NEW NEXT-GEN NICOTINE How Nordic Spirit can help you drive tobacco sales ahead of the menthol ban
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15-27 JANUARY 2020 betterRetailing.com
RETAIL
IN ACTION
BRAND SPOTLIGHT
In partnership with
NORDIC SPIRIT
FOCUS ON:
is nicotine pouches, tive range of tobacco-free the trend for alterna NORDIC SPIRIT, a UK, tapping into tive category. RETAIL now available in the unity – a growing and innova nicotine products how you can cash in on the opport EXPRESS finds out
14-27 JANUARY 2020 STRICTLY FOR TRADE USERS ONLY
In action
– Nordic Spirit Display it on the counter the gantry and doesn’t need to be in counter to be can be stocked on the PoS units more visible to customers. retailers. are available to independent
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– When an Speak to your customers or vaper shows existing adult smoker display, interest from the countertop to explain what take the opportunity it works. the product is and how
What is Nordic Spirit? originally developed NORDIC Spirit was it has rapidly in Sweden, where since its launch grown in popularity tobacco-free in 2018. The 100% existing adult nicotine pouches offer more choice by smokers and vapers and discreet providing a convenientcan be enjoyed that product nicotine smoking or vaping in situations where might not be possible. in two Available to purchase Bergamot flavours (Mint and strengths (6mg Wildberry) and two contains and 9mg), each pouchd fibres, a blend of plant-base flavourings and nicotine, additives a gum-base, fit which, together with top or bottom the comfortably under for a discreet hour one to up lip for or vaping. Each alternative to smoking e pouches can includes 20 tobacco-fre of £6.50*. which has an RRP
Why stock it? category presents THIS relatively new for a huge profit opportunity e retailers, independent and convenienc nicotine alternative as the demand for to grow. Whether products continues in the office or on a long-haul flight, friends, this with out hanging just odour-free offering smoke-, vapour- and anywhere. can be enjoyed anytime, free to sell JTI *Retailers are, of course, price they choose products at whatever
Nordic Spirit is Stock a full range – and two available in two strengths to maintain flavours, so it is important customers can a full range so your product. always buy their preferred
Manoj Agnihotri, Jet, Brentford, London alternative. and is a great nicotine a lot for their an innovative product who travel “NORDIC Spirit is particularly popular among those in just two days. be We’ve found it to out of our first batch p display, it can workers. We sold ised in a counterto gives us a job, as well office this Spirit can be merchand s – we’ve found that “Because Nordic in front of customer and how it works.” be placed directly product is the what chance to discuss
speak to JTIAdvance.com or on Nordic Spirit Visit the recently updated out more information your JTI rep to find
NFSP: NO SUPPORT NO APOLOGY Subpostmaster trade body ignores calls to apologise for role in Post Office Horizon scandal, amid funding squeeze that cuts field team support P3
NATIONAL MINIMUM WAGE
RETAIL CRIME CONCERN
HOW WE’RE REDUCING PLASTIC
Retailers look to offset costs after being hit with 6.2% inflation hike plans
New government data shows penalty notices are ‘failing’ to punish shoplifters
Lessons from Bart DallaMurra’s sustainable store changes and tea room launch
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our say
Chris Dillon, editor – insight
Why we are investing in vaping – with a new print magazine IT’S always interesting listening to how retailers talk about different areas of their shops. From my time working on category features, I’ve had the privilege of talking to store owners about (I think) every convenience store category, from trying to eke out the latest tips on tinned groceries to scribbling away while excited retailers reveal their food-to-go plans. In recent years, we’ve ramped up our vaping coverage – so much so that we’re launching a dedicated title, Vape Retailer, on 5 February. Store owners talk about this category in a way unlike any other. “I can switch my customers to any product I like. It’s not a brag, we have just built up that trust,” a retailer said to me the other day. “I don’t mind slicing the price on a 50% margin item if that’s the barrier IT’S WHAT MAKES for a customer. Even if I’m making THE CATEGORY 30% on a £30 device, it’s worth it,” said another. ONE OF THE It’s hard to imagine having that FASTEST-MOVING freedom and power in many other categories, and it’s what makes the category one of the fastestmoving in convenience. This leads me to another announcement. From the next issue, Megan Humphrey will be taking over as Retail Express editor. I’ll continue to work across the category advice sections in Retail Express and our sister title RN, but Megan will head up our editorial agenda, while I ensure Vape Retailer gets off to a flying start. If you have any plans or questions about vaping, we want to help, so drop me an email on chris.dillon@newtrade.co.uk FOR MORE OPINION, GO TO PAGE 10 @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 @PriyankaJethwa_ 020 7689 3355
Reporter Alex Yau @AlexYau_ 020 7689 3358
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
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£4k hit for retailers from minimum wage increase
ALEX YAU THE government’s decision to in�late the national minimum wage by 6.2% in April will hit the average convenience store’s annual wage bill by £4,428, according to analysis by Retail Express. The �igure does not include the impact on employer national insurance, or pension contributions, and is based on data from more than 150 independent stores with an average of 167 staff hours per site per week. The new hourly rate of £8.72 for over-25s represents a 51p increase on the current rate. Andrew Goodacre, chief executive of the British Independent Retailers Association, advised retailers to look at ways to offset the increased costs through government aid. “Not many retailers are aware of the relief available to them and it’s about examining help such as national insurance and business rates relief,” he explained, adding that retailers should examine whether they can reduce staf�ing levels
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during quieter trading hours. Bay Bashir, who runs �ive Go Local stores across Middlesbrough, said: “I’m looking at a
Payzone gas glitch
BRITISH Gas has admitted hardware problems have prevented top-ups at some Payzone sites since it switched to Payzone from PayPoint on 1 January. One retailer con�irmed they received Payzone terminal er-
ror messages when attempting gas card transactions. A British Gas spokesperson said: “We understand a few customers are experiencing issues topping up and we are working with Payzone to �ix any problems as a priority.”
£600 weekly increase of staff wages from April.” Other wage changes from April include rates of £8.20
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(6.5% rise) for 21-to-24-yearolds, £6.45 (4.9% rise) for 18-to-20-year-olds and £4.55 (4.6% rise) for under-18s.
Veganuary support
RETAILERS are receiving increased support from suppliers for Veganuary – where customers shun animal-based products throughout January. Nisa and Costcutter retailers were given access to 35 products from Co-op’s new Gro ve-
gan brand, which includes chilli con carne and pizza products. Co-op Food chief executive Jo Whit�ield said: “We have to provide fantastic products and services with strong ethics and a purposeful focus on convenience.”
Digital content editor Jody Porter 020 7689 3378
Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief Louise Banham 020 7689 3353
The five biggest stories this fortnight
Production coordinator Ashley Reid 020 7689 3368
Sales support executive Michela Marino 020 7689 3382
Head of sales Matthew Oliver 020 7689 3367
Managing director Parin Gohil 020 7689 3375
Account director Charlotte Jesson 020 7689 3389
Management accountant Abigayle Sylvane 020 7689 3383
Senior account manager Natalie Reed 020 7689 3372 Account manager Adelice Tatham 020 7689 3366
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
47,895
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.
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DRS low value
RETAILERS accepting bottles manually as part of Scotland’s deposit return scheme (DRS) may generate just £100 in annual commission. A source claimed the �igure stems from a business case by auditor Deloitte, commissioned
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CMA probes delivery
by Zero Waste Scotland (ZWS). THE UK’s competition watchRetailer Mo Razzaq, who at- dog has launched a six-month tended a meeting with ZWS investigation into Amazon’s last month, said: “The govern- attempted acquisition of Dement believes the space behind liveroo amid concerns conventhe counter is not of value. I ience stores could pay higher earn approximately £4,500 an- prices for a worse service. nually from products sold here.” Both companies failed to
resolve concerns expressed in the regulator’s ‘phase one’ investigation, which concluded there was “a real risk [the deal] could leave customers and grocers facing higher prices and lower-quality services as markets develop”.
