Retail Express - 7 September 2021 by BetterRetailing

CHRISTMAS ADVICE

What retailers should expect from confectionery sales this year P29-33 ICE CATEGORY ADV FECTIONERY CHRISTMAS CON

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rs share Retailers and supplie expecting insight on what they’retionery from Christmas confecE reports this year. LISA MOOR

CHRISTMAS WHAT TO EXPECT FOR

2021

co-workers,” he says. families, friends and the current circumin four households Berry agrees: “While because nearly one says. , we know a Christmas like no last December,” he stances remain unpredictable CHRISTMAS 2020 was UK forced into lock- shopped online restrictions limremains a staple during the He adds that although in some areas, that confectionery with it playing an everother. With most of many consumited gifting opportunities sharing formats the holiday season, down before 25 December, season ever. moments of joy festive important role in providing impacting confectionery the arrival ers had their quietest senior brand manag- compared with previous years, multipacks and pleasure to consumers. Also, UK-wide Mars Wrigley UK’s Berry, stresses and a successful gained more sales. Day, Alison tablets gifting, Freedom & of chocolate around and er, seasons will want to make up of last year, 86% has shed positivity This year, shoppers Smith, marketing vaccine roll-out, that despite the challenges to give something says Chris con- Christmas 2021.”of One Stop Mount Nod in of consumers continued Mutton, managing for lost time, specialist at manager Aman Uppal, with special. However, Andy company behind communications as usual last year, Hancocks. the Coventry, ordered “I’m director of Storck UK, Werther’s Original, fectionery wholesaler priorities surround- plans to go bigger than ever this year. and “We are sure to see on getToffifee, Bendicks Christmas props, a knock-on effect on ing Christmas 2021 shopping based thinking about buying did simisays restrictions had sales. having as much Christmas such as a big moving Santa. We so football, Buying Christmas confectionery from shoppers ting together and and possible. as Olympics the “Despite benefitting top up, the con- cheer out of purchases as shoppers go big lar things for a precedent for it,” he says. to bit of habits are set to change with we’ve set a using their local store down by £18m last in order to make up for lost celebrations venience sector was 2019. This was largely Christmas versus

STORES SEE RED AS BREWERS GO GREEN • Injuries and lost sales in shops due to faulty new eco beer packs

• Suppliers reveal upcoming design changes in response to retailer anger

RETAIL CRIME

AVAILABILITY

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Why the whole of the UK isn’t lucky enough to benefit from new laws better protecting indies

How local shops are capitalising on rising product shortages in rival supermarkets

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our say

Megan Humphrey, editor

Maximising your online presence WINNING over and retaining new customers needs to remain a priority. It was extremely important as restrictions started to ease, but it’s not just in a global pandemic that people are more likely to turn to their local store. Two weeks ago, I went on a staycation to Edinburgh. I wanted to get the most out of my time there, so I booked myself on a train back that departed in the evening. If you haven’t been before, Edinburgh is a beautiful city, but one with many cobbled streets, and my suitcase was proving problematic on the last day. In a desperate attempt to find some last-minute storage for my bags, I searched the internet and located a convenience THIS STORE HAD store, only a two-minute walk away from where I was standing. THE CHANCE TO However, finding it proved BE THE TOP PICK much harder. The listing on Google didn’t include a store name, or any images. After walking up and down for a while, I called the number provided and the retailer was able to direct me to the location. This seemed like a missed opportunity. Situated in the middle of a major tourist hotspot, this store had the chance to be the top pick for holidaymakers wanting to squeeze in some last-minute sightseeing without the hassle of bags. Even on arrival, and on a busy shop window, there was no mention of the service. I can’t stress enough the importance of using Google to strengthen your presence online. Taking five minutes to double-check your store name, full address and accompanying images are added to any listing will guarantee new customers and more money in your till. @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361

Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355 Features writer Jasper Hart 020 7689 3384 @JasperAHHart

Editorial assistant Junior Designer Suhara Pavithri Jayasena Miriam Garofalo @suharajourno Production coordinator Production editor productioncoordinator@ Ryan Cooper newtrade.co.uk 020 7689 3354 020 7689 3368 Sub editor Jim Findlay 020 7689 3373 Sub editor Robin Jarossi Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Director of sales and marketing Matthew Oliver 020 7689 3367 Senior account director Charlotte Jesson 020 7689 3389 Account director Natalie Reeve 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 Senior news reporter Alex Yau @AlexYau_ 020 7689 3358 Editor in chief Louise Banham 020 7689 3353

MEGAN HUMPHREY SCOTLAND welcomed the introduction of new legislation offering shop workers greater protection against crime last week. Spearheaded by Labour MSP and former retailer Daniel Johnson, the Protection of Workers (Retail and Agerestricted Goods and Services) Act 2021 will ensure the seriousness of offending is

Sales support executive Charlotte Brady 020 7689 3382 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3375

46,191

highlighted through a speci�ic offence and allow for tougher sentences for offenders. The law comes into effect at a time when research from the British Retail Consortium revealed that in 2020, there were 424 incidents of violence and abuse in retail every day. However, in England, Labour MP Alex Norris is yet to receive support from the government for the introduction

Milk price rises

LOCAL shops are taking action to reduce the impact of recent milk price increases caused by rising production costs and driver shortages. Data collected by Retail Express from 20 convenience stores supplied by 10 dairies revealed an average 4.6%

wholesale price increase on one pint since the start of 2021, outstripping the government’s estimated 3.9% increase in farmgate milk prices over the same period. Stores have been urged to speak to their local depot to negotiate any increase.

of similar measures to better protect retail workers outside of Scotland. At a parliamentary debate in June, which took place after an of�icial petition passed 100,000 signatures, MP and under-secretary of state for the Home Of�ice Chris Philip determined “there are already existing offences which cover the type of terrible attacks we’ve heard about”. NFRN national president

App covers gaps

EPOS �irm IT Retail Systems intends to bridge the gap between customer online orders and store availability with a new home delivery app. Sources con�irmed the �irm, which works with more than 1,400 convenience retailers, has already been approaching partnered stores with

demonstrations of a ‘Kwik-e Shopper’ app. Retail Express understands trials are underway with some store owners and a full rollout is due in the next month. Integration into ITS till systems means pricing and stock levels displayed will remain up to date.

Stuart Reddish con�irmed the federation would continue to campaign for effective legal protection across the rest of the UK. He said: “The government has to act and tackle retail crime once and for all, so everyone working in shops has con�idence in their workplace, and receives the response and protection from the government, police and justice system that they deserve.” For the full story, go to betterRetailing.com and search ‘crime’

Costco crime halt

THE cash and carry depot visited by Priti Patel in June has introduced emergency measures after continuing to see robberies occur. When Patel visited the Chingford depot, she pledged to force police to do more to protect shop owners. How-

ever, a source at the depot said: “The branch was getting three-to-four incidents per month. We were experiencing three or four per week until we started escorting every tobacco customer to their car, but even that doesn’t stop all of them.”

For the full story, go to betterRetailing.com and search ‘Costco’

For the full story, go to betterRetailing.com and search ‘milk’

Scotland rolls out crime law, England refuses to follow

Account manager Adelice Tatham 020 7689 3366 Account manager (new business) Jimli Barua 020 7689 3364

7-20 SEPTEMBER 2021 betterretailing.com

The five biggest stories this fortnight

Depot strike threat

Attempts by Booker to “hoodwink” lorry drivers have increased the likelihood of strike action across multiple depots, union Unite has said. Last week, a ballot for strike action at Booker’s Thamesmead depot closed after the �irm failed to imple-

ment the same £5 pay rise for drivers at the Hemel Hempstead warehouse. However, the union claimed Booker attempted to bypass negotiations by putting pay proposals directly to the drivers instead of holding discussions with Unite.

Audit Bureau of Circulations July 2019 to June 2020 average net circulation per issue

Retail Express’ publisher, Newtrade Media, cares about the environment. 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 and search ‘app’

For the full story, go to betterRetailing.com and search ‘Booker’

@retailexpress facebook.com/betterRetailing

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megan.humphrey@newtrade.co.uk 020 7689 3357

New eco-beer packs proving tricky for stores MEGAN HUMPHREY INDEPENDENT retailers have slammed brewers over “horrendous” new eco-packaging for costing them sales and causing injuries. A number of store owners told Retail Express they were experiencing ongoing issues with alcohol brands including Budweiser, Stella Artois, Strongbow and Tennent’s Super in recent weeks. Budweiser Brewing Group (BBG) removed plastic rings from four-packs of Budweiser and Stella Artois cans last October in a move expected to save 250 tonnes of plastic each year. However, local stores quickly reported the alternate cardboard packaging was “disintegrating”, causing waste and products to fall out onto the shop �loor. Steve Wilson, owner of two convenience stores in Scotland, said the boxes collapsed every time they were in transit back from the cash and carry. “It’s getting beyond a joke,” he said. “If I go to my local depot and pick up two or three boxes, by the time I’ve got back to the shop and opened my van doors, the cans have fallen out of the cardboard which has just disintegrated from going around roundabouts. “Another time, I picked up a case from my trolley to put into the van and the whole box collapsed and beer was spilling out of all

the cans on the �loor.” In a bid to salvage the products, Wilson has been using tape to keep the cans together. “I’m having to put Sellotape around the cans to keep them on the shelf,” he said. “But this isn’t a long-term solution, as it takes time out of my day to do.” Challenged by Retail Express on the faulty goods, a spokesperson from BBG’s UK & Ireland business con�irmed it would be making changes to the packaging to offset any impact experienced by retailers. They said: “While we carried out robust testing on our updated packaging and took all reasonable steps to make the packs as secure as possible, the removal of the plastic wrapping on the primary and secondary packaging has meant that additional care must be taken when handling. “We carried out a full end-to-end investigation after being made aware of the challenges some customers were experiencing with our plastic-ring-free packaging. “During this investigation, we listened to our valued partners and have taken on board their feedback to improve the durability of our products. “We have implemented various solutions, such as improved pallet protection, to mitigate some of the impact identi�ied. Our teams are also in the process of rolling out improved pack-

express yourself “I HAVE just tried to balance the hours of my staff, to make sure no one is working too many hours compared to others. It has been a difficult process, and it has meant some of my part-time staff are now working a lot more hours compared with what they were before. The main thing I’m trying to ensure is that everyone is comfortable with their role and the hours they will be working in the week.” Mitz Patel, Meet & Deep News, Twickenham

