‘LOYALTY IS REALLY IMPORTANT TO ME’ How David Woodrow keeps his newsagents thriving BACK PAGE 9-22 APRIL 2019 betterRetailing.com
PROFILE
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RETAILER PROFILE DAVID WOODROW WOODROW’S NEWSAGENTS
ALLY ‘LOYALT Y IS RE IMPORTANT TO ME’
9-22 APRIL 2019 STRICTLY FOR TRADE USERS ONLY
realise you trade. If people they’ll provide a good service, keep coming back.” to his MEGAN HUMPHREY It’s by staying true David has expertise that owner of despite DAVID Woodrow, Liremained successful behaviours. Woodrow’s Newsagents is changing customer Glasgow, to go censed Grocer in re“We’ve offered food he exout,” proving that traditional since we started rewards limit to how tailing can still reap plains. “There is a market. we stick to in an evolving much we can do, but in Bishoprange, which The store, based three selling our basic enough – in today’s includes local farm sausages ton, has passed through with to be substantial – albeit reseem for ones well as generations as important roll, family – the impulse market, it’s and bacon in a the way. away.” a few changes along look for quick wins.” the winter.” claims Da- dying blames the fall in sales tailers to David is soup in relation“I’m a rare beast,” David With this in mind, David values his to exist just trends. and the opportugrowing digital vid. “The shop used optimistic about ships with his customersto the next to the on vital are more than 4,000 nities a new shopping centre up the road, right suppliers as being we are “There down houses being built I’m could bring to his business. train station, and where running of his store. and mor- new “But a new shopping now was just bricks road,” he explains. is really important the “There’s in “Loyalty any market up that I’ll pick tar. This came on the being built just outside to me,” he explains. “I’m eshave been not hopeful because centre It’s says. “Some the mid-’80s and we new subscriptions, of the village,” he pecially loyal to suppliers. a negative in terms important to build up a strong located here ever since.”the de- the houses will be equipped to get see it as but I David quickly made of�ice. with everything needed of taking away business, relationship.” post �ilters online.” positive. cision to install a “The same mantra con- think it’s a I took the news he will have “At the same time, However, David remains of“To get to it, people village, down to my customers,” the isn’t sub-retailing the his that through magazine opportunity to refurbish a “If he says. “I �ident ahead. to drive passing adds. our best to will help him stay rest of the shop,” there will be new available, we try added some fering own, despite so will always repainted it and “We have held our get it stocked. I he explains. BE the availLED lighting.” be passionate about retailing the challenges,” sub- I WILL ALWAYS Throughout his “We’ve always done ABOUT ability of newspapers.” selling has – it could be classed PASSIONATE career, news David, but retailing driver for us. We THE AVAILABILITY always motivated of more see this as a footfall To car a putting to is today’s market provide newspapers OF NEWSPAPERS David’s store, go garden centre and under threat. m/ point garage, a to betterRetailing.co “From a newsagent’sa huge a hospital.” gents has woodrows-newsa getting David not this, I’m as of view, As well like I used 400 home news delivery increase in sales “The same up to “I feel like this is to,” explains David. too customers. can be said for magazines,
Why should you care about illegal tobacco?
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FOOD STANDARDS
TOBACCO LEGISLATION
SHAKING UP SALES
More than 5% of indies have a failing food hygiene rating compared with 0.51% of multiples
Track and trace creates uncertainty for tobacco sales as registration deadline approaches
Find out how CocaCola is aiming for a bigger slice of your energy drinks sales
P2
P4
P13
Location: Bishopton, Glasgow Staff: Four full-time HND customers: 400 Opening hours: Mon-Sat 6.30am-6pm, Sun 6.30am-1pm Trading since: 1979
1 sub-retailing sub-retRoll out
“We have always footfall ailed, and it’s a real driver for us,” says David. He uses a van to deliver magathe newspapers and zines that are requested by his customers.
returns 2 Back
bottle
David supports the implereturn mentation of a deposit scheme. “I am consider-a ing how I would house quite is machine, as my store might “It small,” he explains. layout.” mean rearranging the
atens cco thre ages Illegal toba ihoods, dam ’ livel retailers contains ities and commun edients. t Follow @suspect_repor ted ingr unregula
opportunities 3 Embrace is hopeful that the
David opening of a new shopping trade centre will bring in newhave to the village. “People village to to drive through our is an get to the centre – this opportunity,” he says.
Contact us
0800 0495992
suspect-it-report-it.co.uk Report illegal cigarette sales and smuggling
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‘LOYALTY IS REALLY IMPORTANT TO ME’ How David Woodrow keeps his newsagents thriving BACK PAGE
9-22 APRIL 2019 STRICTLY FOR TRADE USERS ONLY
Credit: Google Maps
‘THIS MUST NEVER HAPPEN AGAIN’
As a London community raises £50,000 for a murdered retailer, Retail Express finds out how authorities are pledging to make you safer P3 FOOD STANDARDS
TOBACCO LEGISLATION
SHAKING UP SALES
More than 5% of indies have a failing food hygiene rating compared with 0.51% of multiples
Track and trace creates uncertainty for tobacco sales as registration deadline approaches
Find out how CocaCola is aiming for a bigger slice of your energy drinks sales
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P4
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our say
Chris Dillon, editor – insight
Are you ready to benchmark your business?
The five biggest stories this fortnight 01
More than 5% of indies fail food hygiene test
ALEX YAU THE Independent Achievers Academy (IAA) has opened its benchmarking process once again. The IAA has got off to a flying start this year, with four of the 12 retailer visits already completed this year, and 12 profitdriving strategies already being implemented. We’ve also launched the process where you can benchmark your store, which enables you to find out how you compare to the best stores in the country and see which areas you’re behind in. It does take time to benchmark thoroughly, but that’s only because it is a full inspection of your store and the rewards are phenomenal. The average spend across all convenience stores is £6.50, but those who benchmark with the IAA have an average of £7.74 as they are better at upselling, and inspiring THIS their customers. Also, we know Retail PROGRAMME Express readers have an average basket spend of £6.84, so we sit HELPS PUT smugly knowing that we are helping MONEY IN retailers on their first steps towards industry recognition. YOUR POCKET This programme helps put money in your pocket. We invest so heavily in it as a media company because we know it’s the right thing for independent retailers, a statement that any retailer that has worked with the IAA for a number of years will attest to. It’s also free to take part. It’s not often I get to write a column offering retailers free money, but you can see if you can get your hands on some by going to betterRetailing.com/iaa/ benchmark-your-store. FOR MORE OPINION, GO TO PAGE 14 @retailexpress betterRetailing.com facebook.com/betterretailing Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379
Editor – news Jack Courtez @JackCourtez 020 7689 3371
News editor Megan Humphrey @MeganHumphrey_ 020 7689 3357
Features editor Daryl Worthington @DarylNewtrade 020 7689 3390
Features writer Priyanka Jethwa @Priyanka_NT 020 7689 3355
Reporter Alex Yau @AlexYau_NT 020 7689 3358
Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361
Head of design Anne-Claire Pickard 020 7689 3391
Production editor Ryan Cooper 020 7689 3354
Editor in chief Louise Banham 020 7689 3353
Head of sales Matthew Oliver 020 7689 3367
Sub editor Jim Findlay 020 7689 3373
Account director George McCracken 020 7689 3364
Sub editor Tom Allaway 020 7689 3395
Account director Charlotte Jesson 020 7689 3389
Designer Jody Cooke 020 7689 3380
Account manager Jon Melson 020 7689 3372
Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Publishing Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600
02
Stores that fail can be shut down, �ined and have legally enforceable measures demanded by local authorities. Businesses in Northern Ire-
Businesses in England are not legally required to display their rating, but experts warned this is likely to change. Read more at betterRetailing. com/food-hygienestandards
Tesco plans leaked
LEAKED Tesco cost-saving plans seen by Retail Express’ sistertitle, RN, reveal widespread cuts to the supermarket’s instore activity. From 28 April, store detectives will be removed and security guard hours will be cut across both low- and higher-risk stores. Each store’s guard hours will be
land and Wales are required by law to make their rating visible to customers, while Scotland operates on a different rating system.