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chris.dillon@newtrade.co.uk 020 7689 3379
GOOD WEEK
NFSP retail support cut over funding difficulties ALEX YAU SUBPOSTMASTERS are expected to receive a decrease in �ield support following reports that the National Federation of SubPostmasters (NFSP) has made its retail team redundant. Anonymous sources told Retail Express the team’s seven members, who were responsible for supporting subpostmasters with shop visits, left the company at the end of 2019. One source claimed the Post Of�ice (PO) lacked the
funding to renew their threeyear contracts, which started in 2016. They said: “The team didn’t have the coverage it would have liked. They had nine geographic regions to cover.” The source added that additional funding is being anticipated for a new retail team this year. “What will happen in the long run will be good for members,” they said. “It will be a bigger team who will advise on funding and relationships with commercial suppliers.” However, another source cast doubt on the likelihood
of the funding being secured. An NFSP spokesperson denied the redundancy claims and said the contracts had come to a “natural end”. They said: “We are in the �inal stages of planning a new programme of retail support. There will be more information on this for NFSP members in the coming months. “In the meantime, we have measures in place to ensure subpostmasters can access retail advice and support from the NFSP in the interim. Members seeking retail support should contact the NFSP on 01273 452324.”
The news comes as the NFSP has come under pressure to be more “honest” by Post Of�ice retailers after ignoring calls to apologise to members for blaming them for missing money in the Horizon court case. In December, judge Justice Fraser ruled that glitches in the PO’s Horizon till system were responsible for missing money on “numerous occasions”, leading to retailers being wrongly bankrupted and imprisoned. Although court documents revealed the NFSP “privately expressed its concerns”
about Horizon at a House of Commons Select Committee in 2015, the NFSP’s then general secretary, George Thompson, publicly told politicians: “I don’t believe the system is systematically faulty. A lot of this is down to people making errors.” The NFSP failed to respond when asked by Retail Express’ sister title, RN, to apologise for blaming members. Uxbridge retailer Gaurave Sood said: “The NFSP need to support their members. If there’s nothing to hide, they should be an open book. They need to say sorry.”
Kantar grocery market share figures: How did UK consumers change their seasonal food shopping habits?
-2.9%
3%
£1.80 more spent on Christmas groceries by the average UK household compared with 2018
decrease in Morrisons Christmas sales compared to 2018
increase in Co-op’s Christmas sales compared with 2018
12.5% increase in Ocado’s Christmas sales compared to 2018
*
*Prize may be subject to capping. Rules, Procedures & Game Specific Rules apply. Players must be 16+.
CHRISTMAS SALES: Independent stores increased their share of total Christmas period grocery sales, according to the latest Kantar figures. A 4.7% rise compared with 2018 took sales in symbol and independent stores from £448m to £469m for the 12 weeks to 29 December. This means £1.60 of every £100 spent on groceries was spent in an independent shop. CLICK AND COLLECT: New click and collect service, Wish Local, is generating revenue and footfall for independent shop owners following its launch, with the company looking to add more partnered sites this year. A spokesperson for the company said: “As well as taking commission on every package collected, the initiative drives additional footfall to Wish Local stores.” Go to betterRetailing.com and search ‘wish’ to read more
BAD WEEK ATM ACCESS: The ACS has warned that additional planned interchange fee cuts by Link will result in further ATM closures in convenience stores. The trade group’s chief executive said: “Link must stop the cuts that have been so damaging to the network and ensure that the local shops who offer cash machines are supported.” OVERCHARGING: Smiths News has admitted that accounting errors led to an undisclosed number of convenience stores being overcharged during the Christmas period. The wholesaler’s retail services director, Simon Gage, reassured store owners: “We have taken steps to ensure checks will be put in place for future so it doesn’t happen again.” Go to betterRetailing.com and search ‘smiths’ to read more
WIN £10,000 EVERY MONTH FOR 30 YEARS Every Monday and Thursday
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NEWS
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Penalties fail to tackle shop theft MEGAN HUMPHREY NEW data has shown that the number of penalty notices handed out to shoplifters has significantly declined over the past 10 years. According to data published by the Ministry of Justice, the number of penalties issued for shop theft incidences under £100 has decreased significantly.
The statistical bulletin covering the year ending June 2019 showed a 95% fall since 2009 from 49,445 penalty notices issued for shop theft offences under £100 to 2,279 in 2019. Penalty notices or out-ofcourt disposals are the most commonly used approach by the authorities when dealing with shoplifters. ACS chief executive James Lowman said: “The policy of
fixed penalty notices to shop thieves – relegating these offences to the status of a parking fine – has failed. “Not only has this approach prevented proper interventions to deter future offences and support perpetrators with addiction and other problems, but the police are now saying that this system isn’t workable.” The news comes after the Home Office confirmed last
month that the results of its consultation on retail crime “will be published in due course”. The results from the consultation on violence and abuse toward shop staff, which launched on 5 April and received more than 500 responses, were previously promised to be published in the autumn, but the general election led to them being tabled, potentially for good.
O T S N O S REA
Sales +12% with Nisa Evolution store format
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20,000 extra police officers on the streets over the next three years to make our communities safer.”
Five-star reviews show most important factors CUSTOMER service and ranging are two of the most commonly highlighted factors when shoppers recommend a convenience store online. A survey carried out by Retail Express’ sister title, RN, of more than 500 fivestar Google reviews across more than 100 highly rated independent and multiple-
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A Home Office spokesperson said: “The government is delivering on the people’s priorities by putting
owned sites across the UK revealed the factors most important to shoppers. More than 55% of reviews referenced great customer service while nearly 50% said the range of products on offer left them impressed. Price was the third most mentioned, but was significantly less common at 21%.
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Smiths News’ Hovis bread deal is toast The working relationship I have with Nisa is great. Together we have created really impressive stores that meet the needs of my shoppers. Barry Patel Nisa Local, Luton
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07/01/2020 10:02
SMITHS News has revealed that it no longer has a partnership with Hovis to deliver bread and other baked goods to supermarkets. The deal, made back in 2017, involved Smiths working with Hovis to deliver to smaller retail outlets, including Sainsbury’s Local stores. At the time, retailers shared concern for disruption to newspaper deliveries and carriage charges. Smiths News sales director
Simon Gage said: “The Hovis bread distribution ceased at the end of October and, at present, there is not an immediate replacement product or initiative in trial. “In removing Hovis, there won’t be any noticeable impact on our newspaper and magazine distribution as we made few changes when starting distribution with Hovis. This includes carriage charges, which were never impacted in any way.”
“ There’s a big opportunity to grow sales by thinking about how shoppers buy. Are they looking for a drink with food, for refreshment after exercise, or for a healthier option? Grouping drinks together for occasions like this can help you drive sales”
IS IT WORTH REVIEWING THE FLOW AND LAYOUT OF YOUR SOFT DRINK RANGE?
YES!
JEMMA HEALY, COMMERCIAL ACTIVATION CONTROLLER, LUCOZADE RIBENA SUNTORY
“We get good passing trade as we are on a busy road and have parking spaces outside, and there are playing fields opposite. We know there’s an opportunity to get more people through the doors”
To make the most of your soft drink range
it’s important to think how shoppers think. They will come into your store with a clear mission in mind, so your soft drink range must be as easy as possible to shop.