GOOD WEEK ONE STOP: Franchises have been recognised for their work during the pandemic in a letter sent to them by the symbol group, from head of franchise John Miller. It read: “The last year has brought challenges that none of us could ever have expected and we are incredibly proud of the tenacity you have shown during this period.” The letter also included key-worker badges. CONTACTLESS: UK customers will be able to spend up to £100 using contactless card payments from 15 October. The body representing banks, UK Finance, confirmed the news last week, stating that some terminals would need to be updated, and it will take “some time” for the £100 limit to be available at all checkouts. For the full story, go to betterRetailing.com and search ‘contactless’

BAD WEEK aging, including lock mechanisms on our 4x568ml wrap design, to avoid circumstances where cans can fall out. These new solutions will be available on shelves within weeks.” Elsewhere, retailers have claimed the barcodes on new four-pack cardboard packaging used on Tennent’s Super have been incorrectly printed, leading to confusion. Wilson Rea, owner of KeyStore More in Lanark, con�irmed when the barcode on the outer packaging is scanned it lists the price of a single can, instead of the sum of four. “All of a sudden, Tennent’s Super took the barcode off their single cans and printed the same one on the packaging of the four-pack,” he said. “One of our new staff members nearly sold a four-pack

the column where you can make your voice heard

for £2.29. Luckily, another employee noticed, but I imagine there’s retailers out there who haven’t noticed.” Rea added the issue is also affecting his stock management. “This is a massive error,” he said. “It’s not a big seller for us, but it’s messing up my stock control because the barcode is wrong.” Alcohol supplier Heineken has also come under �ire by stores who have claimed new packaging being used for Strongbow products is causing personal injury. Shad Ra�iq, owner of Premier – Shads Bishopton Stores in Cardiff, told Retail Express his staff and customers have suffered as a result. “It’s absolutely horrendous,” he said. “People keep getting their �inger trapped in the new carry-hole which has been added to the pack-

aging of Strongbow.” In response, a spokesperson from Heineken said: “Green Grip eradicated the need for plastic rings to hold cans together and is part of our plan to save 500 tonnes of plastic per year through the removal of plastic from our packaging. “If any consumers or retailers have had an issue with a pack, we encourage them to get in touch so we can fully investigate.” Brewer AB InBev, supplier of Tennent’s Super, was not able to provide a comment to the claims made by stores by the time Retail Express went to press. However, a response is available in full online. To access AB InBev’s response, go to betterRetailing.com and search ‘alcohol’

MENTHOL STOCK: Retailers are reporting a mixed response from Philip Morris Limited (PML) in its recent attempts to take back illicit menthol stock. An investigation published by sister-title RN found PML has failed to take and credit back menthol stock still held by retailers after the menthol ban in May 2018. One retailer said PML had acted swiftly, but another said they are yet to hear. SMALL BUSINESSES: Newly appointed small businesses commissioner (SBC) Liz Barclay said she doesn’t expect to be given more power to crack down on larger firms “for a couple of years”. Last year, a consultation took place looking to allow the SBC to use court orders and financial penalties to force firms to hand over documents about late payments. For the full story, go to betterRetailing.com and search ‘small businesses commissioner’

How are you adapting your staffing model in response to the UK-wide labour shortage?

“A FEW members of my team have had to split responsibilities, so no one had too much to do. I’ve given one staff member who has been with us for a while more managerial responsibility recently. So, on certain days they may be in charge of opening the store in the morning when I am not available. I think what this labour shortage showed is that a lot of my staff are willing to do more, which is encouraging.” Pritpal Dale, Toothill Convenience Store, Loughborough

“WE ARE constantly having to look at the hours of our staff. We are working with more four-hour shifts now and eight-hour shifts. We have got people working splitshifts as well. It is a case of trying to make things work both for us and for our staff. We have got a couple of staff who are quite happy with working a split shift as it helps them handle their work and personal life.” Vince Malone, Premier Tenby Stores & Post Office, Pembrokeshire

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

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NEWS

7-20 SEPTEMBER 2021 betterRetailing.com

Indies capitalise on rising shortages MEGAN HUMPHREY RETAILERS are winning customers from rival supermarkets and capitalising on availability issues created by the national driver shortage and Brexit. The move comes after Iceland’s managing director, Richard Walker, warned Christmas could be “cancelled” by the ongoing situation.

Bread and soft drinks are the categories reportedly in the shortest supply. However, independent retailers told Retail Express they were taking advantage of the gaps. Vince Malone, owner of Premier Tenby Stores & Post Of�ice in Pembrokeshire, saw a surge in milk sales when nearby supermarkets stopped getting deliveries. “We are noticing Sains-

bury’s and Tesco are having days where they’re not having deliveries, and that’s having an impact on us,” he said. “One week we sold 500 2l bottles of semi-skimmed milk, compared with 150 to 200 normally.” Last week, Co-op boss Steve Murrells con�irmed food shortages were the “worst he had ever seen” and the supermarket was being forced to reduce some of its ranges.

In addition, staff are being re-trained as lorry drivers to try and address the wider issues across the supply chain. One retailer, who asked not to be named, has been assessing the level of availability at his nearby Co-op in recent weeks and noted a rise in footfall at his store as a result. “We’ve been busy, and we’ve noticed more customers come into our stores

where the nearest Co-op stores have had the poorest availability. “This has been particularly prevalent on days upon which there has not been a Co-op manager to monitor stock levels,” they said. For more stories on the same topic, go to betterRetailing.com and search ‘national driver shortage’

HMRC digital update HMRC has begun its transition to a digital VAT returns system, meaning stores must ensure they’ve updated their payment and contact details. The process began in July and will be �inished this month. It will affect VAT-registered businesses that are not signed up to Making Tax Digital and

taxpayers who pay quarterly VAT bills by direct debit. HMRC cannot predict when tax accounts will be moved to the new platform. If the obligation to �ile a VAT return is still there, the change has not yet occurred. Retailers must reset their direct debits and give a contact email address.

ECO FIRM TIES UP WITH INDIES

A SPECIALIST wholesaler offering packaging-free and freefrom products is examining ways to work with more independent shops. Good Club offers more than 3,000 lines of ambient, household and personal care products, such as dairy-free milk, tea and pasta. For a £30 monthly fee, the firm promises to offer some products up to 30% cheaper than supermarkets. Some products will also be

delivered in returnable containers, which can be left on the doorstep for collection by the firm the next day. For the full story, go to betterRetailing.com and search ‘Good Club’

Alcohol ‘dark site’ SIMPLYFRESH is to add a ‘dark delivery site’ to its new SimplyFresh Market format site in Redditch, and will be allowing customers to drink alcohol on site. In February, the symbol group submitted a planning application for a dark-

site kitchen to Redditch Borough Council, which has since been approved. Located at the King�isher Shopping Centre, the site offers a traditional convenience range and also boasts a separate sit-down café and restaurant areas for customers.

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KBE Drinks signs Yeastie Boys PRIYANKA JETHWA PREMIUM alcohol supplier KBE Drinks has signed a new distribution deal with New Zealand-founded Yeastie Boys Brewing Company The deal aims to �ill in the gap in KBE Drinks’ range for a craft beer, of which it doesn’t have an option yet. Initially, the partnership will look to capitalise on the trend for lagers and pale ales from craft brewers. In the convenience and wholesale channel, the supplier will be focused on driving distribution for Bigmouth Session IPA and new Superfresh. Shaun Goode, chief operating of�icer at KBE

Drinks, said: “Everyone is thrilled to be adding Yeastie Boys to the KBE Drinks family. In recent years, craft beer has continued its march into the mainstream and is now a must-stock for any premium pub or bar. Combining Yeastie Boys’ beers with our commercial reach should be a match made in heaven and I would encourage retailers to check out the range and stock up.” KBE Drinks was set up more than 30 years ago to distribute King�isher to the UK and throughout Europe. In the past �ive years, the supplier has expanded its range with brands such as Sagres from Portugal and Dos Equis from Mexico.

Fisherman’s Friend’s first price-marks

FISHERMAN’s Friend has announced the launch of its �irst price-marked pack (PMP), available for retailers to stock now. The 80p PMP will be available in the brand’s bestselling Original Extra Strong variety, which accounts for 62% of the brand’s sales, to coincide with the time of year during which Fisherman’s Friend sees its strongest sales. The impulse and convenience channels have contributed 28% of all sales so far this year for Fisherman’s Friend. The supplier said the packs are being produced

on a limited-print-run and encourages retailers to stock up now.

KELLOGG’s has expanded its Crunchy Nut range with Crunchy Nut Bites. The supplier said sales of nut-�lavoured cereals grew by 14% in 2020, and hopes to capitalise on this segment through the launch. It follows the launch of the brand’s granola last year and Nut Butter bars last month. The cereal has an RRP of £2.99 for a 375g box and was �irst launched in supermarkets last month. Susann Heinz, senior brand activation manager at Kellogg’s UKI, said: “We understand the cereal has a huge fan base, so we’re continu-

ously looking for ways to expand our offering and meet consumers’ needs.”

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7-20 SEPTEMBER 2021 betterRetailing.com

Guinness 0.0 on sale to independents now GUINNESS 0.0 is available now to convenience retailers and wholesalers after being launched as a limited-edition line last year. The alcohol-free stout has an RRP of £3.50-4.50 for a four-pack of 440ml cans, and contains 17 calories per 100ml. The supplier said it launched the drink to tap into growing demand for low- and no-alcohol options, with the segment now valued at £150m. The launch will be supported with a consumer marketing campaign, including a new TV advert set to air soon.

Limited-edition Wispa Asian brand Kurkure lands in UK stores Hazelnut bar MONDELEZ International has unveiled a limited-edition Hazelnut �lavour Cadbury Wispa Gold chocolate bar, available in standard and 69p price-marked formats. The brand is currently the third-bestselling within the Cadbury range, after Dairy Milk and Twirl. The supplier hopes the

new �lavour will help drive sales, with Wispa Gold growing by 23.5% in the past year, and hazelnut as a �lavour growing by 12.8%, making it the second-biggest �lavour in the chocolate category. The launch of Wispa Gold Hazelnut will be backed by a ‘A new type of gold’ promotion on Twitter.

