International Supermarket News Magazine April 2017 by mohammed shine

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INTERNATIONAL SUPERMARKET NEWS MARCH/APRIL 2017

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PARIS RETAIL WEEK 2017: SOPHIE LUBET

PRIVATE LABEL: WHAT IS NEW IN READY MEALS

VOL 24 ISSUE 2

ANUGA 2017 The 34th Anuga - world's biggest and most important business platform for the international food industry will take place from 7 to 11 October 2017 in Cologne

PAGE 36

RETAIL: WORST PERFORMANCE SINCE 2013

In this Issue

ANUGA 2017

The 34th Anuga - world's biggest and most important business platform for the international food industry will take place from 7 to 11 October 2017 in Cologne

Tomatoes to get back its tanginess..........................................04

Aldi to invest extra $1.6bn in U.S. expansion........................50

ChannelAdvisor Hosting Annual Catalyst Europe in Manchester in May 2017...............................................................16

Aldi wins Multiple Wine Retailer of the Year Awards..........56

Aldi overtakes Co-op as the UK's fifth largest supermarket..............................................................28 Amazon to launch private label fashion brand in the UK................................................................35 Unilver rejects Kraft Heniz’s takeover bid...............................38 Waitrose to axe nearly 700 staff and close five stores........40 Dunnes ranked top Irish supermarket chain.........................44 Breakfast Cereals Market to Exceed $43 Billion by 2019..........................................................................46 Amazon,Waitrose tops Customer Satisfaction Index.........49

Paris Retail Week 2017

Aldi unveils luxury wine range starting at just £5...............57 Morrisons starts search for more local food suppliers........................................................................58 Ocado UK tests robotic arm for grocery packing................66 Arla to spend £37.5m on UK production plants...................68 Waitrose introduces vegetable yogurt flavours.................................................................................73 UK supermarkets limits the number of lettuces customers can buy.........................................................75 Waitrose launches beer magnum.............................................79 Asda’s Income Tracker....................................................................80

Private Label Makes Gains P 26

P 22

What is New in Ready Meals by RAPHAËL MOREAU

4 questions to Sophie Lubet

Thaifex World of Food Asia 2017

Retail: Worst Performance Since 2013

P 14

P 36

Which names favourite UK supermarkets P 42

International Supermarket News | March/April 2017

SIAL CHINA 2017 P 54

Tomatoes to get back its tanginess SCIENTIST FOUND OUT LONG LOST GENETIC TRAITS Supermarket tomatoes could get back their long lost tanginess which had been missing in the commercially cultivated fruit for the past five decades. Researches at University of Florida claims to have found out five genetic traits that have been missing since the mass production of tomatoes that happened in 1960’s. The genetic traits that add sweet-yet-acidic taste were mostly missing in the fruit one gets to buy in the supermarkets. They assert this to be a natural breeding method rather than genetic modification. Harry Klee, horticultural scientist and co-author of a study in University of Florida’s journal Science said: "We know what's wrong with modern tomatoes and we have a pretty good idea how to fix it. Nobody deliberately set out to make tomatoes that don't have flavor. Basically it was a process of neglect." Even as the

produce of tomatoes tripled since 1960, the taste and quality has suffered a lot. Mass production focuses on size and sturdiness and provides inattention to flavor. Klee expressed hope in bringing back the lost flavors through the current findings. If the major seed producers are willing to adopt the new technology, one could buy the flavorful sweet and sour tomatoes in supermarkets within three years, the research says. Research also found that tomatoes lost 13 genes that enhanced its flavor during the last century. The bigger the tomatoes get, the lesser they taste. Klee added: "Modern

commercial tomatoes do not have the flavour of older varieties. Our results provide a roadmap for improvement." Many supermarkets were accused of "mishandling" tomatoes at its stores through putting them at refrigerator temperatures, which would damage its flavor even more. Phil Morley, a technical officer for the British Tomato Growers Association said that supermarkets need not have to refrigerate tomatoes, but many stores were still unaware of this. He said: "Good retailers like M&S and Waitrose understand this, but many of the others don't always get it."

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International Supermarket News | March/April 2017

Expo

THAIFEX

World of Food Asia 2017 Back & Bigger Than Ever!

WHAT’S SPECIAL AT THAIFEX – WORLD OF FOOD ASIA When it comes to trends and products, THAIFEX – World of Food Asia is always at the forefront of innovation. In coordination with Innova Market Insights, the event’s official knowledge partner, THAIFEX takes pride in pinpointing industry trends through its Trend Zone and Trend Topics. The Trend Zone will smoke out hot issues enveloping the food and beverage industry.

EATING UP ALL EXHIBITION SPACE AT IMPACT (HALLS 1-6) AND CHALLENGER. (HALLS 1-3) TOTALING A MASSIVE 93,500 SQM.

THAIFEX – World of Food Asia 2017, the continent’s preeminent food and beverage show, throws open its doors on May 31, 2017 to food and beverage industry professionals from all over the globe. This grand event – under the flavorsome theme “Experience the Best in Asia” and organized by the Department of International Trade Promotion, the Thai Chamber of Commerce and Koelnmesse of Germany – has burgeoned through the years and now spans a bigger area than ever before, taking up all exhibition space at Challenger Halls 1-3

plus expanding by 2 halls to occupy Impact Exhibition Halls 1-6, all totaling a huge 93,500 square meters. More than 1,800 companies are expected to present and market their products and services through 4,600 booths. Like clockwork, THAIFEX has successfully evolved into a world-class food showcase. So if you are connected in any way to the industry and are any of the following – a businessman, a manufacturer, an exporter or importer, a distributor, wholesaler, retailer, a department store or a supermarket, a restaurant or a hotel, a purchaser or simply a consumer – this event is definitely a must for you.

This display area provides trade visitors with informative booklets on important consumer trends and valuable insights into the latest product developments. And if you have any queries, rest assured that Innova Market Insights representatives will be at your disposal to provide the answers. Moreover, THAIFEX is also lifting the lid on sustainability by earnestly looking at different ways to adopt a more sustainable approach to running Asia’s leading food and beverage event. Grab this opportunity of the year to ascend to the pinnacle of food industry excellence and business success at this monumental gathering deemed the TOP of its CLASS in Asia! See you there!

International Supermarket News | March/April 2017

Expo

THE WORLDâ&#x20AC;&#x2122;S LARGEST FOOD & BEVERAGE SHOW OPENS AGAIN IN COLOGNE.

International Supermarket News | March/April 2017

Very good registration figures for the coming Anuga in Cologne from 7 to 11 October 2017 and the signs could hardly be more positive: six months before the fair begins the exhibition area is already completely booked. In total, some 7,200 exhibitors from 100 countries are expected to participate. Anuga, the world's biggest and most important business platform for the international food industry, will thus also be the benchmark for all food trade fairs worldwide again in 2017, in terms of both quality and quantity.

New: Coffee, Tea & co. get their own arena at Anuga: Anuga Hot Beverages In addition to numerous, big market leaders, the majority of the international group organisers have also confirmed their participation at the twrade fair, indeed at all 10 trade shows. In order to further develop the successful and unique concept of Anuga, "10 trade shows under one roof " in an industry-oriented manner, new themes will be introduced in 2017. For example, coffee, tea & co., are receiving their own independent presentation format in the form of the trade show, Anuga Hot Beverages, which does justice to the segment's big significance within the trade and in the out-of-home market, which has grown over the last years. The theme "cuisine" is also being re-defined at Anuga. To this end, the trade show Anuga Culinary Concepts is bundling cooking skills, technology, equipment and gastronomy concepts. With its wide-ranging offer, Anuga equally targets buyers from the trade and from the out-of-home market. Around 160,000 buyers from all over the world are expect to attend.

International Supermarket News | March/April 2017

Expo 10 TRADE FAIRS UNDER ONE ROOF Once again in 2017, the successful concept of Anuga will ensure a good overview and a well-arranged layout divided up into themed areas. ANUGA FINE FOOD - THE TRADE SHOW FOR DELICATESSEN, GOURMET AND BASIC FOOD - the largest of the Anuga trade shows unites a comprehensive and diversified offer from all over the globe. Numerous nations take part here at joint pavilions, which present the typical food and beverages of their home country. The important theme olive oil will once again be summed up in the Olive Oil Market special event and expanded in the form of an international olive oil congress. ANUGA FROZEN FOOD - THE TRADE SHOW FOR FROZEN FOOD The frozen food segment is one of the most important trendsetters within the trade and on the out-of-home market. At Anuga, the international industry regularly presents its innovations for both channels. ANUGA MEAT - THE TRADE SHOW FOR MEAT, SAUSAGES, GAME AND POULTRY Comprising of the sub-segments sausages, red meat and poultry, the world's largest business platform for the meat market offers the trade buyers an excellent orientation. ANUGA CHILLED & FRESH FOOD - THE TRADE SHOW FOR FRESH CONVENIENCE FOODS, FRESH DELICATESSEN, FISH, FRUIT & VEGETABLES The trendsetter segment, which has a regular spot at Anuga, targets above all customers who have little time, yet high demands in quality and freshness and thus offers the trade and the out-of-home market attractive profiling opportunities.

COMPRISING OF THE SUB-SEGMENTS SAUSAGES, RED MEAT AND POULTRY, THE WORLD'S LARGEST BUSINESS PLATFORM FOR THE MEAT MARKET OFFERS THE TRADE BUYERS AN EXCELLENT ORIENTATION.

ANUGA DAIRY - THE TRADE SHOW FOR MILK AND DAIRY PRODUCTS Bundled, international competence for milk, cheese, yoghurt & co. The complete white and yellow line is represented in Cologne. Anuga Dairy offers the most comprehensive overview of the international dairy market wworldwide. ANUGA BREAD & BAKERY Bread and bakery products in combination with jam, honey, chocolate-nut spreads, peanut butter and other sandwich spreads are an equally important assortment for the trade as well for the morning breakfast buffet of hotels. The trade show presents a comprehensive overview of the extensive international offer.

ANUGA DRINKS Beverages for the retail and food service trades. Anuga offers a wide selection of products for both target groups: From alcohol to alcohol-free. Furthermore, the special event "Anuga Wine Special" presents an attractively designed offer of wine in combination with tasting sessions and specialised lectures. ANUGA ORGANIC Anuga Organic presents a wide range of organic products from Germany and abroad with a clear focus on export. The range of exhibits is enhanced by the special event "Anuga Organic Market", which also focuses on the organic products of Anuga exhibitors from other trade shows.

International Supermarket News | March/April 2017

Expo

ANUGA HOT BEVERAGES For the first time, Anuga is presenting coffee, tea and cocoa in their own trade show and is thus doing justice on an international level to the theme that is attractive for both the trade and the out-of-home market.

held on the integrated "Anuga Culinary Stage".

ANUGA CULINARY CONCEPTS The out-of-home market is growing further and also provides the trade with new impulses.

SUPPORTING PROGRAMME Trends are in the focus at Anuga 2017. With the Anuga Trend Zone by Innova Market Insights offers deep-sight analysis, including a series of essential presentations on the consumer trends taking product development forward, with insights on packaging, technology and flavor drivers.

The newly created Anuga Culinary Concepts offers room for ideas, innovations and networking. Among others, the top-class finals of the "Chef of the Year" and "Patissier of the Year" will be

The presentations will be illustrated with more than 200 innovative products from around the globe. At the same time The Trend show Anuga taste17 the top new products of Anuga 2017 are presented at

a glance. Selected by a jury comprising of trade journalists, the show demonstrate the state of the industry by its most innovative and future oriented products and concepts. And the German Institute for Food Technology (DIL) will discuss again the themes food production and global food security of the future with representatives from the worlds of business, research and politics at the ifood 2017 - Innovation Food Conference. This year the conference will be held under the motto "Discovering megatrends in food".

International Supermarket News | March/April 2017

Events

ChannelAdvisor Hosting Annual Catalyst Europe in Manchester in May 2017 After hosting Catalyst Europe in London for 8 years, ChannelAdvisor has chosen to change things up for its 2017 edition. The annual e-commerce event will take place on 16 May 2017 at The Principal Hotel, Manchester. Catalyst Europe was created to inspire retailers and branded manufacturers, and help them keep pace in an industry that is constantly evolving. True to its theme “Smart Brands. Strong Retailers. Connected E-Commerce”, Catalyst Europe 2017 will offer a mix of insightful presentations, educational workshops, exceptional networking opportunities as well as access to the industry’s top channels.

The Catalyst 2017 agenda will include forwardthinking, insightful sessions such as: “Understanding the e-commerce trends of tomorrow”, “Creating the optimal customer experience from brand to retailer”, “Expanding internationally through cross-border trade” and “Reaching customers on mobile, social and nextgeneration devices”. “It’s becoming increasingly complex for retailers and branded manufacturers to stay ahead of the latest e-commerce trends. The industry is constantly evolving and the pace of change is unrelenting. Our aim with Catalyst is to help both retailers and brands prepare for upcoming trends and successfully navigate their e-commerce journey,” said Mike Shapaker, managing director, EMEA at ChannelAdvisor.

The first undeniable value of Catalyst Europe lies in the thought-provoking keynotes from industry experts and visionaries, focused on bringing light to the future of e-commerce and how to improve online businesses. Indeed, the Catalyst 2017 agenda will include forward-thinking, insightful sessions such as: “Understanding the e-commerce trends of tomorrow”, “Creating the optimal customer

International Supermarket News | March/April 2017

Events experience from brand to retailer”, “Expanding internationally through cross-border trade” and “Reaching customers on mobile, social and next-generation devices”. Catalyst Europe 2017 will feature exclusive keynotes by the biggest names in e-commerce, starting with ChannelAdvisor’s CEO David Spitz, retail expert Mary Portas, marketing guru Mark Andeer and Google’s Tim Woollias. Catalyst is also the perfect opportunity to slow down, take notes and feel creative. In this fast-paced industry, the full day event allows e-commerce decision makers to take the time to get clever tips and tools from the world’s top retailers and brands, learn emerging trends and be inspired by successful strategies. Discovering the heart of the sporting capital of the UK is also a perk for attendees, along with the unparalleled potential for meeting industry peers. Indeed, Catalyst Europe puts a large emphasis on networking. Hosting regular networking sessions during the day, from breakfast briefings to networking drinks, the event ensures everyone has enough time to meet with peers and connect with key players from the e-commerce industry. Catalyst Europe is attended by top industry leaders from marketing managers and marketplace specialists to sales directors, senior analysts, CEOs, presidents and company owners. The event is also sought after by founders and executive directors from the industry’s smartest brands and strongest retailers. A great opportunity to regroup and think, Catalyst Europe attracts professionals from all sides of e-commerce, who gather to share and discover what’s next for the industry. With an average of 400 leaders (and more)

attending each year, ChannelAdvisor’s Catalyst Europe event is one of the premier e-commerce events of the year. Catalyst attendees can enjoy discounted rates at the prestigious Principal Hotel in Manchester, using the code CHAN150517 when booking a room.

International Supermarket News | March/April 2017

Product News

Casio mobile computer certified by GK Software and SAP The multinational company GK Software AG and SAP SE confirm the compatibility of the Casio IT-G500 mobile computer with the "SAP Offline Mobile Store by GK" application. terminal is ideally suited to existing IT infrastructures. This allows a high level of planning security when it comes to investment in hardware and software. "Casio is proud that the IT-G500 could pass the strict tests set by GK Software and SAP easily", explains Thomas Uppenkamp, Manager of Mobile Industrial Solutions at Casio Europe GmbH. The rigorous test confirms that the Casio IT-G500 can be seamlessly integrated into the SAP infrastructure. "Data is recorded and processed without any compatibility or formatting problems." The limited numbers of data capture device providers remaining in the retail market leads Uppenkamp to expect strong growth for Casio in this area. IF YOU ARE INTERESTED, PLEASE VISIT ON RETAIL FAIRS:

Following comprehensive testing, Casio Europe GmbH has received the certification from GK Software and SAP for the IT-G500 mobile data processing device.

The "SAP Offline Mobile Store by GK" solution has been developed by GK Software and is distributed worldwide by SAP.

GK Software AG, which was established in 1990, can count around 20% of the world's 50 largest retailers among its customers.

The certification gives SAP users the certainty that their software has been officially tested by the market leader in the retail software field. The qualification reflects the international application possibilities and high quality of the solution.

Moreover, the international customer base includes a number of leading international commercial companies, such as Coop Switzerland, Galeria Kaufhof, Hornbach, Jysk Nordic, Lidl, Netto Marken-Discount, Migros, Parfümerie Douglas, Tchibo and the X5 Retail Group.

Due to its user friendliness and robustness, the Casio IT-G500 is becoming increasingly widespread in major German retail companies. The mobile

◊ 08.-09.11.2016 EHI Technologie Tage in Bonn, Stand-Nr.: 11 ◊ 05.-09.03.2017 EuroShop Messe in Düsseldorf, Stand-Nr.: 6B58 Links: http://www.mobile-barcode-scanner.com/euro/press/ CASIO IT-G500 PRODUCT PAGE: http://www.mobile-barcode-scanner. com/euro/products/it-g500/ GK SOFTWARE PARTNER SITE: https://www.gk-software.com/en/ company/partners

International Supermarket News | March/April 2017

Interview

Paris Retail Week 2017 4 questions to Sophie Lubet From 19 to 21 September 2017 Paris will once again be the trendsetting meeting place for all retail professionals with the third edition of Paris Retail Week being held at the Porte de Versailles Exhibition Center. More than an event, Paris Retail Week is now the unmissable highlight of the autumn for chains, brands and e-retailers at an international level. SOPHIE LUBET, DIRECTOR OF THE RETAIL DEPARTMENT AT COMEXPOSIUM GROUP, TELLS US WHAT IS HAS IN STORE.

WHAT’S NEW FOR THIS 3 PARIS RETAIL WEEK?

Paris Retail Week 2017 will be held in September and is set to be the leading European trade show devoted to 360 retail. We are delighted at the prospect of welcoming all the stakeholders in retail and e-commerce who will be able to discuss the challenges facing their sector and find concrete solutions to optimise their activity. We are expecting around 600 exhibitors and estimate an attendance of 30 000 professionals. Make sure you come to Paris expo Porte de Versailles on 19, 20 and 21 September to experience three intense days of business, networking and discussions around IT For Commerce, Payment Solutions, Marketing, Data and Customer Relationship, Logistics and as well as the hot topic of the moment, the Digitisation of the point of sale. THERE ARE SEVERAL NEW DIMENSIONS TO THIS THIRD PARIS RETAIL WEEK: • The dates: from Tuesday 19 to Thursday 21 September 2017, for three days • The place: the event is being held at Pavillon 7.3 of Paris expo Porte de Versailles which has been totally

renovated and now offers exhibitors and visitors a very light and spacious setting, perfect for doing business, as well as an exceptional view over Paris! • The Business Meetings are pre-scheduled, personalised appointments which all exhibitors will be able to make with qualified visitors enabling them to move forward together on specific projects. • The Speed Dating is another, more

informal method of networking: exhibitors and visitors can exchange business cards in a dedicated area during the exhibition and during specific time slots devoted to defined sector themes, such as the improvement of the user experience, the digital transformation of the store or predictive marketing. And we are putting together other aspects of the programme but it is still too early to talk to you about them! We will have plenty of opportunities to communicate on all the operations currently being organised!

WHAT IS THE VALUE PROPOSITION? Paris Retail Week is much more than just an exhibition in many different ways.

PARIS RETAIL WEEK #ParisRetailWeek 19-21 September 2017 Paris expo Porte de Versailles • Pavilion 7.3 600 participating companies • 30,000 professionals • 350 top speakers • 2 store tours • 10 awards www.parisretailweek.com /blog.parisretailweek.com Free online visitor registration on the event website until September 18th On-site registration: 50 Euros incl. VAT.

International Supermarket News | March/April 2017

Paris Retail Week is much more than just an exhibition in many different ways. Firstly, it is a unique opportunity to attend high quality conferences free of charge: Solutions Workshops organised by the exhibitors, Plenary Conferences and Keynote sessions led by leading French and international experts. In all, there are almost 250 sessions, free to access, over the 3 days.

