Retail Express – 10 March 2020 by BetterRetailing

‘HELP US PROTECT ACCESS TO CASH’ Retailers applaud government plans to make banks foot the bill to unlock cashback service

10-23 MARCH 2020 STRICTLY FOR TRADE USERS ONLY

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RETAIL CRIME SUPPORT

‘THINK OUTSIDE THE BOX’

MENTHOL BAN

Crime minister Kit Malthouse backs Retail Express survey to secure grant funding

Professional chef urges retailers to invest in ‘long-life’ products in new BBC show

With two months to go, find out what you need to do in store and how you can prepare shoppers

P24-27

The sustainability issue: get ready, and get ahead

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CATEGORY ADVICE

Prepare for spring and summer with our in-depth guide to getting the most from soft drinks P10-17 CATEGORY ADVICE SOFT DRINKS

10-23 MARCH 2020 STRICTLY FOR TRADE USERS ONLY

REFRESHING IDEAS s market and reveal in the soft drinks at the biggest trends and grow their sales range TAMARA BIRCH looks can expand their ways that retailers

‘HELP US PROTECT ACCESS TO CASH’ GETTING IT RIGHT

new Of course, not every market is fly off the shelves THE soft drinks keeping trend will store, so you need worth £8.5bn, so and meet- in every balance between on top of trends is vital to find the ideas and reing customer needs from trying new risk for your busito making the most Working ducing a this opportunity. talking ness. Start by stocking with suppliers and get in- small amount of new lines to perforretailers their to other trends and monitor sight on the newest ahead mance closely, whether it’s you your EPoS data or early can help put . Whether through keeping an eye by of the competition sports and simply shelves. Put the it’s health trends, more sus- on your energy or being products in promia number latest so your tainable, there are your nent positions miss that boost can you can’t of ways to new customers range by responding you’re stocking them. shopper habits.

Retailers applaud government plans to unlock cashback service and make banks foot the bill

P3 RETAIL CRIME SUPPORT

‘THINK OUTSIDE THE BOX’

MENTHOL BAN

Crime minister Kit Malthouse backs Retail Express survey to secure grant funding

Professional chef urges retailers to invest in ‘long-life’ products in new BBC show

With two months to go, find out what you need to do in store and how you can prepare shoppers

P24-27

our say

Megan Humphrey, editor

We need the backing of MPs to make real change RECEIVING a letter from the Home Office last week was a well-needed reminder that independent retailers are being considered by those who have the power to make change. The letter, personally signed by the minister of state for crime, policing and the fire service, MP Kit Malthouse, pledged to consider Retail Express’ campaign for store grant funding to enable you to invest in better security. I’ve also been told to expect contact from Malthouse’s officials as they begin to draw up the findings from the government’s retail crime consultation, and I’ll find out how our survey can play a role in their future plans. In the same breath, I’m excited to reveal Scottish MP Daniel Johnson – the brains behind the Protection of Workers Bill – has also backed our campaign. Since its launch, I’ve made it my priority to nudge as many WE ARE ONE MPs as I can. I became even STEP CLOSER TO more determined to do this, however, after speaking to some REDUCING THE retailers who told me they had little confidence that MP discus- VIOLENCE FACED sions in Parliament would come BY SHOP STAFF to fruition. With that in mind, I hope the news of Malthouse’s letter goes some way towards proving to you that the government is considering your needs, and by securing its support we are one step closer to reducing the violence faced by shop workers every day. FOR MORE ON HOW TO TAKE PART IN THE RETAIL CRIME SURVEY, READ THIS FORTNIGHT’S BIGGEST STORY ON THIS PAGE @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 335 Features editor Daryl Worthington @DarylNewtrade 020 7689 3390 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief Louise Banham 020 7689 3353 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

Production coordinator Ashley Reid 020 7689 3368 Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389 Senior account manager Natalie Reed 020 7689 3372

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379 Reporter Alex Yau @AlexYau_ 020 7689 3358

The five biggest stories this fortnight 01

Retail Express crime survey gets government backing

MEGAN HUMPHREY MINISTER of state for crime, policing and the �ire service MP Kit Malthouse has agreed to consider Retail Express’ campaign for grant funding to enable retailers to better invest in store security. The campaign includes a survey asking retailers to outline

their own experiences with violence and how grant funding would improve their stores. In a signed letter, Malthouse said: “The call for evidence has now closed and we are carefully analysing the responses before deciding what further action may be required. “We intend to publish the government’s response in due course and I am grateful of your

offer of working with government on sharing the outcomes of your survey. I have asked my of�icials, as they draw together the conclusions from the consultation, to contact your of�ice to discuss your �indings.” According to the survey, the majority of respondents want to install a new CCTV system. However, on average they only have 26% of the money need-

To take part in the survey go to betterRetailing.com/ crime-survey

MP Kit Malthouse

Sanitiser sells out

INDEPENDENT retailers have onavirus in the UK is now expressed concern after not “highly likely”. However, retailers with rebeing able to buy hand sanitiser at their local wholesalers. maining stock have been offerThe news comes after Pub- ing sanitiser on their counters. One retailer said they had lic Health England (PHE) announced that a wide- sold 20 cases in less than spread transmission of cor- a week.

Horizon public inquiry

PRIME minister Boris Johnson has said he will be “getting to the bottom” of the Post Of�ice Horizon scandal through a public inquiry. When challenged by Labour MP Kate Osbourne during Prime Minister’s Questions in

Digital content editor Jody Porter 020 7689 3378 Account manager Adelice Tatham 020 7689 3366 Sales support executive Michela Marino 020 7689 3382 Managing director Parin Gohil 020 7689 3375 Management accountant Abigayle Sylvane 020 7689 3383

47,895

Tesco blocks rivals

RENEWED regulator concern around Tesco using banned restrictive property covenants could affect other industry players, experts have warned. The Competition and Markets Authority (CMA) slammed the supermarket for

using letting agreement terms to prevent independent- and multiple-owned convenience stores opening near more than 20 Tesco Express sites. The CMA’s Tesco probe began in 2018 after it investigated the Booker acquisition.

the House of Commons this month, Johnson said: “I am indeed aware of the scandal and the disasters that have befallen many Post Of�ice workers, and I am happy to commit to getting to the bottom of the matter.”

For the full story go to betterRetailing. com/post-officeinquiry

Image: @AtulSodha

ed themselves to pay for their next security investment. Home secretary Priti Patel last week pledged to investigate all crimes. Addressing the Association of Police and Crime Commissioners and National Police Chiefs’ Council Partnership, she said: “We need to investigate every type of crime with the rigour that people expect.”

Co-op axes Telegraph

CO-OP removed the Telegraph from sale in many of its stores last month, over an alleged commercial dispute over margins. A member of the convenience chain’s customer service team said they had re-

ceived numerous calls about the move and said stores “up and down the UK” were affected by the title being cut. Industry �igures said the Telegraph’s decision to slash retailer margins was to blame.

Audit Bureau of Circulations 1 July 2018 to 30 June 2019 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 Media Limited 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.

For the full story go to betterRetailing. com/coop-removestelegraph

@retailexpress facebook.com/betterRetailing

10-23 MARCH 2020 betterRetailing.com

chris.dillon@newtrade.co.uk 020 7689 3379

GOOD WEEK

Gov’t backs cashback service for indies ALEX YAU PLANS to encourage the public to use cashback services at independent shops have been welcomed by retailers as a way to boost vital community services. Chancellor Rishi Sunak is expected to unveil the plans in the Budget on 11 March as a way to tackle the nationwide ATM decline, with banks being forced to pay any additional costs to retailers. Hitesh Modi, of Londis BWS in Chesham, Buckinghamshire, has offered cash-

back since 2010. He told Retail Express: “It’s good because it can reduce banking charges. We’re becoming a cashless society, but I train staff to always ask if a customer wants cashback. “ATM closures make it harder for the elderly or the vulnerable to get cash. There’s also a danger – I heard about an elderly man nearby forced by a gang to draw cash out.” According to Link’s �inancial inclusion monthly report, more than 9,500 cash machines have closed in the past two years.

NFRN national president Stuart Reddish said: “Lack of access to cash is a concern for the NFRN, so we are pleased to hear that the government is looking at ways of encouraging retailers to offer a cashback service. “The key to all this will be in the detail that the chancellor announces on 11 March, and we will follow his speech with interest.” Further concern grew among retailers in February following the opening of a cashless Tesco store in Central London. ACS chief executive James

Lowman warned that a cashback service could create potential security risks. Jimmy Patel, of Premier Jimmy’s Store in Northampton, said: “Although card transactions make up the majority of my sales, there still is a need for cash with some of my older customers.”

COFFEE: Retailers are expected to see increased footfall as part of Costa Coffee’s ‘Free Coffee Day’ on 31 March. The promotion, which previously ran in October, offers customers free coffee from 8,500 Costa Coffee Express machines. Retailers will be provided with additional coffee and cups to help meet the demand, but have been advised to stock extra milk.

Speaking at last month’s Convenience Today, Convenience Tomorrow event in London, Central England Co-op chief executive Debbie Robinson said: “Younger generations are now cashless, so being able to be relevant is our big opportunity.”

McColl’s: How did the convenience chain perform in the financial year ending 24 November?