“determined by the shrinkage return on investment”. The company claimed: “The annual cost of guarding in a large number of stores exceeds the annual cost to shrinkage.” Read more at betterRetailing. com/tesco-leakeddocuments
03
Aldi Local opening
A TRIAL rollout of Aldi’s smaller format ‘Local’ brand in south London has impacted fresh produce sales for independent retailers in the area. The 6,500sq ft store opened in Balham last month and has 300 fewer products on stock than the average
10,000sq ft Aldi. Upon visiting the store, Retail Express found it was not stocking non-bulk packaged items or news and magazines. The discounter con�irmed it has no intention of moving into convenience retailing with the Local brand.
Sales support executive Michela Marino 020 7689 3382 Head of marketing Jessica SalisburyFielder 020 7689 3352 Managing director Parin Gohil 020 7689 3375
Finance executive Abigayle Sylvane 020 7689 3383 Production coordinator Business Ashley Reid development executive 020 7689 3368 Kurran Jagpal 020 7689 3363 Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85
INDEPENDENT convenience stores are nine times more likely to receive a failing food hygiene rating than multiples. Retail Express’ sister title, RN, analysed the food hygiene ratings of 173,907 businesses including 6,894 symbol group and unaf�iliated convenience stores across the UK. More than 5% of independent stores received a failing grade compared with 0.51% of multiples and 4% of foodservice providers such as restaurants, pubs and takeaways. Of the major fascia groups, Spar had the highest pass rate, while Lifestyle Express stores had the lowest. Any business selling food – which can range from confectionery to hot food – must register their business with the Food Standards Agency, with inspections carried out by local environmental health teams. The overall rating out of �ive is determined by scores across three categories – overall food hygiene, the structure of the business and how compliant the management is in ensuring hygiene standards.
48,789 Audit Bureau of Circulations July 1 2017 to June 30 2018 average net circulation per issue
Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor. Newtrade Publishing accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.
04
Thieves target alcohol
ALCOHOL has become the most common product targeted by shop thieves, according to the ACS’s 2019 annual crime report. Last year, the product sat in third place, with meat ranked at number one. However, this has now slipped to second place, followed by confectionery.
Over the same period, the total cost of shop theft per store has jumped from £1,739 to £2,237. Crime against convenience retailers now costs an estimated £246m, compared to last year’s £193m, and £5,308 per store, up by nearly £1,500.
05
Rates relief pending
BUSINESSES in England promised millions of pounds under the government’s business rates discount scheme are yet to receive their discounts. Ratepayers with a value below £51,000 are set to receive a one-third discount from their bill. However, with
less than two weeks before the start of the new tax year in April, many are still waiting for their discounts, or haven’t even applied. Robert Hayton, head of Altus Group, said: “Councils should apply the discount automatically.”
@retailexpress facebook.com/betterRetailing
9-22 APRIL 2019 betterRetailing.com
chris.dillon@newtrade.co.uk 020 7689 3379
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Harrow Council pledges to make streets safer MEGAN HUMPHREY HARROW Council has been working with local police to offer safety advice to shopkeepers and small businesses after the stabbing of retailer Ravi Katharkamar two weeks ago in London. The incident took place outside the retailer’s store, Marsh Food & Wine, on 24 March in Pinner. Councillor Krishna Suresh, responsible for crime and community cohesion at Harrow Council,
told Retail Express: “We are urging businesses to take precautions when opening and closing their shops, including having more than one person on site. “There are a number of small steps that people can take to keep safe and minimise the chances of robbery. These include keeping only small amounts of cash in the tills, keeping windows as clear as possible and reporting any suspicious incidents to the police.” In wake of the attack, MP Steve McCabe, chair
of the All-Party Parliamentary Group on Retail Crime, said: “If things are allowed to carry on like this, there will eventually be no small shops and no retail services after dark outside main town centres. It’s time for a much tougher response.” A fund, set up to support the victim’s family, has raised £52,787, with donations by 1,995 people in nine days. Former NFRN London district president Ravi Raveendran added: “We
as retailers are facing near-death experiences every day. We have to make sure this never happens again.” Suresh has encouraged retailers to attend borough trader groups to seek support. “Shopkeepers are welcome to attend to discuss their concerns,” he said. “This can be in partnership with the police and other community groups.”
DEPOSIT RETURN SCHEME (DRS)
75%
25%
express yourself “We are struggling to find information, so we need some guidance as it sounds like it will affect us in a substantial way. I get my cigarettes from Booker, so it would be good to receive some more information from them. What do we need to have to continue our purchases from these wholesalers? So far, we haven’t received any information on legislation at all. We don’t carry a huge tobacco range, but if we are going to have to change how we operate, then we need to know more.” Julie Ludlow, Steeple Ashton Village Shop, Wiltshire
Ravi Katharkamar
The year of a predicted UK-wide roll out
£2,000
of c-stores in Norway have a returns machine
Paid per year to Swedish retailers who have a bottle returns machine in store the column where you can make your voice heard
BOTTLE RETURNS: Independent shop owners in Norway have urged Scottish retailers to support the adoption of a Nordic-style deposit return scheme (DRS). RN and pro-DRS retailers Mo Razzaq and David Woodrow attended an exclusive Norway study tour organised and partially funded by RVM Systems, who manufacture bottle returns machine.
Read more at betterRetailing.com/ tobacco-club-sales
2023
of collection points handle returns over the counter in Norway
GOOD WEEK
BOOKER: Booker symbol group retailers have increased their weekly cigarette sales a month on from joining the wholesaler’s tobacco club. Seelan Thambirajah, who runs 15 Premier stores across Derbyshire, Bedfordshire and Lincolnshire, said the club has helped him increase weekly sales across his shops by £4,000.
Read more at betterRetailing.com/ deposit-returnscheme-norway
How does a DRS work in Norway?
BAD WEEK REACH: Reach plc has been accused of treating retailers with “disdain” after its latest round of price rises were matched with margin decreases. The increases apply to all editions of the Express – up to 65p from Monday to Friday, and to £1 and £1.60 respectively on Saturday and Sunday – and weekend issues of the Star. POST OFFICE: The Post Office (PO) attempted to use government funding earmarked to help transform subpostmasters’ stores on its legal defence against subpostmasters in the Horizon case. The case refers to accusations by 550 subpostmasters that faults with the PO’s computer system lost them significant sums of money, and even led to criminal prosecutions. Read more at betterRetailing.com/post-officetries-using-government-money
Are you ready for the upcoming track and trace legislation coming into effect from 20 May?