International Supermarket News | March/April 2017

experience and feedback of leading physical and online retail players such as FNAC, But, Ikea, Kiabi, the Chinese Alibaba, as well as the American companies Kate Spade and Whole Foods Market. We also have the Paris Retail Awards which reward the best innovations in the sector. Our Awards are open to non-exhibitors, the aim being to showcase the sector’s most innovative companies, the ‘Rookie of the Year’ prize specifically rewarding the start-up of the year. In order to move beyond the show’s programme of events and to show in concrete terms the reality of retail, we are organising Paris Retail Tours, to enable some of our visitors to discover Parisian stores on the cutting edge of technology and design.

In order to move beyond the show’s programme of events and to show in concrete terms the reality of retail, we are organising Paris Retail Tours, to enable some of our visitors to discover Parisian stores on the cutting edge of technology and design. Firstly, it is a unique opportunity to attend high quality conferences free of charge: Solutions Workshops organised by the exhibitors, Plenary Conferences and Keynote sessions led by leading French and international experts.

of expertise on physical and online retail which should not be missed under any circumstances! Every year, we have the privilege of welcoming the FEVAD which presents at the opening of the show the latest e-commerce market figures.

In all, there are almost 250 sessions, free to access, over the 3 days. A concentration

Thanks to the conferences, our visitors have been able to benefit from the

We want to be able to give an accurate picture of the reality of retail today and to really illustrate the sector’s innovations. This is also the reason we have created our blog where, all year round, we hear from experts on different topics and share with our audience, exhibitors as well as visitors, the views of French and international experts on the challenges facing retail today and tomorrow. If you haven’t done so already, I recommend you take a look: blog.parisretailweek.com. We also have a strong presence on social networks throughout the year, again to share a maximum of information relating to the sector, with as many people as possible.

YOUR AIM IS FOR BUSINESS TO BE AT THE HEART OF PARIS RETAIL WEEK, HOW ARE YOU GOING ABOUT THAT? The mission of Paris Retail Week is indeed to be a business accelerator. This is achieved in the traditional way on the stands, and we have decided to optimise exhibitors’ ROI by organising the Business Meetings as well as the Speed Business Dating which I mentioned earlier.

International Supermarket News | March/April 2017

With regard to the Paris Retail Awards, here too the aim is to put innovative companies very much in the limelight, where they can be seen by the sector’s major players. We are also trying to favour exchanges beyond the Porte de Versailles exhibition Center: we will therefore be organising an event in May to which exhibitors, visitors, journalists and all those interested in our themes will be invited. This is also the aim of operations such as the store tours or the evening which we are intending to organise during the show. The theme is always the same: bringing together supply and demand!

WHAT ARE THE HIGHLIGHTS OF THIS EVENT? This year again, the show will be packed with interesting content! • The pre-opening FEVAD conference on the first day presenting the e-commerce market figures. • Our plenary conferences, a series of debates where the professionals of the sector, including marketing and logistics managers, business leaders, omni-channel managers, customer experience managers, etc., will compare their experiences and strategic points of view. • The Paris Retail Awards ceremony on Tuesday 19th September which will unveil the winners in each category – a real moment of consecration for solution providers, brands and e-retailers. • The keynote sessions led by international experts including internet giants such as Facebook, Google, Twitter who share their strategic visions on the current challenges of the sector and their experience with visitors. • 3 intensive days of networking with the Business Meetings and Speed Dating sessions held all along the event. • The Store Tours organised in Paris providing an insight in a selection of the most innovative Parisian concept stores that have implemented remarkable innovations; a guaranteed source of inspiration for the top managers of French and international stores and brands. Make sure you pay regular visits to our website www. parisretailweek.com to discover over the coming months the program which we are putting together. We look forward to welcoming all professionals from the retail sector in Paris in September, for a week packed full of interesting meetings and business opportunities! In the meantime, you can, of course, find Paris Retail Week on all social networks and follow news of the sector on our blog.

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PRIVATE LABEL MAKES GAINS

What is New in Ready Meals BY RAPHAËL MOREAU

Ready meals recorded weaker growth than packaged food at global level, increasing by a 0.8% CAGR in the 2010-2015 period, compared to 2.3% for total packaged food in constant terms, as the category remains strongly biased towards developed markets, with North America and Western Europe together accounting for an estimated 66% of world sales in 2015. In addition to low growth, the world’s largest branded ready meals manufacturers increasingly have to contend with highly competitive and innovative private label products in key markets. INCREASED DOMINANCE OF PRIVATE LABEL Although the share of private label in packaged food has risen in most of the world’s major regions between 2010 and 2015, paradoxically, it has seen a decline at world level. With the majority of private label sales generated in the low-growth Western European markets, private label sales did not sufficiently rise in the rest of the world to sustain growth globally. However, ready meals bucked the trend by being the only one of packaged food’s

16 major product categories to see a rise in the share of private label between 2010 and 2015 at global level, increasing from 24% to 25%.

both showed share growth in the 20102015 period.

This is largely due to strong innovations in private label in developed markets, with the UK and Japan showing typical examples of strategies giving private label an edge over brands.

However, with private label shares in ready meals standing at 69% and 27%, respectively, in 2015, this highlights the sharp differences in the level of maturity of private label between the two markets, as well as also showing the level of concentration in grocery retailing.

THE UK AND JAPAN DRIVE SALES AMONG KEY MARKETS FOR PRIVATE LABEL The two largest global markets for private label ready meals, the UK and Japan,

A more fragmented grocery retailing environment in Japan compared to the UK, and most other European markets, contributes to the dominance of unbranded generic products and therefore to the

International Supermarket News | March/April 2017

SALES OF PRIVATE LABEL READY MEALS FROM 2010 TO 2015

Source: Euromonitor International

GLOBAL SHARES OF THE READY MEALS MARKET- 2010 TO 2015

lower share of private label. The fourth largest market, Germany, in contrast with its peers, saw stagnation in the share of private label between 2010 and 2015. This partly reflects the maturity and high penetration of private label groceries and the limited growth potential, but is also the result of the decline in Aldi’s share. The largest private label player in ready meals by some distance, Aldi’s position was hit as total sales of the chain stagnated in its domestic market. MORE SOPHISTICATED AND HEALTHIER PRIVATE LABEL READY MEALS… The sophistication of private label ready meals in the UK is reflected by the rising share of grocery retailers with a premium positioning, notably Marks & Spencer and Waitrose, the latter successfully exploring the super-premium niche with the Heston range endorsed by the celebrity chef Heston Blumenthal. The co-branded Slimming World frozen ready meals range successfully launched by the supermarket chain Iceland in 2015 innovated by strengthening its health credentials thanks to the collaboration with the membership-based weightloss company. Among Japanese private label ranges, the top three ready meals operators in Japan are the three largest

convenience store operators, Seven & I (7-Eleven), FamilyMart and Lawson. Healthier chilled bento box ready meals helped these operators widen their core target to appeal to older consumers, notably with recipes containing ingredients from regional cuisines or sourced locally. Elderly consumers are particularly targeted by premium ranges such as Aeon’s Topvalu Select and Seven & I’s Seven Gold. …BUT PRICE REMAINS A KEY GROWTH AXIS Price remains essential for private label ready meals, for example with the greater range of microwaveable ready meals available in the UK, strongly contributing to growth, notably within frozen pizza. Hence, private label ranges –including frozen pizza offered below £1 by Aldi and Iceland – were also strong contributors to growth at the low end of the price spectrum. A polarisation of the private label offer in ready meals is also apparent in Japan, with retailers increasingly focusing on both premium and economy ranges, according to demographic profiles, with economy ranges often targeting young adults and premium ranges aimed at older consumers.

Compared to other packaged food categories in the UK, private label is strongly competitive in ready meals in all price segments, from economy to super premium, leaving little room for brands to differentiate themselves. While branded manufacturers in other markets and categories mostly operate in more favourable competitive environments, they also face difficulties in maintaining share due to the assault from private label, particularly when occupying the mid-market price segment. Amid a growing polarisation in packaged food, which goes beyond ready meals, branded product manufacturers may emulate private label innovation trends seen in Japan and the UK, notably in terms of provenance and healthier recipes, in order to avoid being too reliant on a mid-market positioning. RAPHAËL MOREAU Raphaël Moreau joined Euromonitor International’s food team in 2014, after gaining extensive market research experience within the retailing industry at Euromonitor International, which he joined in 2001. Raphael holds a degree from the Université des Sciences et Technologies de Lille and from Staffordshire University.

International Supermarket News | March/April 2017

Supermarket

Aldi overtakes Co-op as the UK's fifth largest supermarket German-owned Aldi has overtaken the Co-operative to become Britain's fifth biggest supermarket group, Industry data from Kantar Worldpanel showed, highlighting the rapid growth of the discount chain. Sales at the German-owned retailer rose 12.4% to £1.72bn in the 12 weeks to 29 January. The Kantar figures also showed supermarket prices rose by 0.7%, accelerating the return to inflation seen in December following more than two years of prices falling. The latest grocery market share figures from Kantar Worldpanel, published today for the 12 weeks ending 29 January 2017, show Aldi is now Britain’s fifth largest supermarket. With sales up 12.4% year on year, the retailer increased its market share by 0.6 percentage points to clinch fifth place for the first time. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Just a decade ago Aldi was the UK’s tenth largest food retailer, accounting for less than 2% of the grocery market. Since then the grocer has grown rapidly, climbing the rankings

by an impressive five places to hold a 6.2% market share. Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year. “Despite being overtaken by Aldi, Co-op’s 2% sales increase was well ahead of the market, continuing a run of growth stretching back to July 2015. A significant own label sales increase of 7% was behind the strong performance, with healthier ranges successfully catering to consumers’ good intentions for the new year. “Not all shoppers were convinced by the health message though: while overall sales of healthy own label lines increased

by 3%, a dry January was certainly not on the cards for many of us – sales of beer increased by 4% over the past 12 weeks, with wine up by 1% over the same period.” The market continues to grow faster than it did in 2016, with supermarket sales up 1.7% on last year: eight of the nine major retailers saw positive sales growth during the past 12 weeks. Although not significant enough to dampen the market, well-publicised supply issues over the past few weeks have affected sales in fresh produce. Fraser McKevitt comments: “11 million households buy courgettes annually, but supply issues contributed to 759,000 fewer shoppers buying them this January

International Supermarket News | March/April 2017

Supermarket Market Share in the UK INDEPENDENTS * 1.8%

*(includes franchises like Premier, Budgens and Londis)

OTHER MULTIPLES 2.9% ICELAND 2.3% LIDL 4.5% WAITROSE 5.3% CO-OP 6%

TESCO 28.1%

ALDI 6.2%

MORRISONS 10.9%

SAINSBURY'S 16.5%

ASDA 15.6%

Brothers Karl and Theo Albrecht found Aldi in Germany

Aldi opens first UK store in Stechford, 100th UK Birmingham store opens

UK and Ireland sales pass £1bn a year

Aldi get a boost as credit crunch hits UK

Matthew Barnes and Doubles Roman Heini Market Horsemeat luxury take charge share scandal Christmas in UK. reaches 3% taints Aldi. range

1946 1990 1995 2004 2008 2010 2011 2013 2013 ALDI TIMELINE: THE RISE AND RISE OF ALDI

Launches online shopOvertakes ping service Waitrose to selling become UK’s wine and sixth largest non-food grocer Specialbuys

2015

International Supermarket News | March/April 2017

2016

Overtakes Co-op to become UK’s fifth largest grocer. Opens 700th Store in UK

2017

Supermarket – that’s a 31% drop in spending compared with the same month last year. Sales of spinach also fell by 12%, in a clear sign that the poor weather in southern Europe has had a tangible impact on British shopping baskets.” “Meanwhile rising prices – which we saw at Christmas for the first time since 2014 – have continued into the new year, with like-for-like inflation on a basket of everyday groceries climbing to 0.7%. If prices continue to rise at the same rate for the rest of 2017, shoppers will find themselves around £27 worse off.” Morrisons was the fastest-growing retailer within the big four, increasing its market share for the first time since June 2015 with a sales uplift of 1.9% year on year. Although growth came from across the store, premium own label was a real bright spot – sales were up by 35%, while its revamped The Best range made its way into 14% of Morrisons baskets. Growing for the fifth period in a row – albeit at a slower rate than previously – Tesco’s sales were up 0.3% year on year as its market share fell to 28.1%. Sainsbury’s sales remained flat, while its share fell by 0.3 percentage points to stand at 16.5%. Meanwhile Asda’s 1.9% fall in sales signalled a decline which continues to slow. Although its share dropped by 0.6 percentage points over the quarter, the retailer did manage to increase the number of shoppers visiting its stores compared to the same period last year. Elsewhere, Waitrose, Lidl and Iceland all continued to grow. Boosting sales by 3.4%, Waitrose increased its share of the grocery market to 5.3%, while Iceland – up 8.6% year on year – saw sales growth for the tenth consecutive period. A 9.4% year on year sales increase for Lidl buoyed the retailer’s market share by 0.3 percentage points, leaving the discounter holding 4.5% of the UK grocery market.

Aldi becomes the highest-paying supermarket in the UK Aldi has given its employees a late Christmas present as it unveiled new pay rates this morning - and boasted that the new deal will make it the highest-paying employer in the supermarket sector. The supermarket is known for offering the cheapest groceries in the UK, but is now insisting it won't settle for a budget workforce, and will be paying its staff a minimum of £8.53 an hour nationally, and £9.75 an hour in London. That's ahead of the national living wage rate, which is currently set at £7.20 an hour. In the Autumn Statement, chancellor Philip Hammond said this figure will rise to £7.50 as of April this year. The commitment from Aldi comes after rival discounter Lidl said it would become the first supermarket to pay the voluntary living wage, a pay rate set by the Living Wage Foundation. Employers signed up to the Living Wage Foundation's pay rate are obliged to pay a minimum of £8.45 per hour nationally. Aldi said it would be paying its employees more than this because of their "dedication and commitment". The budget grocer also boasted that it is one of the few employers in the industry that still offers staff paid breaks. Even the John Lewis Partnership, known for its generosity to staff, has cut paid breaks for new Waitrose employees, as revealed by City A.M. last year. Matthew Barnes, chief executive of Aldi UK, said: We recognise the valuable contribution that our thousands of store employees make every day. We employ the best people in retail and invest in their training to enable them to carry out a range of different roles in store. This approach means that we can continue to provide customers with the lowest grocery prices in the UK. The supermarket also announced that it is recruiting 4,000 new employees as it moves towards opening its 700th store - part of the business' plan to gobble up a 10 per cent share of the UK grocery sector.

International Supermarket News | March/April 2017

UK supermarkets: Lidl cheapest, Waitrose the most expensive Recent study by market analysts Nielsen revealed that many budget chains in the UK are selling everyday items up to £25 cheaper than traditional supermarkets. Nielsen compared around 20 everyday items from the UK supermarkets and budget chains and found many of these items were sold cheaper in budget chainseven cheaper than discounters Aldi and Lidl. The study, analyzing the shopping habits of 15,000 households in the UK revealed that customers who regularly shops at bargain chains spend less when they shop at leading stores. Waitrose was found to be the most expensive with a bill of £58.85 followed by Marks and Spencer with £58.19. Lidl was the cheapest costing just £38.41, followed by Aldi at £39.11. Among the big four supermarkets in the UK, Morrisons was found to have the cheapest bill of £51.65, followed by Asda at £51.73, Tesco with £53.39 and

Sainsbury’s with £55.85. Coop was cheaper than Iceland with a bill of £49.16. The everyday items compared included batteries, tea, soft drinks among other things but were not like-for-like basket. The assortment of 20 everyday items which was sold at Sainsbury’s for £55.85 retailed at £31.28 at stores like Poundland and B&M. If one chose discounters like Aldi and Lidl, it costs £15 less than what would have been in Tesco or Asda. A Nielsen spokesman said: “Discounters carry a range of up to 2,000 lines, whereas larger supermarkets carry a range of

25,000 to 30,000 items, from value to premium lines. “And, therefore, shoppers generally purchase private label items from discounters whereas purchases from larger supermarkets contain a wider range of items, from private label to brand to premium.” Many supermarkets were furious over the study labeling it “misleading” since it was not a like-for-like comparison. A Sainsbury's spokeswoman said: "We don't believe the methodology used offers a true comparison and can reassure our customers we always aim to deliver the best quality and value."

International Supermarket News | March/April 2017

Supermarket

Tesco tops Easter Egg test Chocolate lovers should look no further for their Easter treat after Tesco’s finest Belgian Milk Chocolate Hidden Egg has beaten the best of the high street, including luxury artisan rivals, to be voted the Good Housekeeping Easter Egg of the Year. It’s the second year in succession that Tesco has won the coveted award. This year, the judges were impressed by the award-winning Hidden Egg and praised its decadent look and ‘meltingly smooth chocolate.’ The Good Housekeeping Institute assessed 127 Easter eggs on their appearance, aroma and texture to find the best eggs for kids, teenagers, adults, sharing and free-from. With a score of 80/100, it came joint top in a blind taste test with the Bettys Trio Spring Flower Eggs. In addition, Tesco also scooped second place in the Good Housekeeping Hot Cross Bun tasting with its finest Extra Fruity Hot Cross Buns. The buns were found to have ‘plenty of fruit’ and to be ‘delicately spiced’ – a winning combination for the testers.

Aldi opens 700th store in the UK German discounter Aldi has launched its 700th store in the UK. The supermarket chain plans to have 1000 stores in the UK by the end of 2022. Aldi said in a press statement that its 700th store in the country was opened in Whitstable, Kent. This store is one among the 70 outlets the discount retailer is planning to open during 2017. Aldi has earlier announced that it will invest £450 million for store renovation and improving distribution networks. Since 2012, the discounter supermarket has spent more than £1.7 billion in the UK to setup new stores and renovate the existing ones. This also includes setting up new distribution centres across the country. Aldi currently has over 14 million customers in the country and is the ranked as the fifth largest supermarket in the UK by market analyst Kantar worldpanel. Aldi UK boss Matthew Barnes said that there were many potential customers who would like to shop with Aldi but could not do so as they don’t have an Aldi store near where they live. He added that the supermarket want to change this by opening stores in every major city across the country. The German discounter has also announced opening of its ninth UK distribution center in Cardiff, Wales by the end of March 2017.

Tesco buys Booker; becomes largest food group in the UK Tesco becomes the largest food group in the UK after swooping a deal to buy wholesaler Booker for £3.7bn. Following the procurement of Bookers, the supermarket giant expects to achieve a combined run-rate of a minimum of £200m a year by the end of the third year of acquiring. It has also announced that Booker CEO Charles Wilson will join the combined board and executive committee. Tesco in a press statement asserted that takeover would bring good for consumers, small business, workers, retailers as well as the company shareholders. Booker shareholders will receive 0.861 new Tesco shares and 42.6p in cash per share. The company also announced that it would “delight consumers with better

availability of quality food at attractive prices across retail and eating out locations”. Tesco CEO Dave Lewis said: “Tesco has made significant progress in turning around our UK retail business. This merger with Booker will further enhance Tesco’s growth prospects by creating

the UK’s leading food business with combined expertise in retail, wholesale, supply chain and digital. Wherever food is prepared and eaten - ‘in home’ or ‘out of home’ - we will meet this opportunity with the widest choice and best service available.” Charles Wilson added: “Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve. We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”

International Supermarket News | March/April 2017

Brazilian supermarket sales rose 2.3 percent According to the latest figures from the Brazilian Supermarket Association (Abras), total supermarket sales in the country increased by 2.23 percent in December compared to the previous year. Industry analysts found uprising to be surprising as the nation was hit by severe recession in the recent past. The betterment in the performance has been attributed to the irrepressible demand for food, toiletry and cleaning items, government efforts to cut borrowing costs and revive the ailing economy. Sales rose 1.58 percent in inflation adjusted terms in 2016 and are likely to increase 1.3 percent this year, Abras said. The national sales index compiles data from 2,800 outlets representing about 130 companies that account for 60 percent of supermarket sales in Brazil. Abras President João Sanzovo Neto expressed confidence in the government’s initiatives to revive the economy. Weakening consumption habits among low-income families in the country could be a setback though. The survey revealed that the class C bracket cut spending in staples and other basic goods in 2017 for the first year in four. Brazil's economy shrank for the seventh consecutive quarter in the July-throughSeptember period, government statistics agency IBGE said last year.