PEPSICO has launched popular South Asian snack brand Kurkure in the UK. The brand, which the supplier says is one of the biggest snack brands in India and Pakistan, is available in Naughty Tomato and Masala Munch varieties, in a 100g bag with an RRP of £1, and a £1 price-marked pack (80g). The launch is set to coin-

cide with Diwali celebrations, and to bring a popular Asian snack to British mainstream consumers. Josephine Taylor, senior brand manager at PepsiCo, said: “We are thrilled to be introducing a popular Asian brand to mainstream British culture, an opportunity to celebrate a multicultural Britain.”

Tyrrells’ British Beef Aitch becomes new & Ale crisps face of Relentless KP Snacks is expanding its Tyrrells range with a British Beef & Ale variety, on sale now with an RRP of 85p for a single 40g pack. Consumer preference for meaty �lavours in crisps and snacks is growing, and the new product looks to tap into this trend and �ill the current �lavour gap in Tyrrells’ core range. The brand is growing at 10.2% in value with core consumers aged 45 and over. Beth Minch, marketing manager at Tyrrells, said: “We are excited about introducing Tyrrells British Beef & Ale to our core range as we know

it’s those bold meaty �lavours that consumers are looking for right now.”

COCA-COLA Europaci�ic Partners (CCEP) has unveiled a new campaign for Relentless, which will see rapper Aitch become the new ambassador for the brand. The #WithoutLimits campaign spans TV and social media, where viewers can follow Aitch as he imagines what a day without limits would look like in his hometown, Manchester. This will be backed by Aitch x Relentless Origin limited-edition 500ml cans which feature an on-pack promotion where shoppers can win a day out with the rapper. The brand overall is up by 30% in value with a category market share of 31%.

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Exclusive: Cadbury goes mint mad TAMARA BIRCH MONDELEZ International has extended its Cad-

bury Dairy Milk Buttons range with a Mint �lavour, available through Booker (RRP £1) and Londis (RRP

£2.25), and Cadbury Mint Fingers. Cadbury Dairy Milk Buttons Mint are available in cases of 10 through Booker for £6.65+VAT, and offers retailers a pro�it on return of 20.2% when sold at an RRP of £1. Dennis Williams, of Broadway Premier in Edinburgh, added the product to his range after they became available, with it being a big success. “We initially bought 10 cases and sold out quickly. We’re handing out samples for customers to ‘try before they buy’, which has really helped the popularity of the product.

Chewits adds to single pack range CHEWITS has expanded its single pack range for the �irst time in 10 years with four new varieties: Blue Raspberry, Cherry, Sour Lemon Xtreme and Sour Cherry Xtreme. The sugar confectionery market is growing at 1.1% year on year, and the new range aims to capitalise on this and attract incremental sales in the single impulse category, which

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was hit hard by the pandemic, but still accounts for 36% of category sales. Meanwhile, the supplier said sour �lavours currently account for the largest portion of sugar confectionery growth (41%), so this is the “ideal opportunity”. The new varieties have an RRP of 49p each. It follows the launch of its bonbon and hanging bags in 2020.

McCoy’s modernised packaging update Snickers Hi Protein turns crispy SNICKERS Hi Protein Crisp is the latest addition to Mars Chocolate Drinks & Treats’ branded protein range. The bar contains 20g protein and 217 calories, and will be the fourth protein bar to launch under the Snickers brand, and follows on from its

Hi Protein White Chocolate bar launched earlier this year. Michelle Frost, general manager at Mars Chocolate Drinks & Treats, said Snickers is its bestselling brand within its specialist sports range of products. “Hi Protein White Choco-

Win a sunshine break with Nestlé NESTLÉ Confectionery is offering shoppers the chance to win a holiday with its ‘Win a sunshine break’ onpack promotion. The promotion has �ive top prizes of a holiday worth £10,000 up for grabs, plus a further prize of £1,000 to be won every day during the promotional period. The ‘win now, book later’ prizes also ensure winners are able to book their holidays while following govern-

ment guidelines for travel. It features across sharing formats and chilled desserts of brands such as Milkybar, Aero, Munchies, Smarties, Rolo and Rowntree’s, and will be live until 7 November 2021. The promotion will be backed by a media campaign centred on outdoor and social media advertising.

Time to

late bar become our second bestselling protein bar after launch. The popularity of the brand is standout in this category and the addition of Hi Protein Crisp will offer protein bar consumers a new taste experience,” she said.

KP Snacks has updated the packaging of its core McCoy’s range across all formats, with more focus on the brand being ‘full on �lavour’. Its core range includes bestselling lines such as Salted, Cheddar & Onion, Salt & Malt Vinegar, Flame Grilled Steak and Thai Sweet Chicken. While retaining the familiar look and feel, the redesign brings to life more

vibrant colours, as well as a patterned design to help catch the attention of shoppers. It will also incorporate the tagline ‘Full on �lavour’. Worth £133.2m in value, McCoy’s is the numberone ridged crisp brand and number-one meal deal choice, purchased by eight million households. McCoy’s is growing at 39.7% ahead of the total £1 price-marked sharing segment at 6.5%.

IN partnership with some of UK’s biggest football clubs, Cadbury is back with its ‘Match & win’ on-pack promotion. Running through to November, the promotion will appear on some of Cadbury’s bestselling brands across a range of formats. Consumers will be encouraged to visit matchandwin.cadbury. co.uk to enter the product’s batch code and barcode for a chance to win. The entrant will then receive a predicted score for the upcoming game week which, if it matches the

result, means a guaranteed win in the weekly draw. The promotion will be supported by PoS material, outdoor advertising, and digital and social media. Retailers can visit deliciousdisplay.co.uk for category advice and more information.

Cadbury returns with match & win promo

OPINION

DON’T MISS THE 17 SEPTEMBER ISSUE OF RN

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured PRODUCTS: How are you mitigating the impact of the driver shortage? “I’M a symbol retailer and I’ve been stocking own label from a rival symbol group. The customers don’t know that it’s from them, however, as it looks like it’s been produced by a local company. The products have been doing quite decent so far and it’s likely I’ll continue to stock it.” Anonymous retailer

Passion killer: how to know when it’s time to give up on your passion projects, and do so effectively

REBATES: How is low availability putting your rebates at risk?

Christmas alcohol: get your range right and maximise alcohol sales over the festive period

It looks like I’m not going to get my rebate labels explained

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Work out the time and money you could save by scrapping paper labels TECHNOLOGY Page 18

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“IT looks like I’m not going to get it. I was just below the £13,000-a-week mark, which would have given me around a 3% rebate. I thought it would be no problem to push a bit more business through Nisa, but now with so many availability issues I’ll be well away from that �igure.” Andrew Newton, Nisa Local, Dudley

“I’ve had to change tactics to protect payouts. It feels worse than the initial lockdown. We are running around like headless chickens – it’s not one item that is affected, it’s everything. I have been meeting my rebate threshold, but I have a stockroom and garage to store excess stock.” Asif Akhtar, Premier Smeaton, Kirkcaldy

MANAGEMENT: How do you use targets and reviews to reward staff? “I ALWAYS do yearly reviews, but because we’re really small, we tend to go over things on a weekly basis anyway. My staff work directly with me, so I am able to see exactly how they are performing on a daily basis, which allows me to have a more relaxed approached.” Sandra Tickner, Selection Box, Bridgend

“I TAKE a general consensus of sales. I sit down with the manager, and we work out a yearly average and then I set them a target above that. If they reach it, I’ll reward them. It ensures they’re running the right promotions and encouraging their team to sell things.”

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 3871 6490

Samantha Coldbeck, Wharfedale Premier Convenience, Hull

I’ve been stocking own label from a rival

PLUS

THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ERS TITLE RETAIL FOR NE IENCE NVEN WS AN CO D D CONV AN NEWS ENIENC R FO E RETA TLE ILERS ING TI AD Electronic shelf LE THE

“WE have been having some issues with bread shortages. We have been contacting Warburtons to ask them to let us know if deliveries are going to be late or not come at all so we can sort out alternatives, which normally involves going to the nearest cash and carry to get bread.”

Shakeel Arshad, owner of two stores in Elgin and Sauchie

My staff work directly with me SALES: How are you maximising the cereal bar category?

We do better with multipack sales

“SCHOOLKIDS have them a lot for their breakfasts. We don’t sell too many to adults because we don’t have many of�ice workers, who tend to be more health-conscious, in our demographic. We sell to builders, who are happy with higher-calorie food because their job burns it off.” Amish Shingadia, Londis Caterways, West Sussex

“THEY’VE been steady for us during the pandemic. We do better with multipack sales – families buy them for the week. Walkers and cyclists also buy them. Nutri-Grain and Kellogg’s bars are our bestsellers. Rice Krispies and Coco Pops ones are popular with kids.” Harj Dhasee, Village Store, Gloucestershire

LETTERS

7-20 SEPTEMBER 2021 betterRetailing.com

BAY BASHIR

Letters may be edited

Belle Vue Convenience (Go Local), Middlesbrough

Investing in your staff helps to create trust

‘My Dhamecha depot has always been fantastic’ I HAVE just read the letter published in the last issue of Retail Express from a disgruntled retailer criticising and describing the branch in total chaos. I have been in retail trade for more than 60 years and, during that time, I have uti-

lised many cash and carries that were operational. I shop at Dhamecha’s Leicester and Birmingham branch alternately on a weekly basis. I can assure you that I have never come across any cash and carry currently in business to be as clean, fully stocked (bar the cur-

rent situation), and safety has always been paramount at all of Dhamecha’s depots that I shop at. During the pandemic, Dhamecha were fantastic and, within reason, kept retailers operational. Not defending the group, but credit is given when

it’s due, is it just to be a disgruntled customer? I can’t say. All I can say is that Dhamecha, keep up the good work and the ethics you have and implemented at all your depots. Dhirendra Ganatra, T/A Shakti Corner, Coventry

COMMUNITY RETAILER

OF THE WEEK

WIN £50-worth of Jammie Dodgers

TO celebrate the launch of the nation’s favourite biscuit in a smaller price-marked case size, Retail Express has teamed up with Jammie Dodgers to give away £50-worth of stock to five lucky retailers. Having listened to retailer feedback, the new compact format, available in cases of 15, is available now.