BILAL ARSHAD, SHOPSMART SEEDHILL ROAD, PAISLEY
Three Steps To Success 1. BRING YOUR DRINKS RANGES TOGETHER
BILAL The store was closed for five months before we bought and re-opened it. Our first change was to put in new chillers for our soft drinks range. JEMMA Ensuring you have a logical flow, led by the category leaders, is key. Bilal’s shop has a 10-metre row of fridges down one side, which means he can make soft drinks a real star performer in the store. WHAT WE DID IN BILAL’S STORE Bilal has a good ‘With Food’ drink range, including juices and dairy drinks. We advised he move this range nearer the rest of his drinks to create a better flow for his total soft drinks range.
2. CREATE AREAS OF CATEGORY FOCUS
BILAL Our three biggest sellers are all bottles – Lucozade Energy Orange, Irn-Bru and Coca-Cola. Sports and energy brands are big sellers for us. JEMMA The key is to ensure shoppers can easily see the segment they want to buy, and then see new launches as part of this. WHAT WE DID IN BILAL’S STORE We moved all drinks in the energy category together to create a focal point for shoppers on that mission and added in Lucozade Energy Zero as a low-sugar alternative. We moved colas and flavoured carbonates together as signposts for the soft drink category.
3. REMEMBER SHOPPERS SHOP BY MISSION BILAL Our fridges are key, but we also have a separate non-chilled display at the front of the store which we use for take-home drinks such as Irn-Bru 2L bottles. JEMMA While you might know the manufacturers of the drinks you sell, most shoppers won’t. Energy drinks from leading suppliers should be placed within your standard energy range.
WHAT WE DID IN BILAL’S STORE We moved Irn-Bru Energy alongside the rest of the energy range. We used the non-chilled area to build a focus on Bilal’s full range of 2L bottles and take-home packs, bringing large-format bottles of Lucozade Energy, Coca-Cola and the Barr range to the front of store.
Did it work? YES! “We didn’t sell Lucozade Energy Zero before, but it has sold well since being introduced. We sold a case of Lucozade Energy Zero Orange in the first 10 days” BILAL ARSHAD
“Putting our sports & energy brands together has helped us sell more across this part of the category. Our overall drinks sales have gone up, driven by this”
“The five must-stock, highestvalue segments – Carbonates, Energy, Water, Juice and Sport – contribute to more than 85%1 of soft drink sales”
BILAL ARSHAD 1
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TO FIND OUT MORE ABOUT HOW TO IMPROVE YOUR SOFT DRINKS SALES, VISIT LRSUNTORY.COM/TRADE
JEMMA HEALY
PRODUCTS
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New Rizla Flavour Infusion cards IN RESPONSE to the upcoming menthol ban, Imperial Tobacco has launched Rizla Flavour Infusion – ‘cards’ that can be used to add a menthol �lavour to traditional tobacco products. Rizla Flavour Infusions come in two varieties, including Menthol Chill, which provides a stronger, more intense �lavour, and Fresh Mint, which is slightly smoother. They are packed and wrapped separately, allowing retailers to sell them individually at an RRP of 25p each. Consumers have to insert a ‘�lavour card’ into a packet of cigarettes, or roll-your-own tobacco, and wait 60 min-
utes for the product to gain a menthol �lavour, or leave it in longer for a stronger, more intense �lavour. Chris Street, market manager at Imperial Tobacco, said: “When the menthol ban arrives in May 2020, many adult smokers will be left without their �lavour of choice. This new product will allow these shoppers to discover a new way to �lavour their tobacco products.” Menthol and crushball sales are collectively worth 26% of the total UK tobacco market, making up nearly one in four cigarette sales. “By stocking alternative products, such as Rizla Flavour Infusions or Myblu pod-mod vape devices, retailers can pro-
vide shoppers with options to help them stick with their �lavour preference post-ban, and protect their sales as a result,” he continued. As a tobacco accessory, new Rizla Flavour Infusions do not need to be stocked in the gantry. The supplier recommends retailers stock them at the till.
VAPE Dinner Lady has expanded its e-liquids with two new varieties: Blue Menthol and Pink Berry. Both e-liquids can be used with a wide range of pod, pens and sub-ohm devices, and will be available in 50:50, nic-salt and short �ill (50ml) formats. John Taylor, chief marketing of�icer for Vape Dinner Lady,
said: “In particular, Blue Menthol has already proven to be a bestselling �lavour with our new disposable e-cigarette, which was launched in September.” He added that the popularity of Blue Menthol stems from consumers looking for alternatives in the wake of the menthol cigarette ban, which comes into effect this May.
MONDELEZ International is kicking off 2020 by bringing back Cadbury Bournville Old Jamaica, which was originally launched in 1970. The launch taps into the growing popularity of rum & raisin chocolate, which is worth £11.5m in sales and is a segment growing at 21%. It will be available to
PRIYANKA JETHWA
Snickers Crisp Ice Cream hit shelves AVAILABLE from February as a wrapped handheld single, Mars Chocolate Drinks and Treats is launching Snickers Crisp Ice Cream at an RRP of £1.49. The Snickers brand will also be supported by a multimillion-pound media campaign. The announcement comes as the UK ice cream
market tops value sales of £1.1bn, with wrapped handheld ice creams dominating the category as the largest segment, now worth £664m. Michelle Frost, general manager at Mars Chocolate Drinks and Treats, said the new line’s taste and texture will appeal to shoppers.
Two varieties join Vape Bournville Old Jamaica Orangina focuses Dinner Lady range makes a comeback on French origins
Liqueur sales peak over past year SALES of liqueurs in the past 12 months have hit their highest-ever level, with 43 million bottles sold, worth £1.3bn, as UK consumers continue to expand their drinks cabinet and experiment with new cocktails.
This is according to the Wine and Spirit Trade Association, which stated that over the past year, 18 million bottles of cream liqueurs were sold, and 25 million bottles of non-cream liqueurs were sold.
convenience retailers in 180g packs, RRP £2.04, and a 100g £1 price-marked pack. The alcohol-free bar has made several appearances as a limited-edition line since its launch, appearing in 1987, the mid-1990s and most recently 10 years ago, when it was on shelves for a year.
ORANGINA and Orangina Light have had a packaging refresh to give the drink one design across Europe and promote its French origins. The new 420ml bottles carry the strapline: ‘À l’orange. Sparkling since 1936’. The packaging also includes the message ‘recycle moi’ on the cap to encourage consumers to dispose responsibly and to be more environmentally conscious.
Mentos bottles new fruit gum flavours
Foraging for new porridge combos
PERFETTI Van Melle is extending its Mentos Gum Pure Fresh line with two new �lavours, Tropical and Cherry, which contain a sugar-free centre. Bottles form 59% of the gum market and are growing at 10.5%, making the new additions to the Mentos Pure Fresh Gum range a potential sales opportunity for retailers. Mentos’ resealable bottles contain 50 pieces. Retailers are advised to cross-merchandise the bottles close to coffee machines and food to go. They are available with an RRP of £2.25.
PEPSICO’S latest campaign for Quaker Oats will focus on inspiring consumers to get imaginative with their porridge toppings and �lavour combinations. The ‘Go forridge’ campaign will run across TV and digital advertising, as well as social media activity.
It aims to convert those who wouldn’t normally think of porridge as their go-to breakfast. The brand will also be launching an on-pack promotion, exclusive to sachet formats, which gives shoppers the opportunity to win an Amazon Echo Show 5.