Sainsbury’s has the quickest queue among the UK supermarkets If you are in a hurry it is better to stay away from Asda. According to newly released survey figures the Walmart owned British supermarket Asda has the longest queuing times among the big five supermarkets in the UK. Sainsbury’s was found to be the quickest for queues with a queuing time to one minute and 40 seconds. The survey by The Grocer magazine found Asda to have a queuing time of two minutes and 14 seconds. The survey took inputs from various mystery shoppers based on their weekly outings to supermarkets. This includes car parking, store layout, availability of items, out of stock goods, queuing times and shop floor service. Tesco came second in the lineup list with a queuing time of one minute and 51 seconds followed by Morrisons at one minute and 55 seconds. Waitrose was better than Asda with a waiting time of one minute and 59 seconds. Sainsbury’s topped of all other supermarkets on the time spend at the till while the shopping items were scanned with an average time of three minutes, 43 seconds. Tesco came second with a waiting time of three minutes and 54 seconds and Morrisons at three minutes and 59 seconds. Asda came last in the list taking four minutes and 14 seconds for when it comes to time spend at checkouts. Checkout times at all supermarkets were slightly quicker in 2016 compared to the previous year. The Grocer said: “The recent revival among the traditional supermarkets has been rooted in major improvements in service and availability. The top five supermarkets all improved their in-store performances compared with the previous year.”

International Supermarket News | March/April 2017

Supermarket

Alibaba plans to enter grocery business

Easter opening hours for major UK Supermarkets Bigger supermarket chains in the UK including Tesco, Asda, Aldi, Lidl, Waitrose and Sainsburys will be closed for Easter Sunday. Only some of the local stores would be open on Easter. Here are the opening times of various supermarkets across the country. Most of the Tesco stores in the UK will be closed on Easter Sunday and restricted opening hours will be in place on Good Friday and Easter Monday. However, most stores will be open as usual in Saturday. Sainsburys’ will be open on Good Friday but closing time will not be the same for all the stores. It would be better to check with your local store to know more about the closing time. In England and Wales Sainsbury’s stores will remain closed on Easter Sunday. However, stores in Scotland will remain open. On Easter Saturday the stores will

have normal opening hours. Waitrose stores in UK will be open on Good Friday and Easter Saturday. Almost all of their stores will remain closed on Easter Sunday and some will operate for restricted trading hours on Easter Monday. Aldi stores will be closed on Easter Sunday, with majority of them opening on Saturday, Monday and Good Friday. Lidl will have varying opening hours for its stores on Saturday, Easter Sunday and Easter Monday. It is better to check with your local stores to know more about the opening hours. John Lewis will remain open on Good Friday, Saturday and Easter Monday, but the opening time may vary from store to store. Most stores will be closed on Easter Sunday, except in Scotland. Halfords Stores in the UK will be open from 10am until 5pm over the Easter break on all four days, Good Friday, Saturday, Easter Sunday and Easter Monday.

After Amazon, another tech giant Alibaba is trying its luck in grocery business. According to industry insiders the Chinese etailer is planning to buy RT-Mart supermarket chain to gain supremacy in online grocery business. Alibaba’s compatriot and one of the major competitors JD.com- an online electronic commerce company, is also eyeing to expand its portfolio to venture into the multibillion grocery industry. The company plans to achieve $14.5 billion in sales this year. Alibaba is in talks with Sun Art, the owners of RT-Mart supermarket for creating an offline presence for the company, indicating that the future of retailing clearly demands online-offline combination. Many of the recently initiated online supermarkets in the country has received cold reception from the market forcing them to either scale down or shut down operation. This list includes Amazon backed Yummy77, Tablelife, Yiguo and Fruitday among many others. Unlike Alibaba, JD.com has not yet revealed its plans to start an online grocery store in China. The etailer neither has plans to venture into offline business now. But JD.com has tie-ups with world’s largest grocer Walmart, which gives qualms to Alibaba who plans to venture into grocery market. Alibaba is understood to have been in talks with Sun Art for two months now and both companies are reportedly finalizing on an unspecified agreement.

International Supermarket News | March/April 2017

Amazon to launch private label fashion brand in the UK Fashion magazine Dr apers reports that Amazon’s new private label clothing could be in the market as early as this spring. Amazon’s clothing division vice-president Frances Russell, who was previously the womenswear director at Marks & Spencer, knows the region and the market in particular. The etailer has also poached many top executives from M&S and other top UK retailers. Industry experts expect Amazon to scuffle hard in its early years to gain market share in the UK market as the existing players are equally competitive and watchful. Having said, Amazons fashion label could pose a risk to the high street retailers.

Tech giant Amazon is one step closer to becoming a one-stop solution for all your retail needs. Amazon might launch its new private label fashion range in the UK market to compete against big names like Marks & Spencer, Next and Asda’s George.

Richard Lim, chief executive of Retail Economics said: “Amazon is a very cash rich business and if they want to launch into a sector, they won’t do things by half. “They offer convenience, good value and speedy and well-priced delivery, so it’s a good customer experience.” Lim added that the UK clothing market worth £48bn in 2016 is a huge but very fragmented industry which has great potential for online fashion companies. Many industry experts, on the other hand, expressed skepticism on how good Amazon would perform as a “go-to fashion label”. Amazon has its own women’s underwear brand in the UK that sells under the brand Iris & Lilly. Amazon has recently revealed that fashion wears was one of the fastest growing categories in its European websites.

International Supermarket News | March/April 2017

Retail

UK Retail Industry

Worst Performance Since 2013 Quickening inflation has miffed UK retail industry with sales plummeting for the third month in January, reports from the Office for National Statistics revealed. In the three months through January, sales dropped 0.4 per cent, the worst quarterly performance since 2013. In store and online sales in the country fell by 0.3 percent following a 2.1 per cent drop in December. This is a clear indication of how bad inflation is affecting the country as it hits 1.8 percent last month. Inflation is expected to climb in 2017 as well due to Brexit fears and incurring import costs. The retail prices in the country in January increased on a yearly basis by 1.9 percent which is the biggest upsurge since 2013. Sales excluding auto fuel fell by 0.2 percent in January, which also recorded a decline in sales of food, household goods and products sold online. In

KEY FINDINGS • In January 2017, the quantity bought in the retail industry is estimated to have increased by 1.5% compared with January 2016, the lowest growth since November 2013. • Month-on-month the quantity bought is estimated to have fallen by 0.3%. • The underlying pattern as suggested by the 3 month on 3 month movement decreased by 0.4%; the first fall since December 2013. • Average store prices (including fuel) increased by 1.9% on the year, the largest contribution to this increase came from petrol stations, where yearon-year average prices were estimated to have risen by 16.1%. • Online sales (excluding fuel) increased by 10.1% year-on-year, but fell on the month by 7.2%; accounting for approximately 14.6% of all retail spending.

International Supermarket News | March/April 2017

Economist asks government to hold off import tariffs in Post Brexit UK Economists suggest that if Government can hold off import tariffs in the U.K after Brexit, shoppers would benefit from cheaper food and other goods, apart from the country getting a four percent boost for its economy. The economists, led by Professor Patrick Minford, a former adviser to Margaret Thatcher, blamed Chancellor Philip Hammond of “economic illiteracy” at the launch of Economists for Free Trade in Westminster. THE DATA SHOW THE FIRST SIGNS OF A FALL IN THE UNDERLYING TREND SINCE DECEMBER 2013. THE EVIDENCE SUGGESTS THAT INCREASED PRICES IN FUEL AND FOOD ARE SIGNIFICANT FACTORS IN THIS SLOWDOWN. - OFFICE FOR NATIONAL STATISTICS STATISTICIAN KATE DAVIES.

December, the country saw the biggest sales drop since 2011, when it recorded a 2.1 percent drop from a previous estimation of 1.9 percent. The poor results mark a second bad month for consumer spending in the UK after retail sales suffered their biggest drop since April 2012 in December, with ONS data showing sales volumes fell 1.9% year-on-year, widely missing economists' forecasts in a Reuters poll for a 0.1% decline. The weakness of the official figure contrasts with positive trading updates issued by some of the biggest high street names in recent weeks. Retail sales account for around 20% of GDP and household consumption has held up much better than many economists

The g roup rej e c te d trade tariffs imposed on imports by the Government saying that it would do no good for free trade with the rest of the world. Professor Minford urged Mr Hammond to review his decision. “ Tr a d i n g a s a f u l l member of the World Trade Organization outside the Single Market can offer the UK considerable economic benefits,” he said. Mr Hammond previously said that unilateral free Professor Patrick Minford trade would damage the country’s economy and could increase unemployment. Prof Minford lashed out at this remark saying: “This is just economic illiteracy.” He wants the UK government to avoid drastic measures even if EU tries to impose tariffs on goods and services. The “tit for tat” measures will not do well for the economy, he said. Prof Minford also warned that if the Government impose tariffs on EU goods and service it would eventually wipe out eight percent of the country GDP. “Embracing global free trade, even if the EU does not reciprocate, will mean the UK is far better off compared to the status quo,” he added.

International Supermarket News | March/April 2017

Retail

"JANUARY’S FURTHER DROP IN RETAILS SALES AFTER A MARKED DIP IN DECEMBER SUGGEST THAT CONSUMERS COULD NOW BE STARTING TO SERIOUSLY REIN IN THEIR SPENDING AS THEIR SPENDING POWER IS INCREASINGLY SQUEEZED. - HOWARD ARCHER, CHIEF UK AND EUROPEAN ECONOMIST AT IHS GLOBAL INSIGHT. expected in the wake of the June Brexit vote. However, that honeymoon now seems to be ending, following consecutive bad months. As the ONS' points out in its commentary, one of the big drivers of falling sales is the post-Brexit vote surge in inflation, which has pushed up prices and scared away shoppers. The ONS said earlier this week that the UK's consumer price index — the key measure of inflation — was 1.8%, up from 1.6% in December. As Samuel Tombs of Pantheon Macroeconomics neatly sums it up in an emailed data note: "Consumers crumble under inflation pressure." "The failure of retail sales in January to rise at all after December’s 2.1% month-to-month drop demonstrates

that consumers’ spending has shifted down several gears in response to slowing employment growth and rising inflation."Earlier this week, data revealed that wages in the UK were not improving, even as inflation hit its highest level since mid-2014. Sterling slipped to $1.2429 just after the data, from $1.2449. Howard Archer, chief UK and European economist at IHS Global Insight, said: "January’s further drop in retails sales after a marked dip in December suggest that consumers could now be starting to seriously rein in their spending as their spending power is increasingly squeezed. "The hit to consumers from rising inflation was evident in the year-on-year rise in the retail price deflator rising to a 42-month high of 1.9% in January from

0.9% in June." Ranko Berich, head of market analysis at Monex Europe, said: "It may be too early to draw sweeping conclusions about the direction of the economy from today’s Retail Sales data, but it certainly looks as if consumer spending is finally beginning to slow down after a long expansion. If this contraction continues, Mark Carney and the MPC will have their best ‘we told you so’ faces on at the BoE’s next inflation report." As above this isn't exactly desired by anyone but it's also no surprise. It was obvious that this had to occur at some point--that fall in the pound made it necessary that it did. However, do note one rather important thing. Currency related inflation is a one time thing. If the pound falls 10% (just as an example) then that will indeed make imports cost 10% more. But that happens just the one time. After 12 months as the effect of the devaluation falls out of the statistics then there is no further and extra inflation from it.

International Supermarket News | March/April 2017

Unilver rejects Kraft Heniz’s takeover bid Unilever has rejected takeover bid from one of its major competitor US food company Kraft Heinz saying the deal lacks any financial or strategic merit. Kraft Heniz made an offer of $143bn to buy UK based Unilever, one of the world’s most popular brands. But Unilever considers this $50-a-share offer to be undervalued and has asked shareholders to take no action. Meanwhile industry experts believe that Kraft Heinz will come back with a better bid as the company said it is "working to reach agreement on the terms of a transaction". The surprise takeover, if materializes would be the third-biggest buyout in history and the biggest ever procurement of a UK-based company.

Kroger and Murray's Cheese Announce Merger U.S. supermarket chain Kroger has announced its decision to purchase New York-based specialty food producer Murray's Cheese. One of America’s largest supermarkets, Kroger has been known for its aggressive acquisitions in the past which includes purchasing companies like Fred Meyer, Ralph's, and King Soopers, Harris Teeter and Roundy's. The deal, reportedly worth $20.6 million would mean that Kroger now owns Murray’s flagship Greenwich Village location, which includes classrooms and catering operations. Kroger and Murray’s had signed an agreement in 2008 through which more than 350 Murray’s Cheese shops were operating inside Kroger stores in the U.S.

Unilever has a strong presence in the European and emerging markets, whereas Kraft Heinz is predominantly stronger in the North American market, which accounts for more than 80 percent of its sales. The takeover bid comes at a time of Britian’s decision to leave EU, when the country is hit by inflation and the market expecting severe price hikes. Interestingly, Kraft is comparatively smaller company than Unilever with a market value of $106bn. But more than half of its shares are owned by billionaire Warren Buffett's Berkshire Hathaway and 3G Capital, the private-equity firm that also controls Anheuser-Busch InBev. Unilever disclosed that Kraft’s proposal included $30.23 per share in cash, payable in US dollars, and 0.222 of a share in a new enlarged entity per Unilever share.

Kroger has been working on its organic food range since 2012 when it launched private label organic food line, Simple Truth. Kroger, in 2013 purchased the upscale specialty grocer Harris Teeter as a part of strengthening its organic food. After the purchase of Murray’s Cheese Kroger might now start standalone Murray's stores as well. This could give the supermarket a better grip on the cheese market. As of now, Murray’s just has two stores in the U.S, both situated in Manhattan. Kroger also eyes to attract the customers from Northeastern part of the country with this acquisition, where the supermarket does not have any stores.

International Supermarket News | March/April 2017

Europe

Five European countries criticized for poor air quality France, Germany, the United Kingdom, Spain and Italy are being criticized by European Commission for their pollution, which comes mainly from road traffic. Brussels states that in these countries it has detected "persistent infractions" in the area of air pollution, which is mainly caused by road traffic and therefore launches a "final warning”. And if these states "do not act within two months”, the Commission warns that “it may decide to refer the case to the European Union (EU) Court of Justice”, as it has already done in 2015 for Belgium and Bulgaria. In France, some 20 zones are concerned, including Paris, Marseille and Lyon. On the German side, there are about thirty of them, including Berlin, Munich and Hamburg, and sixteen in the United Kingdom "including London, Birmingham, Leeds and Glasgow," the Commission said. European legislation requires Member States to implement 'plans' and 'appropriate measures' when the limit values for air pollutants are exceeded. Among the possible measures, the European executive cites in particular "reducing the overall volume of traffic”, "switching to electric cars” and "adapting driver behavior”. "Reducing emissions from diesel-powered vehicles is an important step towards ensuring compliance with EU air quality standards," the Commission said, adding that "more than 400,000 citizens die prematurely every year in the European Union because of poor air quality”.

Waitrose to axe nearly 700 staff and close five stores The middle-class grocer — Britain’s seventh largest supermarket — has been hit by rising costs, customers defecting to cut-price rivals and slow online sales. The store closure programme comes as Waitrose, the UK’s seventh largest supermarket, faces an increasingly challenging grocery market, with food costs rising, customers continuing to shop around for bargains and sales increasingly moving to online. Waitrose traded strongly over Christmas with total sales up nearly 5 per cent and like-for-like sales in stores that have been open for at least a year up 2.8 per cent. However, the company has indicated that it wants to invest further in its stores and in new product lines and is facing steeply rising costs. Last month the John Lewis Partnership, which owns Waitrose, said that trading profit across the group was “under pressure as a result of wider changes taking place in retail.” Ben Stimson, Waitrose Retail Director, said: “We’d always try hard to avoid closing branches but we review how our shops are doing commercially and respond where we have to. We’ll be consulting with our branch Partners on these proposed closures and will make sure they have all the support they need.” In another reorganisation that is intended to cut costs, the retailer said that it would change managers roles in a step that will lead to 180 fewer managers’ jobs over the next three years. Staff on the shop floor have concerns over Waitrose Deliver, the home delivery service which has not made a profit since it was launched. The Waitrose staffer said: “They are carrying on with it for fear of losing more market share to Aldi and Lidl – who don’t provide the service.” A spokesman for the John Lewis Partnership said that discussions over this year’s bonus would take place at a board meeting in March.

International Supermarket News | March/April 2017

More than £2bn in personal loans for debt consolidation New research from Sainsbury’s Bank Loans reveals that more than 180,000 people across the UK could take out personal loans for debt consolidation in the first three months of 2017, worth more than £2 billion. Th i s f i g u r e e q ua l s a n estimated 31% of all personal loans taken out in the first three months of the new year. The estimated average loan size is projected to be around £11,400 – nearly a fifth (18%) more than the average value of loans not intended for consolidating debts (£9,600). This means that the total value of loans taken out between January and March 2017 for debt consolidation will account

for more than a third (35%) of all loans during this period. Sainsbury’s Bank is encouraging those looking to consolidate debts to ensure their monthly repayments will be lower under the terms of the new loan and that they are able to cover any fees from their old lenders before borrowing. Smon Ranson, Head of Banking at Sainsbury’s Bank said: “Personal loans can be a fantastic debt consolidation tool, enabling borrowers to lower their monthly repayments and unify their debts and

payments under one provider. However, in order to justify the new loan you’ll need to work out if the interest paid on the consolidated balances by the end of the repayment term will be lower than the interest you would have paid under your existing arrangements.” Sainsbury’s Bank has a loan switcher calculator to help customers gauge whether they might save money by switching their existing loan to a Sainsbury’s Bank loan. The Bank, which consistently offers competitive interest rates on personal loans, also has a Price Promise Guarantee. This means that if a customer is offered a “like for like” loan that has a lower APR with another lender, Sainsbury’s Bank will beat it by 0.1%. This is subject to qualifying for the Offer and customers must not have already accepted its Standard Loan offer by signing and returning a Sainsbury’s Loan agreement. Car dealership loans and finance excluded.

German retail sales fall below expectations Recently publicized volatile indicator from Feder al Statistics Office of Eurozone’s largest economy, Germany indicates that the retail sales in the country has plummeted by 0.9 percent in December, despite predictions by the HDE retail association that holiday sales would help the sales to make a 0.5 percent rise.

The total unemployment number has fallen to 26,000 in January 2017, against the economists’ prediction of a drop of 5000. The joblessness rate was found to be faster than forecast for December with a drop revised up to 20,000. With an annual growth of 1.9 percent in 2016, the German economy recorded its best ever annual growth since 2011. However, a breakdown of year-on-year data showed lower sales of food, drinks and tobacco in December, and weaker purchases of items such as books and jewellery.

The figure, which is often adjusted later, has shown a fall of 1.7 percent sales drop in November. During 2016, retail sales in the country tripped by 1.1 percent in real terms, the data shows. Meanwhile, the country has - for the first time since reunification in

1990- managed to keep the unemployment rate below 6 percent.

The statistics office reported earlier this month that retail sales rose between 1.8 percent and 2.1 percent in 2016 in real terms.

International Supermarket News | March/April 2017

Supermarket

Which? survey names favourite UK supermarkets Waitrose, Iceland and Marks & Spencer were placed in the top positions in the latest customer satisfaction annual poll conducted by consumer group Which? in the UK. The survey ranked upmarket grocer Waitrose for the third consecutive year for high levels of customer satisfaction when shopping online and in store beating Marks & Spencer narrowly. Another major supermarket chain Iceland bagged the top award for home delivery service for the second year in a row with five-star rating. In the Which? survey where more than 7000 customers voted, Waitrose was positioned ahead of all other brick and motor stores in the country with five star rating for staff readiness and effectiveness, thanks to its parent company the John Lewis’ Partnership’s bonus scheme, which allows employees to share the company’s profit. Most of the participants in the survey found the spacious design of Waitrose convenient for picking up the groceries. Customers were asked to rate the supermarkets based on their past six months shopping experience in store and online. Marks & Spencer won the second place in the in store classification, thanks to the popularity of their dine-in offer that included a meal for two and a bottle of wine for as low as £10. Britain’s big four supermarkets - Tesco, Asda, Sainsbury’s and Morrisons were rated average or

KEY FINDINGS Waitrose..................... 74% in-store...........71% online Iceland........................69% in-store............77% online Marks & Spencer.....73% in-store only Aldi...............................72% in-store only Lidl...............................72% in-store only Morrisons..................70% in-store............74% online Sainsbury’s................67% in-store............71% online Tesco...........................66% in-store............74% online Asda.............................62% in-store............71% online Ocado.........................76% online only below by most of the customers who participated in the poll. German discounters Aldi and Lidl bettered their position in the list with jointly climbing up to the third position for their value for money element. Morrisons bettered its position from eighth in the last year’s survey to secure fifth place in the list. Asda was placed at the ninth position, with worst customer reactions. Most of the shoppers who

participated in the survey found Asda to have good value for money; its food quality was assessed as average. Richard Headland, Which? magazine editor, said: ‘With concerns over rising prices the competition among supermarkets is fiercer than ever. ‘While value for money remains a priority, in-store appearance and the availability of quality and fresh products go a long way to satisfying shoppers’ needs.’