TO ENTER Fill in your details at:

betterRetailing.com/competitions This competition closes on 5 October. Editor’s decision is final.

Pritina Patel, Nisa Local Kingstanding, Birmingham – @NisaPerryBarr

‘We walked 100 miles to raise money’

“WE took part in a charity walk, ‘100 miles in your shoes’, last weekend to help one of our young customers who was diagnosed with Batten disease. We raised money for BemoreOscar and Acorns Children’s Hospice. We have been holding fundraisers in the store for the past year leading up to the event. So far, as a business, we have raised more than £1,000 for the cause. The atmosphere on the walk was amazing and the shop was one of the pit stops where we invited customers to come and say hello. The route took us through the city with us finishing at Birmingham Children’s Hospital.”

AT the moment, I wouldn’t open any more stores because that would need new staff to be brought in. I have a nucleus of staff members who I’ve had for 15 years. I’ve been hands-on with them from the start and that trust for me to let them run one of my stores has been earned. These are people I’ve got to know over the years and I have Each issue, one of seven top automatic trust with retailers shares advice to them. They think make your store magnificent how I think, and we run the stores all together as a whole. I feel the most comfortable I’ve ever felt. I’m always looking to improve my staff members’ training, even if they don’t stay with me. I’ve put people on courses that have cost me £400 and sometimes they’ve only stayed for another 12 months afterwards. But it enhances their performance, it enhances their CV and it makes them better qualified. Anything I can give to them, I will. They step up and make sure that the other staff step up as well. Over Covid-19, we had 25 staff members in five stores and everyone worked so hard. I gave them bonuses as a thank you because that was important to me. I listen to all people’s ideas and try to get the best outcomes for the shops. It might work, it might not, but we have to keep trying. You take the good things and try to make the bad things better. It’s about moving forward and preventing bad things happening again. It’s so important to have a good relationship with your staff. If they’re afraid of you or they think that you think you’re a better person than they are, it just won’t work. I have people working for me who will put me right if I’m not speaking right, because how you speak to people is important. It could be just the tone of your voice. They’re not going to give me much respect if I don’t give them any. You start the relationship from a place of respect and go from there. They’ll make mistakes, but you don’t have to be shouting and screaming at them. Everyone deserves to be spoken to as a person. You’re not a schoolteacher. You get a better reaction in a conversation by listening rather than losing your temper. You just need to make them understand where you’re coming from, and let them know that you are there for them. If something’s been stolen, it’s gone, move on. Prevent it happening next time.

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing megan.humphrey@newtrade.co.uk 020 7689 3357

ADVERTORIAL INSIGHT STORE TRIALS

DRIVING REAL SUCCESS IN CIGARS SCANDINAVIAN TOBACCO GROUP teams up with RETAIL EXPRESS’ publisher’s Newtrade Insight service to help three retailers grow their sales

THE CIGAR OPPORTUNITY SCANDINAVIAN Tobacco Group (STG) is investing big in convenience stores. This year, the company has expanded its field sales force and revamped its trade website in a bid to help educate store owners about the continued opportunities within the category. The company kicked off the year by partnering with Retail Express’ publisher’s

Newtrade Insight service to learn about what independent stores are struggling with and where they see opportunities within the cigar category. The results were clear. Retailers ranked their biggest challenge as ‘not always knowing which lines to stock’, with four in 10 retailers saying this was the case. Despite that challenge, 45% of store own-

Arif Ahmed, Ahmed Newsagent, Coventry

ers said they believed there is an opportunity to make more money from cigars this year (versus 22% disagreeing). And, with 38% of store owners saying their cigar shoppers were brand loyal, it makes sense for retailers to stock the most popular ones. In STG’s stable of brands, that’s Signature, Henri Wintermans and Moments. Finally, more than a third of

retailers said they wanted to receive visits from a cigar sales rep, so that’s exactly what we arranged next. Newtrade Insight identified three retailers who were keen to increase their cigar sales and partnered them up with an expert rep, Vijay Tailor from STG. Over the next few weeks, we monitored their success. Here’s what happened.

BEFORE Arif Ahmed’s small newsagents is on a busy main road about half a mile from the city centre. He has local regulars, passing trade and, usually, a lot of office workers. Because of the shift to working from home, the store has lost 50% of its footfall in recent times, but Ahmed is working hard to promote his business locally and win shoppers back. In cigars, before the trial he stocked Hamlet, Signature and Henri Wintermans.

THE CHANGES Tailor remerchandised Ahmed’s gantry and provided him with around £100 in free stock. Ahmed says: “He helped me highlight their prices and explained that I needed to put all the colours together. He also changed where they are positioned in the gantry so that they catch my customers’ eyes. I’ve brought in some Signature lines that I didn’t used to stock and he taught me about the types of shoppers and occasions when people buy them.”

AFTER “We sold a lot of cigars during the Euros. People were coming in who I didn’t even know asking if I had cigars. After just one month, I sold two cases of Signature. Henri Wintermans is selling steadily, too. STG’s reps are very good. They know what they are doing, and I applaud them for sharing their insights,” Ahmed says.

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In partnership with

Manveer Chima and team, Saveline Supermarket (Nisa Local), Wolverhampton

BEFORE Manveer Chima’s store has a two-metre gantry and, before the trial, its range was built around Ritmeester brands and Hamlet. The shop is on a busy road near an estate so benefits from both passing trade and residential shoppers. “It’s tough to grow the cigar category right now, but now is the time for us to build our tobacco business because people don’t have access to duty-free stock as much,” Chima told Retail Express in April. “I want to work with a supplier that is committed in investing in us.”

THE CHANGES After sharing tips of how to sell cigars, Tailor was able to remerchandise the bottom right of the gantry, being mindful of existing agreements the store had with another cigar company. He added two facings of Signature Action and installed the bestselling cigar lines on their ordering system for ease. “For us, it’s about catering to ex-menthol smokers by giving them alternative options,” says Chima. “Our gantry is now well-merchandised and it’s nice to be taken seriously by a cigar supplier.”

AFTER Thanks to the team actively promoting the new range to tobacco smokers, the store sold two cases of Signature Blue, one Signature Original and Signature Action, with the latter selling well due to its low £3.99 RRP. That said, price doesn’t seem to be the focus for Chima’s cigar shoppers. Two cases of Henri Wintermans have also been sold.

Nick Chalkley, Costcutter, Codicote, Hitchin, Hertfordshire

BEFORE Trading in the small village of Codicote for more than 180 years, the 1,600sq ft store sells tobacco from four drawers under the counter. Because of this, cigar space is at a premium, meaning the pressure is on for STG brands to command the space they take. “I haven’t got space for the fast-selling cigarette brands I should have,” says store manager Nick Chalkley. “Everything in there has to sell.” Before the trial, the store only stocked Hamlet.

THE CHANGES Tailor merchandised STG’s range in the bottom draw, making Signature Action the first cigarillos the store had in stock. He explained the features and benefits of STG’s products, as well as how to promote the range. “We face tough competition from another store that is better known locally for cigars, but we’ll give it a go,” Chalkley says.

AFTER

Want to work with Scandinavian Tobacco Group to grow your cigar sales? Email chris.dillon@newtrade.co.uk to find out more

“After one month, we sold one pack of Henri Wintermans and I’ve had to order another outer of Signature Red,” says Chalkley. “It’s a challenge because we can’t display them, so it’s really difficult letting tobacco customer know we have them. We’re persevering, though.” When Tailor called again at the start of July, the store had sold most of the products he had left them, with regular customers coming back for them. Henri Wintermans has proved particularly popular.

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CATEGORY ADVICE NEXT-GENERATION NICOTINE

MAKE THE MOST OF NEXT-GEN Variety is key to a successful vape range. SARAH WELSH talks to industry insiders about what’s hot in next-gen nicotine

WHAT’S THE NEXT-GEN OPPORTUNITY? HITTING high profit margins in the ever-growing and hugely popular vaping category is all about superior staff knowledge, breadth of products and flavours, and keeping up to date with fresh product trends. Revenue from sales of ecigarettes in the UK has grown exponentially over the past decade, with vape products now said to be worth around £1.2bn and sales projected to increase further over the next

few years. This is a product category where the sky really is the limit. With government regulation, tobacco suppliers and more health-conscious smokers all looking to reduce the amount of tobacco products sold and sampled across the country, now is the perfect time for retailers to make the most of the opportunities the vaping category offers. “The vape category is now

worth around £1.2bn in the UK, with roughly 30% of sales taking place in traditional retail stores – making it a key area of focus for retailers,” says Duncan Cunningham, UK corporate affairs director at Imperial Tobacco and Blu. “As a result of the Covid-19 pandemic, many customers have started shopping locally or online, in part because they are less willing to shop far from home.

“But by ensuring retailers have a strong range of vaping products that are displayed well in store, and supported by knowledgeable staff, there’s an opportunity for convenience stores to retain vape customers.” To make your range a success, it pays to be in the loop of what new technologies suppliers are working on, and take tips and tricks from other convenience retailers.

7-20 SEPTEMBER 2021 betterRetailing.com

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CATEGORY ADVICE NEXT-GENERATION NICOTINE

7-20 SEPTEMBER 2021 betterRetailing.com

WHAT ARE CUSTOMERS LOOKING FOR? INDUSTRY experts say the key to capitalising on the category is striking a balance between being able to offer something for experienced vapers and those new to the category, as well as learning from your customer base. “More than ever, consumers are looking for discreet, varied and innovative vaping devices,” says Micaela Sangiovanni, senior trade marketing manager at Relx International. “As more

the stat

people move away from traditional cigarettes, retailers must ensure they stock highquality products across multiple e-cigarette devices. “Product ranges need to consider individual needs and cater to experienced vapers and those looking for their first devices, to help switch from traditional tobacco.” Aman Uppal, of One Stop Mount Nod in Coventry, says they’ve seen next-generation nicotine products soar in popularity since the

start of the pandemic – a trend also noticed by other convenience retailers. “During the Covid-19 lockdowns, people have been getting healthier, and six months ago we increased our in-store area devoted to the category. I extended the shop counter by eight feet, with products displayed on the side and behind it,” he says. Uppal now stocks 500 vaping lines – all individual products – and he stocks different devices, including liquids, nic-

otine pouches, heated tobacco and disposables. “We find that sales are successful right through the day and in terms of age bracket, we sell vape products to customers aged from 18 up to 85. “We’ve also had customers who have switched to vaping from traditional cigarettes on our advice. As a retailer, that’s really positive for us. We’ve actually increased weekly sales by 550% from where we started at the beginning of the year,” he says.