14-27 JANUARY 2020 betterRetailing.com
New pack designs and 79p PMP from Drench BRITVIC is revamping the Drench range with new pack designs, simpler names and a 79p price-marked pack (PMP). Mandarin & Lemon is now called Citrus, Peach & Mango has changed to Tropical, and Pear & Blueberry has become Berry. In addition, retailers will be able to drive sales with PMPs marked with £1 per bottle, 79p or two for £1.70. The refreshed packs will
also promote that Drench is free of arti�icial colours, �lavours and preservatives. The Drench range is available now in 500ml and 500ml PMP. It follows the supplier updating the packaging for Robinsons Refresh’d last summer. The juice drinks segment represents 8% of total soft drinks sales, with a market value of £1.2bn.
RETAILERS can bolster their vegan snacks range this month as Kettle has launched an alternative cheese & onion �lavour. Sheese & Red Onion, RRP £1.99, is available in Asda and to Budgens and Londis retailers from the start of this month, with Tesco and Morrisons following at the end of the month. Kettle has teamed up with dairy-free brand Sheese to use its Red Leicester-style product.
Phil Hovey, Kettle innovation chef, said: “Between 2014 and 2018, the number of vegans in the UK quadrupled. We want to bring our �lavour combinations to everyone, regardless of their dietary requirements.” Sheese does not contain any arti�icial ingredients and is produced in a vegan factory. The news follows the launch of the new and improved Mature Cheddar & Red Onion �lavour last year.
Protein and energy brands join Epicurium RUNA from Vita Coco and Grenade Carb Killa protein biscuits have joined Epicurium’s growing range. Retailers buying from the wholesaler can now access three Runa energy drinks in Blood Orange, Pineapple and Wild Berry �lavours, as well as Double Chocolate and
Salted Caramel Grenade bars. The wholesaler offers 120 brands to retailers across the UK with no minimum order.
A Sheesey peasy vegan win from Kettle
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PRODUCTS
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Kellogg’s unveils on-the-go range PRIYANKA JETHWA KELLOGG’S is moving into the on-the-go breakfast category with its new range of granola smoothie bowls and breakfast toppers. The ‘Kellogg’s to go’ range includes a Kellogg’s Crunchy Nut Hazelnut & Chocolate granola smoothie bowl, and a Special K protein granola smoothie bowl. Consumers just need to add water to them. There will also be three portioned toppers available: Kellogg’s Crunchy Nut Hazelnut & Chocolate granola, Protein Special K Red Berries, and AllBran Berry Crunch. The granola smoothie bowls (RRP £1.59) and toppers (RRP
60p) will be available in stores from February. The new toppings range is designed as an opportunity for retailers to experiment with growing food trends, such as the £1.6bn yoghurt category. According to the supplier, 12% of consumers now eat breakfast at their desks. Kellogg’s activation brand lead Aimee Cowan said: “Toppers are a growing trend, as these can be added to yoghurts and porridge.” Meanwhile, the supplier is also back on screens from this month with a £8.5m campaign, ‘Whatever you do, we do breakfast’, focusing on the diversity of Kellogg’s core cereals range. The TV advert will focus on
well-known brands, including Crunchy Nut, Corn Flakes, Rice Krispies and Coco Pops.
New Southern Fried Poppers from Quorn
Four new additions from Urban Eat
AVAILABLE to independent retailers now, Quorn has launched Southern Fried Poppers, consisting of a Quorn centre that is encased in a southern fried breadcrumb coating. They will have an RRP of £1.29 (60g) and the launch will be backed by a marketing campaign, in-store activation and digital support. Jennifer Shepherd, brand manager at Quorn Foods, said: “As more than half of all UK consumers are now reducing their meat consumption, it’s important that we continue to provide products that deliver on taste and health, as well as convenience for when consumers are on the go.”
URBAN Eat has launched four new sandwiches, wraps and salads designed to appeal to shoppers looking for lighter lunches. Available to all independent retailers until 25 April, it includes two seasonal limited-editions – Herby Chicken Sandwich and Beetroot & Tabbouleh Wrap – and two additions to the Roots range, including the Hello Courgeous Sandwich and Wahey Tabbouleh Salad. All four contain fewer than 420 calories. Wayne Greensmith, head of category marketing at Adelie Foods, said it is imperative that retailers stock up on quality lighter and vegan options to keep
up with shopper demand and expectation.
SUFFOLK brewery St Peter’s has revamped its recipes in a bid to appeal to a wider range of drinkers. First on shelves in 2016, the relaunched Without Original, Gold and Elderberry & Raspberry beers are available to convenience retailers now. John Hadingham, St Peter’s Brewery managing director, said: “A lot has changed in four years. No- and low-alcohol appeals to more and more young consumers and we’ve seen a growing trend towards full-bodied IPAs. “Customers have been telling us they want a refreshing zeroalcohol beer that has hoppy �lavours.”
KP Snacks has kicked off the new year with a £1m new poster campaign to support Hula Hoops Puft. The campaign is running until 23 February, focusing on how light the product is. The supplier said that when shoppers are buying snacks,
34% will speci�ically look for a healthier product, and 49% say they would choose crisps or savoury snacks over a sugary option. The range is available in four �lavours, including Salted, Salt & Vinegar, Beef and Sweet Chilli.
14-27 JANUARY 2020 betterRetailing.com
Rustlers turns to the vegetarian side KEPAK is launching its �irst ready-to-eat vegetarian burger to meet the growing interest in meat-free products. Rustlers Moroccan Vegetarian Burger, available with an RRP of £2, is made with chickpea, grated carrot and coriander, and served with mango chutney and a yoghurt & mint sauce. The supplier said the new variety has the potential to generate more than £2mworth of incremental sales. To promote the launch, the supplier will launch a campaign across social media, including initial launch promotions.
Tap into Veganuary with General Mills
GENERAL Mills has a new campaign for Lärabar as part of Veganuary 2020. The ‘Let’s make Veganuary moreish’ campaign will span sampling, social media, online and in-store advertising.
It is expected to reach 15 million people. Lärabar is available with an RRP of £1.19 for a single bar, and £2.90 for a three-pack. The bars are made with no more than six ingredients.
St Peter’s Without KP Snacks showcases Any-Which-Way-Abrews up new recipe Hula Hoops campaign Bix TV ad is back WEETABIX is bringing back its Any-Which-Way-ABix campaign and is giving shoppers the chance to win £10,000. Part of a £11m investment, the campaign is aimed at consumers who personalise
their Weetabix with various toppings. The 2019 campaign led to a 7% uplift in sales. The campaign will be supported by TV advertising, and PoS will be available for independent retailers.
Vappee R R e t a i le r r e l i a t e Va
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10
DON’T MISS THE 24 JANUARY 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
GROCERY DELIVERIES:
Should convenience stores dive in?
“THERE’S little argument against tapping into the delivered market. However, by no means am I saying this will be easy. Value for money and cheap prices are most important to consumers with deliveries, and these reasons could be a big stumbling block for smaller retailers.”
Giorgio Rigali, communications manager, Him
“IF you have a modern convenience offering, the answer is yes. The real question is how? Deliveroo and Uber Eats aren’t built for groceries. The commission is too high, it doesn’t drive shopper loyalty and it is questionable whether those companies can be trusted with your sales data.” Jack Courtez, editor – news , Retail Express
There’s little argument against tapping into the delivered market
How to make more profit from your soft drinks
PLUS RHINO MEDIA: Why are screens in store no longer working?
Why you should invest in a hot-food & drinks-to-go machine this year
D WS AN FOR NE TITLE ADING THE LE
THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ILERS TITLE E RETA FOR NE ENIENC WS AN CONV D CONV ENIENC E RETA ILERS
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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 are owed significant sums of money from Rhino Media Group
“SOME symbol group customers have asked if Rhino Media Group can upload the current promotions on their screens. Sadly, Rhino Media Group is not able to do this at this time, and won’t be able to do it until everything is back up and running as normal in the new year.” Roger Van Deelen, managing director, Rhino Media Group
Terence Simpson, managing director, VoJo Media
»
BUSINESS RATES: What will council control mean in Scotland?