120

+3.7% Alcohol growth following estatewide review

Underperforming newsagents and smaller convenience stores closed

-1.8%

Total revenue decrease to £1.22bn

Stores trialled with home delivery partner Uber Eats

express yourself “Some Nisa retailers have received stock they can’t sell, but I’ve escaped this. I was getting products like the £1 Smarties Bar, which I sell a lot of. Some retailers have been given products such as Coca-Cola Energy at full cost, and there’s little demand for them in my store. Nisa has forced these products onto retailers, while some wholesalers are selling cases at reduced prices. Why is Nisa allocating these to dump bins when they’re not a promotion?” Amit Puntambekar, Nisa Ash’s Shop, Fenstanton

the column where you can make your voice heard

SAINSBURY’S: Symbol group Simply Fresh has opened its second shop as part of a wholesale trial with Sainsbury’s in Kenilworth, Warwickshire. The store, which follows the opening of the first store in north-west London, has 2,000 lines from the supermarket. The range includes own-label Taste the Difference and tertiary brands. Go to betterRetailing. com and search ‘simply fresh sainsbury’s’ for more information

BAD WEEK IQOS: Channel 4’s Dispatches has disputed Philip Morris International’s (PMI) claims IQOS is less harmful than cigarettes. In the programme, PMI contacted Channel 4 to contest the claims it made in the research, and said: “We request you instruct the authors to retract the inaccurate and damaging letter and reconduct the study in a credible laboratory and invite us.” NEWSAGENTS: McColl’s is to reduce its estate by 300 stores as part of a new medi_ um-term plan. The restructure will reduce the number of its sites from 1,400 to 1,100. No location or timescale has been given, but many of the affected shops are likely to be smaller newsagents. Go to betterRetailing.com and search ‘mccoll’s 300 sites’ for more information

How are you being affected by Nisa’s new allocation process?

“We’re getting products like Coca-Cola Energy and Purdey’s energy drink, which have very little demand in my shop. I received eight cases of Coca-Cola Energy. I didn’t want these and Nisa had initially asked for a £1 return fee per case. This is part of their agreement with DHL. I eventually had the fee waived after speaking to them. Alongside the cost issues of the allocations, there were also problems with the stock taking up space while they were in my store.” Rav Garcha, Nisa Hockley, Birmingham

“It’s all being done in Co-op’s favour for commercial reasons and I feel they don’t understand independent retail at all. We’re getting products such as Coca-Cola Energy and Purdey’s, which we can’t sell anyway, even when they’re at a reduced price. They’re being sold to us at the full cost, whereas some wholesalers have got them reduced. However, Nisa will let you opt out of the additional allocations.” Anonymous Nisa retailer

Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk

Amit Puntambekar

NEWS

Customers thinking outside the box MEGAN HUMPHREY SCOTTISH professional chef Gary Maclean has advised shop owners to invest in ‘long life’ products to encourage customers to “think outside the box”. Maclean is currently taking part in BBC Scotland’s new TV show Corner Shop Cook-Off. The programme sees two professional chefs go head to head to cook a three-course meal

for just £15, using ingredients that have been purchased from a convenience store. Speaking about how independents can tailor their range to meet customer needs, Maclean told Retail Express: “I hope the show inspires people to be creative when they visit independent shops, to think about what they can make rather than just what they came in for. “I learnt that in terms of

investment or space, it’s not always realistic for stores to invest in metres of fresh or chilled produce, but what really makes a difference in terms of space and revenue is a small selection of spices and, if possible, pulses. “They are long life yet they encourage customers to think differently about how they shop, even if it is alongside a range of tinned vegetables.” Maclean added that inde-

pendents can compete with multiples by encouraging customers to “make you a part of their routine”. He said: “The big thing for stores is understanding that regardless of where people shop, routine dominates their decisions. The secret is that most people buy more or less what they brought the week before, but often not even at the same time on the same day of the week.

“Encouraging shoppers to make you a part of their rou-

tine is really important, but also very dif�icult.”

Maclean with retailer stars Shakir and Ruby Shakoor

Make your store more ‘dementia friendly’ RETAILERS have been urged to make their stores more ‘dementia friendly’ to help support customers and colleagues affected by dementia. The comments came at one of the regional training events in Harrow, London, offered free to ACS members, as part of the trade body’s collaboration with Alzheimer’s Society. During the session, retailers were recommended to create colour contrasts throughout

their store to prevent confusion for people with dementia who, due to challenges with perception, may struggle to tell colours apart. It was also suggested retailers adopt a welcoming and friendly approach when serving. Call Retail Express on 020 7689 3357 to receive a free copy of The Dementia Guide

RHINO FAILS TO SECURE FUNDS

RHINO Media Group (RMG) has failed to secure the funding needed to avoid administration. A message to stores from the digital screen advertising firm said more than 90% of retailers no longer wanted to work with it, with many opting to work in-

stead with rival products. RMG said only 152 of the 1,000 sites it needed to secure funding agreed to continue working with it. “RMG has creditors forcing a petition for liquidation,” the letter said.

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PRODUCT distributor Innzone has announced plans to cease operations due to a “more challenging retail environment”. The company sent saleor-return stock, such as batteries and e-cigarettes, to convenience stores through news wholesalers. Around 200 retailer cus-

tomers are understood to have stock that can be returned. Managing director Philip Glyn has pledged that it will “honour all the credits that are due back to any retailer”. However, he urged stores not to send goods back before their return window opens.

PRODUCTS

10-23 MARCH 2020 betterRetailing.com

Yazoo unveils Choc-Hazelicious flavoured milk CHRIS DILLON FRIESLANDCAMPINA has extended its range of �lavoured milk drinks with a new, limited-edition Yazoo ChocHazelicious, available to independent retailers now. The supplier has agreed listings with Booker and Bestway for Yazoo Choc-Hazelicious, which is available in 400ml and 1l formats. Both varieties are available in standard

and price-marked packs. The launch marks the third limited-edition �lavour for the brand. In the past two years it has launched Choc-Mint and Choc-Caramel, generating sales of £1m and £1.2m within �ive months, respectively. Wayne Thompson, out-ofhome business unit controller at Yazoo, said the choice of �lavour followed a survey of 2,500 people about 32 different �lavours.

Mixed Berry boost for Carabao Energy Drink ENERGY drink supplier Carabao is expanding its range with a Mixed Berry �lavour, which follows the launch of Green Apple in 2017 and Mandarin Orange in 2018. The new �lavour will initially be introduced in Asda stores, but will roll out to other retailers in mid-March, with an RRP of £1.19 per can. The company claims that berry-�lavoured drinks are currently under-represented in the energy drinks sector, so expects the launch to be popular with shoppers. The new drink will contain 63 calories per can, which Car-

abao said is “far lower” than the brand’s competitors.

TRUE Start‘s three coffee varieties are now available to convenience retailers following deals with Epicurium, Budgens, Costcutter, Londis and Spar. The three varieties, Vibrant Honduran, Energising Colombian and Lively Ethiopian, are available in 200g packs, RRP £6.99, and use 100% Arabica, single-origin beans.

Vibrant Honduran is a sweet espresso with golden syrup and lemon, Energising Colombian has a citrus and caramel �lavour, and Lively Ethiopian has hints of rum and praline. True Start Coffee chief executive of�icer Helena Hills said: “The True Start Coffee range has no sugar and is vegan, and Certi�ied.” Rainforest Alliance Certi�ied.

True Start coffee comes to convenience

“We know limited-edition products perform well, and we want to ensure that ChocHazelicious is so popular that people seek it out,” he says. “As 48% of �lavoured milk sales are chocolate-based, we knew this should inform our choice. Chocolate hazelnut came out in our survey as one of the top three choices.” The launch will be supported by an on-pack promotion giving shoppers the chance to win

two-for-one entry to Alton Towers when they buy a bottle. Alton Towers claims previous tieups with food brands led to a sales increase of between 4-8%. Yazoo’s 1l range is growing at 31% year on year, ahead of the growth of the wider 1l �lavoured milk segment, which is growing at 8%. Yazoo says the Choc-Hazelicious �lavour milk drink has no allergen risk, and is suitable for nut allergy sufferers.

PRODUCTS

Gordon’s launches Sicilian Lemon DIAGEO has extended its gin range with Gordon’s Sicilian Lemon, now available through Booker and One Stop. The gin is available from Booker’s website in cases of six for £69.99+VAT, and offers retailers a pro�it on return of 28.2% when sold at its RRP of £19.49. The product is due to go on sale in supermarkets on 10 March, but was available through Booker for at least two weeks before. Diageo describes the product as a Mediterranean twist on the original recipe, made with juniper and lemons. Harry Singh Hallen, owner

of Londis Carstairs Junction in Lanarkshire, quickly stocked the product after spotting it in a nearby Wetherspoons. “In the �irst two weeks, I sold through three cases. I could have sold a lot more, but customers tend to buy less spirits in winter,” he said. Gordon’s Sicilian Lemon follows the launch of Gordon’s Pink Gin in 35cl bottles in July last year. Henrietta Reed, Gordon’s senior brand manager, described the product as a “zesty gin that delivers a zesty twist for consumers”. “There is an ever-increasing appetite for different styles of gin,” she added.