30%

of vape sales take place through traditional retail

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PAID FEATURE GROW YOUR SALES

In partnership with

FOCUS ON: VUSE VUSE is not only taking a BAT product on to a global stage, but it’s also setting a new standard for sustainability. RETAIL EXPRESS finds out more

WHAT’S THE OPPORTUNITY?

WHAT’S NEW? VUSE is the latest innovation from BAT UK to take its Vype brand to the next level, which is a global new category brand that adult nicotine customers can recognise wherever they are. Vuse is part of BAT UK’s focus on innovating new products, taking the best of Vype and blending device innovations with a redesigned look and feel, but with the same high quality and safety standards

customers expect. The redesign is not only taking the best from Vype to build on Vuse, it will continue to better serve BAT UK’s customers and also has a key focus on sustainability. BAT UK has made the transition as simple as possible for adult vapers. Vype and Vuse are 100% compatible, allowing adult nicotine consumers to mix and match pods and devices easily.

SUSTAINABILITY STRENGTH SUSTAINABILITY is increasingly important to consumers, and retailers need to embrace it, too. Environmentally-conscious consumers – including adult vapers – want products that are more sustainable and leave less of a carbon footprint. They are willing to spend more on them, too, according to Nikos Tsagkaropoulos, head of UK business development at BAT UK. “Vuse is not only an innovative vapour product, it’s also the

41.4%

world’s first global vaping brand to achieve carbon neutral status1,” he says. BAT UK’s Vuse packs are now made from 100% recyclable cardboard and all silicone caps from Vuse ePen pods have been removed. BAT UK has also committed to eliminating single-use plastics from Vuse by the end of 2022. Last year, the supplier saved around 100 tonnes, the equivalent of four million plastic bottles2.

35.8%

100

tonnes – the reduction in The share that Vuse has The share in closed single-use plastic across in the total closed system system coverage in 3 4 coverage segment convenience vs last year Vuse production in 2020 For any queries or questions regarding the Vype to Vuse brand change and latest vaping category trends, contact your BAT UK representative or visit vapermarket.co.uk

BAT UK’s commitment to delivering ‘a better tomorrow’ includes providing adult consumers with a wide range of enjoyable and potentially reduced-risk products. BAT UK’s science and innovation efforts are concentrated on delivering premiumquality, non-combustible products that stand out in a growing sector, including Vype and Vuse. “Retailers can be confident these brands offer a great opportunity to grow sales and win a bigger share of the vaping community,” says Tsagkaropoulos. Vuse benefits from stand-out packaging that’s won the Pentawards bronze award in 2020. For standout displays, retailers should stock a full range and keep availability high. A BAT UK sales representative can show you how to help better inform consumers about Vuse.

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Nikos Tsagkaropoulos, head of UK business development, BAT UK “BAT UK has invested significantly to achieve its position with Vype. Vuse is the next stage in a journey that started many years ago and a fantastic opportunity for retailers to further grow vape sales. In the fast-moving, fragmented vaping sector, retailers who educate themselves on new products and trends will become valuable to vaping customers and build trust to help ensure repeat visits and sales. Safety and the highest quality come first. We know that our products strike the right chord for retailers and adult nicotine consumers.”

Based on ePod, ePen, eTank mini, Alto devices and consumables internal sales forecast (calculated March 2021) for 12 months starting from April 2021. 2ePen/ePen 3 pods for Vuse/Vype are now silicone cap-free in all Vuse/Vype markets except Mexico and Colombia. Plastic film has been removed from all new Vuse/Vype ePod starter kits and pod packs in all Vuse/Vype markets. Plastic saving per annum was calculated from 2020 volumes and results have been verified by an independent body. 3Nielsen Retail Audit, Consumer off-take Data, share of segment is calculated by “Total Vuse Units Sold/Total Closed Systems Units Sold” (including Kits & Refills). 4Nielsen data, YTD 2021 vs YTD 2020. Nielsen Retail Audit, Consumer off-take Data. 5Plastic saving per annum was calculated from 2020 volumes and results have been verified by an independent body. 1

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CATEGORY ADVICE NEXT-GENERATION NICOTINE

AVOID OVER-COMPLICATION WHILE creating and building a varied range of vaping products is important for convenience retailers, easy-to-use pod systems and the simplicity of disposable e-cigarettes and vape pens are currently hugely popular. These kinds of products are attractive to consumers looking for an affordable prices and more choice. “My most popular product is GeekVape Geek Bar dispos-

able vape pens, and the big attraction is the huge variety of flavours,” says Uppal. “Geek Bars outsell the competition for us five to one. They’ve really struck a chord with younger consumers.” Relx International’s Sangiovanni agrees that lower price points can be key, especially with customers new to vaping. “It’s important to consider that some customers will be looking for an af-

fordable, entry-level product,” she says. “For new customers, complicated open systems can appear intimidating and overwhelming.” As well as convenient disposable closed pod devices, nicotine pouches are also popular because of their sheer simplicity. Nordic Spirit is currently the fastest-growing nicotine pouch brand in the UK.

INSIDE OPEN SYSTEMS OPEN/TANK systems are generally suited to experienced vapers who are looking to up their vaping experience, and the most popular brands include Smok, Aspire, Vaporesso and Uwell. The main difference between a pod device and a tank is the way the e-liquid is managed. Open systems have a clearomiser, which is filled with e-liquid (made up of a short fill and nic shot) manually, and it has a removeable mouthpiece. On some devices, the wick and coil can also be detached.

With open systems, users can tailor their vaping experience more so than pod mod devices. This is because you can adjust the amount of vapour and heat it produces, and there is more flavour variety. However, the challenge with stocking open systems is the number of accessories you have to stock alongside it. For example, on Blu’s website, it states one issue is flavour ghosting. “This term refers to the lingering flavour when a vaper decides to change e-liquid. The best way to avoid flavour

ghosting is to have different clearomisers for each flavour of e-liquid and change them when you change your e-liquid,” it states. With this in mind, retailers need to make sure they have full availability of clearomisers – whereas clearomisers are typically universal, some other parts are brand specific. Overall, though, open systems offer the best margins as the RRP is typically more than £10, and with open/tank systems claiming the largest share in the vaping category, it’s not a segment you want to avoid.

“The nicotine pouch category continues to grow and shows no signs of slowing down,” says Paul Shakespeare, portfolio brand manager at JTI UK. “More than ever, adult smokers and vapers are looking for convenient, discreet products that can be used when smoking or vaping might not be possible – making them a must-stock for retailers this year and beyond.”

RETAILER

VIEW

Kopi Kalanathan, Costcutter Kirk Sandall, Doncaster “POCKET-FRIENDLY products in the vaping category sell very well for us. When buying, I think about mixing and matching different varieties and price, and will sell twofor-£10 or two-for-£12. The growth in the disposables market has been a game-changer. “It’s not unusual to see customers with five or six different e-cigarettes or vape pens in their hand and this kind of shopping is certainly true of city centre locations. Geek Bars sell very well for us, as do Elf Bar – both are pocket-friendly. Liberty Flight Dot Pro system is also a good brand for us. The company is also based in Lancashire, which I like.”

7-20 SEPTEMBER 2021 betterRetailing.com

CATEGORY ADVICE NEXT-GENERATION NICOTINE

7-20 SEPTEMBER 2021 betterRetailing.com

WORK WITH A RANGE OF DIFFERENT BRANDS AND SUPPLIERS CLEVER visual display is crucial when it comes to next-generation nicotine sales. Taking advantage of any materials, advice and branding expertise from trusted suppliers is a great starting point. “We’ve been part of the Philip Morris Heetwave programme for more than six months and have had their brand experts

come into the store to provide staff training and ideas on how to upsell their Iqos heated tobacco products,” says retailer Aman Uppal. “We’ve also just had the Nordic Spirit nicotine pouch experts in our store. I’ve used my relationship with both brands and the products have sold well as a result. “In terms of merchandis-

ing, we also work closely with wholesaler Real Trading and carry their Vape Station brand. They designed and fitted a whole new store area for us, from initial concept to stacking the shelves, and this has given us and, in turn, our customers real confidence.” Kate O’Dowd, head of commercial planning UK & Ireland

at Phillip Morris Limited, says: “We’ve invested significantly in strengthening the digital support we offer retailers through the launch of a new Digital Trade Engagement platform. Accessible to registered retailers, the platform offers a range of tools, resources and new support services that will help retailers get the most out of

stocking Iqos and Heets. “As well as offering the latest trade incentives for Iqos and Heets stockists, we have increased the number of educational resources available

to improve the knowledge of our range. Providing the latest news and updates direct from Philip Morris, the platform also encourages more peer-to-peer advice sharing.”

ON SALE

15 SEPTEM

BER

CHARGE YOUR VAPE SALES WITH VAPE RETAILER

COMING UP IN THE SEPTEMBER ISSUE OF VAPE RETAILER • Make the most of Stoptober: As smokers are encouraged to quit, ﬁnd out how you can increase next-gen nicotine sales during this pivotal opportunity

• Guide to tanks and open systems: Everything you need to know about the biggest section of the vaping market, helping you make informed recommendations to your customers

• Making a success of next-gen nicotine: Lessons you can learn from inside the store of one retailer who is making a success of the category

PLUS All the latest industry and product news, as well as exclusive independent sales data on the next-gen nicotine category

Order your copy from your magazine wholesaler today or contact Simon Joseph on 020 7689 3363 Follow us on Twitter: @Vape_Retailer

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Micaela Sangiovanni, senior trade marketing manager, Relx International “AS a starting point, cost is key. Retailers must ensure their range of products is suitable and affordable for all consumer budgets. Retailers should maximise the opportunity with new vapers by stocking full starter kits in store, which include charging cases, a variety of pod flavours and simple, easy-to-use devices. Our most affordable device, Relx Essential, boasts the same supersmooth technology as our Infinity device, but it retails at the lower price of £9.99. “Another huge advantage to retailers is breadth of style. Relx Infinity and Essential are available in a wide variety of colours, appealing to a range of tastes and preferences.”