“We need to act quickly on this and ensure we gather all the information that we need, so that we can adopt any changes. It’s essential for us to understand our needs so that those who have multiple shops can differentiate between stores. Understanding the legislation that’s going to be implemented is key. I truly believe that if we didn’t have the trade press educating us on this, then we would be in trouble.” Adam Dipoti, Todmorden News Centre, West Yorkshire
Read more on p4
“I’m aware that the deadline to register for the codes is coming up, but everyone I have tried to contact hasn’t been able to provide me with any information. I need clarification, but I believe the concept as a whole needs to be clarified, too, especially with me being in Ireland. I find it extremely odd that nobody seems to know anything about it when it is going to have such an impact on how stores sell tobacco.” Eugene Diamond, Diamonds, County Antrim
Do you have an issue to discuss with other retailers? Call 020 7689 3379 or email chris.dillon@newtrade.co.uk
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Eugene Diamond
NEWS
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9-22 APRIL 2019 betterRetailing.com
Track and trace deadline looms ALEX YAU RETAILERS are still unaware of the upcoming track and trace legislation, despite being given a three-week window to register. The legislation is designed to tackle illicit tobacco by requiring wholesalers to scan unique codes on packs, outers, cases and pallets of tobacco from 20 May. However, retailers will only have three weeks from 30 April
to apply for their own codes. One of the codes identifies them as a business owner, while separate codes for every store which sells tobacco are also required. Although retailers have a year from 20 May to sell pre-track and trace tobacco, they will be unable to buy or sell the products without the codes. Exact details on registration are yet to be released by HMRC. However, five out of five retailers contacted by Retail Express’
sister title, RN, had not heard of track and trace at all. Seelan Thambirajah said: “The timescale we’ve been given is disappointing. Having to get unique codes for all 15 of my stores is going to be a nightmare.” Unitas Wholesale retail director John Kinney added there will be a number of retailers unable to apply within HMRC’s required window. “HMRC hasn’t understood the breadth of our sector,” he said.
Many wholesalers across the UK had pledged to register their retail customers for them, if they give permission. However, Scottish Wholesale Association chief executive Colin Smith warned the technology required for wholesalers to scan and sell tobacco will not be ready by the 20 May date. A senior tobacco industry source warned that retailers should not rely on wholesalers and instead register themselves.
HMRC names tax-mistake convenience stores SEVEN convenience store owners have been named and shamed by HMRC for making deliberate errors in their tax returns. The stores identified were Potraviny Danko in Bradford, Nachi Ltd in Chester, Sachin Express in Hounslow, Kang Discount Store in Houghtonle-Spring, Roma Mini Mar-
ket Ltd in Glasgow, Nawaz Food Store in Accrington and Shawty Trading Ltd in Huddersfield. All have been fined more than £25,000 each. Collectively, the seven business owners misstated £1.5m in duty and tax between 2010 and 2017. They were hit with penalties worth £841,297.
FUEL CAP PLOY SLAMMED
WITH THE
UK’S NO.1 FLAVOURED
CARBONATE BRAND NEW ADVERTS ON AIR FROM APRIL £6M BRAND INVESTMENT GROWING AT +9% *2
STOCK BOTH PRODUCTS TO DRIVE INCREMENTAL SALES Sources: *1: IRI Marketplace, Value Sales, Single Flavour OFC’s, MAT to 30.12.18, GB Convenience. *2: IRI Marketplace, Value sales, MAT to 27.01.19, GB Convenience.
*1
THE Petrol Retailers’ Association (PRA) has slammed Sainsbury’s and Asda’s attempt to salvage their merger following competition regulators’ intention to block the deal as it stands. The multiples promised to sell
up to 150 supermarkets, 38 petrol stations and an undisclosed number of convenience stores last week. Sainsbury’s pledged to cap fuel gross profit to 3.5p per litre and to lower supermarket prices by £1bn by 2022.
Co-op increases festival pop-up locations CO-OP has boosted its music festival coverage with a partnership with Glastonbury. Alasdair Fowle, Co-op lead partnerships manager, announced the company was doubling the number of 7,000sq ft pop-up shops it runs this year to eight. The activity also includes the Belladrum in Inverness, Download in Leicestershire, Latitude in Suffolk, Reading & Leeds, Isle of Wight and Creamfields in Cheshire.
The stores feature 220 lines, 18 tills and 24-hour staffing, with employees on the project expected to work 55.5 hours per week.
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9-22 APRIL 2019 betterRetailing.com
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Imperial Tobacco repositions Embassy as value-for-money PRIYANKA JETHWA IMPERIAL Tobacco has repositioned Embassy as a valuefor-money product to meet the needs of shoppers seeking cheaper tobacco. Embassy will be available to retailers in King Size 20s with an RRP of £9.35, in Red and Bright Blue varieties. Embassy Filter’s RRP will stay the same at £11.95. The move comes two months after the manufacturer increased the price of its 20s cigarettes, including Lambert & Butler, JPS and Embassy, by 35p. Across its rolling tobacco brands such as Golden Vir-
ginia and Drum, 30g packets increased by 50p and 50g packets by 80p. Tom Gully, brand planning manager at Imperial, said: “Crucially, this repositioning doesn’t involve any changes to the packaging or the cigarette itself. However, the competitive new price will appeal to smokers seeking premium quality at an affordable price.” Looking at the wider tobacco market, there has been a noticeable shift toward valuefor-money brands, with JTI and Imperial releasing new value lines. In June 2018, Imperial launched JPS Players Superk-
Roar with Budweiser and the Lionesses BUDWEISER Brewing Group, formally known as AB InBev, has announced its sponsorship as the Of�icial Partner and the Of�icial Beer of the England Women’s Football Team. The partnership aims to help drive change in women’s football – breaking down social barriers and perceptions, and promote the women’s game by building pro�ile and visibility for the Lionesses.
It forms part of Budweiser’s wider support for England Football, with Bud Light being the of�icial partner of the England Senior Men’s Team, and Budweiser being the of�icial beer of Wembley Stadium. Paula Lindenberg, president at Budweiser Brewing Group, said: “Football is more than just a game – it’s a huge part of our culture, and one of the best ways to bring people together.”
ings Crushball and L&B Blue Superkings Ice Crushball, both with an RRP of £8. Last month, JTI also
launched a value-for-money e-liquid range under its Logic brand, Epiq, with an RRP of £2.50 per liquid.
Better block baking with Vitalite WITH dairy-free spreads growing at 16% in volume year on year, Dairy Crest has launched new Vitalite Baking Block for shoppers looking for baking ingredients that match dietary requirements. Vitalite Baking Block 250g is designed to achieve lighter bakes and more workable biscuit doughs. People opting to bake without using dairy has more than doubled since 2015, and the supplier says the launch aims to appeal to consumers with a dairy intolerance who are not currently buying into the home baking category, alongside the increasing number of those adopting free-from diets as a lifestyle choice. Neil Stewart, the compa-
ny’s marketing manager for spreads, said: “Dairy Crest’s Vitalite brand is valued at £9m and growing in volume by 55% year on year.”
Ditch the hay fever and New multipack ‘spray hello to summer’ format for Fentimans PERRIGO’S is hyping up its hay fever nasal spray range in the run-up to summer with a £1.7m campaign for its brands Becodefence and Beconase. The ‘Spray hello to summer’ campaign focuses on helping those who suffer from hay fever ‘reclaim their summer’. It includes TV and outdoor advertising. Laure de Brauer, head of marketing at Perrigo, said: “Hay fever is a growing health concern in the UK, affecting one in four, yet only 34% of sufferers defend against the symptoms. “The range provides localised hay fever defence at the �irst sign of symptoms,” she added.
Beco will also partner with the Met Of�ice for the second year running, advising to hay fever sufferers from its website and social media.
WITH demand for premium mixers showing no sign of slowing, Fentimans is rolling out a multipack format across its range. The 8x150ml cans will be available in six �lavours, including Premium Indian Tonic Water, Naturally Light Tonic Water, Valencian Orange, Pink Grapefruit, Pink Rhubarb Tonic Water and Elder�lower Tonic Water.
