, Ginger Grouse, Guinness, Irn-Bru Fiery, Jack Daniels, Oreo, Scottish Leader, Snickers, Southern Comfort, Tennent’s Export, Walkers Extra Crunchy, and Weetabix.

Foster’s, ’Good Call’

Lynx, ‘End of the World’

Irn-Bru, ‘Fanny’

WKD, ‘Bike’

Company: ...................................................................

Best ad: .....................................................

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

...................................................................

Signed: .......................................................................

Please email your vote to kirsti.sharratt@virgin.net or fax your completed form to (01334) 479695 by Friday 28 December. 38

• Cash & Carry Management • December 2012

www.cashandcarrymanagement.co.uk

The UK’s third biggest standard

Let’s have a proper brew

tea bags brand worth £70 million

Yorkshire Tea is the fastest growing of the major brands at +5.3% YOY *

Investing £5 million in marketing spend over the next 12 months

Taylors of Harrogate are pleased to sponsor Best Delivered Foodservice Category for Scottish Wholesale Achievers For more information on our products freephone 0800 515 988 or email sales.admin@bettysandtaylors.co.uk *Source: AC Nielsen MAT 10.11.12

achievers

Ups and downs

OCTOBER PERFORMANCE

AG Barr is still at the top but it’s not over yet – wholesalers have one last chance to vote (see p.42)

SEPTEMBER score/position

POSITION

COMPANY

SCORE (max. 50)

AG Barr

42.94

42.74

Highland Spring

40.12

37.80

Kraft Foods

39.64

42.18

Coca-Cola Enterprises

39.35

39.90

Britvic Soft Drinks

39.02

39.20

SHS

38.39

34.19

Nestlé 1st Choice

36.94

38.08

Maxxium

36.90

37.15

C&C Group

36.66

37.06

Tayto

36.28

35.87

Diageo

36.05

35.90

Whyte & Mackay

35.99

38.26

Heineken

35.21

36.22

First Drinks

35.08

34.62

=16

Imperial Tobacco

34.42

34.78

JTI (Gallaher)

34.35

34.29

Molson Coors

34.18

35.00

GlaxoSmithKline

33.58

35.14

Cott Beverages

32.85

29.75

Unilever

32.49

32.11

Mars

32.46

34.62

=16

PepsiCo

32.37

33.94

AB InBev

31.77

33.75

Carlsberg

31.66

32.45

Dunhill (Haribo)

31.45

31.71

United Biscuits

30.33

31.04

Bacardi Brown-Forman

29.49

28.76

Kellogg’s

29.10

28.78

Heinz

28.92

27.80

Kimberly-Clark

28.33

28.54

Premier

27.71

30.17

• Cash & Carry Management • December 2012

www.cashandcarrymanagement.co.uk

Refreshing Scotland since 1865 Proud supporters of the Scottish Wholesale Association

Deliver For Today. Inspire for Tomorrow. Coca-Cola, Coke, Diet Coke, Diet Coca-Cola, Coca-Cola Zero, Coke Zero, Fanta, Lilt, Sprite, Relentless, Powerade, Powerade Energy, Powerade Zero, Five Alive, and the Dynamic Ribbon device are registered trade marks of The CocaCola Company. Schweppes, the Fountain Device and the 196 Graphics, Oasis Brand Device are registered trade mark of Atlantic Industries. Dr Pepper is a registered trade mark of DP Beverages Limited. Capri-Sun is a registered trademark of WILD, Heidelberg, Germany. Appletiser is a registered trade mark of SABMiller International B.V. Abbey Well is a registered trade mark of Waters & Robson Limited. glacéau vitaminwater and the glacéau vitaminwater get up are trade marks of energy brands, inc.aka glacéau. Ocean Spray and the Breaking Wave Logo are registered trade marks of Ocean Spray Cranberries, Inc. Monster Energy and Monster Khaos are registered trade marks of Hansen Beverage Company.

achievers

Last chance to vote In the final round of voting, wholesalers in Scotland are asked to rate performance in November. NOVEMBER 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)

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

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Cott Beverages Diageo Dunhill (Haribo) First Drinks GlaxoSmithKline Heineken

(S&N)

Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Kimberly-Clark Kraft Foods

(Cadbury)

Mars Maxxium Molson Coors Nestlé 1st Choice

(retail/confec)