Nicotine products are for over 18s only Ensure VERIFY is visible in your shop Complete VERIFY online training to learn about your responsibilities

What is VERIFY? VERIFY provides retailers with display materials, support and training on how to avoid selling tobacco, vapour and oral nicotine products to under 18s and ensure compliance with the law.

www.vapermarket.co.uk/verify

PAID FEATURE INDUSTRY CLOSE-UP

In partnership with

FIVE TIPS TO SUCCESS

1 2 3 4 5

Bring your Vuse range together in your display. The BAT UK gantry is ideal for doing this. Ensure it is in a prominent location, as well as clean and tidy, to make it easy for customers to see.

CAPITALISE ON VUSE

Let your BAT UK representative guide you through what’s new with Vuse. Our vapermarket.co.uk site has tools and tips to keep you and your staff up to date with Vuse and the category.

VYPE’s migration to Vuse is all about our commitment to innovating our new category products for adult nicotine consumers. We’re taking the best from both brands to focus on greater customer satisfaction and sustainability. We’re committed to increasing the number of adult smokers that switch to our alternatives like Vuse, as well as our oral nicotine pouch, Velo. Retailers have a great op-

portunity to grow their sales of Vuse, which had a 62% overall year-on-year growth in 20211. Knowledge of the brand and category is critical to build trust and loyalty among their customers. Through our upgraded My BAT Rewards platform and expanded team of BAT UK representatives, we’re equipping retailers with the latest information on products, trends and offers to help them make the very best of Vuse.

Look out for our nationwide programme – Verify – which is aimed at helping retailers to prevent underage access to tobacco, vaping, oral nicotine pouches and other next-gen products.

Chat to customers regularly about the next-generation and tobacco products you stock and show an active interest, like if they say they are quitting cigarettes, offer an alternative.

The move from Vype to Vuse is all about offering the best of BAT UK’s innovation and sustainability to retailers and consumers, says FREDRIK SVENSSON, general manager for BAT UK & Ireland

SUPPORTING RETAILERS

It’s crucial for retailers to stock a full range of next-generation products and maintain high levels of availability. That way they can guarantee a successful service to their customers, and encourage repeat purchases.

WHAT’S NEW? VUSE is not only one of the most innovative vapour products on the market, it’s also become the world’s first global vaping brand to achieve carbon neutral status2. We’ve got there through collaboration and the success of several ongoing carbon-busting initiatives. The initiatives include cutting single-use plastics from Vuse packaging to save the equivalent of four million plastic bottles in 20203. We also aim

to have switched 80% of all our Vuse shipments globally from air to sea freight by the end of 2022. More widely, BAT UK has made significant environmental, social and governance commitments, and has won industry recognition for them. By working closely with our retailers, we can help them increase product knowledge and better understand their role in our wider sustainability journey.

TOP THREE BESTSELLERS

1 Vuse ePen Pods Crisp Mint 18mg RRP £38.94 (six packs per outer) Crisp Mint ePen pods are ideal for a well-balanced, fresh and cooling menthol vape. Crisp Mint is one of the brand’s Classic flavours.

2 Vuse ePod Chilled Mint 18mg RRP £34.95 (six packs per outer) Vuse ePod Chilled Mint is an expertly crafted mint flavour. Similar to Crisp Mint, Chilled Mint is also part of the brand’s Classic flavours.

3 Vuse ePod Tropical Mango 12mg RRP £41.94 (six packs per outer) Vuse ePod Tropical Mango 12mg is BAT UK’s latest addition to its Vuse vPro range. The flavour is part of the brand’s Classic flavours range.

Don’t miss your chance to sign up to My BAT Rewards, which gives members exclusive discounts on Vuse. Retailers can contact us at supportmybatrewards@bat.com or ask their local BAT UK representative. 1 Nielsen Retail Audit, Consumer off-take Data 2 Based on ePod, ePen, eTank mini, Alto devices and consumables internal sales forecast (calculated March 2021) for 12 months starting from April 2021 3 ePen/ePen 3 pods for Vuse/Vype are now silicone cap-free in all Vuse/Vype markets except Mexico and Colombia. Plastic film has been removed from all new Vuse/Vype ePod starter kits and pod packs in all Vuse/Vype markets. Plastic saving per annum was calculated from 2020 volumes and the plastic bottles comparison was based on a 22.9g bottle weight, representative weight of 500ml commercially available soft drinks bottles (May 2020). Results have been verified by an independent body.

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CATEGORY ADVICE NEXT-GENERATION NICOTINE

STAFF KNOWLEDGE IS POWER PART of the appeal with nextgeneration nicotine products is the science and innovative design behind them, but this also means staff need to be at the top of their game with selling expertise. “Lots of staff training is required with this product category and we work with brand reps to offer ongoing train-

ing,” says Jey Sivapalan, who runs 1 Stop Convenience Store (Go Local) in Derby. “Some of my staff are new to vaping products, but everyone needs to be knowledgeable on the range of products available, so we can advise customers who might be new to it themselves. I also do a lot of reading around the topic, in-

cluding trade press and online sources, and feed back to my team, which helps to increase their knowledge” Imperial Tobacco’s Duncan Cunningham agrees. “Many shoppers new to the vape category are often overwhelmed by the breadth of different products on offer,” he says. “If they don’t know the cat-

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top products egory already, they probably also won’t know what products will be right for them. This is why it’s so important for retailers and their staff to understand the products on offer in store, and who they’re best suited for, so they can effectively advise customers on which vaping products they should opt for.”

SUPPLIER

VIEW

Vuse Vuse is the recent rebranding of BAT’s Vype brand. Retailers can stock Vuse ePen Pods in a Crisp and Chilled Mint variety, or the Tropical Mango ePods flavour. Each flavour is part of the brand’s Classics range and vary in strengths, from 12 to 18mg. Velo Velo is available in different varieties, including Ice Cool, Polar Mint and Freeze. Velo Ice Cool has an RRP of £6.50 for a 10mg pouch, Polar Mint is available in a 6mg strength (RRP £6.50), while Freeze (RRP £6.50) is available in an 11mg pouch and is ideal for those who like a full-strength nicotine hit. Relx International Relx International is available in two varieties, including Ruby Zest and Smooth Tobacco. Ruby Zest combines cherry and lime to add rich flavour, while Smooth Tobacco has a subtle taste of the classic tobacco flavour. Both flavours have an RRP of £5.99.

Kate O’Dowd, head of Commercial Planning UK & Ireland, Philip Morris Limited “ONLY by strengthening our support of retailers can we achieve a smoke-free future. By replacing cigarettes with smoke-free products as fast as possible, Philip Morris Limited is on track to achieve its ambition of becoming a majority smoke-free company. “Philip Morris Limited aims to increase the net revenues for its smoke-free range to more than 50% by 2025. Strengthening the support its retailers receive will be critical if that ambition is to be achieved.”

Myblu The Myblu range is aimed to cater to all tastes. “Our bestselling variety in the Myblu range is the Menthol Intense Liquidpod, so we would highly recommend this as a must-stock for all retailers,” says Cunningham. “The range of devices on offer should always be supported with a strong range of e-liquids.” Ploom and Evo tobacco sticks The Ploom device is available online at ploom.co.uk and through accredited retailers across London. “The device can be used exclusively with Evo tobacco sticks, which are available for all London retailers within the M25,” says JTI UK’s Gemma Bateson. The Evo tobacco sticks are available in four different varieties – Bronze, Sepia, Emerald and Purple – with an RRP of £4.50. Logic Compact Intense “Last year, Logic Compact Intense, a range of refill flavour pods with nicotine salts were introduced,” says Bateson. “The range includes menthol flavours. The pods are compatible with the popular Logic Compact device and have an RRP of £5.99. Vapers are looking for convenient and easy-to-use devices that they can experiment with in terms of flavours and strengths to find the right fit, making these devices an important must-stock.” Trial one or two flavours, gain customer feedback and use sales data to determine the right lines to stock.

UNDERSTANDING POD MODS CRUCIAL to vaping maintaining its growth has been its increasing accessibility when it comes to using the devices. The rise of pod mod devices (closed systems) has been a key part of this, with customers simply having to attach pods to their device to use, instead of fumbling around with coils and e-liquids. “While open systems have traditionally dominated the

vaping category, currently making up 76% of the market, the introduction of pod mod devices in recent years has seen closed systems continue to trend upwards, regaining their share of the category back towards 24%,” says Imperial’s Cunningham. According to JTI’s Bateson, pod mods are currently the fastest-growing vaping segment in the UK, and the biggest

segment within the category for value sales. As such, brands such as Myblu and Logic can provide retailers with a straightforward entrylevel product that is less likely to bewilder prospective vapers. Disposable vape pens have also ballooned in popularity, as they are even more simple to use and are cheap. Vape Dinner Lady’s disposable has an RRP of £4.99 for a device, which the

supplier says is equivalent to 20 cigarettes. Shoppers don’t even need to attach a pod; the device is ready to use out of the packet. “Convenience retailers should consider investing in the disposable vapes, as the simplicity of these products, how easy they are to stock and to sell and for the consumer to use, makes them perfect for the convenience sector,” says John Taylor, chief marketing officer at Vape

Dinner Lady. “Operating with an unassisted sales model, this simplicity is unbeatable within convenience, where consumers want to be able to shop and go.” Sasi Patel, owner of three Go Local stores in Manchester, says: “Disposable vapes are growing thick and fast. We are achieving approximately £1,000 in sales a week and the category now accounts for 6% of my overall shop margin.”