The launch will be supported by a digital campaign. Andrew Jackson, marketing director at Fentimans, said: “The continued rise of premium spirits shows no sign of abating. The introduction of Fentimans in a 150ml can fridge pack adds an element of convenience while adding value to the premium mixers category.”
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Myblu goes for gold with Golden Tobacco flavour PRIYANKA JETHWA BLU is expanding its �lavour range with the launch of a Golden Tobacco �lavour for its pod-mod device, Myblu. The �lavour will be rolled out in stores in the coming weeks, available in Myblu core and Intense Liquidpod varieties, which feature nic salts. Nic salts are designed to more closely replicate the sensation of smoking a cigarette. Myblu Liquidpods and Intense Liquidpods both have an RRP of £5.99 for a pack of two 1.5ml liquids. Chris Street, head of trade marketing at Blu, explained:
“Retailers should make sure they’re stocking a strong range of liquids to ensure they’re well equipped to capitalise on the lucrative sales on offer through this fast-growing category.” Myblu Intense Liquidpods are available in six �lavours including Golden Tobacco, Tobacco, Menthol, Strawberry, Mint and Blueberry. Myblu standard Liquidpods are available in 0%, 0.8% and 1.6% nicotine strengths, in Golden Tobacco, Green Apple, Mango Apricot, Cherry Crush, Eucalyptus Lemon, Ginseng Ginger, Café Latte and Bourbon Caramel �lavours.
A new premium design Fruity flavours to for Buxton bottles mix up your offer NESTLÉ Waters has refreshed the packaging of its Buxton brand to appeal to shoppers looking to trade up in the water category. The bottled water category is currently growing by 4.7% in the convenience channel, and the package redesign aims to help retailers grow sales even further. The updated branding will be promoted by PoS, including a stand that contains 15 Buxton Still 75cl bottles. Severine Hemms, shopper marketing manager at Nestlé Waters, said: “The bottled water category was valued at £367m last year, with 306 million litres sold within the convenience channel. We are con�ident that the Buxton
brand refresh, together with the launch of the new stand, will help retailers to put water front of mind for shoppers so that they never miss a sale.”
PEPSICO is expanding its Quaker Oats range with two new �lavours: Vanilla & Blueberry and Almond Butter & Pomegranate. The new �lavours will be available in multipacks containing 10 sachets at an RRP of £2.45. Stephanie Okell, senior marketing manager at PepsiCo, said: “Our trends research identi�ied two �lavours, Vanilla & Blueberry and Almond Butter & Pomegranate, which haven’t been seen before within the cereal aisle. “We know through research that shoppers felt excited by the �lavours and indicated they would be likely to buy them.”
Seabrook goes retro with pickled onion
Bold package redesign for Lucozade Energy
SEABROOK Crisps is bringing back its Pickled Onion �lavour, a variety it discontinued several years ago. The �lavour will join Seabrook Crisps’ Crinkle range, which includes Sea Salted, Sea Salt & Vinegar, Cheese & Onion, Cream Cheese & Chive, Beefy, Prawn Cocktail, Canadian Ham and Lamb & Mint. Jon Wood, commercial director at Seabrook Crisps, said: “We’re noticing a trend in popularity of retro �lavours and Pickled Onion is one of the most requested �lavours to be brought back, so we’re delighted it will be hitting the shelves again.”
LUCOZADE Energy is refreshing its pack design across its �lavours range. Bridget Hirst, brand manager for Lucozade Energy, said the �lavours range is growing 32.7% year on year, now worth more than £47m, and the new packaging aims to drive further interest. Within this, Lucozade Energy Cherry is growing by 106%. “Consumers like the refreshed Lucozade Energy packs. This, alongside the £12m value growth on the range in the past year, demonstrates consumer demand and growth opportunity,” she added. The Energy range comprises Caribbean Crush, Wild Cherry, Brazilian, Pink Lemonade and Apple Blast �lavours.
the stat
£47m The current value of the Lucozade Energy flavours range
logicvapes.co.uk
Nick Geens, Head of Reduced Risk Products at JTI, says: ‘Vapril’ presents retailers with a significant opportunity to capitalise on the growing vaping category. To maximise sales during this key period, retailers should ensure they: • Stock a consistent range of vaping products • Train their staff to speak confidently about the products on offer • Display products prominently in store • Keep their display clear and tidy • Invest in a countertop Logic vaping display
9-22 APRIL 2019 betterRetailing.com
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A new nutty bite-sized concoction for Fridge Raiders’ Combos brand PRIYANKA JETHWA KERRY Foods has launched new Fridge Raiders Cheese & Nut Combos, containing bite-sized cheese pieces combined with a variety of savoury foods such as nuts and crunchy corn. Available in single 40g and 3x40g packs, RRP £1 and £2.50 respectively, the launch will be supported by a £1.5m campaign, including TV, video on demand and digital advertising. The new snacks are available in Sea Salt & Pepper and Honey BBQ �lavours, containing up to 10g of protein
and less than 170 calories per pack. Matthew Paterson, brand manager for Fridge Raiders at Kerry Foods, said the format is designed so the snack can be eaten on the go, as it has a dual compartment. Nuts are a snack with broad appeal, as 75% of consumers eat them at least once a week. The category is also worth almost £490m, growing at 4% year on year, meaning there is big room for retailers to capitalise. “We’ve seen similar-style snacks becoming popular in the US market, with brands such as Balanced Breaks by
Sargenta constantly growing, so we’re con�ident this trend will translate to the UK market,” Paterson added.
the stat
75%
The percentage of consumers buying nuts at least once a week
Dairy-free with Unilever Shoot hoops with and Breyers ice cream Nestlé Randoms UNILEVER is expanding its Breyers range with a new dairy-free variety, Breyers Dairy-Free Chocolate & Hazelnut. The launch will be supported by a £3m media investment, spanning TV, social media and video on demand. Noel Clarke, vice president for refreshments at Unilever, explained the lowercalorie segment is growing fast in retail, and Breyers is one of Unilever’s most successful ice cream launches in the past �ive years. “We’re introducing a new vegan �lavour to open up the brand to consumers who practise a dairy-free diet.” In addition to this, Unilever is also introducing Breyers
Mono Portions in two �lavours, Salted Caramel Cake and Cookies & Cream, in a 100ml format containing less than 80 calories each.
NESTLE Confectionery has added two new sharing bags to its Rowntree’s range, Randoms Sours and Squish’ems. The 140g sharing bags have an RRP of £1.29, and tap into the growing sour sweets market, which is worth £66m, accounting for 9% of the total fruit sugar market. The new range includes new shapes such as a hashtag, a unicorn and a �lamingo. The green sweets, currently lime-�lavoured, will now be apple-�lavoured. A media campaign will also support the launch, spanning outdoor advertising, social media and digital. Hannah Smithson, assistant brand manager for Rowntree’s at Nestlé Confectionery,
said: “We’re also rolling out a major rebrand for Rowntree’s that covers its full range of sugar sweets, including Fruit Pastilles, Fruit Gums, Jelly Tots and Randoms. The rebrand introduces brighter colours and more prominent branding across packs, while the Rowntree’s logo has a modern look.”