International Supermarket News | March/April 2017

Lidl to open its first store in the U.S. this summer German discounter Lidl has announced that it would open the first batch of 100 stores in the U.S. this summer itself, ahead of the previously declared schedule. This decision comes at a time when another compatriot Aldi is causing damages to the traditional supermarkets including Walmart through its value for money products. Both Aldi and Lidl focus on private label products than big brands. Lidl’s first batch of 20 stores will be opening in North Carolina, South Carolina and Virginia, where the company established its first U.S. headquarters in 2015. The company expedited its initial plans to open stores in 2018 to match the competition. In a recent survey conducted in the U.K. by Which? Lidl and Aldi were placed in the third position for customer satisfaction and value for money beating all the major grocery chains in the country. Lidl and Aldi have already done much damage to Walmart owned supermarket chain Asda and other major supermarket chains in the UK. Lidl has more than 10,000 stores in 27 countries around the world. Aldi opened its first store in the U.S. in 1976. Aldi now has more than 1600 stores in the U.S. The german discounter now plans to increase its number of stores to 2000 by 2018. Aldi also has plans to remodel 1300 existing stores in the U.S. and has budgeted $1.6 billion for the same.

Tesco introduces exclusive parking space for lady drivers Te s c o Th a i l a n d h a s introduced pink parking spaces exclusively for women customers. The pink signposted parking spaces are reportedly designed for women drivers who took more time to park their vehicles. These dedicated parking zones are marked close to store entrance making it easier for shoppers to effortlessly commute. Tesco is not the first supermarket in the country to introduce dedicated parking spots for women drivers. Many major retailers have introduced lady parking zones. But Tesco’s pink parking spaces have come under criticism as many shoppers believe that these lady parking zones could be dangerous as they could be attacked while unloading groceries. Tesco officials said that the parking bays are positioned close to the entrance to ensure the safety of shoppers who travel alone. The stores will also have special parking areas for disabled and women traveling with children.

Aldi hiring new staff for its stores in the UK German discounter Aldi is hiring new staff for its stores in the UK. Aldi offers incredible benefits for its would-be staff with some salaries as high as double the UK average. Store manager could take home £43,750, rising to £57,050 after four years. Aldi packages offer health and pension benefits in addition to a wage rise of more than £10k in about five years. One could get a chance to accomplish long service awards as well. An assistant manager with Aldi could take home more than £30,000 as a starting salary whereas average annual pay for a UK store manager is just £31,440. In the Aldi’s job advertisement it says that a deputy store manager could get up to £11.15 an hour. The minimum wage coming into force from April 1 is £7.50 per hour. The would be staff will also get five week’s yearly holiday, private medical insurance along with company pension. Aldi in its recruitment website says that it expects the store managers to have "shed loads of energy, great ideas, and a good mix of ambition and character." Applicants are expected to have managed teams of over eight people in the past, and have experience with company property, sales figures and people performance." Aldi has more than 10,000 stores in 18 countries across the world.

International Supermarket News | March/April 2017

Supermarket

Greek supermarkets helped the country resist economic crisis

Dunnes ranked top Irish supermarket chain Dunnes Stores has been ranked as the largest supermarket chain in Ireland with a total market share of 22.7 percent, closely followed by SuperValu with a total market share of 22.5 percent. However, the recent figures from market analysts Kantar Worldpanel found that the total retail sales in the 12 weeks to January 29 have been lethargic with a drop of 3.0 percent down from 4.6 percent during the previous month. According to David Berry, director at Kantar Worldpanel: “Dunnes Stores has returned to first place, capturing 22.7% share – only the second time it has managed to reach the top, having first held this position in November last year. This will be welcome news for the retailer but there should be some concern that its sales growth has dipped to 3.6% – the lowest level seen in more than a year.” This has led to fierce price competition between supermarket chains with grocery prices only 0.7 percent higher than last year. According to industry experts consumers could benefit from the supermarket price wars as each of the grocery chains wants to keep price inflation low. When compared to the prices they were this time last year, an average consumer only has to pay an extra 17c per shopping at supermarkets. Major retailers Dunnes, SuperValu and Tesco are separated by just 0.3 percentage points in the market share table, which intensifies the price war. German discounters like Aldi and Lidl are another major factor that is making the difference in the Irish retail segment. Both these discounters’ accounts for a total of 20.9 percentage market share in Irish retail industry with Lidl luring in three quarters of shoppers during the period under review. Lidl has a market share of 10.3 percent with a sales hike of 2.8 percent. Aldi has a market share of 10.6 percent.

Survey conducted by Greek Research Institute of Retail Consumer Goods (ΙΕΛΚΑ) discovered that the majority of customers believes that the country’s economic crisis could have been even more badly affected had the supermarket sector has not contributed significantly. The participants thanked supermarket industry for its support through investments, contribution to GDP and the number of jobs they have created. The ΙΕΛΚΑ survey found that the food hyper sector contributed 9.24 pct to the country’s GDP, with 14.5 billion euros of added value. This includes retail, wholesale and production sectors. More than 56 percent respondents believed that supermarket industry supported the economy by providing employment opportunities. Another data from Hellenic Statistical Authority reveals that retail food sector accounted for 190,000 jobs in the country. Retail food sector is the only industry in Greece with a positive employment figure with creating new 5,500 employment positions in 2016. However, sales at Greek supermarkets dropped 6.5 percent year-on-year in 2016, while sales volume declined by 8.9 percent. The largest supermarket chain, Marinopoulos with over 329 stores across the country is facing sales crunch issues. Chalkiadakis with 38 stores, Kritikos with 85 stores and Lidl with 226 stores are other major supermarket chains operating in the country.

International Supermarket News | March/April 2017

Tesco accused of overcharging shoppers Supermarket chain Tesco is criticized for overcharging shoppers by placing promotion signs in its stores for expired deals. BBC’s Inside Out Programme revealed that more than 33 out of the 50 stores its secret shopper visited over a three month period were found to overcharge shoppers by expired deals.

Around two third of Tesco customers were fooled by the supermarket by placing expired promotion signs on the shelf. These discounts were declined at the counter because they were out of date.

difference”, through which anyone who has been overcharged at the counter can get a refund. Through this programme customers could receive back double the amount they were overcharged.

Tesco has assured to look into the matter after furious shoppers have started criticizing the supermarket on social media. Tesco, the largest supermarket in the UK with over 3500 stores has an existing refund policy known as “double the

Martin Fisher, from the Chartered Trading Standards Institute said: “If customer A has come back and complained and been refunded that doesn’t mean there weren’t 20 other customers who didn’t spot it and didn’t complain.”

Asda ranked top UK employer Walmart owned British Supermarket chain Asda has been ranked as a top UK employer by the Top Employers Institute in its annual research study. The Top Employer certification is given to employers for their efforts in employee management, improving working atmosphere and their commitment to career development opportunities for workers. Asda is the only supermarket in the UK to be honored in the top employer list. The top 78 companies from the UK include major retailers like AB InBev UK Ltd, Harrods, HEINEKEN UK, PepsiCo and Whitbread. Carl Tabisz, senior manager for employee engagement at Asda, said: “ It’s great to receive this recognition, I’m really proud. The fact the institute is aware we provide an outstanding colleague experience, with high quality initiatives that engage, reward and motivate is great. We are working closely with our colleagues to ensure we have the relevant

support practices in place and look forward to another year of working together. Our People make the difference at Asda.” Asda is winning the top employer award for the fourth time now. The supermarket chain also has been featured in Stonewall’s ‘Top 100 Most Inclusive Employers in Britain.’ Many of Asda’s top managers have received individual awards in the recent past as well. This includes Rukia Hussain, Fresh Replenishment & Production Manager, winning Everywoman Retail Ambassador award and Alex Newbould, Head of Pricing Strategy, bagging the Women of the Future Awards for Business.

Lidl’s private label prosecco registered a sales hike of 79% German discounter Lidl’s private label prosecco registered a 79 percent year-on-year sales hike during January despite the downward trend in the overall beverage market. Prosecco, the italain white wine and cava, its Spanish equivalent has been a growing favorite in the sparkling wine industry in the UK for the last five years. Paul Gibson, buying director for the UK at Lidl said: “Champagne and Prosecco might have once been saved for celebrations, but with our range starting at under £5 they’ve become a very affordable luxury." Despite January being the month when people choose to skip beverages in a traditional January detox, Lidl’s prosecco has posted great sales figures, thanks for its price. A bottle of Prosecco currently retails for as little as £4.99 per bottle at Lidl.

International Supermarket News | March/April 2017

Market Research Retail

Breakfast Cereals Market to Exceed $43 Billion by 2019 The global breakfast cereals market was valued at USD 32.5 billion in 2012 and is expected to grow at a CAGR of 4.1% from 2013 to 2019, to reach an estimated value of USD 43.2 billion in 2019. The need for convenience and busy schedules of people has been propelling the processed food industry, which includes breakfast cereals.

eveloped nations already have breakfast cereals as part of their regular course of meals. Increasing per capita income in developing countries is further giving the breakfast cereal industry a new dimension to look for. The market in the US is declining which is compelling the companies in this industry to increase their markets in the emerging economies. These companies have been increasing their advertising spends in the emerging markets in Asia Pacific region to make consumers aware about the breakfast cereals and the health benefits associated with them. Companies have also developed some brands according to the regional preferences, such as inclusion of saffron and raisin flavored cereals in India.

market, especially in North America and Europe. There also has been an increase in demand for whole-grain cereals worldwide. Breakfast cereals are broadly marketed under two segments: RTE cereals and Hot cereals. The market for RTE cereals is much bigger as compared to that of Hot breakfast cereals. The Ready-to-eat (RTE) cereal had the larger share in the breakfast cereal market and was valued at USD 27.8 billion in 2012. However, the Hot cereals is growing at more than double the CAGR of RTE cereals due to its increasing consumption in the Asian markets. Geographically, North America, led by sales from the US, accounted for the largest share in the breakfast cereals market

and was valued at USD 13.9 billion in 2012. Though China does not have a large market, but the market in the country is growing at a brisk pace, therefore showing opportunities for the companies to increase investments in this region. Major companies operating in the market are Kelloggâ&#x20AC;&#x2122;s, Cereal Partners Worldwide and PepsiCo. To Buy Full Report http:// www.persistencemarketresearch.com/checkout/2809

Special emphasis on healthy living has prompted market players to introduce new products, which suit all age groups and lifestyles. International players are also focusing on reformulating their products by replacing harmful hydrogenated fat and oils with healthier ingredients such as fiber and fruits. Demand for gluten-free cereals has increased in the

International Supermarket News | March/April 2017

Lidl adds new wine to its Easter collection

Romania to amend law asking supermarkets to sell 51% local food The European Commission officially launched an infringement procedure against Romania on legislation which requires large retailers and supermarkets to sell at least 51% of local food. Chairman of the Committee on Agriculture of the Chamber of Deputies, Ioan Munteanu said that the three articles will be modified and a debate on these articles will be conducted in two weeks’ time. "It is up to us to make these changes if we are able. We have already started consultations with all the beneficiaries of the law. We want to synthesize something and finally to call and propose alternatives. We believe that in two weeks we will do a debate on these items. We have solutions to amend them, "said Munteanu . The European Commission decided that the law adopted by Parliament in June 2016 violates European law on the free movement of goods. Moreover, the law also provides that retailers must promote the products of Romanian origin, which may restrict the power to decide on special offers, said the EU executive. According to the Commission, the authorities in Romania have not provided sufficient grounds to demonstrate that legislative provisions are justified and proportionate. Romania has two months to reply to the arguments presented by the Commission

can. The European Commission considers that amendments to the Parliamentary Law 321/2009 on food marketing are "a direct violation of the principle of free movement of goods". EU officials considered that, although the law does not prohibit the marketing of imported goods, it restricts the quantity criterion, freedom of movement of European products, forcing retailers to source more local market. Romanian authorities said the retail market in Romania is one with a high concentration high enough, characterized by the existence of an asymmetry between those involved, on the one hand international retailers large and, on the other hand, small producers or food suppliers. The latter were affected by the difficult economic environment of recent years, the economic crisis and Russia's embargo which highlighted weaknesses food chain.

German discounter Lidl plans to stock its spring wine cellar with European wines and few handpicked premium New World wines, all to be added to the extensive wine rage over the next 18 months. The European assortment is expected to be sourced from Spanish, French and Italian winemakers whereas the new 20 World wines would come from premium producers around the globe. Lidl has already sourced 38 Italian, French and Spanish wines just ahead of Easter. This wine cellar range includes 16 reds, 13 white, 3 rose, 5 sparkling and one dessert wine. According to industry experts Lidl plans to offer the shoppers different styles of wines from Roero Arneis to a barrique-aged Rias Baixas. Lidl’s Easter wine range includes Bourgogne Hautes-Côtes de Beaune from Louis Dupleix (RRP: £9.99), a Muscadet Sèvre et Maine from Domaine de L’Ardennerie (RRP: £5.99), a Veneto Bianco (RRP: £6.99) a Roero Arneis from Cascina Valentino (RRP: £8.99), and a barrel-aged Rias Baixas Barrica from Salneval (RRP: £7.99). The reds include: Saint-Chinian from Val de Salis (RRP: £7.99), a Blayes Côtes de Bordeaux from Blason de Montbelly (RRP” £5.99), Pauillac 2013 (RRP: £11.99), a Puisseguin Saint-Emilion (RRP: £9.99) and a 2011 Vino Nobile di Montepulciano Riserva from Duca di Sasseta (RRP: £9.99). Thanks to its huge popularity, Lidl has send out sparkling Clairette de Die from the Rhône for the fourth time again. Most of these wines are sourced from countries that Lidl operates and has an administrative center.

International Supermarket News | March/April 2017

Retail

Amazon,Waitrose tops UK Customer Satisfaction Index Tech giant Amazon, retailers John Lewis, Marks & Spencer, Supermarkets Waitrose, Iceland and First direct were companies ranked among the top 10 in the UK Customer Satisfaction Index. The nationwide survey of around 10,000 shoppers conducted by The Institute of Customer Service evaluated over 300 companies in the UK spanning 13 different sectors. A nationwide poll of 10,000 consumers has ranked Amazon. co.uk top for customer satisfaction among all UK companies. Also featured among the top 10 are ASOS.com, John Lewis, Marks & Spencer (retail food and non-food), Waitrose, Nationwide, first direct, Greggs, giffgaff and Iceland. The participants were quizzed on their experiences with the organizations they dealt with during previous three months. The criterion included professionalism, quality and efficiency to ease of doing business, timeliness, problem solving and complaint handling, as well as attitudes

towards trust and reputation. The UK Customer Satisfaction Index (UKCSI), run by The Institute of Customer Service, asks consumers to rate their experiences of over 300 organisations in 13 sectors that have dealt with in the previous three months, on 30 criteria, from professionalism, quality and efficiency to ease of doing business, timeliness, problem solving and complaint handling, as well as attitudes towards trust and reputation. UKCSI chief executive Joanna Causon said: “This is the first UKCSI to include survey data collected since the Brexit referendum. “Customer satisfaction has continued to improve, suggesting that many organisations are performing

better on some of the essential elements of customer service, especially in getting things right first time and dealing with problems and complaints.” “The results clearly show that just being ‘good’ is no longer good enough. Organisations who can get things right first time and deal with problems effectively to deliver an excellent customer experience are those that are thriving both on the high street and online.” Amazon UK country manager Doug Gurr comented: “We always appreciate the support of our customers so we’re thrilled to start the year with such positive feedback,” said “We know we can always get better, and we’re confident

International Supermarket News | March/April 2017

UK population, and Amazon Restaurants launched, bringing food from handpicked local restaurants to Prime members in parts of London. Amazon also released a series of new devices in 2016 including Echo and Echo Dot (voice-controlled speakers powered by Amazon’s Alexa voice service); Dash and Dash Buttons (enabling customers to quickly order staple items) and Kindle Oasis, billed as the thinnest and lightest Kindle ever. It also launched a number of exclusive TV shows including ‘The Grand Tour’ on Amazon Prime Video, plus Amazon Music Unlimited, with a catalogue of more than 40 million songs to download.

our investments in the UK will enable us to further improve the shopping experience for all our customers in 2017.” Over the last year, Amazon introduced several new services. AmazonFresh launched in London, with the grocery service now available in 260 postcodes in London, Surrey and Hampshire. The ultra-fast delivery service Prime Now continued to expand, now reaching over 30% of the

he UKCSI shows that customer satisfaction has risen to 77.8 and there is a wide variation of satisfaction across different types of customers, sectors and organisations. This is the fourth consecutive growth in customer satisfaction, which is at its highest point since July 2013. All 13 sectors have improved except for Automotive, which remained flat. Customers who express a preference for either fast, efficient service, or for proactive help and advice (even if it takes longer), tended to have higher satisfaction than those whose preference is for THIS IS THE FIRST UKCSI TO INCLUDE SURVEY DATA COLLECTED SINCE THE BREXIT REFERENDUM. “CUSTOMER SATISFACTION HAS CONTINUED TO IMPROVE, SUGGESTING THAT MANY ORGANISATIONS ARE PERFORMING BETTER ON SOME OF THE ESSENTIAL ELEMENTS OF CUSTOMER SERVICE, ESPECIALLY IN GETTING THINGS RIGHT FIRST TIME AND DEALING WITH PROBLEMS AND COMPLAINTS. UKCSI CHIEF EXECUTIVE JOANNA CAUSON.

WE ALWAYS APPRECIATE THE SUPPORT OF OUR CUSTOMERS SO WE’RE THRILLED TO START THE YEAR WITH SUCH POSITIVE FEEDBACK,” SAID “WE KNOW WE CAN ALWAYS GET BETTER, AND WE’RE CONFIDENT OUR INVESTMENTS IN THE UK WILL ENABLE US TO FURTHER IMPROVE THE SHOPPING EXPERIENCE FOR ALL OUR CUSTOMERS IN 2017. AMAZON UK COUNTRY MANAGER DOUG GURR

a balance of the two. There has been a growth in interactions via website, webchat, apps, text but especially by email. The Institute of Customer Service has been compiling the UKCSI for nine years. To create UKCSI, The Institute of Customer Service runs an online survey of consumers twice a year. Respondents are representative of the UK adult population by region, age and gender. The January 2017 UKCSI results are based on 42,500 survey responses, provided by over 10,000 individual customers. The UKCSI is published twice per year, usually in January and July. UKCSI results incorporates the data from the previous two surveys to create a rolling measure of the state of satisfaction. For example, the January 2017 results include responses from the UKCSI surveys completed for the July 2016 and January 2017 reports.

International Supermarket News | March/April 2017

America

Aldi to invest extra $1.6bn in U.S. expansion years,” Mr Paglia said. “The risk of a price war is always present, if supermarkets choose to play Aldi’s game.” The US grocery market has fragmented since the financial crisis, with consumers prepared to pay for quality items but also keeping a sharp eye on their purses. And as Walmart and other grocers including Aldi increase their organic offerings, Whole Foods has struggled to maintain comparable store sales.