EMPTY CAN AND RECYCLE

ELO V TO N EO V MO

D N’T KICK ME TO THE CURB MOVE ON TO VELO NICOTINE POUCHES IN A RECYCLABLE CAN*. This product contains nicotine and is addictive. For adult consumers only. *Please check for the ‘Empty can and Recycle’ sign on the side of the can before recycling.

YOU’VE GOT VELO

VELO.COM/SUSTAINABILITY

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CATEGORY ADVICE NEXT-GENERATION NICOTINE

7-20 SEPTEMBER 2021 betterRetailing.com

CUSTOMER IS KING FEEDBACK from many retailers is that listening to customers is wise in terms of product suggestions and requests. “One challenge for me is that I don’t smoke or vape myself, but I’ve had extensive product training and you also gain a lot from talking to customers,” says Uppal.

“Vapers are enthusiastic people, and they find it becomes a hobby in itself – it’s not just about stopping smoking.” Fellow retailer Kopi Kalanathan, who runs eight convenience stores across Doncaster and York, adds: “We do take on board a lot of customer feedback and if they want us to

stock a particular vape product or flavour, I’ll look into it. Listening to your customer base is so important.” Relx’s Sangiovanni recommends making the most of supplier PoS to capture the attention of your customers. “This could be product information, safety information or

advice on the sale of vaping products. “If possible, retailers should host in-store training sessions with suppliers, to educate the wider team. By inviting suppliers in store, each can demonstrate different devices and help the retail team to build on their brand and product knowl-

edge, which they can then use to help advise customers on their vaping journey,” she says. Also, make use of visits from supplier reps. They’re likely to have a key understanding of the top sellers and give advice on what might work in your store based on the customers you have.

why not buy ? shoppers do. M Y B L U. H A N DY A N D E A S Y VA P I N G .

top tips Tailor your range to suit your customer base There is no ‘one size fits all’ when it comes to the vape product category, so talk to your customers about what they want to buy. Be proactive in sourcing requested flavours and products new to the market. Gen up on the category Next-generation nicotine is a fast-moving product category, so keep up to date on all the latest developments. Keep up with social media channels of your preferred brands, as well as their websites and trade press. Mix it up when it comes to flavour Flavour trends are important when it comes to this product category, and there’s no shortage of choice. Retailers currently report that exotic fruit flavours such as lychee, passion fruit and mango are growing. Ensure your staff are fully educated Whether you’re talking about rechargeable vaping pods, disposable products or heated tobacco, a wealth of staff knowledge is important when it comes to upselling. Take advantage of brand and industry training and seminar opportunities.

CATEGORY ADVICE CHRISTMAS CONFECTIONERY

DRIVE FESTIVE SWEET SALES

Retailers and suppliers share insight on what they’re expecting from Christmas confectionery this year. LISA MOORE reports

WHAT TO EXPECT FOR CHRISTMAS 2021 CHRISTMAS 2020 was a Christmas like no other. With most of the UK forced into lockdown before 25 December, many consumers had their quietest festive season ever. Mars Wrigley UK’s senior brand manager, seasons & gifting, Alison Berry, stresses that despite the challenges of last year, 86% of consumers continued to give something special. However, Andy Mutton, managing director of Storck UK, the company behind Toffifee, Bendicks and Werther’s Original, says restrictions had a knock-on effect on Christmas confectionery sales. “Despite benefitting from shoppers using their local store to top up, the convenience sector was down by £18m last Christmas versus 2019. This was largely

because nearly one in four households shopped online last December,” he says. He adds that although restrictions limited gifting opportunities in some areas, impacting confectionery sharing formats compared with previous years, multipacks and chocolate tablets gained more sales. This year, shoppers will want to make up for lost time, says Chris Smith, marketing communications manager at specialist confectionery wholesaler Hancocks. “We are sure to see priorities surrounding Christmas 2021 shopping based on getting together and having as much Christmas cheer out of purchases as possible. Buying habits are set to change as shoppers go big in order to make up for lost celebrations with

families, friends and co-workers,” he says. Berry agrees: “While the current circumstances remain unpredictable, we know that confectionery remains a staple during the holiday season, with it playing an everimportant role in providing moments of joy and pleasure to consumers. Also, the arrival of Freedom Day, and a successful UK-wide vaccine roll-out, has shed positivity around Christmas 2021.” Aman Uppal, of One Stop Mount Nod in Coventry, ordered as usual last year, with plans to go bigger than ever this year. “I’m thinking about buying Christmas props, such as a big moving Santa. We did similar things for the Olympics and football, so we’ve set a bit of a precedent for it,” he says.

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CATEGORY ADVICE CHRISTMAS CONFECTIONERY

WHEN SHOULD YOU STOCK CHRISTMAS CONFECTIONERY? NINE in 10 UK adults buy Christmas confectionery, according to Nestlé Confectionery, with the category worth £917m. Stocking the right formats at the right time will help retailers capitalise on the festive season. A spokesperson for Nestlé Confectionery says: “Ninety per cent of shoppers who buy in the early Christmas season will repeat purchase and spend 11.3% more than the average in mid-season and 9.8% more than the average in December. “Retailers should be sure to stock seasonal impulse treats early in the season as an eye-catching introduction to Christmas.” Susan Nash, trade commu-

nications manager at Mondelez International, agrees. “The opportunity for retailers begins in September and lasts until the end of December, with four phases to enable them to stock the right range at the right time,” she says. In September, Nash recommends stores kick off with sharing confectionery, with tubs and pouches critical to success. The supplier has teamed up with Cath Kidston for its Cadbury Roses tub, following the brand’s previous partnerships with Olivia Burton and Emma Bridgewater. Self-treat options and novelty confectionery are the focus in October – there the emphasis should be on lines such as Cadbury Mini Snow-

balls or Mars Wrigley’s Maltesers Mint Reindeer – while advent calendars and tree decorations are key in November. Lines such as Mars Wrigley’s Maltesers Advent and the Galaxy Advent Calendar (RRP £2.79) can help retailers capitalise on the festive season as shoppers get into the festive spirit. Moving on to December, this is a prime opportunity to encourage trade up to lines such as Mint Fondants, After Eight Mojito & Mint or Quality Street Intrigue Orange Truffles, a new blended orange truffle wrapped in milk chocolate and dried orange segment, joining Nestlé Confectionery’s Salted Caramel Truffles.

top products

Hancocks The Hancocks range of seasonal confectionery includes Bonds Festive Mix Shaker Cup – a pre-packaged Pick 'n' Mix selection, including Christmas Tree Mallows, Candy Stars and Christmas Candy Canes. Retailers can also choose from Bonds 12-pack Candy Canes, Bonds Giant Chocolate Coin, Bonds Milk Chocolate Crèmefilled Santas or White Chocolate Coins stocking fillers. For adults, there’s Bonds Festive Tipples range, which includes rhubarb gin, mojito and prosecco-inspired gummies – but without the alcohol. Mars Wrigley This year, the Mars Wrigley 2021 Christmas line-up includes Maltesers Mint Reindeer, bite-sized treats

making the most of the fact that mint-flavoured products have grown by 34% over the past year. Family favourite Celebrations now comes in a tub or pouch format, plus a “more special centrepiece format”. Berry says Galaxy Truffles was the number-one selling confectionery product for Christmas 2019 and continued to grow last year and will return in 2021. Swizzels This Christmas sees Swizzels expanding its Drumstick gifting range with the Ultimate Gift Set – a 430g pack containing the newest brand launch, Drumstick Chocolate, Drumstick Choos, a 180g bag of Drumstick Raspberry & Milk lollies and a pair of limited-edition Drumstick

socks. Newly designed for 2021 is Swizzels’ 108g gift tube range. It now features gift tags and new graphics, and shoppers can choose from Love Hearts, Drumstick Mixed Lollies, Parma Violets and Sweet Treats. Mondelez International Mondelez International has added a host of new products to its festive range, including the limited-edition Cadbury Dairy Milk Winter Orange bar and the Cadbury Dairy Milk Chocolate House. Meanwhile, Fry’s is relaunching its selection box with a new design and product mix, and Cadbury Roses has collaborated with Cath Kidston to produce a limited-edition gift tin. Freddo Christmas Crackers come filled with two

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of the Cadbury classics, plus a surprise toy. Returning to the Cadbury line-up for the first time in 20 years are Cadbury Puds – with a truffle centre, hazelnut and rice crisp pieces covered in Cadbury Dairy Milk chocolate. The launch targets the individually-wrapped selfeat category. Storck Toffifee 100g packs have benefitted from a new festive design, plus the supplier is investing £1.9m in TV and video-on-demand support from September to November. Bendicks, the number-one premium brand in after-dinner mints, saw Mint Fondants launch earlier this year. With

of classics – Butter Candies, Chocolate Fudge, Creamy Filling and Creamy Toffee.

dark chocolate one of the fastest-growing trends – sales rose by 23% last year – the brand is expecting Mint Fondants to appeal to

Christmas shoppers looking to trade up. New to Werther’s Original is updated Golden Mix, which brings together a new selection

Nestlé Confectionery KitKat Santa is back this year following its success when it launched last Christmas. New to the range is KitKat Festive Friends (RRP £3.50), which comes filled with individually wrapped fun, festive shapes. Each bag contains 12 miniKitKat Santas and a mix of 10 other shapes, including a Christmas tree, elf, gingerbread man, snowman and

reindeer. Aero Festive Snowy White Block (RRP £1) will also launch, as well as the return of the brand’s Dreamy White Snowbubbles 80g bag. What’s more, Milkybar Festive Friends Sharing Bag (RRP £1) will join the range, as will an After Eight giant tube (RRP £1.38), After Eight Mojito & Mint, Quality Street Intrigue Orange Truffles and Aero Bliss Peppermint. Ferrero Ferrero Rocher Grand Rocher Dark, a hollow dark chocolate shell with hazelnut pieces, is launching in a 125g format (RRP £5), ideal for gifts and

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sharing. For younger customers, the Thorntons moulded figures range will be relaunched with a new Cheeky Reindeer and Cheeky Elf (RRP £2.50) design. Available now from the Kinder range is a 167g Kinder Beuno Advent Calendar (RRP £7), which includes eight classic, seven white and seven dark mini Kinder Bueno’s with door 24 hiding a full classic Kinder Bueno. Kinder Santa Hollow Figures, Santa Surprise and the Kinder Egg will also return this year. What's more, the Kinder Christmas range has undergone a full redesign to drive stand-out on shelf.