Campo Viejo Reserva The biggest TV spend Art gets its groove on in frozen pizza history PERNOD Ricard has brought Series have seen a 30% uplift in together street artists and sales, so we have high hopes for the public to co-create a this year,” he added. label for the brand’s latest Reserva Art Series for its Campo Viejo brand. The Campo Viejo Reserva Art Series Limited Edition 2014 bottle will be available from this month to independent retailers, with an RRP of £12.95. Toni Ingram, head of marketing at Pernod the stat Ricard, said Campo Viejo is the biggest Spanish brand on the market, accounting for 15.8% of Spanish wine Spanish wine’s value in sales and contributthe UK wine category ing £99m to the UK wine category. “Previous Reserva Art
£99m
GOODFELLA’S is returning to screens with a new marketing campaign and brand refresh under the tagline ‘Made with respect’. As part of a £4.2m campaign – the brand’s biggest to date – with activity planned for a minimum of three years, Goodfella’s is introducing a new character, ‘The Godmother’, who will play the part of the ‘pizza quality controller’. The 30-second advert will be the highest TV spend of any frozen pizza brand in the past �ive years, and marketing spend is only likely to increase next year. Across its core range, Goodfella’s is also reformulating its recipe with more added cheese and a new-look base. This will be communicated to shoppers
through a new and improved packaging design. The brand is also launching a vegan Spicy Vegetable Salsa Pizza, which will contain vegan cheese. Unlike its vegan Stonebaked Falafel Pizza, which was launched into the multiples last year, this will be made available to independents with an RRP of £2.50.
W E N E H T k Stoc
N U S I R P CA
CHERRY
CAPRI-SUN IS THE 1 NO.1 JUICE BRAND IN GB TAP INTO THE OUR IN FASTEST-GROWING FLAV 2 ORY THE SOFT DRINKS CATEG NO PRESERVATIVES OR D IS ARTIFICIAL FLAVOURS AN T SOFT DRINK TAX-EXEMP URING 330ML RANGE NOW FEAT A NEW SAFETY CAP AND G SHELF-READY-PACKAGIN
To find out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000 CAPRI-SUN© and the Pouch Shape™ are trade marks of Capri-Sun group. Souces: 1. Nielsen Answers Total Juice Drinks Volume MAT to w/e 01.12.18 excluding pure juice. 2. MAT w/e 20.10.18 Nielsen Total GB NRTD Value Sales, Flavours with Cherry.
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PRODUCTS A twisted treat to get tongues tingling LOVE it or hate it, Unilever has launched new Marmite Peanut Butter, a blend of the two favourite spreads. With an RRP of £2.50 for a 255g jar, the launch will be supported by a social media campaign. Camilla Williamson, brand manager for Marmite and Bovril at Unilever, said: “To create stand out on-shelf, the new combo echoes Marmite branding with a yellow lid and recognisable colours, while the jar mirrors that of other peanut butter products. “As with the rest of the Marmite range, the product is rich in B vitamins, suitable for vegetarians and has no added sugar or palm oil.”
PRIYANKA JETHWA
ACCOLADE Wines has launched 30 limited-edition labels across its top four still wine varieties, Chardonnay, Merlot, White Zinfandel and Pinot Grigio. The new labels will feature taglines such as ‘It’s your birthday!’, ‘Fri-Yay’, ‘I love you’ and ‘Movie Night’. All the bottles in the range have an RRP of £6. The launch will be supported in-store with PoS, including barkers, trolley bays and shelf wobblers. David White, marketing director at Accolade Wines, said: “Women are the target audience, and they tend to identify with the fun and positive brand messaging of Echo Falls, which is all about enjoyment.”
Grow rum sales with Dead Man’s new look HALEWOOD Wines & Spirits has redesigned its premium rum brand, Dead Man’s Fingers. The new bottle shape is taller and features a side indentation with embossing, making it easier to pour and hold. The new design will roll out across the brand’s range of rums, including Spiced, Coffee and Coconut �lavours. Bottled at 37.5% ABV, they all are available in a 70cl format with an RRP of £22. Lucy Cottrell, brand manager for Dead Man’s Fingers at Halewood Wines & Spirits, said: “Packaging is an important consideration for millennials and hugely in�luential in their purchasing decision. “Our branding has already enabled us to rise above some
Coca-Cola takes its first step into the energy drinks market COCA-COLA will move into the energy drinks market for the �irst time with the launch of Coca-Cola Energy at the end of next month. The drink tastes like CocaCola, but also includes caffeine from naturally derived sources, and B vitamins. Coca-Cola European Part-
New labels to drive wine impulse purchases
of our largest competitors and our new bottle intends to take this one step further.”
9-22 APRIL 2019 betterRetailing.com
ners (CCEP) said the 250ml cans will come in two varieties, one with sugar and one without, and the launch will be supported by a marketing campaign. When asked why the supplier decided to launch CocaCola Energy just a few months after Monster Espresso, Amy Burgess, senior trade communications manager at CCEP,
said: “We constantly look to expand and diversify our range of products, offering consumers more choice for more drinking occasions. “We recommend that retailers pick the products that are being well supported by manufacturers.” CCEP said it expects CocaCola Energy to be priced among premium energy brands.
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DON’T MISS THE 19 APRIL ISSUE OF RN
THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LEA RS DING RETAILE TITLE IENCE FOR NE NVEN WS AN AND CO D CONV ENIEN CE
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Independents nine times more likely than multiples to fall short on inspections
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Ralph Patel, The Look In, Surrey
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Major suppliers have tried brand extensions, but they haven’t always worked
First of four make Irish retaile
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“The major suppliers have tried brand extensions before, but these haven’t always worked; the likes of Red Bull Organics or Coca-Cola Life weren’t strong sellers for us. If Coca-Cola can price competitively against Boost or Red Bull, they might stand a chance, but customers are brand loyal.”
Jon Woods, general manager, Coca-Cola GB and Ireland
Raaj Chandarana, Tara’s Londis, High Wycombe
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“High hygiene ratings are key in stores selling food to go. The number of stores I run is increasing, meaning there’s more need for checks than ever. I can fully understand why multiple c-stores would have better hygiene ratings as it’s easier to keep track of.”
CO-OP: Will retailers benefit from an extra 1,000 own-label products?
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“Hygiene ratings need to be regulated often to ensure all convenience stores offer the best standards. Most retailers follow all the hygiene rules, but it only takes one to fail and give us all a bad name. I make sure that the �loors are kept spotless and the fridges are kept cool.”
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“Our strategy is to offer people a wide range of drinks to meet different lifestyles and occasions, and Coca-Cola Energy is the latest example of that. We’re launching Coca-Cola Energy with and without sugar, and we’ll continue to expand and diversify our range of products to offer a wider choice of drinks.”
FREE cut-out-and-keep glossary of key vaping terms, plus tips and strategies to grow your profits
RETAIL NEWS THAT MATTERS
take gs to Family 10 thin thrivingDAY Page 14 » aq’s Razz RETAIL STUDY
FOOD STANDARDS: How important is a good food hygiene rating?
COCA-COLA ENERGY: Will this drink generate large sales?
Make bigger wine profits with our trend-by-trend guide to the category
from ningest Mo Learth e baway from per Shop
LEADING INDUSTRY OPINION ON THIS FORTNIGHT’S HOT TOPICS
What do you think? Get in touch for the chance to be featured in Retail Express
It only takes one to fail and give us all a bad name
How to become a destination for American drinks and confectionery PLUS
WS FOR NE TITLE DING THE LEA
OPINION
“The success of the initial rollout of 850 Co-op products has given the multiples the con�idence further products can do well in Nisa and Costcutter stores. However, with both symbol groups receiving the same lines, the key is how the terms will differ for retailers under either fascia.”
“We’ll get a more complete own-label offer now and we’re receiving the products category by category. The previous rollout has resulted in strong sales and I’m con�ident we’ll see similar results here. The new products will tell us if we have to focus more on own label and delist products from major brands.”