PepsiCo

(inc Walkers)

Premier

(inc Foodservice)

SHS Tayto

(Golden Wonder)

Unilever United Biscuits Whyte & Mackay

Company.................................................. Contact name.................................................. Fax to (01334) 479695

products & promotions Reduced price

‘Nuttylicious’ GENERAL MILLS – Nature Valley has launched a ‘nuttylicious’ new range of 30g cereal bars. Sweet & Nutty, available in two flavours – peanut and almond – combines nuts and toasted oats for a chewy, yet crunchy, bite. The brand is engaging with consumers through Facebook and by inviting them to take the ‘Sweet & Nutty taste test’ at www.sweetandnutty.co.uk. The £3m investment package includes television advertising and an extensive sampling programme. Neil Barker, GM sales director UK & Ireland, said: “In Canada, Sweet & Salty, that country’s equivalent of Sweet & Nutty, is the largest variant and No.1 in terms of loyalty in the granola bar category. We expect the launch in the UK to be just as popular.” The rsp is £2.39 for a pack of five or 55p each. Tel: General Mills (01895) 201367.

COCA-COLA ENTERPRISES – A new £1.79 price-marked pack has been introduced for the supplier’s ‘Core 4’ range of flavoured carbonates. It replaces the £1.99 PMP on two-litre packs of Fanta Orange, Fanta Fruit Twist, Dr Pepper and Sprite. The revised price is intended to help increase the rate of sale at Christmas and into the new year. Darren Goldney, sales & customer development director, said: “Takehome pack formats are very popular during the Christmas period when shoppers are looking for popular brands to entertain friends and family. This new lower price of £1.79 represents even further value for consumers. “These ‘Core 4’ brands are worth £97m MAT (Nielsen MAT week ended 30/6/12) and are growing well in impulse.” Tel: Coca-Cola Enterprises (08457) 227222.

Specially for C&Cs

N Ireland focus NESTLÉ CEREALS – The manufacturer has teamed up with GM Marketing (Ireland) to focus on the breakfast cereals market in Northern Ireland. It is anticipated that the partnership could result in a 20% volume increase in that region next year. To accelerate growth, it is introducing a range of price-marked packs in smaller cases of fives and sixes, with stronger branding to improve shelf standout. Tel: GM Marketing (Ireland) (0289) 442 8801.

Fresh on demand JTI – The tobacco giant has launched a Sterling variant, Fresh Taste on Demand, ‘combining the popularity of the brand with the demand for capsule cigarettes’. It is designed to provide retailers with a new revenue stream within the UK’s fastest growing tobacco sector (Nielsen MarketTrack September 2012). The value segment represents more than 36% of the total cigarette market, with Sterling the leader, accounting for one in 10 cigarettes sold in the UK. Available in packs of 10 and 20, the newcomer is said to be the UK’s first capsule proposition in a 10 format, offering the same quality and blend as Sterling KS Smooth, while giving adult smokers the option to change the taste to Fresh Taste on Demand by simply bursting the embedded ‘filter ball’. The new style is available in standard and price-marked packs at £3.28 for king size 10s and £6.38 for 20s. Data: Nielsen MarketTrack September 2012.

Tel: JTI (0800) 163503. BOTTLEGREEN DRINKS – The SHS Group company has launched a new product format for the C&C sector: a colour carton for its 6 x 500ml elderflower cordial. The idea is not only to drive brand visibility through this channel and tap into the growing demand for cordials as a premium soft drink offering, but also to highlight the usage of Bottlegreen cordial as a versatile ingredient for cocktails, as demonstrated in a recent Gordon’s & Bottlegreen elderflower gin and tonic link-up. The recommended price of the new pack starts at £12.50. Tel: Bottlegreen Drinks (01453) 874000.