RETAILERS can bolster their mints & gums range with new Extra Refreshers handy packs from Mars Wrigley. Available in Spearmint and Peppermint �lavours from Bestway, Hancocks and Su-

gro, Extra Refreshers handy packs contain seven pieces and come in cases of 16. The manufacturer will launch a Bubblemint �lavour in the format in the coming months.

TAMARA BIRCH

Extra bolsters Refreshers range

Boost makes canned coffee debut BOOST is making its debut in the canned coffee sector with a new Iced Coffee range, available now in 250ml cans. Available in Caffé Latte and Double Espresso varieties, in £1 price-marked and nonprice-marked packs, the launch comes as the readyto-drink coffee segment tops £110m, with 27% year-onyear growth. The company claims it is using “exclusive production techniques” to ensure Boost Iced Coffee offers extended shelf life compared to other brands. To support the launch, Boost will be offering PoS and sampling activity for convenience retailers.

Simon Gray, founder and managing director at Boost, said: “Chilled coffee is the fastest-growing functional drink category in the convenience channel.”

PREMIER Foods hosted a dinner for the Bisto Community Table competition winner, Jacqui Dales, of London Road Bakery in Boston, Lincolnshire, and her local community. The Bisto Community Table competition was launched in 2018 to recognise the role retailers have in the heart of their community.

This year’s event also marked the 40th anniversary of the Dales family owning the store. Dales said: “Our loyal customers have been so important in keeping our shop going since the 1980s, and the majority of people who came along to the Bisto Community Table event have been daily visitors across those 40 years, too.”

Monster wins Nisa listing for Hydrosport NISA retailers can now stock Monster Hydrosport, a new range of noncarbonated energy drinks. The drink is available in two varieties, Hangtime and Striker, which feature a design of a basketball player and football player. Hydrosport comes in 660ml bottles, has an RRP of £1.69 and is available in cases of 12, with a wholesale price per case of £11.49 from Nisa. The zero-sugar Monster Hydrosport range contains Vitamin B3, B6 and magnesium. Monster launched its Hydro range in 2017 in a bid to take on a bigger share of the ‘refreshment energy’ category.

McVitie’s cuts sugar across core range

PLADIS has reduced the sugar in nine of its core McVitie’s biscuits products by up to 10%. McVitie’s Original Digestives, Rich Tea, Milk and Dark Chocolate Digestives, Original and Chocolate Hobnobs, Caramel Digestives, and Ginger Nuts are the products that have undergone a recipe change.

McVitie’s Original Digestives was the �irst product to hit the shelves with the new sugar amount, with 9% less sugar and 5% less salt. McVitie’s Rich Tea biscuits now contain 18.5g of sugar, and McVitie’s Original Hobnobs contain 22.9g. Milk Chocolate Digestives contain 28.5g of sugar, with dark reduced down to 26.6g.

CCEP launches Fanta London Road Bakery Raspberry Zero Sugar wins event prize

KP Snacks’ McCoy’s Fiery Steak crisps

RETAILERS can bolster their range of �lavoured carbonates this month as Coca-Cola European Partners launches Fanta Raspberry Zero Sugar. Available in 330ml cans, 500ml and 2l single bottles, and 8x330ml can multipacks, the drink is exempt from the soft drinks tax and follows the launch of Fanta Grape Zero Sugar in February last year. Sales of raspberry�lavoured products have grown by 11% in the past 12 months. Fanta Raspberry will be backed by a £2m marketing campaign, including radio, digital and outdoor advertising, as well as social media activity.

KP Snacks is bolstering its range of ridge-cut crisps with McCoy’s Fiery Steak. The �lavour is available in 47.5g singles, RRP 89p, and £1 price-marked 65g bags. McCoy’s Fiery Steak is currently available from Bestway and Sugro. Bestway is selling the £1 price-marked packs in cases of 16. The �lavour is included in the brand’s latest on-pack promotion, which is giving away lunches at top destinations around the world. McCoy’s is growing at 3.4% year on year.

10-23 MARCH 2020 betterRetailing.com

Vimto launches new Juicy Mixups VIMTO is expanding its confectionery range with the introduction of Vimto Juicy Mixups. Containing fruit juice, the new product combines the taste of Vimto with popular Vimto Remix soft drink �lavours: Watermelon, Strawberry & Peach and Mango, Strawberry & Pineapple. Each 140g bag contains a mixture of retro sweet shapes, including a fried egg, bottle, watermelon slice, ring

and pencil, and are made with natural colouring. With an RRP of £1, Vimto Juicy Mixups are available now from Hancocks Cash and Carry. “Juicy Mixups are going to take gummy sweets to a whole new level,” said Vimto’s brand licensing manager, Helen Hartley.

J2O O gets ready for summer with three new products

AHEAD of summer, J2O is launching a trio of new products, including J2O Summer Limited Edition Pear & Guava (Summer Shine), J2O Apple & Elder�lower and J2O Spritz cans. Summer Shine and J2O Apple & Elder�lower will be available in four-packs and singles, with an RRP of £4.39 and £2.24, while J2O Spritz will be launching in a fourpack of 250ml slimline cans, with an RRP of £2. “The adult appeal and premium �lavours of the new products provides a perfect

alternative for customers looking to reduce alcohol consumption,” said Phil Sanders, out-of-home commercial director at Britvic. “Meanwhile, our range of different formats will enable retailers to meet all shopper occasions.” Supported by social media, Summer Shine is available now, with the other two varieties following in this month.

US WHISKEY brand Jack Daniel’s is expanding its range with Tennessee Apple – a blend of Jack Daniel’s Tennessee Whiskey with apple liqueur. Available in the UK now, the �lavour is available in a 70cl bottle format with an RRP of £25. “With �lavoured spirits continuing to be a key driving in the spirits category, growing by 58% over the

past 12 months, we hope the new �lavour will allow us to introduce a new audience to Tennessee Whiskey, with the Jack Apple & Tonic,” says Caroline Lesur, head of Jack Daniel’s UK. Jack Daniel’s Tennessee Apple was launched in the US at the end of 2019. According to the supplier, the dark spirit served with tonic will be an alternative to �lavoured gin and tonic this summer.

Jack Daniel’s launches new Tennessee Apple flavour

Fatherson Bakery raises its game for Mother’s Day THIS Mother’s Day, Fatherson Bakery is introducing two new varieties, a Victoria Sponge Sharing Cake and Mother’s Day Cupcakes. Made using locally sourced ingredients, the Victoria Sponge is topped with icing and decorated with �lowers and star sprinkles, while the Cupcakes are handmade and hand-decorated, with pink and lavender icing. The Victoria Sponge Sharing Cake and pack of two Cupcakes will have an RRP of £5 and £4, respectively.

DRIVING IN-STORE SUSTAINABILITY We’ve teamed up with The Energy Saving Trust to make changes in Amit Patel’s 900sq ft. store in Sandiacre, Derbyshire. We’re going to share how and why we introduced the changes, and what impact they have over the next year.

STORE PROFILE RETAILER Amit Patel

STORE NAME Premier Town Street, Sandiacre

STORE SIZE 900sq ft

BUSIEST TIME 5.30-7am, with passing tradesmen and drivers buying soft drinks and breakfast goods

It can be difficult to know where to start with sustainability. Which is why we are sharing with you how taking small steps and making small changes can yield big results, and how becoming more sustainable is good for business – saving money, increasing sales and enhancing your store’s reputation. CREATE A SUSTAINABILITY TEMPLATE

The team recently met with Amit to look at key areas in his store that might benefit from some tweaks and changes, and to create a template for retailers looking to start their own sustainability journey.

WHAT ARE YOUR ENERGY DRAINS?

Walk your store from door-to-door and look from floor to ceiling. What are your big energy drains, and what can you improve? Look at your windows and doors – do you have double glazing; do they let heat out? When was your lighting last improved? Lighting isn’t just great for making your store look better – newer LEDs can reduce energy bills instantly. Could you add occupancy sensors or daylight sensors to reduce use?

REDUCE YOUR CHILLER ENERGY USE

Are your chillers and freezers the newest available? You might be surprised at how much energy older models use compared to other newer ones. Think about how you can moderate energy loss if you can’t yet fully replace the units. Can you add night blinds to keep energy in? What TV screens do you use for monitoring customer behaviour? There are 32” screens that use only 31W, which can bring down your costs significantly.

A YEAR OF SUSTAINABILITY

These are only the tip of the iceberg. Over the next 12 months we’re going to help Amit make some simple, affordable changes in his store, and prove how a focus on sustainability is good for business. Look out for our regular columns in this magazine and follow our updates on @LRSuntory. Hopefully they will inspire you to walk your own store and start your own sustainability journey. #GoodForBusiness #GrowingForGood

TO KEEP UP TO DATE WITH AMIT’S JOURNEY, FOLLOW @LRSUNTORY ON TWITTER

DON’T MISS THE 20 MARCH ISSUE OF RN

OPINION 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

POST OFFICE: What would an inquiry into the Horizon scandal achieve? “WE are really pleased that the Prime Minister has agreed to hold a public inquiry. There have been systematic failings of governance both within the Department for Business, Energy & Industrial Strategy and UK government and investors who sit on Post Of�ice’s board, as well as within the Post Of�ice.” Mark Baker, national branch secretary, Communication Workers Union

“IT is clear that a signi�icant amount of work will be required to reset the relationship between Post Of�ice and subpostmasters. Should an inquiry be called, we would be available to contribute to the proceedings, which we would hope would provide transparency and closure to the issue.” Spokesperson, National Federation of Subpostmasters

There have been systematic failings of governance The latest trends to refresh your core beer range

PLUS Boost your impulse sales with these top tips

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The best independent retailers stay ahead by reading RN each week. Do you? ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 7689 3394 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367

“WE need to consider the number of return points, whether cafes and restaurants will be included, and if there’s an exemption for small retailers who lack the space to install a reverse vending machine, and there are serious questions for the minister about who’s going to pay for it.”