Alex Yau, symbol and wholesale reporter, Newtrade
Jack Matthews, Bradley’s Supermarket, Quorn, Leicestershire
The products will tell us if we have to focus more on own label and delist major brands
SUGAR TAX: One year on, what impact has it had on soft drinks sales?
Customers will still buy the products because they prefer the taste
“Customers were asking initially why prices had increased, but I’ve not seen any major impact to my soft drinks sales. I’m still selling as much full-sugar CocaCola. Customers will still buy the products because they’re used to it and they prefer the taste over low-sugar options.”
“We’ve seen an increase in soft drinks sales, particularly on diet products, because our number of facings has increased. The sales of full-sugar drinks hasn’t decreased. Customers aren’t phased by the increase because they like the taste and aren’t bothered about paying extra.”
Shabaz Ali, Best-one, Falkirk
Aman Uppal, One Stop Mount Nod, Coventry
LETTERS
9-22 APRIL 2019 betterRetailing.com
15
Londis Solo
natalie Convenience, lightfoot Baillieston, Glasgow
Letters may be edited
Setting aside time to find material for social media has really helped us stand out from the crowd
‘Suddenly I’ve started having problems with Menzies’ I’VE been an independent retailer for the past 40 years and have had no major issues with my newspaper deliveries until January this year. My regular newspaper delivery slot from Menzies is usually 5am, but I’ve been getting late deliveries between 6am and 7am.
Customers have been complaining, but my worst instances have been one Saturday in February and one Sunday in March. I had no deliveries at all on those days. The issues are ongoing and I’ve been �ighting since they started. I’ve emailed and called Menzies to �ind out
what the problem was and to get a resolution, but I’ve haven’t got anywhere. Not only have I lost potential sales because I’ve either had late deliveries or no deliveries at all, but I’ve had to pay my staff extra. I’ve also had to pay my paperboys an extra hour of pay on those days because I wasn’t sure
when the newspapers would actually arrive. Pawan Kumar, Beers and Wines, Ben�leet, Essex A Menzies spokeswoman said: “Menzies has been working with Mr Kumar to address his concerns and has given him details for the restitution process to compensate him for lost sales.” Tweet us to get featured!
TWEETS OF
THE WEEK
WIN £50-worth of Lucozade Energy stock
LUCOZADE Energy is celebrating the launch of its pack refresh by offering Retail Express readers the chance to win £50-worth of stock. Five lucky readers will be selected from all entrants. The eye-catching new packaging is now live on Caribbean Crush, Wild Cherry, Brazilian Mango & Mandarin, Pink Lemonade and Apple Blast. The Lucozade Energy range is currently worth more than £47m* and these flavours are a key sales driver for new shoppers. * EXT, IRI, MarketPlace GB, latest 52-week data ending 27.01.19
TO ENTER Fill in your details at:
betterRetailing.com/Retail-Express/competitions Our competitions remain online for four weeks from publication date. Editor’s decision is final.
@retailexpress
Today I was on the first of 12 #IAA19 #AcademyinAction visits to help retailers find easy ways to improve sales.Today with Loren from @LRSuntory and @Priyanka_NT we looked at #customermarketing in Amit’s @wesaynisa near Cambridge – excited to see the results! #alwaysimproving @samanthagunston
BUSINESS has changed in the past few months, as an increased focus on social media; the closure of a newsagent, deli and another local shop; a mini refit; and a new local cake supplier has taken my weekly sales to an average of 47% above what they were this time last year. One of the biggest drivers for the increase has been social media, Each issue, one of seven top allowing us to reach retailers shares advice to customers who had make your store magnificent never previously set foot in the shop. It started in December when we hosted a ballot to win last-minute tickets to the Christmas lights switch-on and it received 1,400 comments, which converted into people from all over Glasgow coming in to purchase Christmas gift hampers. For many, it was their first experience in store with us – an important step in winning new long-term customers. More recently, the release of a new flavour of MD 20/20 pre-mix wine led to newsagents battling to get the stock off the pallet at United Cash and Carry – the stock we managed to get hold of sold out almost instantly, like everywhere else. I went online and found an American flavour not available in the UK, I shared it on Facebook jokingly calling on our audience to put pressure on the wholesaler to stock it and it was seen by more than 281,000 people. The wholesaler said it was going to talk with the supplier about getting a reformulated version for the UK, but the real win is the traffic we’ve had in store ever since. It has brought people in to look at what we offer, and though they may not find the new flavours in stock yet, this has converted into good basket spends from customers that have said they hadn’t visited us previously, despite living close by. Social media has always been part of my role, but the success of these posts has made me make sure that I put time aside every day to find good material that our customers will enjoy and to schedule it in. One of the changes I’ve noticed is how many customers now know me by name despite me never having told them, and that’s through interaction online. I use a picture of me rather than the shop as the store’s Facebook page image, and we also post the odd introductory message to help customers get to know us. It’s important because it’s the owners of independent shops that people choose to visit, not just the store. It’s another way we all stand out from the multiples.
The Usdaw delegation at @the_TUC Midlands Region Conference did great work promoting the #SaveOurShops and #Time4BetterPay campaigns.Thanks to @Rory_Palmer MEP and TUC General Secretary @FrancesOGrady for your support! @UsdawUnion Jenny Alleyne, Head of Retail Risk, and Jayne Crowe, Security and Investigations Manager, discuss the Co-op’s investment in security measures to protect colleagues, including the use of staff headsets #ACSCrimeReport @ACS_LocalShops
Get in touch
@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379
CATEGORY ADVICE SOFT DRINKS: SUGAR TAX
16
WINNING IN A SUGAR TAX MARKET
the stat
10.7%
One year on from the introduction of the Soft Drinks Industry Levy (SDIL), PRIYANKA JETHWA reveals what we have learned and how you can keep sales strong
FIVE WAYS TO BOOST YOUR SALES 01
02 03
04 05
9-22 APRIL 2019 betterRetailing.com
The share of diet drinks in the sports and energy category
HOW TO MERCHANDISE YOUR SOFT DRINKS CHILLER
Stock low-calorie options. Diet is now worth £143m, which equates to 10.7% of the sports and energy category, increasing by 18.2% from 2017. While Red Bull Original 250ml is the leading variety for the supplier, by offering a low-calorie alternative, like Red Bull Sugarfree 250ml, and an alternative flavour, like Red Bull Tropical 250ml, retailers can offer shoppers more options. Pass on the levy. Retailers can maintain their margins by passing on the levy to their customers. This is the strategy adopted by the majority of supermarkets and retailers, so you are unlikely to be at a competitive disadvantage by increasing your prices.
Cola
Invest in milk drinks. Milk drinks are exempt from the soft drinks levy, so they can help retailers offer cheaper alternatives. James Logan, commercial director at Refresco, says, to capitalise, it has added two new milk-based protein drinks to its Emerge range, aimed at health-conscious consumers. “Refresco is also taking part in a national sampling campaign at events throughout summer to help raise awareness of the drinks and drive traffic through money-off vouchers redeemable in independent stores.”
Flavoured carbonates
Don’t be afraid of experimenting with exotic flavours. Fifty-five per cent of shoppers say it is important their local retailer stocks interesting or unique products, and 17% say they would be more likely to shop at stores with a larger choice of ‘interesting’ products, such as world foods and drinks.
Juice drinks
Focus on energy drinks. Energy drinks are growing in volume by 4% and in value by 9%, and within this, the leading formats are 500ml single cans. These made up 37% of category sales by value in the last year. Original flavours make up 70% of the market share by value and grew by 5% in the last year. The remaining 30% is made up of consumers switching between new flavour combinations.