Opportu nities STOR
19
“WE are owed signi�icant sums of money from Rhino Media Group. Rhino login accounts no longer have access to the VoJo platform. Individual site users continue to have limited access while we at Vojo have discussions with interested parties and consider appropriate steps.”
»
“GIVING local authorities the power to set rates will increase complexity in the business rates system and result in widespread uncertainty for local shops about their costs. We are concerned that the amendment would inhibit retailers’ ability to invest in their stores.” James Lowman, chief executive, ACS
“THIS means that the existing rate reliefs such as the small business bonus, which is vital for small retailers north of the border, could be scrapped. You don’t have to be cynical to believe that cash-strapped local authorities will simply see shops as cash generators.”
Local authorities will simply see shops as cash generators
Pete Cheema, chief executive, SGF
2020: What will the year bring in the wholesale industry?
The economy will be the biggest challenge to growth
“I EXPECT an ever-increasing speed of change across our industry. Track and trace could be completed, DRS in Scotland could make its mark on the UK and there’s expectation of regulation to combat products high in fat, salt and sugar. James Russell, managing director – wholesale distribution, Blakemore
“WITH Brexit looming large and consumer con�idence at a low ebb, the economy will be the biggest challenge to wholesaler growth in 2020. Consumers continue to become more educated about what they eat, and with this comes more accountability.” Tom Gittins, managing director, Confex
LETTERS
14-27 JANUARY 2020 betterRetailing.com
11
natalie lightfoot
Letters may be edited
Londis Solo Convenience, Baillieston, Glasgow
My new year’s resolution – to make home deliveries happen from my store
s Stores in other countries operating bottle return scheme have much more storage space, says Steve Bassett
‘Deposit return schemes are not the solution for the UK’ SOME people in the industry seem to be obsessed with bottle return schemes, but they are not something UK convenience stores have the infrastructure or space to do. I’ve been to see how it works in other European
countries and they are really ef�icient, and the bottles are reused. They also have a lot more storage space than we do. In New Zealand, they grind bottles down into sand, which is then used in construction.
In the UK, it seems like we’re missing the point. There are no plans here to reuse the bottles in a deposit return scheme. Consumers want to do kerbside recycling – people driving their empty bottles
TWEETS OF
back to stores isn’t ef�icient. In my opinion, better effort and cash would be spent on more public recycling bins and education. Steve Bassett, Londis Abbottsbury Road, Weymouth
THE WEEK
WIN £50-worth of Nutella
FERRERO has partnered with Retail Express to give five lucky retailers a chance to win £50-worth of stock of Nutella ahead of Pancake Day. Nineteen per cent of all Nutella sales are made on the day itself, demonstrating the importance of keeping displays stocked right until the end of the occasion.
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.
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LET’S KICK THAT SMOKING HABIT!!! Vapestore is absolutely smashing it right now! New customers, great margins just better than I could’ve ever imagined! Cannot thank @AquaVapeUK for the collaboration enough! @AmritPahal
WE HAD a successful 2019, breaking a number of the store’s records in the past few weeks. Now, as the new year starts, it’s time to look at what we would like to do to build on that success. The big goal for us is to establish a home delivery service from the store. We’ve wanted to it do for a while, Each issue, one of seven top and in 2020, I’m retailers shares advice to planning to make make your store magnificent it happen. We bought a van in 2019, and started doing deliveries with our Christmas hampers as a trial for the service. It’s gone well, and has helped us reach people who’d never have come to visit the store otherwise, but we’ve had a few teething problems. We started by offering deliveries through Facebook Marketplace, and, although it’s been very popular, we had a lot of cancellations on items. Social media is great for so many things, but the lack of personal contact makes people feel more comfortable breaking a commitment than if they had come in to the store and met you face to face. As we’re only a small team, we can’t afford to waste time and money. We’ve looked into using a site called Snappy Shopper, which would solve the problem we’ve had with Facebook Marketplace, as it commits customers to paying for items they’re ordering. So, our next big challenge for the start of this year is to list the 100 or so products we want to offer home delivery on, on Snappy Shopper. We also need to make sure we have processes in place to make the home deliveries work as efficiently as possible. As we’re only a small store, we can’t afford for it to take up too much time – we need to establish systems that will make it work smoothly. Ultimately, we’ll probably look to train one of our members of staff up to take responsibility for the deliveries, so the burden doesn’t just fall on me and my husband.
Who else has made resolutions this year that revolve around eating better and leading healthier lifestyles? We’re helping our retailers to cater for these shoppers with some great new lines in vegan, free-from and more.@NisaRetail We will be promoting and protecting print in 2020 as part of our #ProPrint strategy. Maximise your print sales by joining NewsPro today for FREE. Members outperform channel on print, greater sales, profit & operationally saving time. #TheFed #NFRN #NewsPro @gregdeacon
Get in touch
@retailexpress betterRetailing.com facebook.com/betterRetailing chris.dillon@newtrade.co.uk 020 7689 3379
NEW
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*
Stock up now! Illustrations for illustrative purposes only
*Total KitKat® IRI & Discounters Value Sales 52 wk ending 10/8/19 +10.7% ® Reg. Trademark of Société des Produits Nestlé S.A.
CATEGORY ADVICE SPRING CONFECTIONERY
SEVEN CONFECTIONERY RESOLUTIONS The new year means opportunities to drive sales. TOM GOCKELEN-KOZLOWSKI looks at seven ways you can boost your sales this spring
SPRING INTO ACTION THE move from winter into spring presents a number of key occasions to drive sales of your confectionery range. Easter is, of course, the big one for chocolate sales, but Valentine’s Day and Mother’s Day are also key dates to mark on your calendar. According to Haleem Sadiq, trading controller at Bestway Wholesale, sharing boxes are an important line to look into
over the spring. “Alongside the usual indulgent chocolate eggs that are a staple on any retailer’s shelf, there is also a trend for sharing chocolates this year,” he says. “We advise retailers to stock larger boxes of chocolates, alongside the usual Easter eggs, so they can tap into this sharing trend and cater for all families this year.”
dates for your diary
Friday 14 February Valentine’s Day Tuesday 25 February Pancake Day Sunday 22 March Mother’s Day
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CATEGORY ADVICE SPRING CONFECTIONERY
14
01 PREPARE FOR JANUARY SALES SUPPLIERS are united in agreement that products need to be visible from the start of January. That doesn’t mean having a full range of large Easter eggs on show, but Cadbury Creme Eggs and other impulse items are vital. “In the early weeks in the lead up to Easter, we see increases in impulse purchases,” says Levi Boorer, customer development director
14-27 JANUARY 2020 betterRetailing.com
RETAILER
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at Ferrero. “Retailers should stock up in January to meet shoppers’ needs for spring,” he adds. And those who are late can risk not having access to bestsellers at all. “Retailers need to place their orders at the earliest opportunity to avoid outof-stock situations,” says Sugro confectionery buyer Imran Ambalia.