There are some questions about who’s going to pay for it

“WE are promoting to government a well-designed scheme using a network of return points in the right places. Returns should be dealt with through machines and not manual handling, which would cause disruption in stores as well as the health and safety risks.” James Lowman, chief executive, ACS

Mark Pawsey, Conservative MP, Rugby

CRIME: What are the next steps towards reducing violence?

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RECYCLING: What does England and Wales need to consider for a DRS?

“BY working together, we can tackle the low-level offenders before they graduate from being shop thieves to knife carriers. A new Royal Commission will review the effectiveness of the criminal justice system – looking at ways to slash bureaucracy and boost public con�idence.” Priti Patel, home secretary

“EVERYONE has a fundamental right to feel safe behind their counter. We will continue to represent our members by working alongside the government – ensuring that the devastating effects of retail crime are recognised and any necessary changes are made.”

By working together, we can tackle the low-level offenders

Stuart Reddish, national president, NFRN

LEGISLATION: How will a ban on wood and solid fuels affect indies?

The ban in 2021 has widespread implications for retailers

“THE ban in 2021 has widespread implications for forecourt retailers. There is a need for clarity on how retailers can comply, particularly the requirement to store wood in a dry place. We are working with Defra of�icials to produce advice.” Stuart Reddish, national president, NFRN

“BY moving towards the use of cleaner fuels such as dry wood, we can all play a part in improving the health of millions. This is the latest step in delivering our worldleading clear air strategy. We work towards our goal to halve the harm by 2030.” George Eustice, environment secretary

LETTERS

10-23 MARCH 2020 betterRetailing.com

of CHRISTINE Hopes Longtown, HOPE Hereford

Letters may be edited

Tell them, tell them why and remind them again!

‘Smiths News continued to keep pushing me away’ I’D LIKE to thank Retail Express for the assistance they have provided me in resolving an issue I have been experiencing with Smiths News over the past few months. I was owed £125-worth of credits throughout a sevenmonth period, which they had repeatedly promised to give me.

This wasn’t the case and I hadn’t received any of the backdated credits, despite them saying they were looking into the issue. I had repeatedly got in touch with them over the phone and was told to email. There were times when I called them four times in a day. I kept getting no response at all whenever I emailed and

continuously raised this issue with them over the phone as well. They continued to keep pushing me away and the lack of response and no resolution was getting frustrating. With Retail Express’ help, Smiths News eventually contacted me personally over the phone and promised to give me the backdated

TWEETS OF

credits they owed me.

Ketul Desai, The General Store, North London Natalie Kemp, Smiths News customer experience coordinator, responded: “We have made direct contact with Mr Desai and he is happy with the resolution we have proposed and applied.”

THE WEEK

WIN £50-worth of Signature

SCANDINAVIAN Tobacco Group (STG) has just launched Signature Dual 10 Filter Cigarillos, which contain a Virginia blend and a peppermint click filter for a smooth smoking experience. To celebrate the launch, STG is offering 20 lucky retailers £50-worth of stock.

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.

Tweet us to get featured!

@retailexpress

EVERY second Saturday each month, we have two hours in our store dedicated to tasting a new product or promoting a new service. It’s our way of striking up a conversation with our customers and encouraging feedback. It’s something that I’d recommend to any retailer to help make sure you’re Each issue, one of seven top connected to your retailers shares advice to customers, and to make your store magnificent stay aware of what they think about your store. Last Saturday was exceptional, our Eco Options morning was about showcasing what we are doing for the environment. We went through the existing options available in the shop and the easy switches customers can make. It was all about giving our shoppers the chance to ask questions. We produced a simple bullet point A4 sheet of what we did in 2019 and what we are planning for 2020. Holding these events gives our customers a chance to learn about us, but just as importantly, we get to learn about our customers. Our biggest surprise? Fifty per cent of them didn’t know that Two Farmers crisps were in compostable packaging. This shocked us, especially considering the marketing this relatively new company does, the fact it tells you on the packaging and that we have a sign posted alongside the products. It then dawned on me, they say a customer needs to see a brand eight times before they remember it. What I’m still learning is that even very loyal and fabulous customers need telling eight times if they are going to change their shopping habits to new products. These events help us plan the improvements we’re going to make in our shop. Going forward, we’ve got a number of ideas to promote our eclectic range. This includes weekly changes to what we have displayed on the counter, alongside improved conversations with our customers when they’re at the till.

New 50l shopping trolley launched especially for UK #convenience by #Marsanz @asidhu007

My parents took members of The High Heath Hub and our customers to the Gurdwara for the ﬁrst time today! They absolutely loved it, great way to bring our communities together and share our values! @AmritPahal IMPORTANT INFORMATION FOR RETAILERS IN WALES – From 02/03/2020, retailers in Wales must comply with the Public Health (Minimum Price for Alcohol) (Wales) Act 2018 meaning retailers must not sell alcohol below 50p per unit. Click here for ACS guidance > https://bit. ly/3c83drH @UnitasWsale

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379

CATEGORY ADVICE SOFT DRINKS

REFRESHING IDEAS TAMARA BIRCH looks at the biggest trends in the soft drinks market and reveals ways that retailers can expand their range and grow their sales

GETTING IT RIGHT THE soft drinks market is worth £8.5bn, so keeping on top of trends and meeting customer needs is vital to making the most from this opportunity. Working with suppliers and talking to other retailers to get insight on the newest trends early can help put you ahead of the competition. Whether it’s health trends, sports and energy or being more sustainable, there are a number of ways you can boost your range by responding to new shopper habits.

Of course, not every new trend will fly off the shelves in every store, so you need to find the balance between trying new ideas and reducing risk for your business. Start by stocking a small amount of new lines and monitor their performance closely, whether it’s through your EPoS data or simply by keeping an eye on your shelves. Put the latest products in prominent positions so your customers can’t miss that you’re stocking them.

10-23 MARCH 2020 betterRetailing.com

EIGHTY per cent of consumers are actively choosing to lead a healthier lifestyle by consuming less sugar and calories. In fact, shoppers’ spending on zero- and low-sugar drinks has increased by 33% and 29%, respectively, showing just how important this segment of the soft drinks market is. Matt Gouldsmith, Lucozade Ribena Suntory’s (LRS) channel director, says the increase in low- and no-sugar drinks is “mirrored at the other end of the market with a decline in high-sugar drinks”. Amy Burgess, Coca-Cola European Partners’ senior trade communications manager, agrees. “Consumers have

a greater awareness of health and wellness than ever before, and this is impacting the way they shop. “Consumers want the choice of low- and zero-sugar varieties and a range of different formats which can help to moderate their consumption.” Although health is in vogue, shoppers don’t want to compromise on flavour. Over the past few years, suppliers have released flavoured low- and no-sugar options to meet both trends. Stocking flavoured soft drinks ensures you’re meeting important shopper missions. Work with suppliers and use trade press to discover new products, and work with sup-

plier sales reps to find out if the product will work in your store. Refreshing and unusual flavours are rising in demand, with more than a third of shoppers (35%) agreeing they like trying new products when grocery shopping. To encourage new shoppers to the category, trial new flavours in store for them to try and advertise the event on social media. “Shoppers are becoming more adventurous than ever and are looking to experiment with new and exciting variants of their soft drinks, so making sure you stock in-demand flavours is vital for bringing new shoppers to the category,” explains Burgess.

HEALTHY DRINKING

WITH TWICE THE FRUIT*

SUPPLIER

VIEW

A BOTTLE OF ROBINSONS CREATIONS IS SOLD EVERY 2X SECONDS***

Becky Unwin, senior brand manager, Vimto “AS ONE of the top purchases in the impulse channel, soft drinks are an important source of revenue for convenience stores. The category is worth £8.5bn and is growing at 1%. This is led by numerous trends, such as the rise in entertaining at home, demand for exciting flavours and an increase in healthier options. Retailers need to ensure their ranges meet these different consumer needs by offering choice. “Stocking up on the most popular brands, as well as tapping into the latest trends, is essential when considering your soft drinks range. To add variety, look to unusual and adventurous flavours or exciting flavour combinations to really engage shoppers. “Vimto’s portfolio of soft drinks is available in squash, carbonated and still variants – providing refreshment whatever the occasion. We’ve risen through the ranks to become the UK’s number-two squash brand, which, as one of the original makers of squash, is something to celebrate.”