• Cash & Carry Management • December 2012

Aid for growers MONDELEZ INTERNATIONAL – The company, which includes the global snacking and food brands of the former Kraft Foods Inc, has unveiled a major initiative called ‘Cocoa Life’. It is investing $400m over the next 10 years to improve the livelihood and living conditions of more than 200,000 cocoa farmers and about one million people in cocoa farming communities. Cocoa Life is based on Mondelez International’s successful Cadbury Cocoa Partnership in Ghana, India and the Dominican Republic. Tel: Kraft Foods (08702) 400861.

www.cashandcarrymanagement.co.uk

products & promotions Shining example

Spring ‘first’ FERRERO – The confectionery manufacturer has launched a multi-million pound campaign – including tv advertising – that will run through the Spring season. The supplier will also be offering instore solutions to help independent retailers capitalise on the £1bn chocolate confectionery sales opportunity created by Valentine’s Day, Mother’s Day and Easter. It is also introducing a new seasonal novelties range, with a 100g Ferrero Rocher bunny (rsp £2.99) and Rocher heart (£4.49). In addition to the Rocher Easter egg (£10.99) there will be a medium luxury egg, containing a 100g chocolate shell with hazelnut pieces and four Ferrero Rocher chocolates (£5.99). Customer development director Levi Boorer said: “Last year we performed ahead of the category during the Spring season (Nielsen Scantrack 14 weeks to 7/4/12). Boxed confectionery presents a big opportunity for independents at Spring.” Kinder Surprise and Kinder Chocolate will also appear in tv advertising in the run-up to Easter. And, for the first time, there will be a 10-second ad for Kinder Surprise, which generates annual sales of £21.3m and £5.9m in the Spring (Nielsen). Tel: Ferrero UK (01923) 690300.

PROCTER & GAMBLE – New hair care range Aussie Miracle Shine comprises a shine-inducing formula of natural pearl powder and Australian ginseng extract, together with a cotton candy scent. The launch is being supported by a targeted print and online public relations programme ‘to resonate and drive trial’. Aussie Miracle Shine shampoo (300ml, rsp £3.99 and 500ml, £5.99), conditioner (250ml, £3.99, and 400ml, £5.99), and ‘3 minute miracle’ (250ml, £4.99) skus are available from this month. Tel: Procter & Gamble (01932) 896000.

Mexican beer ALAN RAMSAY MARKETING – The company has taken over the distribution and marketing of Masquerido tequila and mojito flavoured beer in the UK and Ireland. From 1 February both flavours will be available in 8 x 3 x 33cl packs, replacing the current 24 x 33cl outers. The mojito flavour is claimed to be the only one of its kind on the UK market at the present time. Both styles (rsp £1.39) have a 5% abv. Tel: Alan Ramsay Marketing (07711) 798877.

Anti-tetanus PROCTER & GAMBLE – The company’s Pampers and Fairy brands are teaming up with UNICEF UK for the seventh year running to raise money over Christmas for vaccines to help eliminate Maternal & Newborn Tetanus (MNT), which threatens the lives of 130 million mothers and babies in 33 countries. Tel: Procter & Gamble (0800) 597 3388.

• Cash & Carry Management • December 2012

Adults & kids RECKITT BENCKISER – For the first time the toiletries supplier is promoting Nurofen Adult alongside Nurofen for Children. Another first sees the children’s variant back on air after being absent since 2009. The new advertising, which runs throughout the winter, carries the strapline: ‘Nurofen and your family. Better together’. It focuses on the power of the brand to alleviate the aches and pains associated with cold and flu. Nurofen claims to be the leading analgesic brand in the UK (Nielsen value share MAT 13/10/12). It comes in tablet, liquid capsule, caplet and oral suspension for children formats. Tel: Reckitt Benckiser (0845) 769 7079.

Coronation date GLAXOSMITHKLINE – The Lucozade, Ribena and Horlicks supplier will be a headline partner at the Coronation Festival, which takes place from 11–14 July 2013 to mark the 60th anniversary of the Queen and of British industry, innovation and excellence. The event will showcase more than 200 companies whose products hold the Royal Warrant – such as GSK’s Lucozade and Macleans. Chief executive officer Sir Andrew Witty commented: “We are delighted to be part of this iconic celebration of 60 years of excellence from British companies.” Tel: GlaxoSmithKline 020-8047 5000.

www.cashandcarrymanagement.co.uk

Winning brands. Winning partnerships. Our brands are amongst the best-selling and most loved worldwide, but the attraction doesn’t stop there. At Britvic, we remain as committed to our partners’ success as we’ve always been, driving sales growth through unrivalled customer service, category expertise and best-in-class equipment solutions. To find out more about working with us, call 0845 758 5450 or email newbusiness@britvic.co.uk

Britvic is pleased to sponsor Scottish Wholesale Association Best Cash & Carry Depot All copyrights and trademarks are the properties of their respective owners.

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