German discount supermarket group intensifies battle with American rivals. Aldi said that it would invest an extra $1.6bn in the US, intensifying a battle of the supermarkets as German rival Lidl enters the market and Whole Foods struggles to attract more shoppers. The discount supermarket, which along with Lidl upended the UK market as they undercut rivals on pricing, is in the middle of a $3bn-plus US expansion to increase the number of stores by 650 to 2,000 over the five years to the end of 2018. Aldi has grown to more than 1,600 stores. The company said the additional $1.6bn would cover the cost of expanding and remodelling 1,300 stores to accommodate its ramped-up offerings of fresh produce as well as improving lighting and using recycled materials and energy-saving refrigeration. The move comes as Lidl constructs distribution centres ahead of plans to open its first store in the US. With groceries already suffering from price deflation,

in part due to aggressive pricing by Walmart, Aldi’s new investment underlines the heated competition in the US supermarket industry. Mike Paglia, an analyst at Kantar Retail, said that over the past several years Aldi’s expansion into the US, including its emphasis on fresh produce and “better for you” products, has put pressure on rivals from Whole Foods to Kroger and Albertsons. “This is the latest ramp-up in pressure that supermarkets have increasingly been feeling from Aldi over the past several

The revamped stores, which will offer a wider range of organic and gluten-free products, will compete directly with Whole Foods’ cheaper 365 brand aimed at the younger demographic. The move comes as US and foreign companies are getting to grips with President Donald Trump, who has singled out several in recent months from Lockheed Martin to Nordstrom. Mr Paglia said it was hard to say whether the timing of Aldi’s announcement might partially be a political move. However, “what is clear is that Aldi has always been laser focused on its business in all of its markets,” he added. “Aldi’s investments in the US over the last several years have been largely aimed at growing and solidifying its position before Lidl enters. The coming showdown between the two big German rivals is likely Aldi’s biggest concern right now.” At the same, Whole Foods Market continues to expand its new, less pricey format, 365 by Whole Foods. The remodeling program is in addition to Aldi’s accelerated growth plan, which calls for 650 new stores. By the end of 2018, Aldi, which currently operates some 1,600 U.S. stores, expects to operate nearly 2,000 stores nationwide.

International Supermarket News | March/April 2017

WalMart aims to leverage British arm Asda back to health Wal-Mart is throwing its weight as the world's largest retailer behind its struggling British arm Asda after admitting it was too slow to respond effectively to the threat posed by the discount supermarkets. Asda thrived for a decade as Britain’s cheapest supermarket after it was bought by Wal-Mart in 1999 and remains the third-biggest in the country. Wal-Mart is throwing its weight as the world’s largest retailer behind its struggling British arm Asda after admitting it was too slow to respond effectively to the threat posed by the discount supermarkets. Asda thrived for a decade as Britain’s cheapest supermarket after it was bought by Wal-Mart in 1999 and remains the third-biggest in the country. But German-owned Aldi and Lidl have steadily cut into Asda’s market share. The two discounters started opening stores in the UK in 1990 and 1994, respectively, but their big breakthrough came when the economic crisis hit in 2008 and more British shoppers were prepared to give them a go. Declining sales show signs of tapering off since Wal-Mart veteran Sean Clarke became Asda’s president and chief executive last July, with a focus on improving the look and feel of the stores as well as enhancing product lines. Wal-Mart will provide further firepower by ensuring Asda leverages the parent’s purchasing strength in everything from refrigerators to own-brand products and real estate to drive down prices and costs, said Scott Price, chief administrative officer of Walmart International. “One thing that maybe we would criticise ourselves for is that we didn’t start the repositioning of the business sooner, that we didn’t focus more on the leverage opportunities so that Asda was able to invest more aggressively in price,” Price told Reuters in an interview. “What Sean is able to do with his global experience at Wal-Mart is to know what levers to pull,” he said, in a reference to Clarke’s time with Wal-Mart in Japan, Canada and most recently as chief executive in China. Working more closely with its parent, Asda will be able to market more Wal-Mart brands as its own at a lower price than rivals, Price said. “He’s able to pull private (Wal-Mart) brands and put an Asda brand on it that is equal to the national brand in the UK in terms of quality and sensory, but at a price that no one else can match,” he said of Clarke.

Co-op Group announces Steve Murrells as Group CEO The Co -op Group today announces that Richard Pennycook is to step down as Group CEO and will be succeeded by Steve Murrells, currently CEO of the Co-op’s food business. This announcement is part of transition arrangements for the Group as it prepares to move from the successful Rebuild phase of its turnaround to the Renewal phase. Richard Pennycook, who joined the Co-op at the height of its crisis in 2013 and has led its Rescue and Rebuild phases, will step down as CEO after a short transition to Steve Murrells, currently the CEO of the Co-op’s food business, who now becomes Group CEO. The Group has made great progress on rebuilding the Co-op, with businesses performing strongly over the past two years and Rebuild plans starting to deliver value for our members. As the Group enters the third and final year of its Rebuild, the attention of the leadership turns to planning for Renewal - a long term phase which will seek to put the Co-op once again at the heart of communities in the UK, championing causes that are important to them and trading with an ethical heart and a social conscience. Richard Pennycook, who joined the Co-op on an interim basis having put on hold a planned portfolio career, has signalled that he now wishes to return to that plan. The strength of the management team, built during the turnaround, gives the Board great confidence that the transition to new leadership under Steve Murrells will be seamless.

International Supermarket News | March/April 2017

People

UK’s oldest supermarket worker has no plans of retiring

definitely not now. “It gets me out of the four walls of my house - I’d be bored stiff otherwise”. It’s not about the money for me, I get to exercise by working and it provides me with company other than my family.”

Born and brought up in Wigan, Tom Brogan joined Asda almost three decades ago at the age of 63 and still has no plans of retiring. The great-granddad who will turn 92 in August has been working as a car parking attendant at the Asda store in Wigan, Gtr Manc since 1988 to become the oldest supermarket employee in the UK.

Damien Moore, customer trading manager at Asda Wigan, said: “Tom absolutely excels at everything he does; he gives fantastic customer service to our customers. “He’s a real character in the store and people love the service he gives.”

Asda Colleague Tom Brogan first started to work in 1939 at Clarington Brook Forge and Iron Foundry, before being called up to the Army during the Second World War. After the war, Tom and his wife, Joan, moved to North Wales and ran their own shop and post office, before moving back to Wigan in 1988. Tom started working at the Asda store, located at Soho Street, in 1988, on a short term placement, thanks to Joan. Tom said: “My wife spotted a job advert in the window at the job centre for a car park attendant and it said for my age group as a part time job. “After my interview, I went for 12 weeks and then they asked if I would carry on.” “I will be 92 in August but I’m planning to carry on and take it day by day. I’m quite happy – I know everybody and

everybody knows me, I like being here.” The job is especially important to Mr Brogan since his wife died in 2008, after 43 years of marriage, leaving behind Tom, their two children, seven grandchildren and 10 great grandchildren. And for more than 20 years he has been a friendly Asda car parking attendant, helping customers pack their bags and collecting trolleys. Tom, continues “I would seize up if I retired. I think I’ll know when the time is right but it’s

Lidl appoints Jesper Højer as new CEO German discounter Lidl has appointed Jesper Højer as its new CEO, replacing Sven Seidel who stepped down after having ‘strategic disagreements’ with the Schwarz Group, the owner of Lidl. The promotion takes 38-year-old Jesper Højer, who has been working with the supermarket for a decade responsible for 215,000 employees. Lidl, with an annual turnover of 440 billion spread over 26 countries, is one

of the global giants in the supermarket industry. Lidl runs more than 10,000 stores in 27 countries in Europe, is in the midst of a recruitment drive in the United States ahead of a launch there in late 2017 or 2018. Seidel took charge after his long-term predecessor Karl-Heinz Holland left due to "unbridgeable", but undisclosed, differences over future strategy. Hojer, 38, has worked for Lidl for more than 10 years, including as head of the business in Belgium and most recently as head of its international buying operation.

International Supermarket News | March/April 2017

Sainsbury’s Sr. manager appointed chief of NFU food and farming

Ken Morrison dies aged 85 Sir Kenneth Duncan "Ken" Morrison CBE, former Chairman and life President of Morrisons supermarket has died aged 85 following a short illness, his family said in a statement. He died peacefully at home in North Yorkshire, where he has been living after retiring from his office in 2008. "Sir Ken was, of course, a unique SIR KEN MORRISON, figure in the history of grocery THE MAN WHO TOOK retailing in the UK," the family HIS FATHER’S SMALL said. For more than fifty years GROCERY CHAIN AND Sir Ken was "the driving force TURNED IT INTO ONE at the heart of Morrisons as it OF THE UK’S BIGGEST grew from two market stalls," RETAILERS, HAS DIED they said. "But to us he was a AGED 85. greatly committed and loving family man, as inspirational and central to us in our daily lives as he was in the business. His drive and ambition, quick intelligence and encyclopaedic knowledge were matched with a real curiosity in his fellow man." "He had a gentle humour and kindness about him and he could, and would, talk with genuine interest to anyone," they added. "Sir Ken was an inspirational retailer who led Morrisons for more than half a century... [he] will be greatly missed by many thousands of his current and former colleagues, a large number of whom became close personal friends over the years," said the supermarket chain in a press statement. Andrew Higginson, the current chairman of Morrisons, said: "Taking Morrisons from a small Bradford-based family business to a major UK grocery retailing chain is an outstanding achievement in the history of UK business."

The national farmers Union (NFU) gets its new chief for its food and farming business from Sainsbury’s. Philip Hambling has been appointed as the new boss of food and farming at a critical point in time, where the depressed markets and Brexit has been suffocating the food and farming sector in the country. He will join NFU in April, at the time for the commodity boards. On his role at the NFU, Mr Hambling said: “The NFU has a hugely important and influential role to play in the development of agriculture and food chains at this time of significant challenge and potential opportunity for UK producers. “I particularly look forward to working with the NFU’s commodity boards, offering my experience of working in government, as well as with policymakers inside and outside commercial value chains, to help us shape and capture the best of those opportunities for UK farmers and growers”. Mr Hambling was working as the senior agriculture manager at Sainsbury’s. He will replace Phil Bicknell, who left NFU last year to join the Agriculture and Horticulture Development Board. Mr Hambling previously held various managerial positions in Randall Parker Foods and the British Meat Processors' Association.

ShopRite supermarkets get new President ShopRite Supermarkets, which owns and operates 34 ShopRite stores in New Jersey and New York, has named industry veteran Brett Wing as the president of the company. SRS is a wholly owned subsidiary of Wakefern Food Corp., the largest U.S. retailer-owned cooperative with members who own and operate hundreds of supermarkets in the northeast under the ShopRite, the Fresh Grocer, Price Rite and Dearborn Market banners. Wing brings nearly four decades of experience to his role as president of SRS, where he will guide day-to-day operations and strategy planning for ShopRite stores in the Hudson Valley and Capital regions of New York State, as well as ShopRite stores in New Jersey.

International Supermarket News | March/April 2017

Expo

SIAL CHINA 2017

Four dedicated zones for Meat, Dairy, Beverage and Wine SIAL CHINA, Asia’s largest professional food and beverage exhibition, scheduled for May 17 to May 19, 2017 in Shanghai, will setup four dedicated zones for meat, dairy, beverage and wine, four of the top product sectors in China, in terms of continual fast growing market demands. These four zones will showcase products from international and domestic exhibitors, and SIAL CHINA will act as a dynamic platform to promote international industry collaboration and innovation. Consumption among uppermiddle-class households in China is growing at 17 percent per year and demands for premium food products such as high quality meat, dairy products, wine and beverage will soar even higher. “According to the Ipsos survey, 81 percent of the Chinese consumers in the first and

second-tier cities often or sometimes buy imported food products.” Said, Jim LIU, President of SIAL China. “As a platform for growing the food and beverage industry, it is important that we support market trends. At SIAL CHINA 2016, these four sectors received high interest, and we have seen this momentum carry into SIAL CHINA 2017.” Through 2016, the meat industry

in China remained robust. In 2017, China’s beef importers are expected to grow 15 percent and China will account for one quarter of global pork trade. SIAL CHINA 2016 edition attracted 283 domestic companies, 275 international companies representing 29 countries, and 19 international pavilions to the Meat Zone. In response to exhibitor demand, the Meat Zone at SIAL CHINA 2017 will occupy two halls. In the dairy sector, demand for quality dairy products has fueled sector growth in China. In 2016 demand for liquid milk grew by 380,000 tons, and the 2017 Chinese cheese market is expected to become a RMB 5.38 billion industry, up from RMB 3.5 billion in 2015. With the average household in China consuming just one-fifth of an average EU household,

International Supermarket News | March/April 2017

Global natural food colors market expects rapid growth SIAL CHINA IS DEDICATED TO OFFERING AN IMMERSIVE AND INTERNATIONAL EXPERIENCE TO EXHIBITORS AND PROFESSIONAL VISITORS. FOR MORE INFORMATION ABOUT SIAL CHINA, OR TO REGISTER FOR SIAL CHINA 2017 PLEASE GO TO WWW.SIALCHINA. COM. THE REGISTRATION SYSTEM FOR EXHIBITORS AND VISITORS WILL GO ONLINE IN EARLY JANUARY, 2017. potential for the growth in China’s dairy market is significant. For this first time at SIAL CHINA, non-alcoholic beverages and alcoholic beverages will be separated into two zones, the Beverage Zone and Wine Zone in 2017. As a whole, China’s beverage sector grew below one percent in 2015. However, as Chinese consumers are paying intensive attention to health, safety and wellness, some sub-categories have outperformed the overall sector. In 2015, functional drinks grew at 6.9 percent, and fruit juice grew by 4.4 percent. This trend didn’t detract from China’s wine sector however, as China remains the world’s largest consumer of alcoholic beverages, with its consumption expected to come in at 84.37 billion liters in 2016.

According to market study reports, the global natural food colors market is expected to reach $2.5 billion by 2025, thanks to the alarms regarding the health threats associated with synthetic and natural identical colors and the harsh regulations passed for these synthetic equivalents. However, recent market research report by Grand View Research Inc. also reveals that the natural food color market will be affected by the price fluctuations and its high dependence on the raw materials, which includes fruits, spices and vegetables. With companies investing more on research and development the natural food color products are expected to get more penetration in the application industry, dominated by beverages, bakery and confectionery. Beverages accounts for more than 27 percent of the global volume of natural food colors in 2015. The Asia Pacific industry is expected to account for more than 29 percent of the revenue market share by 2025, driven by the rapid growth of the region's food and beverage industry. The industry is characterized by the presence of a large number of high volume manufacturers, with a majority of them integrated across product manufacturing to distribution stages of the value chain. In addition, the companies are involved in product distribution primarily through direct distribution as well as third party distribution channels in a bid to expand their market presence. Browse full research report at: http://www.grandviewresearch.com/ industry-analysis/natural-food-colors-market

Chinese ready meals increase by 31 percent for Waitrose The fall of Chinese New Year on Saturday helped sales of Chinese ready meals increase by 31 per cent for supermarket chain Waitrose. While Burns Night saw Malt Whisky sales rise by 11 per cent. Waitrose concluded the financial year with total sales excluding fuel up by 3.3 per cent compared with the same week last year. It was an excellent week for beer, wine and spirit sales too. Wines were up by more than 8 per cent, beer sales by more than 7 per cent and spirits by almost 9 per cent. Gin sales also continue to rise, up 25 per cent. Another very cold week saw customers turn to heart-warming options as sales of hot pies and vegetable accompaniments jumped by 43 per cent and 20 per cent, respectively.

International Supermarket News | March/April 2017

Beverages

Guinness-maker launches premium Blended Irish whiskey

Aldi wins Multiple Wine Retailer of the Year Awards Aldi collects Multiple Wine Retailer of the Year award for third year running beating Waitrose in the battle of the taste buds. Results were announced a day after Aldi overtook Co-op as the 5th biggest supermarket in the UK. Discount supermarket Aldi has been crowned the best place in the UK to buy wines after scooping the prestigious title of ‘Multiple Wine Retailer of the Year’ for the third year running at the Drinks Retailing Awards ceremony, held in London last night. Tony Baines, Joint Managing Director of Corporate Buying at Aldi, said: “We’re thrilled our wine range has been recognised once again by such a respected awarding body. Receiving this accolade is a testament to the work of our talented buyers and dedicated suppliers, who work tirelessly to deliver exceptional products at an unbeatable price”

Diageo launches a new premium Blended Irish Whiskey, Roe & Co. The move by Diageo into the premium Irish whiskey category comes as the company announced plans for investment in a whiskey distillery in Dublin. The total project investment comes to €25 million (£18.6 million) over three years. Roe & Co is named in honor of George Roe, the once world-fam ou s w h i s k e y maker who helped build the golden era of Irish whiskey in the 19th century. Using her 30 years of experience, Diageo’s Master Blender Caroline Martin and her team set about meticulously sourcing and selecting stocks of the very finest Irish whiskies. The first blend of Roe & Co will be available in key European cities from 1st March 2017 as part of Diageo’s growing Reserve portfolio.

More and more consumers seem to be falling for the retailer’s beers, wine and spirits. According to latest figures Aldi sold 96 bottles of champagne and prosecco every minute throughout December. But it’s not just in store that’s proving fruitful, the Aldi eCommerce site, aldi.co.uk, has sold nearly two million bottles across the country since it launched 12 months ago.

Speaking about the launch Minister for Agriculture, Food and the Marine, Michael Creed TD said: “Irish Whiskey is experiencing a renaissance and is truly an Irish success story. It is seeing a return to the success it experienced in its golden era in the 19th Century and is now the fastest growing spirit drink in the world with global sales increasing by over 300% and record exports of over €400 million in the last ten years.”

Judged by a panel of wine experts, this coveted award for Aldi’s trophy cabinet marks an excellent start to 2017 when Aldi also became the UK's fifth biggest supermarket. In 2016, the retailer collected 225 awards for its beers, wines and spirits range, including the International Wine & Spirit Competition ‘Innovator of the Year’ title.

Commenting on the launch, Tanya Clarke, General Manager of Reserve Europe said: “This is a wonderful project for us at Diageo, highlighting the opportunity we see to develop the premium segment of Irish whiskey and contribute to the category’s growth as it sees new investment and entrepreneurial interest.”

International Supermarket News | March/April 2017

TASTE THE FESTIVAL

SIX OF THE BEST

RARE REDS EXPLORER

LITTLE PRINCESS

£ 74.88 The best of Aldi's Spring Wine Festival

Case of 6 £ 38.94 Average price per bottle £6.49

Case of 6 £ 37.94 Average price per bottle £6.32

Case of 6 £ 29.94 Price per bottle £4.99

Aldi unveils luxury wine range starting at just £5 Aldi, which recently became the fifth largest supermarket chain in the UK, has unveiled affordable range of luxury wines starting at just £5. The wine range that consists of a dozen varieties is created by top winemaker and even the most expensive one costs just £7.99. Aldi’s wines have won multiple awards nationally and internationally over the years. Each one of these 12 cut-price wines, which were included in the Spring Wine Festival, has a personalized story to say. The Little Princess white wine, priced at £4.99 is based on a Hungarian legend. The story of a Hungarian princess who had a glass of an ancient wine and never aged since- was the inspiration behind Little Princess white wine. Another wine has its story from a South African legendary cow that jumped out of a moving cattle truck. The Survivor Generation red wine from South Africa is priced at £5.99. Another South African wine, Bill Bill Red retailing for £5.99 is named after William ‘Big Bill’ Millar, a South African boxing champion, war hero and Springbok rugby

captain. The most expensive of the lot is the BX Crémant de Bordeaux Rosé at £7.99, which is made in the same way as Champagne but with an unusual blend of grapes. Tony Baines, Joint Managing Director for Corporate Buying at Aldi, said: “We pride ourselves on our close relationships with some of the world’s best suppliers

and vineyards who have also helped us formulate our famous core collection. “We want to ensure that we are bringing quality wines with great stories behind them – but without the hefty price tags.” Last year the company launched a range of artisan wine for craft beer lovers, and it’s also released a skincare line to rival upmarket brand La Prairie.

International Supermarket News | March/April 2017

Supermarket

Morrisons starts search for more local food suppliers Morrisons supermarket is calling for the UK to become more self-sufficient when it comes to our food supply - and is putting its money where its mouth is by holding 'auditions' for local suppliers. Morrisons is starting a search for the best local food producers who can help to feed the nation, as a new report calls for the UK to be more self-sufficient in food production and new consumer research shows a growing appetite from British shoppers for more local food. ‘The Nation’s Local Foodmakers’ will see Morrisons recruit more than 200 new suppliers from across England, Scotland and Wales in the first year. Morrisons is inviting foodmakers to pitch for their place in its supermarkets via a series of 12 regional events starting in Yorkshire on 14th March. The move

comes as a new report published today by leading experts on global food issues led by Professor Tim Benton, from the University of Leeds, says that only half (52%) of food eaten in the UK comes from our farmers.