Kids’ drinks
Sports & energy
Water
Sugar or no Sugar? Consumers want choice. Are you stocking up on the number one?
WINGS WITH SUGAR
1
NO.
Red Bull Energy 250ml is the number one single serve soft drink, worth £137.5m and growing +2.7%
WINGS WITHOUT SUGAR
1
NO.
With the heightened importance placed on the health agenda over the past year and the sugar levy in place, consumers are swaying more towards healthier options. As the UK’s number one low kcal functional energy brand, Red Bull has expanded its sugarfree range to support retailers following the sugar tax.
No.1 Diet Energy
Retailers should think about stocking a range of sugarfree options alongside their core range to ensure they are giving consumers choice. The extension of Red Bull’s Sugarfree range will ensure shoppers can choose a sugarfree alternative for every Red Bull pack. Whether it’s Red Bull’s top performing 250ml can – which remains the bestseller – or a Red Bull Edition 250ml, shoppers can reach for their favourite sku and expect to see the sugarfree option sitting right beside it.
44% Shoppers are purchasing 44% more low kcal functional energy big cans than last year...
Retailers should stock the sugarfree range side-by-side in all three sizes to offer shoppers what they demand. Work with your Red Bull representative to help maximise your soft drink sales, or visit www.redbull.com
…and 28% more low kcal functional energy flavours.
SOURCE: IRI – VALUE 52WK vs YA – RED BULL 250ML ENERGY DRINK SINGLE. TOTAL COVERAGE – DATA TO WE 20.01.2018 / IRI VALUE SALES TOTAL FUNC. DIET BIG CANS TOTAL COVERAGE | DATA 52 W/E 21.10.17
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PUT A NEW
BERRY TWIST ON YOUR SALES
* Nielsen Total MAT Value GB 15/12/18 ** Weekly Nielsen Data MAT w/e 29.09.2018 Š2019 The Coca-Cola Company. Coca-Cola, Coca-Cola Zero and Diet Coke are registered trademarks of The Coca-Cola Company. All rights reserved.
Tap into growing consumer demand for light cola flavours, currently worth almost ÂŁ190m with 25% value growth* Diet Coke remains the no.1 sugar free cola** Coca-Cola zero sugar is the fastest growing major cola brand in GB** Supported by a multi-million pound marketing campaign
To find out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000
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21/03/2019 10:00
9-22 APRIL 2019 betterRetailing.com
19 23
NEW TO GREAT BRITAIN!
WHAT TO ADD ONTO THE PRICE TO MAINTAIN YOUR MARGIN Legislation breakdown Any soft drinks that contain more than 5g of sugar per 100ml in ready-todrink or diluted squash form are subject to SDIL. The levy has two levels: Low rate: Drinks containing 5-8g of sugar per 100ml are taxed at 18p per litre High rate: Drinks containing more than 8g of sugar per 100ml will be taxed at 24p per litre
£0.05 Mid rate
£0.07 High rate
200ml bottle
£0.38 Mid rate
£0.50 High rate
1.75l bottle
£0.07 Mid rate
£0.10 High rate
330ml can
£0.43 Mid rate
£0.58 High rate
2l bottle
£0.11 Mid rate
£0.14 High rate
500ml bottle
£0.71 Mid rate
£0.95 High rate
10x330ml multipack *IRI Marketplace Data Symbols & Independents 52 weeks unit sales to 30th Dec 2018
IT’S ANYTHING BUT AVERAGE
#IAA19
ASSESS. COMPARE. IMPROVE. Taking part in the Independent Achievers Academy enables retailers to focus on key disciplines that help them evolve. In this series, we talk to various UK retailers about the value they get from benchmarking their shops. Here’s a behind-the-scenes discussion: Introducing Amrit. Located in Walsall, he owns and operates Nisa Local High Heath, a 2,500sq ft independent store. Independent Achievers Academy: Why did you benchmark your shop with the IAA? Amrit Singh: It makes me view my shop as a customer would, out of the zone of the retailer. We rarely get the time to do that, but it really makes you think differently. IAA: What have you changed in your business as a result of benchmarking? AS: I’ve concentrated on my staff development and on improving my procedures. Also, from meeting and talking to other participating retailers, I’ve learned a lot about merchandising my stock. IAA: What would you say about the IAA to other retailers? AS: It’s 100% worth doing. The more people that get on board, the better it becomes. Retailing can be lonely, but to be in a network of likeminded retailers raises everybody’s standards.
Be part of a growth-focused network. Benchmark your shop now and reap the rewards. betterRetailing.com/iaa/benchmark
CATEGORY ADVICE SOFT DRINKS: SUGAR TAX RETAILER
VIEW
Soban Shanmuganathan, Burgess Stores, Godhurst, Kent “WE’VE definitely seen a massive pick up in sales of sugar-free soft drinks. A few years ago, Sprite Zero and Coca-Cola Zero wouldn’t move: now we know it’s selling and don’t need to worry about making sure it’s in date on the shelf. However, I’d be hesitant about putting that shift down to the sugar tax rather than broader trends towards healthier consumption. If I look at energy drinks, Red Bull Sugarfree is one of our slowest lines – we’ll go through one case a week – while, in comparison, we’ll go through six and a half cases of standard Red Bull.”
launches & promos Yazoo has replaced its Choc Mint with limitededition Yazoo Choc Caramel flavour. Robinsons Refresh’d is currently available in Raspberry & Apple, Orange & Lime and Apple & Kiwi flavours. Lucozade Zero is growing at 39% year on year, illustrating the popularity and importance of zero-sugar soft drink options. Diet Coke Twisted Strawberry and Coca-Cola Zero Sugar Raspberry aim to help retailers maximise on the popularity of flavoured cola, a segment worth almost £190m and growing at 25% in value. Monster Energy Ultra Blue will be available in a 500ml can, in a plain pack and a £1.25 price-marked pack. Rubicon Still Fruit Drinks range has been relaunched, with the regular variety having been reformulated to be levy-free. Fanta Grape Zero is available now in a 330ml can, 500ml bottle, 4x330ml can multipack and 2l sharing bottle. Monster Espresso will be available in two flavours, Espresso & Milk and Vanilla Espresso, in 250ml cans, designed for shoppers looking for a cold coffee with similar caffeine content as a hot coffee. Launched in February, Red Bull Coconut & Berry is available in £1.29 price-marked packs.
9-22 APRIL 2019 betterRetailing.com
21
CATEGORY ADVICE BISCUITS & CAKES
22
HAVE YOUR CAKE AND EAT IT Cakes and biscuits can be a powerful profit-driving category when done well. TOBY HILL lists eight tips for success
THE 01 STOCK BESTSELLERS THE top of the biscuit category is dominated by McVitie’s, with five of the top 10 products belonging to the brand. But while most retailers stock the bestselling McVitie’s products, there are some currently high-selling biscuit products that many retailers are neglecting to put on the shelf. According to RN magazine’s What to Stock, 45% of retailers don’t stock McVitie’s Dark Chocolate Digestives, for example. With the average store stocking the product drawing in annual sales of £185, this means the convenience sector as a whole is missing out on a potential £2.8m revenue a year due to stores deciding not to stock it.
IN ON 03 CASH OWN BRAND CUSTOMERS are always looking for good value – but experts say their trust in unbranded products has been boosted by the success of discounters such as Lidl and Aldi, which trade predominantly in own-brand goods. Retailer Anish Parekh, of Londis Broadoak and Post Office in Ashton-under-Lyne, Greater Manchester, thinks improvements in presentation have also boosted own brands’ popularity. “Booker has improved the packaging on Happy Shopper and I think it’s more appealing to customers now,” he says. “Value brands have done a good job recently of being cheap without looking cheap.”