Harj Gill, Select & Save The Windmill, Birmingham Promotion ends get most of the space for our spring confectionery as we leave the rest of our confectionery range – such as countlines – mainly untouched. That means people see seasonal products as they come in and at the till. Premium Easter eggs are useful for creating strong displays as well as for sales. People want to trade up and know they have that option. We stock products such as Thorntons to make sure we have something different. Finding a balance for smaller occasions is a challenge. We give over one bay for Valentine’s Day, which switches to Mother’s Day, and then to Father’s Day in June. The rest of our bays and displays focus on Easter eggs. Symbol support is really useful for building professionallooking displays. Last Christmas, we used the Best-one PoS and promotional material, and we plan to use the same for our spring confectionery, too. After Christmas, we immediately start to display our spring confectionery range and people come in to buy impulse lines. My brother organises the pre-sales and makes sure it’s sorted well before the end of the year. Spring confectionery is important for me because after Christmas, sales can go down in a lot of categories. People do dry January and quit smoking. Some adults cut down on confectionery for a while, but kids don’t, and our sales overall stay stable. Year on year, our confectionery and snack sales are actually increasing – people like to settle in for a night in.
02
DON’T MISS A ‘MINI SEASON’
THERE are three major ones – Valentine’s Day, Pancake Day and Mother’s Day – and each one has its own, slightly different, sales pattern. For example, Mondelez says one of the biggest sellers before Mother’s Day is Cadbury’s Milk Tray, worth £34.2m. Love Hearts, unsurprisingly, focus on Valentine’s Day, with the
brand offering chrome tins of the sweets. Swizzels sales director Mark Walker says using PoS can have an effect on sales. “The original bags are available for retailers to purchase on a clip strip to maximise space in store and easily add to an eye-catching Valentine’s display,” he says.
03
SPEAK TO YOUR WHOLESALERS
AS the year begins, retailers must start analysing their sales data and sharing it with wholesalers, says Sugro’s Ambalia. “Providing forecasts to wholesalers is important, as it enables stores to manage their forecasting and orders,” he adds.
04
Ambalia says simple things like getting staff to face up can help. “Merchandising in store early is a key factor in driving those early sales and will provide vital information on which lines are selling well, giving time to re-order stock top sellers,” he says.
DON’T FOLLOW THE MULTIPLES
“CONVENIENCE stores have the upper hand over multiples in their connection to local communities,” says Ferrero’s Boorer. “It is therefore important that they create as much excitement in the leadup to spring occasions and look out for opportunities to collaborate with suppliers.” Yet, while retailers have advantages, they can also become unstuck by buy-
ing in the same range of highly discounted eggs available in the major supermarkets. “The advice we would give is to ensure bestsellers take the priority in their ranging decisions,” says Boorer. “Packs that sell all year round, but are a favourite with shoppers over the three occasions, will be key to success,” he says.
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CATEGORY ADVICE SPRING CONFECTIONERY 05
TRY CROSSCATEGORY DEALS
“CAPITALISE on last-minute impulse purchases with linked deals across various categories,” says Susan Nash, trade communications manager at Mondelez. “‘Dine in for two’ meal offers work really well, especially when they’re accompanied
by chocolate gifting options, wine and flowers.” According to Nash, 40% of baskets in the week leading up to Valentine’s Day include chocolate confectionery, providing opportunities to use the category to boost sales in a host of other profitable categories.
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what to stock Cadbury Dairy Milk Message Bars Each limited-edition bar holds a different message, such as ‘You make me smile’. Olivia Burton for Roses tins A set of tins available this spring have been created by the jewellery designer. Swizzels Spring Selection This variety pack is new for 2020. It features Drumsticks, Love Hearts, Parma Violets and Refreshers. Smarties Bunnies The chocolate-shell characters contain Smarties and come in five different colours, RRP 65p. Ferrero Collection Egg The 240g egg includes Ferrero Rocher, Ferrero Rondnoir and Raffaello. Thorntons Bunny One of Ferrero’s new impulse products alongside a number of launches from Kinder.
06
REFLECT HEALTHY TRENDS
MANY will be looking for healthier products after Christmas, but this doesn’t mean that the confectionery market has to lose out. Mike Simons, head of category at Grenade, says protein-rich bars like Grenade Carb Killa are “the perfect choice for consumers looking
to indulge without having to sacrifice a healthy lifestyle”. The fact that the company’s bestsellers last spring were its Peanut Nutter, Birthday Cake and White Chocolate Cookie bars shows shoppers are looking to satisfy their sweet tooths, even in the weeks after Christmas.
07
CATER TO VEGAN NEEDS
ALL the products in Swizzels’ new selection pack – including staple sugar confectionery brands such as Refresher, Drumstick and Love Hearts – are suitable for vegans. At a time of year when confectionery can be synonymous with so many events,
Walker says this makes them a great option. “Swizzels recognises this is a growing lifestyle choice, and it can be particularly difficult to find suitable confectionery products over the Easter period when chocolate is so prominent,” he says.
CATEGORY ADVICE VEGETARIAN, VEGAN AND FREE-FROM
18
MOVING TO FREE-FROM DARYL WORTHINGTON takes a look at building a vegetarian, vegan and free-from range in your store
THE TREND YOU NEED TO KNOW ALMOST 12 million households across the UK are buying into meat-free, with 52% of consumers reducing their meat consumption, according to Alex Glen, marketing director at Quorn Foods. And it’s not just vegetarian that’s on the rise. Shoppers are following an increasing number of different diets – whether it’s vegetarian and vegan, plantbased or gluten-free, especially around the new year, with
awareness around events such as Veganuary. “The ‘new year, new you’ healthy eating concept has been popular for many years. However, with recent shifts in consumer buying habits, it is more prevalent than ever,” says Paul Adams, head of sales and development at Best-one. “There have been noticeable rises in consumers choosing healthier lifestyles, leading to opportunities for retailers to capital-
ise on this trend and tap into the free-from and vegan market.” This pattern can be seen in categories across your store, from confectionery to food to go and drinks. With this in mind, now could be a great time to try out vegetarian and vegan ranges in your store, or expand what you already have. Here, we take a look at the options in chilled & frozen, grocery, confectionery & snacks, dairy and food to go.
14-27 JANUARY 2020 betterRetailing.com
CHILLED AND FROZEN WITH more shoppers looking to convenience stores for their evening meals, stocking a range of free-from options is important to get the most from the section. “Since many consumers follow a flexitarian diet and may still be shopping for
non-vegan or vegetarian foods, placing alternative options near their traditional counterparts can help inspire a shopper to try a product they might not have considered otherwise,” says Dan Staackmann, founder of Upton’s Naturals.
SUPPLIER
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what to stock Quorn Fishless Fillets Upton’s Naturals Seitan and Jackfruit range Quorn Mince
Moroccan Retail Express Trade Advert 172x240mm Dec 19 HIGH
FOOD TO GO FOOD to go is growing in importance in convenience, driving footfall and offering retailers a strong margin. To make sure you’re really getting the most out of the category, ensure you’re offering vegetarian, vegan and free-from options where you can. For instance, if you have
a pizza stand in store, make sure you have a meat-free option on display. If you have sandwiches in a chiller, stock up on meat-free and glutenfree options. Vegan sausage rolls are another great idea, as seen by the success of Greggs’ launch last year.
what to stock Rustlers Moroccan Vegetarian Burger Country Choice vegan sausage roll Urban Eat’s range of vegan sandwiches and wraps
19 23
Alex Glen, marketing director, Quorn Foods “WE are seeing an unprecedented move towards meat reduction, with the majority of the UK cutting back on the amount of meat they eat in some way. “Shoppers are voting with their pounds and are increasingly holding brands and retailers accountable RES v2.pdf 1 05/12/2019 11:35 for their sustainability credentials.”
CATEGORY ADVICE VEGETARIAN, VEGAN AND FREE-FROM
20
GROCERY OFFERING gluten-free, as well as meat-free, options across your ambient and grocery section can attract customers to your store who might not have expected you to sell those products. As customers take their diets more seriously, even
those who aren’t vegetarian might want to go meatfree sometimes. One top tip is to make sure your free-from grocery products are clearly labelled, so consider labels highlighting the products that meet different dietary requirements.