OUR CUSTOMERS TELL US THEY WANT TO SEE MORE FOOD THAT IS MADE JUST DOWN THE ROAD FROM THEIR OWN COMMUNITIES AND THAT’S WHY WE ARE LOOKING FOR THE NEXT GENERATION OF BRITISH AND LOCAL FOODMAKERS TO SERVE OUR 12 MILLION CUSTOMERS. ANDY HIGGINSON, CHAIRMAN OF MORRISONS.

In the British Food report, Professor Benton says that in light of uncertainties globally it makes increasing sense to build up a stronger local food sector here in the UK and calls on British retailers, producers and customers to recognise the wider benefits of supporting UK food making and production. THE MAIN CONCLUSIONS ARE: There are risks – climate change and trade wars - in ‘too much’ reliance on food produced elsewhere and these

International Supermarket News | March/April 2017

Supporting local foodmakers will have wider benefits for the nation and the British countryside. It will support the local economy, maintain a thriving agricultural sector, create greater diversity of farm types producing more diverse foods, benefiting the countryside. It will also potentially produce food more efficiently and transparently, increasing our trust in it. We used to grow a greater range of crops. The UK has seen a decline in the indigenous produce grown here with orchards, for example, now accounting for 25,100 hectares compared to 113,000 hectares 50 years go. The report also points to periods where production of cauliflower, broccoli, Brussels sprouts, peas, parsnips, cabbage, lettuce, tomatoes,

British customers have an appetite to buy more local food because they believe it to be more trustworthy, and that it supports their local communities. This is supported by new research from Morrisons which shows that British consumers are open to this shift with more than two thirds (67%) of UK shoppers stating in an omnibus survey of 2,000 adults a preference to buy British with the remainder expressing no preference. could increase over time. The rapid increase of global goods trading over the past 3 decades means we now export £18bn of food whilst importing £39bn. Whilst global trade has a place and the UK can never be entirely self sufficient buying more food locally will increase our resilience to these risks. British customers have an appetite to buy more local food because they believe it to be more trustworthy, and that it supports their local communities. This is supported by new research from Morrisons which shows that British consumers are open to this shift with more than two thirds (67%) of UK shoppers stating in an omnibus survey of 2,000 adults a preference to buy British with the remainder expressing no preference.

cucumber, rhubarb and pears grown in the UK have decreased with French and runner beans down by as much as 49%. The programme will see Morrisons buyers tour Great Britain in search of the best local producers to supply its 491 stores nationwide. The company has a priority of sourcing more local food and is keen to reduce the distance that food travels. Morrisons will also be working with members of the Women’s Institutes in their communities around the UK, using their local knowledge and expertise to source and select the best suppliers in their area. The search will result in more customers being able to buy more food in a British supermarket that was grown, made, picked or packaged within 30-60 miles of their local store.

THE EVENTS Throughout 2017, The Nation’s Local Foodmakers will see Morrison's buyers tour the nation in search of the best local suppliers... YORKSHIRE Tuesday 14 March Closing date : Friday 3 March SOUTH WEST Wednesday 22 March Closing date : Friday 3 March NORTH WEST Week commencing 3 April Closing date : Friday 10 March ANGLIA Week commencing 10 April Closing date : Friday 3 March SOUTH WEST Week commencing 24 April Closing date : Friday 24 March NORTH EAST Week commencing 1 May Closing date : Friday 31 March ISLE OF WIGHT Week commencing 15 May Closing date: Friday 14 April SOUTH EAST Week commencing 22 May Closing date: Friday 21 April SCOTLAND Week commencing 5 June Closing date: Friday 5 May WALES Week commencing 12 June Closing date: Friday 12 May WEST MIDLANDS Week commencing 26 June Closing date: Friday 26 May East Midlands Week commencing 3 July Closing date: Friday 2 June

International Supermarket News | March/April 2017

Asia

Aldi to enter Chinese market

German discounter Aldi has announced its plans to enter the Chinese market by the end of 2017. The company however revealed that it would not open a physical store in this year. With carefully selected everyday goods that are appealing to the local market, Aldi will start operating in China with an online store by the second quarter of 2017.

Tesco enters into Pakistan market British supermarket Tesco has entered into the Pakistani retail market through an agreement with Karachi-based Alpha Supermarket. Tesco would supply private label products through Limestone Private Limited to Alpha supermarket in the initial stage. British High Commissioner Thomas Drew inaugurated Tesco label products with Limestone Private Limited at the British Deputy High Commission in Karachi recently and said: “United Kingdom’s brands, especially those as big as Tesco, have a real advantage in Pakistan as they are already recognizable to the people, who have visited Britain. At the heart of this will be increased trade between our two countries and I hope Tesco’s launch is just the start of a new era of British Pakistani trade.” Jared Lebel, head of new market development at Tesco said: "We have agreed on a wholesale partnership with Alpha Supermarkets in Pakistan, under which Tesco products will be stocked at two of its stores." Nadeem Hussain, Chairman of Limestone Limestone Private said that they would open at least 50 express stores in Pakistan over the next three years selling Tesco products. This would be in addition to the flagship stores the company is planning in major cities like Karachi, Lahore and Islamabad. Alpha supermarket will sell Tesco products under three different categories: Tesco Goodness, Tesco Finest, and Tesco Everyday. The supermarket chain has invested around $2 million in its Karachi store ahead of the new launch. Tesco, world’s third largest supermarket and second biggest employer after the government in UK, has stores in 12 countries across Asia and Europe.

It will be the first time that Aldi enters a new market with online trade, without having established a network of physical stores. An Aldi spokesperson said that the company would source more products from Australia, as Chinese customers crave for Australian products. The major goal for Aldi in China would be to provide customers with high quality affordable alternatives.

Sheng Siong posts 5.7% profit rise in fourth Quarter Sheng Siong Group, the third largest chain of supermarkets in Singapore has posted an increase of 5.7 percent net profit for the fourth quarter of 2016. The net profit of the company increased from S$14.6 million to S$15.4 million for the three months ended December 31, 2016. The supermarket chain has opened few new stores during this period, thanks to which the total revenue hiked 5.3 percent to to S$197 million for the quarter. The company, in its financial statement rated its performance in fiscal 2016 to be satisfactory despite the total retail sales industry performing weak. Sheng Siong said in its financial statement: “Retail sales, which had been generally weak in fiscal 2016, are not expected to improve spectacularly. Sales at supermarkets had not been exciting and going forward the group anticipates continuing lacklustre demand. Competition in the supermarket industry is expected to remain keen as consumers are expected to be more cost conscious, which may affect the group’s ability to pass on any increases in input cost in full to the customers.”

International Supermarket News | March/April 2017

Uber to launch its food app in India Uber, a giant in online taxi hailing service, is introducing a new food app to its fastest growing market -India - eyeing at a market potential of $15 bn. The company has announced that its standalone food app UberEats, would be launched in India “very soon”. Initiated in 2014 in Los Angeles as a pilot delivering service, UberEats has helped thousands to get their favorite meal delivered on time in more than 58 cities around the globe, including Bangkok, Dubai, Hong Kong, Singapore, Taipei,

and Tokyo. Allen Penn, the company's Asia- Pacific head said: "I am incredibly excited about bringing UberEATS to India. This is a significant investment, it spans multiple cities and regions, and it has the potential to change the food industry - with the push of a button - in one of the most vibrant food cultures in the world." It would not be insouciant for Uber who has been operating in India since 2013. The diverse market has fierce competition when it comes to food apps. Uber’s main rival in taxi business, Ola has tried and failed when the company launched its food delivery service, Ola Café in

2015 in India, thanks to completion from Swiggy and Zomato, which holds major share of the market. India's organized food industry is worth $48 billion, of which traditional food delivery is already valued at $15 billion. Uber has not yet revealed the exact date of its initiation but, the company is charting diners and creating a network of popular restaurants and delivery partners in the country. "We're excited to help everyone discover great food through the perfect pairing of amazing restaurant partners, our technology, and the Uber delivery network," Uber said.

India’s livestock production figures on track to meet yearly target Indian Agricultural ministry released its livestock production figures, which includes milk and meat production for the July-October period of last year. The newly released data, based on integrated sample survey, suggest that the country’s major livestock production results were on track to achieve the annual objective of 2016-17. According to senior ministry officials the country expects to surpass its target of 2016-17 in terms milk, egg and meat production. Milk output during the July-October period escalated by 4.38 percent to 54.50 MT from 52.21 MT during the previous year. India has produced 105.42 million tonnes (MT) of milk during this year, while the target for the year was to produce 163.74 MT. Total milk output stood at 155.5 MT in 2015-16. With an

annual target of 87.05 billion, the total egg production is assessed to be 55.11 billion so far this year. In India, around 75 percent of the total eggs produced are from commercial poultry farms and the remaining comes from households. Tamil Nadu, Andhra Pradesh, Telangana , West Bengal and Haryana were five largest producers of eggs in the country. Meat production in India has surged to 4.67 MT in this year and is expected to achieve annual

target of 7.37 MT. The main meat producing states in India are Uttar Pradesh, Maharashtra, West Bengal, Andhra Pradesh, and Telangana. About half of the total meat produced in the country comes from poultry while buffaloes accounts for another 20 percent. The figures released by the ministry, however, revealed that the wool production in the country dropped in 2016 as compared to the previous year.

International Supermarket News | March/April 2017

Seafood

Red Lobster Kicks-Off Lobsterfest Lobsterfest, the ultimate celebration of everything lobster, is back at Red Lobster for a limited time! During Lobsterfest, guests are invited to explore the largest variety of lobster dishes offered all year, including four brand new and five favorite lobster entrées that can be enjoyed in a variety of craveable preparations – including roasted, steamed, topped, grilled or stuffed. The Lobsterfest lineup also features new appetizers, drinks and desserts to complement guests' meals. Craving more than just one type of lobster preparation on one plate? No problem! Check out the NEW! Lobster Mix and Match. Guests can choose any two lobster tails from four choices to create their own entrée – Creamy Shrimp-Topped Lobster Tail, Seafood-Stuffed Lobster Tail, Steamed Maine Lobster Tail, or Grilled Maine Lobster Tail.

Lobsterfest Surf & Turf.

Or, guests can check out Red Lobster's new flavorful combinations of lobster and other seafood and steak, including the New! Wood-Grilled Lobster and Red Shrimp, the NEW! Stuffed Tilapia with Langostino Lobster and the NEW!

Guest favorites, like the Lobster Lover's Dream, featuring a succulent roasted rock lobster tail and sweet split Maine lobster tail, steamed and served with Lobsterand-Shrimp Linguine Alfredo, are also on the menu again this year.

And, guests can still choose from the ever-popular Ultimate Feast, WoodGrilled Lobster, Shrimp and Salmon, the Seaport Lobster and Shrimp, and the Roasted Maine Lobster Bake. "With the largest selection of lobster dishes ever on the menu, there really

International Supermarket News | March/April 2017

is something for every seafood lover – whether it's sweet Maine lobster, roasted rock lobster tail or lobster paired with steak, shrimp, pasta or fish," said Dustin Hilinski, Executive Chef and Director, Culinary at Red Lobster. "Lobsterfest is an exciting time of year where we get to showcase what we do best and deliver the ultimate seafood dining experience for our guests." Guests can make any Lobsterfest celebration even more special with an appetizer, cocktail or dessert. The NEW! Chilled Lobster and Shrimp Cocktail appetizer is a great choice to start any meal, featuring lobster and shrimp that are poached in-house and served with Red Lobster's signature cocktail sauce over a bed of shaved ice. As a complement, guests can choose from two refreshing, fruit-based cocktails – NEW! Island Lobster Punch or the NEW! Lobsterfest Fizz – both served in collectible Coastal glass wear. To complete the meal, Red Lobster is offering a twist on a classic favorite with the NEW! Bananas Foster Cheesecake, featuring two slices of caramel cheesecake topped with warm, freshly sliced bananas, caramel and spiced rum and served with vanilla ice cream and candied pecans. "Lobsterfest is a time for families and friends, spouses and new acquaintances, to come together and share a truly delicious, craveable meal together – no matter the occasion," said Danielle Connor, SVP of Menu Strategy & Development. "Whether it's for Valentine's Day, an exceptional report card, a birthday, date night or 'just because,' Lobsterfest is the perfect event for our guests to celebrate their 'lobsterworthy' moments." Throughout Lobsterfest, guests are invited to use the hashtag – #lobsterworthy – on social media to share their moments or occasions that are so special they can only be celebrated by enjoying lobster. Guests can also engage with the brand on Red Lobster's social media pages.

Co-op asks suppliers to source tuna from sustainable sources The Co -op supermarket announced that it would crack down on supply and sale of unethically sourced tuna and has imposed a year-end deadline for all the tuna it sells to be sourced sustainably. The convenience retailer has widened its tuna sourcing policy to include branded canned tuna suppliers - Princes and John West. It has set a deadline of the end of 2017 for tuna under these brands to be sourced from fisheries improvement projects (FIPs), working towards the Marine Stewardship Council (MSC) standard. These schemes are independently checked and bring together the fishing industry, researchers and NGOs to ensure fish stocks are sustainably managed and fisheries do not negatively impact the marine environment. The Co-op’s deadline to branded suppliers is part of its revamped tuna commitments. Its own brand tuna pole and line sourced policy has been widened to ensure its fisheries are either MSC certified or part of a fisheries improvement project (FIP). In addition, all branded canned tuna has to be in a FIP by the end of the year. Cathryn Higgs, Head of Food Policy, the Co-op, said: “Consumers are rightly concerned about fish stocks and the methods used to catch fish. We’ve been a leader in sustainable tuna sourcing but have now extended our commitments. “We are also setting out clear expectations for branded tuna suppliers because of concern from consumers about protecting tuna fisheries for future generations.” Ruth Simpson, Princes Corporate Relations Director said: “Achieving longterm tuna sustainability is an ongoing priority for our business. Since July 2016, we’ve had a public commitment to sourcing our tuna from fisheries that are Marine Stewardship Council (MSC) certified or in a Fishery Improvement Project (FIP) with the objective of MSC certification.” Managing Director of John West Foods Ltd, Paul Reenan, commented, “We welcome the Co-op’s extended tuna commitment which mirrors that of John West, and we are pleased to confirm that all of our supply to the Co-op will meet its new sustainability commitments and deadline.”

International Supermarket News | March/April 2017

Africa

Unpaid dues: Suppliers refuses to restock Nakumatt Supermarket’s empty shelves Kenyan supermarket chain Nakumatt has acknowledged that the company is passing through “a challenging period” handling the protesting suppliers who have refused to restock the retailer’s shelves due to the unsettled bills, some dating back to early 2014. The supermarket, which has been affected by stock outs at its various stores throughout the country, expressed optimism in regularizing the situation through extensive talks and patch ups with the furious suppliers.

Uchumi supermarket posts Sh2.8 billion losses in 2016 Kenyan supermarket chain Uchumi has announced a loss of Sh2.8 billion in its 2016 full year results for the year ending June 30, 2016. However the supermarket has bettered its position from the previous year by 17 percent when it suffered a loss of Sh3.4 billion recorded in 2015. The Kenyan retailer cited multiple issues for its market catastrophe which includes closing of non-performing branches, supply chain problems and failure of its franchising model. The supermarket had to close down two of its branches in Kenya. Uchumi also had to let go its stores in Uganda and Tanzania (six and five stores respectively) where the franchising mode failed.

Newly instated chief marketing officer Andrew Dixon, a former Tesco executive, has been assigned to sort out the debt concern which has tripled to Sh15 billion in 2015 from Sh4.2 billion in 2011. Mr. Dixon said that the retailer is going through a challenging period which has “necessitated a number of rapid interventions.” Mr Dixon said: “We recognise the prevailing issue in some of our outlets concerning operations and stocking. We are undergoing a challenging period in our business operations which has necessitated a number of rapid interventions. I would like to reassure you that we are on course to regularise our operations and stocks in coming days.” The supermarket chain is presently working on a $75 million deal to sell a 25 percent of its shares to an undisclosed investor to help with the debt issues.

The management said that the total returns fell to Sh6.4 billion from Sh12.9 billion in 2015. Finance costs increased by Sh411 million in 2016 up from Sh335 million in 2015. ''The firm is focusing on turnaround strategy which include adoption of a franchising model, funding through shareholders loan, ICT improvement and supplier support,'' said Uchumi management, in a statement. Supermarket CEO Julius Kipng’etich said: “We have had to make tough decisions in order to ensure the continued survival and growth of the brand. We may not be out of the woods yet but we can certainly expect to start seeing positive results now as we work to revamp the brand. Discussions are ongoing with several potential partners and the board is hopeful that they will be concluded in 2017.”

International Supermarket News | March/April 2017

Gates Foundation gives $21.4 million to enhance poultry production in Africa Bill & Melinda Gates Foundation has pledged a four year $ 21.4 million grant to World Poultry Foundation to enhance poultry production in Africa. Most of this funding will go to Nigeria and Tanzania where World Poultry Foundation scientists have sited embryonic poultry raising programs despite poor transportation facilities. The foundation also gets assistance from an app that was developed last year at the University of Georgia which helps farmers to mix the correct ratio

of feed ingredients to raise a healthy poultry flock. Justin Fowler, an assistant professor in the UGA Poultry Science Department created the app, FreedMIx after working with the Ghana Association of Poultry Farmers in 2016. Randall Ennis, CEO of the World Poultry Foundation said that developing an appropriate feeding plan for poultry in the rural Africa was one of the major challenges faced by the

foundation and the app has helped the cause. The Gates Foundation announced on January 23 that it would provide a four year $21.4 million grant to World Poultry Foundation. The foundation has chosen Nigeria and Tanzania to earmark the funds owing to many different reasonsthe main being accessibility of mobile phones in the region. There were many private U.S. companies working in the area that extended its support for betterment of poultry in the region. The governments were also all cooperative, said Randall Ennis, CEO, World Poultry Foundation. Mr. Ennis optimized that by the end of the fourth year of th e p r o g r a m , more than 2.5 million families in Ni ge r i a an d Tan z an i a wou l d b e benefited by the extensive assistance and training.

Egypt signs agreement to import Irish Beef Egypt, the largest market in Middle East and North America, has signed an agreement with Ireland to import Irish beef. Egypt, once the biggest market of Irish beef, terminated importing it in late 1990s after the government proclaimed a ban on EU beef.

at €30.5 million and €11 million respectively. Under the current agreement Ireland would export beef offals and limited amount of sheep meat products. Irish Minister for Agriculture, Michael Creed, said he was delighted to see the Egyptian market re-open to Irish beef: “This announcement on Egypt is another example of achieving the market access goals in the Food Wise 2025 strategy. 2016 was a great success in terms of beef market access.

Since 2001, the African nation has been allowing conditional lift for the ban, which in Febuary 2016 was further eased when a delegation from Egyptian Ministry of Agriculture visited Ireland. Following the visit, both countries have agreed on live exports of cattle from Ireland to Egypt. Ireland’s Department of Agriculture said that once the technicalities are done, five Irish plants would start exporting beef to Egypt, which has

around 95 million prospectus customers. With exports of €45 million in 2015, Egypt is the third biggest terminus for Irish agri-food exports to Africa. But most of it comes from diary and seafood

It saw the extension of our beef market access to the US as well as the opening of the Canadian, New Zealand and Israeli beef markets. Significant steps were also taken in terms of beef market access to China, South Korea and Vietnam amongst others and I look forward to further progress in 2017.”