ROBINSONS IS THE NO.1 GB SQUASH BRAND** ROBINSONS CREATIONS IS THE NO.1 SQUASH LAUNCH IN 5 YEARS****

STOCK UP NOW! Sources: *When compared with Robinsons single concentrate squash **Nielsen RMS, Total Coverage, Value Sales, 52w/e 23.11.19 *** Nielsen RMS, Total Coverage, Units Sold, 52w/e 23.11.19 ****Nielsen RMS, Total Coverage, Volume Sales, 52w/e 23.11.19

100% OF OUR Time to

BOTTLES AND CANS ARE

RECYCLABLE

CATEGORY ADVICE SOFT DRINKS

NEW

It’s time for lime.

SUPPLIER

VIEW

Simon Gray, founder and managing director, Boost Drinks

• Flavoured Colas are worth £227m & up 11%*

“WHEN it comes to your core range, it’s important to ensure there’s a balance of the original flavours that consistently draw consumers to the shelf alongside a mix of exciting and intriguing flavours. “At Boost, we’ve seen that 32% of stimulation sales are now flavoured energy drinks, growing by 27% year on year in a market full of consumers constantly looking for something new to try. We’re always following consumer trends and developing new products, often introducing them as limited editions, to add something new for retailers and eventually consumers to try. “Sugar-free options have to be a consideration for a retailer’s core range, with 13% of total simulation sales now sugar-free variants as this move towards reducing sugar in our lifestyles continues to gather momentum.”

• Multi-million pound marketing campaign to support the Diet Coke fruity flavours

*Nielsen Total GB Value w/e 28.12.19

• Stock up now

RANGING CORRECTLY

To find out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000

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27/02/2020 17:38

MAXIMISING sales means having the right range in store. Utilising your EPoS data effectively can help reveal slow sellers, as well as bestselling lines – resulting in you getting the right range. If space allows, PoS can help drive sales and promote new lines. Using PoS to highlight low-sugar varieties can “inform them alternatives are avail-

able”, says John Luck, chief marketing officer at Carabao. However, arranging your display according to supplier advice can help you increase sales and make your customers’ shopping experience easier. Maintaining high availability is vital for keeping shoppers in store. CCEP’s Amy Burgess says: “It’s important to keep stocks high to meet

the increasing demand for soft drinks, with as wide a choice of products as possible, considering a range of different sectors, variants and pack formats to appeal to every consumer taste and occasion.” Multipacks are increasing in popularity, as well as larger formats like 2l bottles, so expanding your range to include these can help shoppers who

are looking for value over convenience. Thirty-eight per cent of impulse purchases are made as a result of temptation, according to Franklin & Sons senior brand manager Rosie Crossman. “Soft drinks is one of the best-performing categories, so a secondary location holds the opportunity for additional sales.”

10-23 MARCH 2020 betterRetailing.com

top Launches

The latest soft drinks launches to ensure you’re keeping on top of the latest trends Diet Coke Sublime Lime Available now in price-marked and non-price-marked packs, Diet Coke Sublime Lime taps into growing flavour and low- and no-sugar trends. It is available in 330ml, 500ml, as well as multipacks, and 1.25l and 2l formats. Why stock it? Diet Coke Sublime Lime taps into the £227m flavoured cola segment, with the launch following on from Diet Coke Twisted Strawberry in 2019, now worth £8m. The supplier says that lime is the third-most-liked soft drink flavour in Britain, highlighting that the new drink presents a significant opportunity for stores to respond to consumer demand and grow their sales.

SPORTS AND ENERGY SPORTS and energy drinks are currently worth £1.2bn, the category having grown by £99m in the past two years. However, with shoppers looking for low-calorie drinks, “traditional, caffeine-filled energy drinks have presented a problem to this trend”, explains Grenade’s head of category, Mike Simons. The energy drinks category has the potential to grow, if “consumer demands can be better met”, says Carabao’s Luck. With almost half of shoppers (48%) per-

ceiving energy drinks to be unhealthy, working with suppliers on improving your range to meet health trends can help you increase spend. Over recent years, suppliers have launched lowand no-sugar versions of top-selling brands that shoppers will recognise. Expand your range to introduce no-sugar soft drinks, such as Monster Zero Sugar, to bring new and prior shoppers to the category.

It’s time for twisted. Twisted Strawberry 500ml was the #1 Flavoured Cola NPD in 2019* Scan the barcodes to order price mark packs

Carabao Energy Carabao Energy is a fruit-flavoured low-calorie energy drink, containing 63 calories per can. Available in multiple flavours, including Mixed Berry, Green Apple and Mandarin Orange. Why stock it? The Carabao range taps into growing flavour trends shoppers are looking for, as well as meeting health trends, meaning shoppers are more likely to select this if they are looking for a low-calorie energy drink.

Why stock it? Ultra Paradise aims to tap into the growing low-sugar energy segment, with the Monster Ultra brand worth £64m. Pacific Punch, however, joins Mango Loco and Pipeline Punch, worth more than £58m since its 2018 launch.

*Nielsen Total GB Value w/e 28.12.19

Fanta Grape Zero Sugar Launched in March 2019, Fanta Grape Zero Sugar is available in 330ml, 500ml and 2l bottles, as well 330ml multipacks. Why stock it? Fanta Grape Zero Sugar taps into flavour trends, as well as low-sugar demand. The new flavour was launched following a huge demand on social media and is now worth nearly £5m. Franklin & Sons Sister’s Soda The Sister’s Soda range is in an easy grab-and-go format, and available in three flavours: Pomegranate Hibiscus, Pineapple Cardamom and Guava Lime.

Monster Ultra Paradise and Monster Pacific Punch Monster Ultra Paradise and Monster Pacific Punch are available in plain and price-marked packs, and is the latest addition to CCEP’s energy range.

Why stock it? The Sister’s Soda range is vegan and gluten-free, making it an ideal product for consumers changing their lifestyles to vegetarian, vegan or freefrom. Each of the flavours only have 45 calories per can. Lucozade Watermelon & Strawberry Cooler The latest addition to Lucozade Energy, Lucozade Watermelon & Strawberry Coolers joins its seven flavours: Caribbean Crush, Wild Cherry, Brazilian, Pink Lemonade, Apple Blast, Orange and Original. Why stock it? The Lucozade Energy range is worth £278m. As well as being a recognisable brand for consumers, Lucozade Watermelon & Strawberry Cooler is perfect for summer.

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top tips Five ideas to try in your store Offer a choice: Even with a small space, it’s important to stock the important sub categories: energy, low- and no-sugar, juice, water and flavoured. If you have limited space, focus on brands that cater to more than one of these, such as Pepsi Max Cherry. Formats: More customers are looking for value over convenience, so make sure to offer a selection of 1l and 2l bottles of popular brands. Use your EPoS data to determine bestselling brands. Location: Try stocking 2l formats of soft drinks in the chiller or next to your spirits display, and keep carbonated soft drinks at eye level. Remember shoppers tend to view across 1.3-metre breadth, according to Red Bull, so make it count. Demographic: Price-marked packs are often recommended, but whether it’s the right choice for your store will depend on your demographic. Work with your symbol group, or monitor what your shoppers are buying, to determine what will work in your store. Supplier input: Try reaching out to suppliers to see what material they have available on merchandising and ranging for soft drinks. Often, suppliers will have planograms for you to trial in store.

THE POWER OF LIMITED EDITION ALTHOUGH many retailers still find the majority of their soft drinks sales are coming from the original flavours by the big suppliers – such as Coca-Cola Original or Lucozade Original – it’s important not to underestimate the value of new product launches and limited-edition lines. “Consumers love innovation, we see that through the popularity of our limitededition launches,” says Wayne Thompson, business unit controller for out of home at FrieslandCampina. “They’re a huge driver of sales – in the total market since launch in April 2018, limited-edition Choc-Mint and Choc-Caramel is worth £6.3m, and are in growth of

39% year on year.” Indeed, according to FrieslandCampina, Choc-Mint and Choc-Caramel respectively generated £1m and £1.2m of sales for the brand within just five months. Building on this success, Yazoo have recently announced the launch of Choc-Hazelicious, which is available now in both price-marked and non pricemarked packs. Of course, there’s no guarantee of success with limited-edition and new product launches, but the success of Yazoo’s limited-editions shows it can be worth trialling these new lines in your store to boost sales to the category.

SUPPLIER

VIEW

Matt Gouldsmith, wholesale channel director, Lucozade Ribena Suntory

“IN TERMS of growth drivers, it’s important to remember that shoppers want excitement when looking for a soft drink. By working with retailers over the last 12 months, we’ve witnessed that low- and no-sugar drinks have a real sales impact when introduced into convenience stores. For example, in a study with a London independent retailer, the sales increase following the introduction of a full range of low- and no-sugar soft drinks range was instant. “We advise retailers to take advantage of the range of drinks available and to stock up on the various lines in order to offer shoppers their favourite drinks as well as new, healthier choices.”

10-23 MARCH 2020 betterRetailing.com

VARIETY IS THE SPICE OF LIFE WHETHER it’s formats, flavours or prices, it’s vital to ensure that you’re meeting as many different customer needs with your range as possible. For instance, sticking to single-serve soft drinks formats might mean that you’re missing out on customers looking for larger-sized

bottles for a ‘big night in’. If you haven’t considered stocking larger-format bottles before, why not check your EPoS data to find out what your bestselling soft drink line is, and trial stocking that variant in a larger format? A good giveaway as to whether larger formats could work for your store can also be seen

15 23

SUSTAINABLE RETAILING by checking other categories. If your store tends to sell large sizes of confectionery or snacks, there’s a good chance customers are coming to you to meet their big night in needs.