14-27 JANUARY 2020 betterRetailing.com
DRINKS what to stock Bisto Gluten-Free Gravy Granules Garofalo free-from pasta Free & Easy organic red lentil soup
“RETAIL sales of plant-based food and drink are currently worth £396m, with one in three households now regularly buying it,” says David Jiscoot, marketing director for Alpro. “But there is much further to go, with 18 million households primed and ready to discover the power of plant-based.”
The message from suppliers is clear: offering a range of dairy-free drinks is increasingly important for retailers. Even non-vegans could be looking for dairy-free options, whether dairy-free coffee sachets or cartons of dairy alternatives for their tea, coffee and cereal.
what to stock Alpro 1l cartons (for example, almond milk, oat milk, soya milk etc) Jimmy’s Iced Coffee Oat Latte Nestlé plant-based latte coffees
RETAILER
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Michelle Gravelle, Gravelle’s Budgens, Sawbridgeworth, Hertfordshire “OUR free-from section does really well, we’ve been growing it for years. To promote it, we post about our vegan and free-from options on local vegan and gluten-free groups on Facebook. We used to only have a small free-from section, but now we’ve stretched it out. We’ve made a dedicated free-from section for grocery and ambient, so it really stands out, and we have also dedicated free-from sections in our chillers and freezers.”
SUPPLIER
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Mark Roberts, trade marketing manager, Perfetti Van Melle “THE vegetarian and vegan market is growing as part of the health agenda. Demand from customers for products made without gelatine is increasing, so explicit branding to help consumers and shoppers make easy switches is very important for retailers.”
CONFECTIONERY AND SNACKS CONFECTIONERY and snacks are well established as core convenience lines. For this reason, making sure you carry a selection of vegan, vegetarian and free-from lines is vital to making sure you don’t lose
sales in the category. In particular, customers will be looking for gelatine-free sweets or snacks such as lentil crisps. Fortunately, more and more suppliers are now meeting this trend with new lines.
what to stock Fruittella Koalas Eat Real’s range of Hummus, Quinoa and Lentil Chips Lärabar
RETAIL
IN ACTION
BRAND SPOTLIGHT
In partnership with
FOCUS ON:
NORDIC SPIRIT
NORDIC SPIRIT,, a range of tobacco-free nicotine pouches, is now available in the UK, tapping into the trend for alternative nicotine products – a growing and innovative category. RETAIL EXPRESS finds out how you can cash in on the opportunity
In action
14-27 JANUARY 2020 betterRetailing.com
What is Nordic Spirit? NORDIC Spirit was originally developed in Sweden, where it has rapidly grown in popularity since its launch in 2018. The 100% tobacco-free nicotine pouches offer existing adult smokers and vapers more choice by providing a convenient and discreet nicotine product that can be enjoyed in situations where smoking or vaping might not be possible. Available to purchase in two flavours (Mint and Bergamot Wildberry) and two strengths (6mg and 9mg), each pouch contains a blend of plant-based fibres, nicotine, additives and flavourings which, together with a gum-base, fit comfortably under the top or bottom lip for up to one hour for a discreet alternative to smoking or vaping. Each can includes 20 tobacco-free pouches which has an RRP of £6.50*.
Why stock it? THIS relatively new category presents a huge profit opportunity for independent and convenience retailers, as the demand for alternative nicotine products continues to grow. Whether on a long-haul flight, in the office or just hanging out with friends, this smoke-, vapour- and odour-free offering can be enjoyed anytime, anywhere. *Retailers are, of course, free to sell JTI products at whatever price they choose
Display it on the counter – Nordic Spirit doesn’t need to be in the gantry and can be stocked on the counter to be more visible to customers. PoS units are available to independent retailers.
Speak to your customers – When an existing adult smoker or vaper shows interest from the countertop display, take the opportunity to explain what the product is and how it works.
Stock a full range – Nordic Spirit is available in two strengths and two flavours, so it is important to maintain a full range so your customers can always buy their preferred product.
Manoj Agnihotri, Jet, Brentford, London “NORDIC Spirit is an innovative product and is a great nicotine alternative. We’ve found it to be particularly popular among those who travel a lot for their job, as well office workers. We sold out of our first batch in just two days. “Because Nordic Spirit can be merchandised in a countertop display, it can be placed directly in front of customers – we’ve found that this gives us a chance to discuss what the product is and how it works.”
Visit the recently updated JTIAdvance.com or speak to your JTI rep to find out more information on Nordic Spirit
21
CATEGORY ADVICE LOW-SUGAR SOFT DRINKS
22
LOW AND NO OPPORTUNITIES With health concerns resulting in customers cutting back on sugar, DARYL WORTHINGTON takes a look at what it means for your soft drinks range
LEADING HEALTHIER LIFESTYLES “HEALTH is an ever-increasing concern, with 65% of people agreeing that they are proactively trying to lead a healthy lifestyle,” says Phil Sanders, out-of-home commercial director at Britvic. “This has led to a 6.1% increase in the value of low-calorie drinks as consumers become increasingly heath conscious.” The health trend is, of course, nothing new, but its impact on soft drinks sales is now impossible to ignore. This is never more true than at the start of the year, as new year’s
resolutions and the recovery from festive excess make shoppers pay more attention to the sugar content of what they’re putting in their baskets. “In recent years, we have seen a long-term trend towards drinks with lower sugar as consumers become more and more interested in living healthier lifestyles,” says Matt Gouldsmith, channel director for wholesale at Lucozade Ribena Suntory. “Shoppers’ spending on zero- and low-sugar drinks has increased by 33% and 29%,
respectively, showing just how important this segment of the market is. In fact, there is now a higher volume of zero-sugar drinks bought than regular.” Low- and no-sugar are trends you’ll see across your convenience store, and getting it right in a core category like soft drinks is vital if you’re going to keep meeting customer demand.
LOW AND NO LOCATION ALTHOUGH low- and no-sugar soft drinks are very much on trend, it’s important to range and merchandise in a way that complements the fullsugar varieties. “Place your low- and zerosugar soft drinks next to original varieties. For example, Coca-Cola Original Taste should always be stocked next to Diet Coke and CocaCola Zero Sugar,” says Amy Burgess, senior trade communications manager at Coca-Cola European Partners. According to Burgess,
building your low- and no-sugar lines goes hand in hand with rationalising your range to focus on your bestsellers. Use low- and zero-sugar versions of your top sellers to replace space being wasted on slow sellers. “Review your range and remove the slowest-selling lines to make space for low- and zero-sugar varieties including Coca-Cola Zero Sugar Raspberry and Diet Coke Twisted Strawberry,” Burgess explains.
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SUPPLIER
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Florence Brain, director of channel operations, Britvic “STRAIGHT after New Year’s Eve, shoppers switch to low-sugar drinks. It’s important that retailers make sure they have a balanced range and offer zero- or low-sugar versions of shoppers’ favourite mainstream brands. “I’d also suggest that retailers look at the water and flavoured water category, with products such as Aqua Libre or Drench offering shoppers tastier options. These products tend to work well with food, so there’s an opportunity to drive sales with a lunchtime meal deal. “My big predictions for this year would be around health and premiumisation. I think premiumisation is a trend that’s here to stay and we should prepare for shoppers willing to pay more. I also believe healthier options will continue to evolve, especially around natural energy.”
top tips Britvic’s tips to maximise sales Stock the right range – Include a range of formats that are fit for a variety of shopper missions. For immediate refreshment, it is important to stock a broad range of single-serve low- and no-sugar soft drinks, while the larger packs work well for those on a top-up visit. Highlight new products – Shoppers want to discover innovation, so make sure new soft drinks stand out in the chiller or on shelf, with additional PoS where relevant. Be visible – Make sure low- and no-sugar soft drinks are in a prominent location in store, such as close to on-thego food items for smaller formats and use gondola ends for take-home soft drinks. Restock shelves frequently to keep up with demand – any gaps in the chiller represent potential missed sales.