International Supermarket News | March/April 2017

Technology

Ocado UK tests robotic arm for grocery packing One of the biggest online-only supermarkets, Ocado, is testing a humanoid robot that helps to pick and pack orders in its warehouse. The UK based retailer has been working on robotic arms as a part of the SoMA Project, a research programme funded by the EU. Ocado Technology robotic team created a robotic arm that they call ‘SecondHands’ which uses artificial intelligence and machine learning to understand human talking and has 3D vision ability. The robotic arm can handle fragile and unpredictably shaped objects such as fruits and vegetables that could be easily smashed if handled by old-style robots. This has been the major challenge faced by Ocado Technology robotic team while developing the robotic arm. Thanks to RBO Hand 2, developed by the Technische Universität Berlin, the robotic arms were able to handle the fruits. Graham Deacon, Ocado's robotics research team leader said: "Initial results showed that the hand is able to successfully grasp a variety of shapes. The results

suggested the chance of success increased when environmental constraints are being used effectively to restrict the movement of the object."The robotic arms use flexible rubber materials and pressurized air for passively adapting grasps for handling objects. Ocado handles around one million products at day at its warehouse and employs around 10,000 workers. The company expects robotic arms to get deployed in its warehouse from 2020. Matt Soane, general manager at Ocado Technology said that the robotic arms will not affect the employment of the workers as it only “assists the people working for them.”

"We have examples of where we have automated things and it enables our people working in the warehouse to potentially do more interesting things or get greater fulfillment out of what they are doing. So we don't see automation as something that takes away jobs," Mr Soane said. However researchers expect automation to take over many of today’s jobs in the distant future. Recent studies revealed that 59 percent of manufacturing activities could be done using robots. Robots could easily do 90 percent of the things that a welder, cutter or a brazer does. 73 percent of activities in food service and accommodations could be automated.

International Supermarket News | March/April 2017

Sales of alternative-ingredient snacks expected to rise to $1.2 Sales of alternative-ingredient snacks are expected to rise to $1.2 billion in 2017 and continue moderate to strong growth over the next few years, according to a report by Packaged Facts. Sales of salty favorites—including potato chips, pretzels and popcorn—and portable meat products—such as jerky—have mostly displayed growth potential or at least remained steady over the past five years. The snack industry has likewise benefited from the influx of healthier formulations that better fit the nutrition-centered lifestyles of many of today's consumers. This push towards healthier snacks has created a thriving market for alternative ingredient snacks made using pulses and alternative vegetables and grains such as chickpeas, sweet potatoes, kale, and spinach, among other novel elements. Sales of alternative ingredients snacks in 2017 are forecast to rise to $1.2 billion, according to market research firm Packaged Facts in the brand new report Snack Food Nutrition Trends: Pulses, Vegetables, and Grains in Salty Snacks and Crackers. "Looking at both present trends and towards the future, alternative ingredient snack sales are going to continue moderate to strong growth over the next few years, building on the larger healthier-for-you trend affecting the overall snack market and on the unique flavors and textures consumers are also craving," says David Sprinkle, research director, Packaged Facts. The strong growth of sales of alternative vegetable-based snacks, particularly salty snack versions, was the largest factor contributing to the rise in sales in 2016. Packaged Facts estimates the salty snack segment carried the alternative-ingredient snack market in 2016, with growth of almost 7%, or faster growth than what

was seen by salty snacks as a whole. From 2006 to 2016, the percentage of all adults who usually only snack on healthy foods grew from 24% to 30%. Beyond the general uptick in healthy eating, the most important market drivers are demographic and have to do with age, specifically families with children and snackers making up the younger generational cohorts. For any given category of snack, the percentage of adults with children in the household who eat the snack is 19% or more than the percentage of adults who eat the snack and who do not have any children in the household. While young families with children are extremely important for the alternative-ingredient snack market, it is fair to say that all younger people are an important demographic driver. There is a very large gap in the percentage of Millennials and Gen X adults who eat these snacks compared to those who are 50 and older. This type of snack, almost more than any other, appeals to younger

people. While novelty is certainly a factor with Millennials, typically the reasons for why a person chooses alternative-ingredient snacks are essentially the same across all age groups; the number of those who are 50 or younger who choose to do so is simply much greater. As with young families, the potential of theses younger cohorts as a driver for the alternative-ingredient snack market is only going to increase with time as they become a greater percentage of the population and gain additional buying power. The interesting question is whether those who are just becoming adults now (i.e., Gen Z) will follow in the footsteps of their (slightly older) elders or forge a new snacking path. View additional information about Snack Food Nutrition Trends: Pulses, Vegetables, and Grains in Salty Snacks and Crackers, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: http://www.packagedfacts.com/ Snack-Food-Nutrition-10588600/.

International Supermarket News | March/April 2017

Fresh Produce

Arla to spend £37.5m on UK production plants in 2017 Major supermarkets stop selling Anchor Cheddar Arla’s Anchor Cheddar will not be available on supermarket shelves due to poor sales. The British made Cheddar was ditched by major supermarkets in the UK over the years following sales decline. Asda was the only top supermarket to stock Anchor Cheddar until recently when it also decided to say good bye to the “British icon.” Asda said it will sell of it’s remaining stock. Anchor Cheddar, once a favorite among households was launched in 1972 in the UK. In recent years popular brands like Cathedral City and Pilgrim’s Choice has taken over the market forcing Another Cheddar to make desperate measures to stay alive. Arla spend around £6million in 2015 to save the cheese brand, but the sales fell from £28million to £10.2million. The poor performance coupled with major supermarkets decision to focus on own-labeled cheese products has called a day for Another Cheddar. Customers were relatively unfazed by the news, with little reaction on the social media.

Farmer owned European co-operative Arla Foods has announced a supply chain investment of €335m globally this year, of which, £37.5m has been pledged to upgrade its UK production facilities. The company behind popular household brands likes Cravendale milk and Skyr yogurt is owned by 12,700 dairy farmers of which, 2,700 are in the UK. Arla plans to spend 50 percent more than last year on its bigger markets including Germany and the UK and devices to achieve a revenue increase by almost a third by 2020.

Investment on production plants has been submissive for the last two years as the company had to spend most of its revenue on farmers struggling with low dairy prices. With the improved market condition, the farmer owned cooperative has decided to uplift its production, packing and distribution facilities to create a better demand for its products. Arla’s will buy new equipment for its Aylesbury production site for £3.5m to produce more of its popular skimmed milk brand BOB milk that was launched last year. The milk, that tastes like semi-skimmed has become a huge favorite among health-conscious shoppers. Another £5m will be spend on the Taw Valley creamery in Devon to enhance cheese production. Peder Tuborg, chief executive of Arla, said the company has “ambition to expand production of branded high-quality products for Europe and emerging markets”.

International Supermarket News | March/April 2017

Morrisons buys Scottish potato packing firm

McGuigan launches four new red wines

British supermarket chain Morrisons has announced acquiring a potato packing company in Angus, Scotland, from producer Farmcare, as part of a supply agreement. The packing plant situated in Carnoustie is expected to strengthen the supply of Scottish potatoes to Morrisons shelves.

Wine maker McGuigan has introduced four new red wines to its portfolio. The company announced that the newly inducted wines will be available from Sainsbury’s stores in the UK. The new additions include Classic Pinot Noir and Classic Malbec – both priced £7.50, Reserve Merlot (£8) and a Founders Merlot (£11).

The facility will be used to store, grade, pack and procure potatoes, said the supermarket chain. Andrew Thornber, managing director of Morrisons Manufacturing said: "Our acquisition of the Carnoustie site, and our relationship with Farmcare, shows Morrisons commitment to working directly with growers in Scotland and offering our customers the very best quality fresh produce.” Farmcare, which has 11 estates in Britain, will supply a range of other produce other than potatoes to the supermarket. With closing the deal, Morrisons has now 17 manufacturing locations across the UK. The supermarket had, in 2015, bought Kerry Foods’s Grimbsy site to expand its fish business. Farmcare CEO, Richard Quinn said: “We look forward to an ongoing relationship which allows Farmcare to concentrate on what we do best: growing great crops and working closely with Morrisons as a supplier of choice.”

Classic Malbec could be paired with red meat dishes while Classic Pinot Noir is a perfect complement for pork tenderloins and mushroom stroganoff. Reserve Merlot, a soft and mellow wine could be paired with chicken and pasta dishes, the winery said. Of the quartet, Merlot is the premium choice for those who want to impress their friends and family members. In 2016 McGuigan expanded its Black Label range as well.

Australian supermarkets cut beef price Beef prices are dropping down in Australian supermarkets. Major grocery chains Woolworths and Coles have reduced prices of beef product up to 22 percent compared to last year, when costs were at record high. Interestingly, butchers have not yet lessened their prices. With the price drop shoppers now pay $1-$4/kg less for their beef purchase compared to 2016. The Eastern Young Cattle Indicator has projected per capita beef consumption in Australia to rise slightly in 2017, edging close to 26kg per person, thanks to stronger signs in the domestic market.

also having a profitable time- first since 2006. Coles’ porterhouse steak is selling for $30/kg, down from $34/kg, scotch fillet steak is $33/kg, down from $37/ kg, and three-star beef mince, which jumped from $5/kg to $9/kg last year, is now $7/kg.

According to figures from agriculture economists and farm advisors agri benchmark, Australian beef producers are

Woolworths’ MSA beef rump steak has dropped from $23.99/kg to $20/kg and premium mince beef has dropped from

$13.99/kg to $13/kg. Both supermarkets did not revealed how they were able to reduce the prices even at a time when many of the butchers were selling beef for higher prices than in 2016. Coles has been reducing prices for beef products during the past seven months, while Woolworths has been doing this since mid-2016. Chicken continues to be the most favored meat for Australians, followed by pork while shopping in supermarkets. According to Meat and Livestock Australia (MLA), the cattle numbers in the country are expected to increase to 26.9 million, a 3 percent year-on year hike for the first time in three years.

International Supermarket News | March/April 2017

Product News

Moo Free launches Easter egg range Leading “free from” chocolate manufacturer Moo Free has unveiled its line-up of Easter eggs for 2017 and there are three varieties available: Original, Orange and Bunnycomb all made with its award-winning chocolate. All three Easter eggs have the same RRP as last year (£4.25), but the Easter Bunny has now delivered another 20g of chocolate buttons. They now all weigh 120g (up from 100g in 2016) without a price increase. They will be available via supermarkets, larger retailers, independent high-street stores, and online retailers including www.dairyfreechocolates.com. Mike Jessop, who founded Moo Free in 2010, along with his wife Andrea, said: “Moo Free replaces cows’ milk with rice milk to create a delicious, milk chocolate taste that doesn't require a single cow.” The chocolate from which the eggs and the buttons are made is a multi-award winning recipe, having most recently won the award for ‘Best Vegan Chocolate’ at the VegFest Awards, 2016. This accolade was voted for by the public. Even better still, its award-winning dairy free chocolates are also free from gluten, wheat, lactose, soya and casein, completely vegetarian and vegan, and certified organic. “Because we care about you and the environment, all our dairy free chocolates are made using organic and ethically sourced ingredients wrapped up in fun, environmentally-friendly packaging. Moo Free’s Easter eggs, unlike those of their rivals, deliver great taste and even better value,” added Mike. To find out more - www.moofreechocolates.com.

Miracle Tree wins Herbal Tea Award Miracle Tree won three awards in TasteTV’s annual Herbal Tea and Tisanes competition. The Original Moringa Tea, Strawberry Moringa Tea infusion, and Chocolate Moringa Tea infusion from the company won the award for notable Ingredient Combinations and Taste. This makes this the only moringa brand with award wins three years in a row, and takes the brand’s award tally to an impressive five nominations and six wins! Kunal Mirchandani, Founder of Miracle Tree said: “We’re delighted that our superfood organic moringa teas have been recognized by TasteTV in such a way.” He continued by stating that the awards “reflect our dedication to offering our customers excellent quality products with a special focus on ingredient combinations and taste.” In TasteTV’s annual Herbal Tea and Tisanes competition, seven great teas made it to the top of the rankings, and show that you can have hot flavor and cool creativity in your mug at any time. TasteTV’s panel of judges ranked them based on the Ingredients, Taste, Packaging & Design, and the Overall Herbal Tea Experience. Out of the hundreds of teas entered, Miracle Tree ranked #3 (Original), #5 (Strawberry) and #7 (Chocolate). “Having won awards three years in a row is a humbling experience,” commented Karan Mirchandani, COO & Co-Founder of Miracle Tree. He continued, “This award win further motivates us as a team to strive for creating the best tasting and quality moringa products on the market – and we have plenty of new goodies to share in 2017 and beyond.” Interest in moringa is growing rapidly every day in America and with cause -- moringa is one of the world's most nutrient-dense superfood, and is a leafygreen wholefood full of vitamins, antioxidants, and amino acids. Miracle Tree takes tea to a new level with their specialty blends of moringa teas!

International Supermarket News | March/April 2017

Veganz supermarket closes four branches; files for bankruptcy Europe’s first vegan supermarket chain Veganz, with headquarters in Berlin, has filed for bankruptcy procedures due to financial woes. Vegaz would close four of its nine branches as a part of bankruptcy procedures. The supermarket was instituted by Jan Bredack, a former senior manager with Mercedes Benz. A former meat-eater, Bredack got inspired from vegan stores in Scandinavia, the US and Russia while he visited those countries. The bankruptcy procedure came as a shock to many as the supermarket has been planning to expand to the

United States with setting up a wholesale distribution center for Veganz products in the country. While the supermarket files for bankruptcy procedures, the parent company Veganz GmbH will not be affected. Veganz lowered its projected revenues for 2016 from €80 million to €56 million after reporting total sales of €24 million in 2015. The company will shift its focus to wholesale and catering business.

Morrisons buys Scottish potato packing firm British supermarket chain Morrisons has announced acquiring a potato packing company in Angus, Scotland, from producer Farmcare, as part of a supply agreement. The packing plant situated in Carnoustie is expected to strengthen the supply of Scottish potatoes to Morrisons shelves. The facility will be used to store, grade, pack and procure potatoes, said the supermarket chain. Andrew Thornber, managing director of Morrisons Manufacturing said: "Our acquisition of the Carnoustie site, and our relationship with Farmcare, shows Morrisons commitment to working directly with growers in Scotland and offering our customers the very best quality fresh produce.” Farmcare, which has 11 estates in Britain, will supply a range of other produce other than potatoes to the supermarket. With closing the deal, Morrisons has now 17 manufacturing locations across the UK. The supermarket had, in 2015, bought Kerry Foods’s Grimbsy site to expand its fish business. Farmcare CEO, Richard Quinn said: “We look forward to an ongoing relationship which allows Farmcare to concentrate on what we do best: growing great crops and working closely with Morrisons as a supplier of choice.”

Veganz will supply vegan products to major supermarket chains including Metro and Famila. Jan Bredack, the founder of Veganz, told Lebensmittelzeitung that the growing emergence of other vegan purveyors throughout Germany was largely responsible for Veganz downturn. “The model of the vegan supermarket outstripped itself, because of the growing supply of vegan produce,” explained Bredack.

Starbucks to employee 10,000 refugees Responding to the U.S. President Donald Trump’s executive order banning refugees and citizens of seven majority-Muslim nations from entering the United States, Starbucks CEO Howard Schultz announced that the company would hire 10,000 refugees in every one of the 75 countries where it operates. "We will neither stand by, nor stand silent, as the uncertainty around the new administration's actions grows with each passing day," Schultz said. “There are more than 65 million citizens of the world recognized as refugees by the United Nations, and we are developing plans to hire 10,000 of them over five years in the 75 countries around the world where Starbucks does business," the statement says.

International Supermarket News | March/April 2017

Private Label

Compass Group launches first in-house food to go range Compass Group UK & Ireland, the UK’s largest food and support services firm, has launched its first bespoke chilled food to go range, ‘Chop Chop’, which includes sandwiches, salads, snack pots, paninis, toasties and fruit pots. The range was developed by Compass’ in-house food development and nutrition team in partnership with, high profile Chefs, as well as supplier Adelie. Currently being launched across the business, Chop Chop will be available in hospitals, universities and retail outlets. The range includes around 150 items and will be delivered to over 700 UK sites, with expected sales growth of 10% year on year. The range includes a selection of delicious sandwiches with classics like Egg and Cress and BLT sitting alongside more adventurous flavours like Chicken and Artichoke or Goat’s cheese and mixed pepper on Spianata bread. Several new suppliers have been enlisted to ensure the best quality of ingredients, such as the use of thicker bread and bacon that has reduced salt for an authentic smoky flavour. Simon Parton, Head of Food & Beverage Innovation, Compass Group UK & Ireland, commented: “In creating Chop Chop we have applied all of our passion and expertise in food to our chilled food to go offer. We have been totally focused on finding the finest ingredients and innovative new breads to create some truly delicious food.” Louise Pilkington, Marketing Director, Compass Group UK & Ireland, said: “Our new food to go range is based on extensive research into the food to go market and consumer needs. As lunchbreaks continue to get shorter sandwiches are seen as a quick and healthy option, so it was important to us to create a high quality range which can make lunchtime something to look forward to.” Nicky Martin, Head of Nutrition, Compass Group UK & Ireland, said: “By offering a selection of healthier options we’re providing our consumers with choice. All items in this range with a green logo on the packaging are under 350 calories and not high in fat, saturated fat, sugar and salt, plus we also have a healthy meal deal option which is 500 calories or less and includes fruit and water.” The development of Chop Chop uses many insights from Compass’ ‘Eating Out of Home’ survey, which estimates that the grab and go market is now worth £20.1bn in the UK and has grown by 6% in the last 12 months alone. The research showed that the traditional lunch hour has shrunk to around 35 minutes, and that ‘Sandwiches are King’. The new brand brings a delicious range of food to go to Compass customers across the country.

Asda’s award winning wine sold in Walmart Asda might not be your b u d g e t friendly supermarket for wines, but its £6 wine has beaten 16,000 rivals in blind tasting to win the Decanter World Wine Awards in 2016. Since then the La Moneda Reserva Malbec from Chile has become an instant hit and is currently available to buy in the U.S through Walmart stores at a price of $ 6.96. The judging panel which named Malbec as an ‘absolute crowd pleaser’ won the Platinum Best in Show award in Decanter’s ‘under £15’ category beating wines three times its price. Decanter World Wine Awards chairman Steven Spurrier said: ‘Our sole purpose is to recognise and reward quality, this is what consumers all over the world are interested in. .’ "This Malbec has a deep purple colour with violet tints, rounded and velvety tannins, complex plum, fig, spice flavours and excellent length," says Asda. The Malbec, according to the Washington Post, is produced by the largest wine exporter in Chile Ranco Wines which exports about 107 million bottles of wine to more than 25 countries every year. This wine is mass produced in large stainless steel tanks, which can hold several gallons.

International Supermarket News | March/April 2017

THE YOGURTS THEMSELVES ARE NOTHING SHORT OF DELICIOUS AND THE ADDITION OF VEGETABLES ENHANCES THE FLAVOUR AS WELL AS TEXTURE. THE KIWI, AVOCADO AND MATCHA TEA YOGURT BOASTS A CREAMINESS FROM THE AVOCADO AND THE APPLE, CARROT, BEETROOT AND GINGER YOGURT HAS A ZING FROM THE GINGER.

Waitrose introduces vegetable yogurt flavours The versatility of vegetables is continuing to be a hot topic as products including juices and even desserts have undergone a veggie makeover. And following this, Waitrose has introduced four new innovative yogurt flavours which include butternut squash, avocado, carrot and beetroot.

There is currently a need for more Vitamin D in our diets to keep bones, teeth and muscles healthy and these yogurts are a great way to start bridging the gap as one serving contains almost a fifth of your daily recommended allowance.

Wa i t r o s e a n n o u n c e d the trend for vegetable yoghurts in their annual Food & Drink Report in October last year. The report tipped that the growing US trend for veggie yogurts would hit this side of the Atlantic in 2017. The yogurts themselves are nothing short of delicious and the addition of vegetables enhances the flavour as well as texture. The Kiwi, Avocado and Matcha Tea Yogurt boasts a creaminess from the avocado and the Apple, Carrot, Beetroot and Ginger Yogurt has a zing from the ginger. Then the Pineapple, Butternut Squash and Turmeric has warmth from the

potato brownies. Likewise, The Grain Store in London’s Kings Cross appear to be fans of the trend, as they recently introduced two vegetable puddings which include parsnip and sweet potato.

turmeric and finally the Carrot, Mango and Guarana has additional sweetness from the carrot, making them a great introduction to vegetable blends. The trend for using vegetables in desserts has been gathering momentum. Instagram is abundant with recipes such as chocolate avocado mousse and sweet

Waitrose Yogurt Buyer, Melissa Spiro commented, ‘Ingredients such as butternut squash and beetroot are not normally found in the yogurt aisle so we can’t wait to hear what our customers think. Our aim when developing these yoghurts was to use popular vegetables that are naturally beneficial to everyday health and wellbeing. Vegetables based smoothies are now mainstream and we anticipate the trend for this type of yogurt to follow suit’.