SUSTAINABILITY is a key talking point among consumers and businesses alike. Britvic’s director of sustainability, Trystan Farnworth, says that small steps will make the difference. “Britvic recently did some research that suggested only 34% of shoppers thought their convenience store did enough in terms of sustainability.” So, how can retailers become more sustainable in the soft drinks category? Reaching out to suppliers to opt for glass bottles instead of plastic can be your first step to becoming environmentally friendly. London retailer Atul Sodha, of Londis Peverills, stocks Pepsi Max, Diet Coke and Coca-Cola Zero in glass bottles. “Glass bottles are vintage, and customers love them. It’s also great for the environment – you need to do what you can to help the environment,” he says. There is a “big opportunity and need for convenience retailers to get behind sustainability; responding to

that demand will help to get people through your doors”, explains Farnworth. LRS’ Gouldsmith agrees. “Shoppers are looking to reduce their carbon footprint and improve their sustainability at every possible step, including what they buy and where they shop,” he says. “Becoming more sustainable is important for the future of the planet, but for individual stores it can be a great way to attract new customers and retain existing footfall, as well as a great way to save money.” If you are unable to switch plastic bottles to glass bottles from suppliers or local businesses, putting recycling bins outside your shop can ensure soft drinks are recycled once consumed.

the stat

34%

of shoppers think their convenience store does enough for sustainability

CATEGORY ADVICE SOFT DRINKS

SUPPLIER

VIEW

Amy Burgess, senior trade communications manager, Coca-Cola European Partners (CCEP)

LIFESTYLE CHOICES

“Meal deals that offer a discount when a soft drink is purchased alongside a sandwich or a snack are a great way of meeting the demands of a shopper looking for a convenient meal on the go, while also giving them a high perception of value. “Retailers can maximise the potential of these offers by stocking all of the products that are eligible for the deal together, complete with PoS signposting the meal deal. This will increase convenience for shoppers looking to pick up their meal quickly, encouraging them to take advantage of the offer and increasing the likelihood of repeat custom.”

TYING in with the drive towards healthier drinks is the move towards free-from, driven by environmental, ethical and dietary needs. “From short-term dietary changes such as Veganuary to longer-term lifestyle choices, shoppers are much more aware of the ingredients within the food and drink they are consuming,” says Rob Owen, grocery retail channel manager at Jimmy’s Iced Coffee. “As well as seeking specific nutritional benefits, there is a heavy focus on avoiding meat, dairy and gluten, and retailers are now recognising this movement by dedicating more space within their stores to free-from fixtures.”

Of course, moving into the free-from category can be intimidating, especially if you’re unsure whether the trend will take off in your area. As well as speaking to your customers to gauge their interests and needs in these trends, it’s worth taking a patient approach. “Start small – although freefrom is a rapidly-growing sector, we must remember the majority of consumers will not change their shopping habits overnight,” Owen continues. “If a large retailer dedicates half an aisle or 5% of their fixture space to free-from, then the 5% should be mirrored in an independent store – not an entire section, as the rate of sale won’t justify this.”

STOCK UP WITH SOMETHING

Vimto Remix sales value has now reached £9.2m

Remix Fizzy variants are growing +7.8% year on year

www.vimto.co.uk

vimto REMIX DRIVES INCREMENTAL SALES TO THE CORE BRAND

Source: Nielsen Value Sales, Total Coverage, MAT 28.12.19.

10-23 MARCH 2020 betterRetailing.com

SUPPLIER

VIEW

Phil Sanders, Britvic’s out-of-home commercial director, gives ranging and merchandising advice to ensure you’re delivering a strong drinks category

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MORE top Launches

The latest soft drinks launches to ensure you’re keeping on top of the latest trends

Offer ‘healthier’ options Around one in five Gen Zs are now teetotal, making health less of a trend and instead a generational behaviour change. With 65% of people agreeing they are proactively trying to lead a healthy lifestyle, it has led to an increase in the value of low-calorie drinks. It’s therefore essential that these are available to support customers looking to lead healthier lives.

Ribena Frusion Low in calories and rich in vitamin C, Ribena Frusion appeals to shoppers looking for healthy, flavoured alternatives to water.

Showcase top products Bestsellers should be given additional shelf and chiller space. Consider double-facing popular products and use additional PoS to direct shoppers to their location in store. Include an additional fixture close to the till to capitalise on last-minute impulse purchases.

Pepsi Max Available in 330ml, 500ml and 2l formats, Pepsi Max is a zero-calorie and zero-sugar option for your customers.

Pair with food Linking your soft drinks range with your food-to-go offering is a great way to encourage cross-category sales. Customers are increasingly looking for food and drink on the go, so make the process as easy as possible for busy shoppers. Meal deal or drink and snack combos are ideal for customers looking for a quick, on-the-go solution.

Why stock it? Ninety per cent of spend is incremental to flavoured waters, helping retailers to drive additional sales within soft drinks.

Why stock it? As well as tapping into lower-calorie options, Pepsi Max is a recognisable brand. “Pepsi Max will allow customers to enjoy their favourite drinks without compromising on health or taste,” says Britvic’s Sanders. Vimto Remix Available as a squash, still and fizzy option, Vimto Remix is a perfect product to diversify your range. Vimto Remix is available in the following flavours: Raspberry, Orange & Passionfruit; Mango, Strawberry & Pineapple; and Watermelon, Strawberry & Peach. Why stock it? Vimto Remix is available to independent retailers in 330ml and 500ml formats, and has approximately three calories per 500ml and two calories per 330ml. Starbucks Almond Plant-based Iced Coffee Starbucks Almond Plant-based Iced Coffee is the supplier’s first-ever non-dairy drink in the Starbucks chilled range. Why stock it? The plant-based drink is suitable for vegans, and is made with Fairtrade certified, 100% Arabica coffee – tapping into sustainability concerns. Grenade Energy Grenade Energy is Grenade’s first energy drink. Available in a 330ml format, Grenade Energy is aimed at consumers looking to give themselves an extra boost while reducing their sugar intake. Why stock it? Grenade Energy taps into growing health trends, as well as appealing to the energy category. The energy drink uses all-natural caffeine, with added electrolytes for hydration. Barista Coffee Co Available in two flavours, Caffé Latte and Caramel Latte, Barista Coffee Co was launched last year. The launch came as the flavoured-milk drinks market is worth £355m. The two flavours have an RRP of £1. Why stock it? Taps into the growing RTD drinks market, in a convenient format and perfect for shoppers looking for a quick pick-me-up on the go. Yazoo Choc-Hazelicious Following the success of the Choc-Mint and ChocCaramel limited-edition flavours, Yazoo ChocHazelicious was launched. It is available in £1 price-marked and non-price-marked options. Why stock it? Perfect for an impromptu heat wave to help grow sales during summer. Taps into the flavoured drinks market.

CATEGORY ADVICE CHOCOLATE

CHOC A BLOCK Chocolate is a well-established core category, but that doesn’t mean that there isn’t room to grow, writes DARYL WORTHINGTON

SWEET IMPULSE NOTHING stands still in independent retail, and the chocolate category is no different. It’s a core section for many retailers, yet if you’re not keeping on top of the latest trends, your sales might not be performing as well as they could be. For that reason, it’s important not to become complacent, but instead evaluate your range to make sure it’s delivering for your store. “Confectionery is one of the biggest food and drink categories in convenience, and is the most impulsive, so it’s a crucial category in any store,” says

trade communications director at Mondelez Susan Nash. It’s not just an impulse line, though. Whether it’s parents buying treats for their kids on the way home from school, sharing bags for a big night in or a box of chocolates for a last-minute birthday present, there are a number of reasons why customers could be coming to your store for chocolate. And as the success of Twirl Orange showed last year, a limited-edition launch could see shoppers searching far and wide to try out the latest flavour.

10-23 MARCH 2020 betterRetailing.com

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LIMITED EDITIONS, ORANGE CHOCOLATE THE success last year of Cadbury Twirl Orange shows the power of strongly promoted, limited-edition product launches in the confectionery category. The launch was covered in the national press, while our poll of retailers saw it voted the biggest product launch of 2019. As well as reiterating that

orange chocolate is a taste trend shoppers are looking for, it shows that keeping on top of the newest launches in the confectionery channel, and stocking them early and prominently, can drive footfall and sales. Predicting which product will be 2020’s Twirl Orange is easier said than done. Leading

retailers tend to trial new lines as soon as possible, especially if they’re from the big suppliers and supported with strong marketing campaigns. Start with a small amount, and if they’re selling well, get more in as soon as possible. Of course, getting hold of stock of products like these is only half the battle. To really

maximise sales you need to be promoting them, and social media, whether Facebook or Instagram, is the best place to start. Share images of the product so your customers know you have them in stock. Want to really spread the word? Consider running a competition telling your followers they can win a prize if they like or share your posts.