04 HEALTHIER BISCUITS WITH 85% of consumers saying they are trying to improve their diet, cakes and biscuits suppliers are looking for ways to innovate and meet this growing demand. Mondelez, for example, reformulated its recipes for Ritz Original and Ritz Cheese crackers, reducing saturated fat levels by 70% and 50%, respectively. It has also continued to push its healthier breakfast biscuit options, such as BelVita Breakfast. On Mondelez’s Delicious Display retailer website, store owners can find downloadable PoS to attach to coffee machines, providing straightforward cross-category merchandising.
02 BECOME FAMOUS WHEN trained baker Broderick Rigg joined his wife’s Skircoat Green Post Office in Halifax, West Yorkshire, he brought his expertise with him. By drawing on old friendships and sourcing products from two local bakeries, the team made their store famous for baked treats. At the centre of their range is his strawberry tarts. “We can sell upwards of 50 a day. The bakery makes up more than 40% of our store turnover, excluding the post office, and delivers margins of up to 50%,” he explains.
Read more from Broderick’s store at betterRetailing.com/ skircoat-post-office
9-22 APRIL 2019 betterRetailing.com
07 GREAT DISPLAYS SMALL changes can make a big difference in the biscuit category, explains Duhra. “Positioning is key,” she says. “I place mine next to the tea bags and coffee.” These are distress purchases that people will come in specifically to buy, so if biscuits catch their eye at the same time, they’ll often pick up a packet. “I also place my biscuits opposite the cakes, another product that people might buy with hot drinks,” Duhra adds. In Parekh’s store, he has set up a £1 price-marked bay, with snacks, drinks and chocolates. “I have Penguin, Club and Wagon Wheels on there, in price-marked multipacks that represent good value and are supported by strong brand names,” he says.
08 LOGICAL LAYOUT THERE are three key merchandising principles that retailers should follow in the biscuits category. Susan Nash, trade communications manager at Mondelez, says: “Group by product type, block by brand and then by pack size.” She also recommends aligning space to share of sales in your store.
top ten Branded biscuits and cakes lines
BEST SELLERS
McVitie’s Milk Chocolate Digestives 266g
GRAB BAG
Oreo Cookies 154g McVitie’s Chocolate Hobnobs 262g McVitie’s Digestives 400g
No.1 Cookie brand** 5th largest brand in Sweet Biscuits** Bought by over 1 in 4 households*
Mcvitie’s Jaffa Cakes 122g McVitie’s Rich Tea 250g KitKat Two Finger Milk Chocolate Tunnock’s Teacakes 6x24g Maryland Chocolate Chip Cookies 125g/145g
In a nationwide poll, Jammie Dodgers was voted Britain’s 3rd favourite biscuit†
Jacob’s Cream Crackers 200g
Bought by 1 in 5 households* Sales over £19m RSV***
05 GO FRESH FRESHLY baked cakes and biscuits are a great way to boost basket spend as in-store bakery shoppers spend more than average shoppers. Aryzta trade marketing manager Mary Byrne says: “Our range of thaw-and-serve bakery products provide an easy solution for serving fresh bakery products.” Arytza provides a range of display units, including counter tops for entry-level stockists, as well as comprehensive instore training.
GREAT 06 MAINTAIN AVAILABILITY “PRICES for the main biscuit lines are reasonably similar across all shops,” says Julie Duhra, owner of Julie’s Premier in Telford, Shropshire. “This makes customer service more important than ever. I’m always well-stocked and make sure staff prioritise presentation and being polite. Get that right and people will come back.”
Sales now over £18m RSV growing +10% in volume sales YOY*** Low cross shop, stock both flavours to maximise sales
Available in PMP and non PMP
STOCK UP NOW! burtonsbiscuits.com *Kantar w/e 03.11.2018. **Nielsen w/e 03.11.2018. ***Nielsen Mults & Kantar Value w/e 03.11.2018. †Channel 5 - Dec 2017.
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PROFILE
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9-22 APRIL 2019 betterRetailing.com
RETAILER PROFILE DAVID WOODROW WOODROW’S NEWSAGENTS Location: Bishopton, Glasgow Staff: Four full-time HND customers: 400 Opening hours: Mon-Sat 6.30am-6pm, Sun 6.30am-1pm Trading since: 1979
‘LOYALTY IS REALLY IMPORTANT TO ME’ MEGAN HUMPHREY DAVID Woodrow, owner of Woodrow’s Newsagents Licensed Grocer in Glasgow, is proving that traditional retailing can still reap rewards in an evolving market. The store, based in Bishopton, has passed through three family generations – albeit with a few changes along the way. “I’m a rare beast,” claims David. “The shop used to exist just up the road, right next to the train station, and where we are now was just bricks and mortar. This came on the market in the mid-’80s and we have been located here ever since.” David quickly made the decision to install a post of�ice. “At the same time, I took the opportunity to refurbish the rest of the shop,” he says. “I repainted it and added some LED lighting.” Throughout his retailing career, news selling has always motivated David, but today’s market is putting this under threat. “From a newsagent’s point of view, I’m not getting a huge increase in sales like I used to,” explains David. “The same can be said for magazines, too
– the impulse ones seem to be dying away.” David blames the fall in sales on growing digital trends. “There are more than 4,000 new houses being built down the road,” he explains. “But I’m not hopeful that I’ll pick up any new subscriptions, because the houses will be equipped with everything needed to get news online.” However, David remains con�ident that his sub-retailing offering will help him stay ahead. “We have held our own, despite the challenges,” he explains. “We’ve always done subretailing – it could be classed as a footfall driver for us. We provide newspapers to a car garage, a garden centre and a hospital.” As well as this, David has up to 400 home news delivery customers. “I feel like this is
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substantial enough – in today’s market, it’s important for retailers to look for quick wins.” With this in mind, David is optimistic about the opportunities a new shopping centre could bring to his business. “There’s a new shopping centre being built just outside of the village,” he says. “Some see it as a negative in terms of taking away business, but I think it’s a positive. “To get to it, people will have to drive through the village, so there will be new passing
I WILL ALWAYS BE PASSIONATE ABOUT THE AVAILABILITY OF NEWSPAPERS
trade. If people realise you provide a good service, they’ll keep coming back.” It’s by staying true to his expertise that David has remained successful despite changing customer behaviours. “We’ve offered food to go since we started out,” he explains. “There is a limit to how much we can do, but we stick to selling our basic range, which includes local farm sausages and bacon in a roll, as well as soup in the winter.” David values his relationships with his customers and suppliers as being vital to the running of his store. “Loyalty is really important to me,” he explains. “I’m especially loyal to suppliers. It’s important to build up a strong relationship.” “The same mantra �ilters down to my customers,” he adds. “If a magazine isn’t available, we try our best to get it stocked. I will always be passionate about the availability of newspapers.”
out sub-retailing 1 Roll “We have always sub-retailed, and it’s a real footfall driver for us,” says David. He uses a van to deliver the newspapers and magazines that are requested by his customers. bottle returns 2 Back
David supports the implementation of a deposit return scheme. “I am considering how I would house a machine, as my store is quite small,” he explains. “It might mean rearranging the layout.”
To see more of David’s store, go to betterRetailing.com/ woodrows-newsagents
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David is hopeful that the opening of a new shopping centre will bring in new trade to the village. “People have to drive through our village to get to the centre – this is an opportunity,” he says.
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