International Supermarket News | March/April 2017

Fresh Produce

Sales of leafy vegetables drop by half in European supermarkets Vegetable scarcity is hitting hard at the European supermarket industry with a sales fall of approximately ÂŁ8million, market experts say. The sales of leafy vegetables have fallen by almost half since the first week of January. Courgette sales fell 58 per cent. Scarcity of leafy vegetables and skyrocketing prices in the UK supermarkets has made salads dearer than ever. Farmers and wholesalers in the country are urging shoppers to promote British seasonal vegetables over the imported ones, with British grown Kale, leeks and cabbage available in abundance. The storm and the cold wave that struck

Europe last January have slowed the production of vegetables and caused a dearth of these products in some markets of the continent, which has motivated in recent weeks a price carousel. According to the Spanish agricultural business group Asaja Malaga, Italy, Turkey, Greece and Spain have also reduced their harvests of lettuce,

courgettes, aubergines, green beans or artichokes. Over the past month the value of these products at source that are paid to farmers would soar on average between 50% and 70%. With fresh produce like zucchini that came to cost triple (from one to three euros a kilo). However, since the last week of last month the trend seems

International Supermarket News | March/April 2017

UK supermarkets limits the number of lettuces customers can buy Following severe shortage of supplies, major supermarkets Morrisons and Tesco have started rationing the number of lettuce and broccoli shoppers can buy. This comes after Sainsbury’s, Aldi and Asda have increased the prices of iceburg lettuce in January 2017. Recent snowfall and flood in Spain- from where most of the greens are imported to the UK- is attributed to be the major reason behind the shortage, which according to industry experts is the “worst supply situation in the UK in decades”. Morrisons has announced that shoppers would only be able to buy three heads of broccoli and three iceberg lettuces from all of its stores. Meanwhile some Tesco stores are limiting the number by three lettuces per person.

to have receded and even sensitive declines have been detected up to 60%, with eggplant and again zucchini as the most affected. “The harvest in countries like Italy and Turkey has been affected badly. Spain being less affected has more demand for its products from the foreign market and the domestic market,” said Benjamín Faulí, general secretary of Asaja Málaga. The cold has not stopped production, but it has certainly slowed the growth and size of vegetables, which in the end is leaving about 20% less product than usual. All this has influenced the market, “he added.

On the supermarket’s online store, many of the everyday vegetables are listed as unavailable. Markets offering more money than the UK to Spanish farmers, including Germany, Russia, and Denmark have not been affected by this shortage.

Market analysts expect shortage of other vegetables like cauliflower, cucumbers, courgettes, oranges, peppers and tomatoes in the country as most of them are imported from the flood hit region.

Spain has lost more than 80 percent of its yield due to the bad weather condition. Floods have washed away planted crops and turned fields into lakes. Mud has washed over level fields with crop and those fields due to be planted, have become rivers of mud. The shortage is expected to last six to eight weeks, until the next produce is ready for harvest, latest by the first week of April. Market analysts expect shortage of other vegetables like cauliflower, cucumbers, courgettes, oranges, peppers and tomatoes in the country as most of them are imported from the flood hit region. A Morrisons spokesman said: “As a result of the fact that the Spanish harvest has been very difficult this year, we have just about enough coming in to supply our customers. “We want to stop local tradespeople, restaurateurs, coming in and buying lots of stock. “It is important that there is good availability for our customers.” A Tesco spokesman said: “Due to bad weather conditions in Spain, we are experiencing a few availability issues, but are working with our suppliers to resolve them as quickly as possible.”

International Supermarket News | March/April 2017

Retail

Apple users have higher credit scores LendingTree, Americaâ&#x20AC;&#x2122;s leading online loan marketplace, analyzed over 2 million purchase mortgage and personal loan requests to better understand how Americans are shopping for their loans. The findings show that 41 percent of purchase mortgage shoppers and almost half (48.53%) of personal loan shoppers use a mobile device to shop and compare loan offers from different lenders. Additionally, the analysis suggests a correlation between a user's device, credit score, and loan amount. Overall, potential borrowers using a Mac computer have the highest average credit score in both the mortgage (FICO average 722) and personal loan (FICO average 683) categories, along with the highest average loan amount in each.

using a Mac in 2016 was $66,865 while the national average came in at approximately $45,830.

In 2016, the average loan amount for Mac users was $274,412 for a mortgage and $14,650 for a personal loan, much higher than the national average of $226,554 and $11,921, respectively. The average down payment amount for borrowers

Following closely behind Mac users are Apple iPad users, averaging the second-highest credit score and second-highest loan amount in both mortgage and personal loan categories, despite being one of the least-common

Because Mac users averaged higher credit scores, they also received a lower interest rate offer on a 30-year fixed rate mortgage loan. Although interest rates increased in the last few weeks of 2016, the national average 30-year fixed interest rate for 2016 was roughly 4.04% when Mac users, with a higher average credit score, where offered an average rate of 3.93%.

devices used to submit loan requests. Naturally, iPad users received the second-lowest interest rate offer for a 30-year fixed rate mortgage loan, 3.95% in 2016. On the other side of the spectrum, Android users averaged the lowest credit scores and lowest loan amounts in both the mortgage and personal loan categories. Unfortunately, this also means average interest rates offered to Android users were higher than the national average. "The disparity in loan details between Mac and Android users is most likely a reflection of different price points and the affordability of the respective devices. Regardless of the device type, we're thrilled to see a substantial portion of loan requests coming from mobile users as we continue to enhance our mobile experience and applications for consumers who are exploring finance options," said Doug Lebda, founder and CEO of LendingTree.

International Supermarket News | March/April 2017

WORLD’S MOST VALUABLE BRAND

Tesco out of top 100; Google tops the list Google has pushed off Apple to become the world’s most valuable brand- a position that has been held by the latter for five years. The world’s largest search engine, Google, with a brand value of $109 billion at a yearly increase of 24 percent topped the annual Brand Finance Global 500 rundown.

Tech giant Apple, despite reporting its most successful quarter ever in the last week, has a brand value of $107 billion after 27 % of its value. Among the retailers, Walmart retained its 8th position with a brand value of $63 billion with an increase of 16 percent. Almost all other major retailers lost their positions compared to the previous year. Tesco which was placed in 94th position in 2016 was pushed back to 126th position in the list. Other major retailers and their positions (2016 position inside the bracket): Home Depot 31 (28), Target 74 (75), Walgreens 80 (79), Lowe's 92 (88), Costco 95 (97), Tesco 126(94), Aldi 146 (143), Carrefour 157 (128), Lidl 185 (145), Asda 202 (196), Kroger 249 (238), Sainsbury’s 324 (277). David Haigh, CEO of Brand Finance said: “Apple has struggled to maintain its technological advantage. New iterations of the iPhone have delivered

diminishing returns and there are signs that the company has reached saturation point for its brand.” Amazon retained its third position with an increase of 53 percent in its brand value to $106 billion. AT&T and Microsoft secured 4th and 5th positions correspondingly. Samsung, even with a troublesome year posted an increase of 13 percent in its brand value to position in 6th place with $66 billion. World’s biggest supermarket chain Facebook soared 8 positions to rank at 9th place with an increase of 82 percent brand value to $62 billion.

Tesco partners with Convibo for one hour grocery delivery Grocery delivery company Convibo now offers its service to Tesco customers in London. The one-hour delivery service is currently available for shoppers of leading retailers including Sainsbury’s, Waitrose, Marks & Spencer, Whole Foods and Amazon. Convibo offers same day delivery with personal shopper services for its customers in 16 postal codes in London at a flat delivery charge of £4.99 if bought from the supermarket chains it partners with. When a customer orders something, a personal shopper selects groceries by hand in the store and in case of non-availability of a particular product the shopper calls the customer to inquire if they need an alternative. Convibo plans to increase its coverage in the near future and plans to expand to more cities.

Lego retained its number one place as the world’s most powerful brand, ahead of Google, Nike, Ferrari Visa and Disney.

Convibo co-founder and CEO Takis Malavetas said: “In principle, Convibo helps supermarkets to compete with Amazon. We think that there is no reason for the retailers to heavily invest in e-commerce logistics since it's not their core competency. All of them are doing a great job in offering a great variety of products and in the end this is what their customers are after. ”

Among the supermarket brands in Australia, Woolworths beat rival Coles by one place, coming in fifth despite a 21 percent decline in brand value from 2016. Coles has the biggest gain of any Australian brand, leaping 21 percent.

“There is no need to have a minimum or a maximum basket; you don’t need to be part of any subscription package; and you get the best variety of stores even ones that don’t offer delivery such as M&S,” he added.

International Supermarket News | July 2016

Product News

Heroes Vodka now retailing in 350 Asda stores Chris Gillan, founder and military veteran, of Heroes Drinks Company, said: “The opportunity afforded to Heroes Drinks by Asda is simply incredible and I am grateful for their overwhelming support.

Heroes Drinks Company, a spirit-producing social enterprise, is now stocking its premium British wheat grain vodka in selected Asda stores. Consumers can be confident that when they purchase Heroes Vodka in one of the 350 stores they will be helping support worthy causes at the same time as Heroes Drink Company is pledging to donate a minimum of 20% of all profits to UK Armed Forces’ causes.

“The scale of opportunity has enabled Heroes Drinks to launch a super-premium vodka at an incredible price and the significant increase in sales will not only fast-track our ambitions of employing disadvantaged veterans nationwide but also greatly increase our financial support to our partnering charities.” In 2015, Heroes Drinks Company became the first non-profit organisation in the alcohol sector and is founded on the mission of supporting the UK armed forces family and providing work placement programmes for former servicemen and women who have struggled with the transition to civilian life. Having established a relationship with Social Investment Scotland (SIS), the team participated in the first Asda Social Enterprise Supplier Development Academy. Funded through proceeds of the carrier bag charge, Asda’s Social Enterprise Supplier Development Academy was launched in 2016, in partnership with SIS, with the aim of offering guidance to entrepreneurs on working with large retailers, as well as increasing the availability of social enterprise products for ethically-minded consumers, all during a series of workshops across a four day period. Heroes Drinks also received access to a £100,000 loan from the Asda Community

Capital scheme as well as a further £150,000 of finance from SIS, meaning that in just two years, Chris has been able to take Heroes Vodka from creation to a national supermarket listing. “As one of the largest national listings of its kind, Heroes Drinks is a fantastic example of the benefits in working together with innovative social enterprises to make ethical and high-quality products more readily available to consumers,” added Heather Turnbull, buying manager for Asda. “Our partnership with SIS is providing tangible results and continues to ensure that money generated by customers through the carrier bag charge is responsibly re-invested in charities such as those committed to supporting the UK armed forces’ community.” Alastair Davis, chief

executive at Social Investment Scotland, commented: “By promoting social enterprise products as viable alternatives to their commercial counterparts, we have a fantastic opportunity to significantly increase the revenues raised by the sector and, in turn, create much more sustainable and long term income for good causes. “Asda’s partnership with SIS to deliver the UK’s first Social Enterprise Supplier Development Academy is helping provide access to organisations like Heroes Drinks Company to the support, advice and investment they need to grow and supply a large retailer. We are looking forward to the second Academy this summer ,which will open for applications soon.”

International Supermarket News | March/April 2017

Nestlé sells Fürst Bismarck premium natural spring water Ne s t l e wat e r s e l l s i t s German premium natural spring water Fürst Bismarck to Norddeutsche Hansa-Heemann AG. Fürst Bismarck, which was discovered by Otto von Bismarck in 1906 is one of the strongest regional brands in Germany. "The premium brand is a good gain and is ideally suited to our renowned mineral waters, Hella and St. Michaelis. We are looking forward to the new location where we have a great interest." said the Chairman of Hansa-Heemann AG. "Clear as Prince Bismarck" was the slogan with which the Nestlé Group had promoted the mineral water marketed from Sachsenwald. The Swiss World Group has now separated from the well-known North German brand. The acquisition is also a clear strategic decision to strengthen the core sales area in Northern Germany, Reichert said. The own brands of Hansa-Heemann are called hella mineral fountains and St. Michaelis, are particularly popular in Northern Germany and are marketed by the subsidiary company Hansa Mineralbrunnen GmbH. The customers of the trade marks, among others Werretaler and RiverCola are also the Discounter Aldi Nord and Aldi Süd. Hansa-Heemann is headquartered in Rellingen and has five production sites throughout Germany. These are located in Trappenkamp, Löhne, Beiseförth, Lehnin and Bruchsal. The factories use all the water reserves and sources that can be found locally. Over 600 employees are employed here.

Waitrose launches beer magnum Waitrose has launched a beer magnum in a supermarket first, just in time for Valentine’s Day or to kick off the rugby in style. It makes the perfect symbol of generosity for the host of a party, a centrepiece at a gathering with friends, or the perfect present for any ale lover. The popularity of magnums is on the rise, with Waitrose seeing sales of the sizeable drinks soar by 25% year on year. Due to the increase in demand for the show-stopping size bottles, Waitrose have introduced an array of drinks used as contents for the colossal containers in recent years. First came the traditional magnum of Champagne, then hot on its heels were supersized bottles of the ever popular Prosecco and pink-hued rosé. The latest addition to the bumper bottles is the classic beer. The IPA Best of British Beer Magnum is over six times the size of an average bottle of ale, and with its swing top lid to seal the bottle, there’s no cause to worry about it going flat. The beer can be kept to drink on a number of occasions and much like its oversized wine and fizz counterparts, will taste just as good with age. The light, hoppy golden ale gives an aromatic, piney aroma with a light, crisp, floral finish, and is made using 80% recycled glass, so is certainly not about style over substance. The magnum is available from Waitrosegifts.com at £22.

International Supermarket News | March/April 2017

Finance

Inflation and petrol prices put a squeeze on family spending power The latest figures from Asda’s Income Tracker reveal that whilst rising inflation continues to impact disposable income growth, families still enjoyed an average of £202 discretionary income last month. As UK families headed into the festive season they had £8.57 more in their pockets than in December 2015. However, despite the positive growth, inflation continues to impact spending power. The rate hit 1.6% in December – the highest rate for 18 months and putting it closer to the Bank of England’s target of 2%. The weakened pound and rising oil prices continued to drive the increase and in December petrol prices were 10% more expensive than the same time last year, which is the largest increase in five years. The rise in inflation put more pressure on families spending power; however it was cushioned by an equivalent increase in net income. Up 2.3% year on year, family’s net pay meant that an increase in the prices of essential items didn’t affect their disposable income by as much. In the three months to November, regular earnings growth was up 2.7% and unemployment remained steady at 4.8% which proved beneficial for family’s net

KEY FINDINGS • Petrol prices increased by 7.4% year on year in November, the highest price since July 2015 • Inflation hit a two year high of 1.2% • Data shows under 30s have the lowest discretionary income compared to older generations • Disposable income grew 4.5% year-on-year in November, leaving families with £202 per week - third consecutive month of single digit growth. • Inflation hits the highest level since July 2014 at 1.6%

income. A good performance in the labour market meant that employees had a better bargaining power for their pay. Food prices in December remained lower by 1.1% year on year, however month on month, food prices saw a 0.8% increase compared to November. And it is not only essential items that inflation is affecting, December also saw an increase in the cost of restaurants and hotels. There was some relief on households as electricity and gas prices eased compared

to those at the end of 2015, which helped keep household bills down. Low interest rates also helped to keep mortgage interest payments down, which were 6% cheaper year on year. From a regional perspective, the North East had the fastest growth in disposable income for Q4, with an increase of 10.1% compared to the same quarter in 2015. Yorkshire and the Humber and Northern Ireland recorded the second highest annual Q4 growth rates in disposable

International Supermarket News | March/April 2017

Discretionary income reaches £202

income with 7.9% each. However, London remained at the top of the spending power list, with £275 of discretionary income in December, £73 more than the UK average. Scotland dropped back below the UK average in Q4, after posting stronger growth in the first three quarters of the year. Households from the East of England had the second highest discretionary income at £225 per week. At the opposite end of the scale, Northern Ireland had the lowest average spending power at £105. An Asda spokesperson said: “As we begin 2017, it is clear to see that prices are at the top of customers’ minds, across a range of different categories. It is pleasing to see that families across the UK are still seeing growth in their spending

FROM A REGIONAL PERSPECTIVE, THE NORTH EAST HAD THE FASTEST GROWTH IN DISPOSABLE INCOME FOR Q4, WITH AN INCREASE OF 10.1% COMPARED TO THE SAME QUARTER IN 2015. NORTHERN IRELAND HAD THE LOWEST AVERAGE SPENDING POWER AT £105. power, despite the pressure customer price inflation is putting on the price of essential items.

– annual price inflation for fuel stood at 10% in December, the highest rate in nearly 5 years.”

“It will be interesting to see what the income tracker reveals this year, and we will be watching closely to spot the key changes for customers each month.”

“In the last months of 2016 we have seen an uptick in wage growth due low unemployment and the lagged effects of the National Living Wage. The question in 2017 will be whether wage growth can keep up with rising inflation.

Kay Neufeld, Economist, Cebr, said: “Rising inflation is clearly weighing on the growth in spending power now. Price increases in most product categories – from meals in restaurants to air fares – reduce the spending power of UK households. This is most clearly visible in the rising prices at the pump

Early indicators suggest that the labour market will soften over the coming months – an increase in unemployment and lower wage growth are on the cards potentially putting a dent in households’ spending power”.

International Supermarket News | March/April 2017

Supermarket

Sainsbury’s introduces same-sex cards for V Day Sainsbury’s is spreading the love this Valentine’s Day as it launches same-sex cards for the first time. The new range addresses growing demand for more diverse greeting cards and provides all of its smitten customers the opportunity to choose the perfect card for their partner. Range meets growing demand for a more diverse selection of greeting cards as 3.1 million Britons now identify as LGBT. All lovebirds now have the opportunity to find the perfect card for their partner

UK’s first underground farm signs deal with Ocado to sell salads Growing Underground, the UK’s first underground farm, signed an agreement with British online supermarket Ocado to sell its first retail range of salads. The online supermarket will start selling five bagged salads from first week of February, the company said in a press statement. Located in a World War II bomb shelter 100 feet beneath Clapham High Street, Growing Underground claims to produce consistent quality crops irrespective of climatic changes. The current harvest includes English mustard, broccoli shoots, pea shoots, salad rocket, garlic chives, fennel, coriander, purple radish and pink stem radish.

A selection of the cards feature illustrations of two men and two women with the words ‘You + Me’. Prices start at £1.99 and the cards will be stocked in nearly 500 stores across the UK. The UK greeting card industry is worth an estimated £1.7 billion and keeps growing, with Brits buying an average of 31 cards per year. About £40.2 million of that is spent on Valentine’s Day cards, the highest spend among special occasions. Last year, the total UK retail spend for Valentine’s Day reached nearly £1 billion, a £15 million increase from 2015. James Brown, Director of Commercial, Sainsbury’s Argos: “Choosing the perfect Valentine’s Day card is a personal and sentimental experience, which is why we’re pleased to offer new same-sex cards and give all of our love-stricken customers the ability to choose the card that’s right for them.” Sainsbury’s has long supported the LGBT community as part of its vision to be the most inclusive retailer where people love to work and shop.

“The new range will also be available at our existing retailers; Teds Veg at Borough Market, Farmdrop online delivery service and Neil Brown Herbs at New Covent Garden Market which supplies the restaurant trade in London. New retailers include Planet Organic stores in London and Langridge Organic. We’re so excited that through these new and existing retail partnerships, our microherbs can be delivered directly from our farm to your table, in minimum time, meaning they are super fresh – which also means less food waste!,” the company said in a statement. Steven Dring, co-founder of Growing Underground said: “Low-energy growing of exceptional produce is a central part of our ethos and we’re delighted that through this partnership with the UK’s leading online supermarket we can now share our amazing micro-herbs with consumers. We are very encouraged by what this could mean for the future of the industry.”

International Supermarket News | March/April 2017