SHARING FORMATS ACCORDING to Mondelez’s Nash, it’s clear where growth is coming from in the chocolate category. “Chocolate sharing formats, like bags and tablets, are an important part of a retailers’ range,” she says. “In fact, bags are the fastestgrowing standard chocolate segment. Mondelez’s popular sharing bags are growing by 4%, driven by Cadbury and premium brand Green & Black’s.”

According to Ferrero’s customer development director, Levi Boorer, family occasions are a big driver of this growth. If you’re a store in a residential area, it’s worth making sure your range is reflecting that trend. “Families in particular are looking to recreate the cinema experience without having to leave the house, which has contributed to the growth of sharing bags in recent years.”

RETAILER

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Hardeep Nahal, Best-one Pedmore Convenience Store, Stourbridge, West Midlands “AS we’re close to a school, chocolate is a really important category for our store. As part of our recent refit, we moved the display. It used to be on the left of the store’s entrance. Now we’ve moved it to next to the coffee machine. “Now there’s a bit more space for people as they stop to choose their chocolate bars. Before, they were stopping at the entrance and there wasn’t much space. We now have three metres of chocolate instead of two, and the shelves aren’t as high, which makes it easier for customers when they’re trying to buy something. “Our biggest sellers are single bars, and the £1 grab bags. In terms of chocolate bars, there isn’t one stand-out performer – however, in the bags, Cadbury Giant Buttons are the best seller. In general, we’ve found that boxes of chocolate only do well during seasonal events, such as Mother’s Day or Easter.” 5986589_Cadbury Darkmilk Trade Ad_V3.indd 2

10/02/2020 12:52

CATEGORY ADVICE CHOCOLATE

HEALTHIER TREATS? IT’S no secret that health trends are spreading, and it’s something that can’t be ignored when it comes to your chocolate range. Some customers will look at chocolate as an indulgent treat, while others will pay close attention to the ingredients and nutritional values of everything they eat. “The overall societal focus on wellbeing is making people more aware of what they are picking up in store, even if it is an impulse purchase,” says Ferrero’s Levi Boorer. “Suppliers are responding

to that in a number of ways, such as putting a greater emphasis on portion control and showing shoppers how they can treat themselves in a permissible way. “At Ferrero, we make products that are to be enjoyed as treats and as part of a balanced diet and lifestyle, which is why our products have always been available as individually wrapped portions and more than 95% come in portions less than 150 kcal.” Mondelez is also looking to respond to this health drive in

its range of chocolate products. “We know more than a third of consumers are actively cutting down their sugar consumption,” Nash reveals. “At Mondelez, our teams have spent years developing lower-sugar recipes for some of our best-known brands, which offer more choice, but still taste great. “We’ve recently launched Cadbury Dairy Milk 30% Less Sugar, which is available now to enable retailers to tap into the lower-sugar trend with greattasting alternatives.”

New launches Five new products to look out for: Nutella B-Ready Easter Kinder Mix Bunny Hairband Bournville Giant Buttons Bournville Old Jamaica Rebel Chocolate Matcha Green Tea

SUPPLIER

VIEW

NICHE OPTIONS AND SMALL SUPPLIERS WHILE the major brands have a big pull, that doesn’t mean you can’t find success and build a unique point of difference by stocking niche or unusual lines, whether it’s from a local supplier, or products that address consumers’ environmental and ethical concerns. These options are making headway into many stores. Jay’s Budgens of Crofton Park in London, for instance, recently added the Tony’s Chocolonely range to their chocolate section. Coming in

vibrantly coloured packaging, the company boasts that their supply chain is fair trade and slavery-free. Although this means there is a premium price on the chocolate, it hasn’t stopped the chocolate selling, at least in south-east London. “They’re flying off the shelves – they’re selling really well,” says retailer Talik Patel. “We started with only three lines, but now we’ve got eight – all the different varieties the company makes.”

If ethical and environmental concerns are shared by your customers, then looking to lines like Tony’s Chocolonely could be a good option to drive sales to your store. Trying out new flavour trends is another way to broaden your range and offer a new point of difference. Rebel Chocolate and Temp Tea Bar, for instance, have recently collaborated to launch a new Matcha bar which is lactose-, gluten- and palm oil-free. free.

Susan Nash, trade communications manager, Mondelez Confectionery is one of biggest food and drink categories in convenience, and the category is the most impulsive, so availability and ranging is really important. Display a core range including singles, duos, tablets, bags and gifting Allocate space on shelf according to sales Consider offering price-marked packs Make the most of seasonal opportunities Ensure new and promotional products are stocked in advance of media Create impactful displays to catch shoppers’ eyes – make the most of manufacturers’ PoS

10-23 MARCH 2020 betterRetailing.com

PREMIUM OPPORTUNITY PREMIUMISATION is a wellestablished trend in many convenience categories. Chocolate is no different, especially when it comes to seasonal events, such as Easter, Mother’s and Father’s Day or Christmas. “There are a number of product formats and occasions that are helping to drive sales and bring growth to the category, but we are seeing that the move towards more premium products is having a positive impact across the board,”

says Levi Boorer. “When looking at boxed chocolates alone, premium options are growing at 15.4%, more than five times the rate of the category overall (2.7%). “Shoppers are looking for quality over quantity when it comes to confectionery; delivering high-quality products in controlled portion sizes ties in with this trend perfectly and has been an important part of Ferrero for many years now.”

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Levi Boorer, customer development director, Ferrero “GIFT formats continue to present compelling options for shoppers, and retailers should continue to support them throughout the year as, even though there are defined peaks for gifts – such as Mother’s Day, Valentine’s Day and Easter – there will always be shoppers looking to celebrate personal milestones. “With our boxed chocolate ranges, we offer a number of popular pack formats and styles to appeal to different shoppers looking to celebrate different occasions. Larger, classic products – such as Ferrero Rocher T24 – over index with shoppers around traditional events and when seeking a gift for a partner or family member, while smaller boxes – including Rocher T16 – have greater appeal for birthdays or small gestures throughout the year.”

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CATEGORY ADVICE TOBACCO: MENTHOL BAN

20 May 2020 The menthol ban comes into force

10-23 MARCH 2020 betterRetailing.com

fast facts What: The menthol ban will make buying and selling menthol-flavoured cigarettes illegal.

When: The UK government has been phasing out menthol products since 2016. The full ban comes into effect 20 May 2020. Why: The ban is part of the European Tobacco Products Directive (EUTPD), which places limits on the sale and merchandising of tobacco products in the European Union.

PREPARE YOUR CUSTOMERS

THE FINAL COUNTDOWN The menthol ban will hit convenience stores in just over two months. In this feature, RETAIL EXPRESS helps you get ready

WHY YOU NEED TO PREPARE “MENTHOL and crushball sales are collectively worth 26% of the total UK tobacco market, which means they make up nearly one in four cigarette sales,” says Duncan Cunningham, UK corporate affairs director at Imperial Tobacco, which manufactures Blu. “Given its sizable share of the tobacco market and store sales, this is an important change that retailers and their customers need to be prepared for to avoid missing sales.” If you’re selling tobacco, and in particular if you’re selling a lot of menthol products, you need to be thinking about the

menthol ban now. It’s the time to be speaking to your customers about the ban and how it’ll affect them. It’s also the time to think about what they’ll be looking for to replace menthol tobacco, and making sure you’re wellstocked and prepared. A number of options will be available for menthol smokers after the ban comes in, including JTI’s Sterling Dual Capsule Leaf Wrapped, which contains a filter that can be clicked for a peppermint flavour.

IT’S often said that convenience stores’ biggest strength is their connection to their customers. Taking advantage of that and speaking to shoppers will be a vital part of preparing your business for the menthol ban. It starts with letting your customers know the ban is coming. “Make sure that you advise adult smokers who would normally purchase menthol cigarettes that they will be banned from sale as of 20 May,” says John Patterson, sales director at Juul Labs. “Ensure you have a range of menthol/mint options for smokers who may wish to enter into vaping or other smoking alternatives categories.” Imperial’s Duncan Cunningham says: “As well as providing great customer service, having conversations with

shoppers ahead of time will help retailers gain valuable insights into what action they might take once the ban is in effect and use this to shape their range.” JTI’s communications director, Mark Yexley, agrees that communicating with customers is crucial. “Menthol and capsule smokers might have questions about the ban,” he says. “Ensure staff are knowledgeable so they are able to answer these questions with confidence.” You can get this knowledge from a number of sources. Most of the big suppliers have online resources available, such as JTI Advance and PML’s Menthol Ban site. Elsewhere, reps should also be able to offer advice and support, and, of course, don’t forget the trade press.

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Kate O’Dowd, head of field force UK and Ireland, Philip Morris Limited (PML) “MAY 2020 is when 1.3 million menthol smokers will be asking retailers for menthol cigarettes, and retailers are going to have to think about how they respond. The best thing a smoker can do is to quit, but if they aren’t able to, they will be looking to retailers for advice on alternatives. “Our analysis shows that 75% of menthol smokers will move away from cigarettes after the ban comes into force on 20 May. Menthol-flavoured vapes and menthol-heated tobacco are unaffected by the ban and will still be available. “An individual menthol smoker spends on average £56 each week, and so providing a range of alternative products and having a good understanding of them will be crucial to hold onto their custom. As this will be new to a number of retailers, PML are here to help them through this process.”

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WHAT ARE THE NEXT STEPS?