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Join us for a no-holds barred panel debate with some of the biggest names in UK convenience & wholesale. A must-attend event to help you grow your sales and profits in 2020 and beyond. John Kinney Unitas
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Our panellists:
Steve Fox Motor Fuel Group
Jonathan James James Convenience Retail Kevin Hunt Hunts Spar
Neil Turton Sugro UK Limited
WHERE
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Steve Bassett Award Winning Retailer - Londis
Amrit Singh Award Winning Retailer - Nisa
DATE
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Wednesday 29 th January 2020
13:30 - 17:30
In February, 33 members of the UK convenience and wholesale sector will be cycling over 600km through Cambodia in support of MAG (Mines Advisory Group) and proceeds from ticket sales for this event will support the team in their fundraising efforts.
Also Included in the price of your ticket … An exclusive evening with two legends from the rock and roll world - Jamie Moses & Jim Cregan – who will play some classic songs, followed by a charity auction hosted by Cheryl Baker (Bucks Fizz). The charity evening will be held at The Bermondsey Bar & Kitchen (4 News UK). minutes from N
To book your tickets, email amy.searle@cirkle.com
CATEGORY ADVICE LOW-SUGAR SOFT DRINKS
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Matt Gouldsmith, channel director wholesale, Lucozade Ribena Suntory “OUR core brands are available in very low or zero-sugar alternatives in the form of Lucozade Zero, Lucozade Sport Low Cal and Ribena Light to offer consumers a full range of choice. “We advise retailers to take advantage of this range and to stock up on the various lines to capitalise on the ongoing health trend in 2020, as we know from case studies and projects we’ve worked on with retailers over the past 12 months that low- and no-sugar drinks have real sales impacts when introduced into convenience stores. “In a study with an independent store last year, the sales increase following the introduction of a full range of low- and no-sugar soft drinks products was instant. Lucozade Energy Zero Orange sales went from zero to a full case in its first week. Crucially, other sales across the store’s soft drinks range remained steady during the trial, as customers still had their favourite choice of soft drink easily at hand. By increasing the store’s low-and no-sugar range, sales of other drinks didn’t fall at all.”
ON TREND WITH customers looking to try something new, it’s always worth trialling the latest products in your soft drinks chiller – and this goes for low- and no-sugar varieties as well. “Consumers are becoming more adventurous than ever and are looking to experiment with new and exciting variants of their favourite soft drinks,” says Burgess. “More than a third of shoppers agree that they like trying new things when grocery shopping, so it is increasingly important for retailers to keep an eye out for the latest flavour innova-
tions across a range of different soft drinks formats.” Keeping on top of the new products that are receiving a lot of advertising support and ensuring they’re in stock is vital for driving sales in the category. For instance, in 2019, Tango experienced 31.6% growth, gained market share and attracted 900,000 more shoppers, following a packaging redesign and £2.2m marketing campaign from Britvic. Meanwhile, Fanta Grape Zero, which was launched last year following demand on social media, is worth £5m. Stocking products such as
what to stock Ribena Frusion Fanta Grape Zero Coca-Cola Zero Sugar Raspberry Volvic Touch of Fruit No Added Sugar Tango Sugar Free (Tropical, Strawberry & Watermelon and Orange) Pepsi Max Cherry
these as early as possible is the best way to maximise sales. Products that match bigger lifestyle trends are also worth taking a look at. Alternative milk brand M+LKPlus recently launched two ‘grab and go’ nut milk flavours – Salted Honeycomb Hazelnut and Strawberry Cheesecake Cashew. With both drinks low in sugar and fitting the plant-based trend, they could be worth stocking in your store.
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RETAILER PROFILE BART AND LOUISE DALLA-MURA TYSOE VILLAGE STORES Location: Tysoe, Warwickshire Opening hours: Mon-Sat 8am-8pm, Sun 9am-6pm Facebook: facebook.com/ tysoevillagestores
‘OUR TEAROOM IS AN IMPORTANT COMMUNITY SPACE’ DARYL WORTHINGTON BART Dalla-Mura recently reopened the tearoom at his Tysoe Village Stores in Warwickshire, and it’s reinforced the shop’s position as a vital part of the local community. “We restarted the tearoom a few months ago, and it’s already proved really popular,” he says. “People come in for all sorts of reasons. We have a group that come in after their pilates class, the local parish council use it to have meetings with the community, and we’ve had wakes held here – people �ind it’s a much nicer atmosphere than going to a pub.” The tearoom is run by Bart’s wife, Louise, and offers hot drinks, as well as cakes and hot food, such as cheese on toast, made on the premises. The shop and the tearoom serve as footfall drivers to each other, while integrating the two brings a number of bene�its. “The tearoom helps reduce wastage on the shop. Bread from our bakery section can be used in our cheese on toast, for example,” says Louise. “At the same time, when the tearoom is having a quiet time, the staff can make sandwiches, which we sell in the shop. These
are really popular as they’re fresh, and the price is competitive,” adds Bart. The sandwiches are packaged in recycled material, and becoming more sustainable is an area in which Bart hopes his shop can lead the way for the community. “Most of our fruit and veg is now supplied without plastic packaging – instead it comes in cardboard crates,” he reveals. “If we can get it delivered plastic-free, we will. We try to encourage our customers not to take plastic carrier bags at the checkout, and I think eventually we may start to charge for using plastic bags. It’s a gradual thing – a lot of our customers are used to taking a bag, or will ask for one because they need it for their rubbish,
but we’re trying to change those habits.” In its fruit and veg section, Tysoe Village Stores has started selling Veggio reusable food storage bags. “To try to get more people using them, we’re running a promotion giving customers a 5% discount on fruit and vegetable purchases when they buy the bags,” says Bart. Making a store more sustainable and environmentally friendly is something many
PEOPLE FIND THE ATMOSPHERE IS MUCH NICER THAN A PUB’S
retailers will balk at due to the costs involved, either for them or their customers. However, Bart has found that some things are bene�icial for him and his shoppers. “We recently got in a re�illable wine station from Borough Wines in London,” he explains. “As far as I know, we’re the only shop in this area that has one. It has three different types of wine, and customers can either bring in their own bottle, or buy a glass bottle from us for £6. It’s been a big hit – we’ve sold 50 bottles in the �irst week, and the margin is really strong at 20%.” For Bart and Louise, the tearoom and push to going green are all part of what a small village store should bring to its community. “There aren’t many stores in this area, some of the nearby villages don’t even have their own shop, so we attract people from far and wide. It’s all about providing as much as possible to get customers to come to you,” says Bart. For more pictures of the store, go to betterRetailing.com/ tysoe-tearoom
1 Diversify your offering “The tearoom lets us offer something extra. It builds our connection with the local community, and people who come in for the tearoom will see what the shop offers, and vice-versa.” the way on 2 Lead sustainability “Sustainability and reducing plastic are priorities. At the tills, we offer reusable bags for customers to buy, we avoid plastic in our fruit and veg, and our refillable wine station has been a huge success.” on the 3 Get latest trends “We recently started stocking a range of CBD-infused teas, and these quickly became a big seller. We’re looking to expand the amount of CBD products we sell, and are going to add more PoS.”