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Duncan Cunningham, UK corporate affairs director, Imperial Tobacco and Blu “RETAILERS should offer a broad range of products from leading brands across all the different tobacco segments, as well as stock a strong selection of accessories such as lighters and other recent innovations like Rizla Flavour Infusions and Polar Blast crushball filter tips. “Running regular stock checks and maintaining availability at all times is also essential as nicotine shoppers are often brand loyal and can be easily put off returning to a store if the specific product or brand they’re looking for is out of stock. “Probably the most important thing of all is education. If retailers and their staff know the products well so they can talk comfortably to adult smokers about them in answering any questions they may have, this will pay off massively in terms of sales and repeat visits.”

IN THE final two months leading up to the ban, there are a number of things you can be doing in your store to make sure you’re prepared, and to minimise the impact it will have on your business. One of the most practical steps is making sure you don’t end up with a load of menthol cigarettes left over that you can’t sell any more. “But, for now, it’s business as usual,” says JTI’s Mark Yexley. “Retailers should focus on competitive pricing, which will remain a key factor for existing adult smokers when choosing where to shop for tobacco. JTI recommends selling at RRP or

below to maximise sales and avoid lost custom. “Retailers should also maintain full availability and range right up until the deadline. “The popularity for menthol and capsule segments continues to grow, with capsule now responsible for 17.2% of total cigarette sales in the UK, representing a key profit opportunity.” In addition, a number of tobacco companies have announced they will be doing stock buy-back on menthol products. Speak to your reps or check online to find out if this is a service your suppliers will offer.

Mark Yexley, communications director, JTI UK “JTI is committed to supporting retailers and, as a manufacturer of choice, will continue launching innovative new products that are in line with consumer demand, to ensure that retailers have a full range available for their customers. Retailers should remember to check JTI Advance and speak to their local sales representative to make sure they’re aware of any new product launches. “JTI expects that the vast majority of consumers will remain within the cigarette category and will also remain brand loyal, switching to an alternative variety. “Some adult smokers may choose to look for alternatives, and we would recommend stocking up on popular products that meet this demand, such as JTI’s Sterling Hand Rolling Tobacco, cigarillos like Sterling Dual Capsule Leaf Wrapped, vaping products such as Logic Compact, or nicotine pouches such as Nordic Spirit.”

Illegal tobacco is damaging your local community, funding organised crime and undermining local businesses We all have a role to play to combat the issue. Don’t be complicit in the illicit trade

Anyone with information about this type of crime should contact Trading Standards on 03454 04 05 06 or visit www.jtiadvance.co.uk/DontBeComplicit

10-23 MARCH 2020 betterRetailing.com

muststocks These menthol products can still be stocked Menthol filter tips Menthol flavour cards (such as Rizla infusions) Menthol-flavoured e-liquids

RANGING AND MERCHANDISING AFTER THE 20 MAY DEADLINE ONCE the menthol ban is in effect, chances are you’ll need to re-evaluate your range. “Retailers should offer a broad range of products from leading brands across all the different tobacco segments, as well as stocking a selection of accessories such as lighters and other recent innovations, like Rizla Flavour Infusions and Polar Blast Crushball filter tips,” says Imperial’s Duncan Cunningham.

There’s a good chance that e-cigs and other next-gen nicotine products will grow in the wake of the menthol ban coming into force. “The best advice is to make sure adult smokers are aware of the mint and menthol alternatives available,” says Juul’s Patterson. “This means increasing the number of menthol facings in vape display units and, if possible, creating a dedicated

Menthol e-pods Menthol-flavoured heated tobacco (such as Iqos)

muststocks

Menthol alternatives to consider in your store Signature Dual Filter Cigarillos Scandinavian Tobacco Group’s new Signature Dual Cigarillos come in packs of 10 with an RRP of £4.95. They include an acetate filter containing a peppermint capsule under a lasered marker to give a smooth smoking experience. In addition to the capsule, it’s made with Virginia leaf tobacco and has a natural leaf wrapper. Nordic Spirit These tobacco-free nicotine pouches, launched by JTI towards the end of 2019, include Mint and Bergamot Wildberry flavours. They come in two strengths, 6mg and 9mg. The pouches contain a blend of plant-based fibres, nicotine, additives and flavourings, and have a gum base. The pouches fit under the top or bottom lip. Iqos PML’s heated tobacco products aim to be an alternative to smoking. Unaffected by the menthol ban, the range includes a number of menthol-related products that could provide your shoppers an alternative to both smoking and e-cigarettes. Rizla Flavour Infusions Rizla Flavour Infusions come in two varieties: Menthol Chill and Fresh Mint. They are packed and wrapped separately, allowing retailers to sell them individually at an RRP of 25p each. Consumers have to insert a ‘flavour card’ into a packet of cigarettes, or roll-your-own tobacco. Dinner Lady Disposable Pod The Disposable Pod is available in three flavours – Lemon Tart, Smooth Tobacco and Blue Menthol – and comes prefilled with e-liquid. It has an RRP of £5 and up to a 1.5ml tank, which is almost 50% more than most disposable devices, and a battery that allows around 300 puffs. Juul Glacier Mint Pods Juul pods come pre-filled with e-liquid and are designed to be easy to use with no mess. The pods can be slotted directly into a Juul Starter Kit. Glacier Mint is available in 9mg and 18mg nicotine strength pods. Each Juul Pod contains 0.7ml of e-liquid which equates to roughly 200 puffs.

*RRP: For the avoidance of doubt, retailers are free at all times to determine their selling price.

display of menthol vaping and other nicotine products to signpost menthol alternatives for smokers. Also, don’t ignore other flavours. Smokers up to now have had two main flavour choices: tobacco and menthol. In vaping, they have a much wider spectrum of flavours to try, and many may want to experience other flavours beyond tobacco and menthol.”

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PROFILE

10-23 MARCH 2020 betterRetailing.com

RETAILER PROFILE CHRIS WOODRUFF DARSHAM SERVICE STATION Location: Budgens Darsham Service Station, Saxmundham, Suffolk Size: 2,000sq ft Staff: 17 Hours: Mon-Sat 7am-8pm, Sun 8am-8pm

‘WE OFFER WHAT PEOPLE WANT, AT A FAIR PRICE’ DARYL WORTHINGTON “THE priority is to look after your customers �irst, and they’ll look after your business,” says Chris Woodruff, from Budgens Darsham Service Station in Suffolk. His forecourt store has undergone signi�icant changes since he took over in 2002, a gradual evolution aimed at meeting customer needs in a changing market. The store is located close to a train station and on the A12 dual carriageway. “There used to be a large, 100-seater café dominating one half of the shop,” he reveals. “It failed because there was no need for such a large café in this part of the world. So, we shrunk to 25 seats, as the average person just wants to grab something and go. It’s worked, as our café and general shop sales are up.” Chris believes that good retailing is all about �inding the right balance between quality and price. “If people walk in the door and you look expensive, they’ll walk out. We offer a balance of what people want, at a fair price,” he explains. “Customers have the op-

tion of spending money on a premium product, such as the Cook ready meal range, or going for a budget option. If I can buy something cheaper and save my customers money, I will, but we also want to make sure we have high-quality products all the way through the store. “We’re fortunate to have a large warehouse space, which means I can buy things en masse when they’re on discount, and consistently offer my customers extra value.” The food-to-go offering is a good example of how the shop manages to strike this balance. It has grown signi�icantly since opening in 2005, and Chris reveals that they’re now selling up to 130 sandwiches a day, with wastage under 2%. “Hard work, persistence

and listening to customers were key,” Chris explains. “It was about going back to basics regarding costings, and asking how cheaply we can make something while keeping it at a high quality. “We make all of our sandwiches and hot food fresh on site – it keeps costs down and customers like to see them being made. A lot of places have elected to do meal deals – we don’t. Instead, we keep our

IT’S ABOUT ASKING HOW CHEAPLY WE CAN MAKE SOMETHING WHILE KEEPING IT AT A HIGH QUALITY

sandwich price low – letting our customers choose what they buy. If they only want a sandwich, they shouldn’t be penalised and have to pay more for it.” Darsham Service Station has a number of distinct features that have enabled it to become an important shopping location for the community, as well as a vital stop on routes for those travelling through East Anglia. These include electric vehicle charging and a walk-in cold room for the store’s alcohol. “The cold room is kept at eight degrees,” Chris explains. “We’ve got the biggest one in the area. Supermarkets tend to keep the majority of alcohol at ambient temperature, with only a few things in fridges. We’ve found having the cold room is really popular with our customers – it’s ideal if they’re going to the beach in summer, or want to buy something they can drink as soon as they get home.” For more pictures of the store, go to betterRetailing.com/ darsham-service-station

after 1 Look your staff “A lot of my staff have been here since day one,” says Chris. “I trust them with extra responsibilities, which keeps them interested in their job and makes my life easier.” about your 2 Think customers “We’ve put a disabled access system on the door leading into the forecourt. The fact the door doesn’t open automatically means children can’t run out onto the forecourt,” Chris explains. out with 3 Chill a cold room “The cold room is popular with customers and helps us manage our alcohol range,” he reveals. “Because it’s a large room, we don’t have to leave so much wine and beer in the stockroom.”