CATEGORY ADVICE CHRISTMAS CONFECTIONERY

the stat

14.2%

THE RIGHT PRODUCTS AND STRONG MERCHANDISING IS KEY A COMBINATION of bestselling favourites, launches, value stocking fillers and premium gifts are key to a successful Christmas confectionery sales period, according to suppliers. Hancocks’ Chris Smith says: “Retailers should ensure they are fully stocked with festivethemed treats ahead of the Christmas rush in order to maximise sales. They should also ensure their Christmas confectionery range appeals to customers of all ages. “At Hancocks, our festive range includes novelty sweets for children, as well as plenty

of nostalgic favourites and booze-themed goodies to ensure that all our customers are covered.” To help customers capitalise on the festive period, suppliers across the board are announcing their Christmas line-up. For example, Hancocks has launched a festive variety of its Bonds Shaker Cups, which includes a selection of Christmas Tree Mallows, Candy Stats and Christmas Candy Canes. This will be ideal for retailers with a younger customer base. Stock them at a younger consumers’ eye-level to cap-

ture their attention. What’s more, the big suppliers such as Ferrero have launched plenty of lines to cater for different missions. For example, it has expanded its Ferrero Rocher range with the Grand Rocher Dark. Levi Boorer, customer development manager at Ferrero, says: “We have developed our seasonal range across Kinder, Ferrero Rocher and Thorntons to provide individual treats and sharing formats to meet shopper demand for all occasions. “Although our core range is available all year round, our

The growth of seasonal gift blocks at Christmas 2020

Ferrero Rocher and Thorntons range make great gifts during seasonal occasions.” Retailer Aman Uppal runs a great offer at Christmas. “Being a One Stop, we probably have the strongest offer in the market in our three boxes for £5, across different brands. This is something our customers look forward to. “We put in a seasonal bay, eight-to-10 cases high to make a big wall of chocolates, which looks really impressive, and people buy by the case, perhaps for the office to treat their staff, or their friends,” he says.

top tips Storck’s Andy Mutton’s top merchandising tips Be early Stock-up on festive confectionery products from as early as October, when sales start to spike, and ensure they remain available until Christmas. As 61% of after-dinner mints’ annual sales occur between October and December, it is vital to ensure boxed chocolates are stocked well throughout this period. Make it visible Ensure Christmas confectionery is visible in store. Locate it in the usual confectionery section, but also create a seasonal aisle or display to show off your confectionery and chocolate boxes, to make it easier for customers to select their favourite for the holiday. Make great displays Gondola ends and free-standing display units in store are a great way to drive sales by increasing visibility.

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the stat

9 in 10 UK adults buy Christmas confectionery

RETAILER

VIEW

Terry Caton Londis Chesterfield & Post Office, Derbyshire “LAST year, Christmas was the busiest we’ve ever had because of the situation with Covid-19 and the large expansion of our deliveries – something we intend to continue. We’re a neighbourhood store and our customers expect us to carry a good Christmas range, so ordering is something we take time over starting in July and then looking at the different deals that come through. We always do ‘12 Deals of Christmas’ and use hod units, which are floor-standing units, for confectionery around the store. “Christmas for us isn’t only about confectionery; we also do well with biscuits and carry a broad range of seasonal products. We also have a good selection of selfeat products coming, that we begin to sell in September. Christmas is certainly a big seasonal time for us, but taking into account the quiet week between Christmas and New Year, it evens out.”

*Consumer Test Cadbury Puds 01.12.2020

6496460_Cadbury Puds_Trade Ad and Sell_HALF PAGE_V2.indd 1

10/08/2021 12:42

STOCK UP ON

THE No1 WHISKEY AND COLA BRANDS 1

IN CONVENIENCE

For more information about Coca-Cola email Coca-Cola Europacific Partners at connect@ccep.com, call 0808 1 000 000 or visit my.ccep.com. PLEASE DRINK RESPONSIBLY Jack Daniel’s and Old No.7 are registered trademarks. ©2021 Jack Daniel’s. All rights reserved.Coca-Cola, Coke, the Dynamic Ribbon device and the design of the contour bottle are registered trademarks of The Coca-Cola Company. ©2021 The Coca-Cola Company. All rights reserved. Sources: 1.Nielsen; Total Impulse; Value Sales MAT 17.07.21. 2. Nielsen Total Impulse value Sales MAT 17.07.21 (Coke Trademark = Coca-Cola Original Taste, Coca-Cola Zero Sugar and Diet Coke).

COC1423_JD_JACK+COKE Trade Ad_RE_AW2.indd 1

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CATEGORY ADVICE SPIRITS

7-20 SEPTEMBER 2021 betterRetailing.com

THAT’S THE SPIRIT Spirits is an incredibly wide ranging category, but they can provide a real boost to retailers if they can build a range that correctly targets their local demographic. CHARLES WHITTING finds out how

THE SCOPE OF SPIRITS SPIRITS as a whole can be initially quite overwhelming, covering everything from vodka and gin to tequila, rum and the myriad whiskies. However, for retailers, the key to a successful spirits offer lies in understanding what their customers want and catering for that. For David Sellers, who runs three Nisa stores in Hull, Sheffield and Leeds, vodka is the spirit that reigns supreme, but he recognises that gin may be a far more popular option in other stores with dif-

ferent demographics. “Vodka seems to be leading by quite some distance,” he says. “That might just be my local area. Less affluent areas tend to favour vodka. Value vodka and price-marked packs (PMPs) sell quite well – and the Co-op range is quite good for that. Gin is the growing category across the board, though. But in other areas, it’s vodka.” The pandemic saw hospitality temporarily close, which in turn saw people experimenting with spirits and cocktails

in their own home, trying to build a pub-like experience. Now that things are opening up at different stages across the UK, will customers forgo spirits at home in favour of cocktail bars or will they have parties at home and showcase their skills? For some, the pandemic allowed them to explore different spirits and broaden their horizons, but, for others, it has tightened their purse strings and set their sights on things they know and trust, so try to stock an option for both.

the stat

£1.2bn The value of spirits to UK convenience stores

CATEGORY ADVICE SPIRITS

7-20 SEPTEMBER 2021 betterRetailing.com

CORE BRANDS ARE KEY TO STRONG SPIRITS SALES AS tempting as it might be to fill your shelves with the latest launches and most on-trend lines that are leading the way in the on-trade, it would be wiser to stick more closely to tried-and-tested options that customers recognise and trust. “As convenience purchases are often impulsive ones, the most important range of spirits

for retailers to stock are those that are recognisable and most popular to ensure steady sales and movement of stock,” says Giles Mountford, Mast-Jägermeister UK category and brand manager. “The convenience store isn’t typically the place where consumers will spend a lot of time to explore new brands. Consumers are looking

COCKTAILS AT HOME WHILE pubs and bars were shut, many people embraced the opportunity to create a cocktail bar in their kitchen, working out and perfecting recipes. With hospitality now open, people will be returning to pubs and bars, but, for many, entertaining at home is set to be a big part of this autumn and winter, with cocktails likely to play a part. With this in mind, retailers need to think about the mixers they are offering alongside their spirits offer to capitalise on this trend. Clever positioning and well-considered promotions can add to customers’

basket spend. “Many consumers have been looking to recreate the pub, bar or restaurant experience with drinks that capture the excitement of going out, such as mixed drinks, cocktails and non-alcoholic mocktails. Retailers should make sure they stock up on a range of mixers to tap into this growing opportunity,” says Amy Burgess, senior trade communications manager at CocaCola Europacific Partners. “Cross-merchandising mixers with complementary food as part of a ‘meal deal’-type offer is a great sales opportunity for retailers,” she adds.

to find the brands they love, and purchase them at a reasonable price.” That being said, there is certainly room for a rotating gin offer that can capture imaginations or a premium Scotch range that will bring connoisseurs to your door, but creating that offer requires a customer base that is interested and the

time and effort to build up the right range and reputation. “Be creative and bold, as a solid spirit offering will attract customers and keep them coming back,” says Samantha Burke, managing director of Love Drinks. “You need some mainstream brands, but make sure you have brands for the upsell. Consumers are showing

a big interest in craft brands that have a story and heritage behind them, so there is a great opportunity to impress and get them trading up. Bring in a few specials or limited editions, use signage, promotions and social media to shout about your offering – you will soon develop some word-of-mouth publicity,” she adds.

the stat

30%

The value growth in spirits

MADE FOR

No.1 Flavoured Vodka portfolio in the market, Absolut flavours represent 35% of flavoured vodka sales and growing +£11.8m YoY.

STOCK UP NOW SOURCE: NIELSON, TOTAL COVERAGE, VALUE SALES, MAT 19.06.21

ENJOY ABSOLUT RESPONSIBLY

CATEGORY ADVICE SPIRITS

GIN AND VODKA REMAIN BESTSELLERS CLEAR spirits tend to be the most popular categories within convenience, whether that’s gin, which is very ontrend as the number of brands and lines continues to balloon, or vodka – that old staple and traditional bestseller for retailers. Both of these categories have been experimenting heavily with flavoured varieties and, for customers, these seem to be the launches that attract the most attention and generate the most sales. “The trend towards gin remains prevalent in the UK, with its total value sales having increased by 22.4%, and we expect this momentum to continue,” says Hannah

Dawson, head of off-trade category development at Diageo. “People are looking for quality drinks they can enjoy at home and gin forms the base of many popular mixed drinks, such as G&Ts and spritz serves. Pink gin has been one of the driving forces behind the category’s growth, offering a sweeter taste and encouraging customers to trial different options within the wider category.” “The launch excitement is in flavoured options,” says Harj Dhasee, from Local Village Stores in Mickleton, Gloucestershire. “A trusted brand combined with a new flavour sells well.”

BALANCE VALUE WITH PREMIUM YOUR local demographic will determine how you go about building your spirit offer – both in terms of range and price. For some retailers, having a strong range of trade-up products – particularly in gin and whisky – can generate some upselling opportunities. Research from Bacardi has found that 71% of shoppers “do not work to a budget when shopping for gin within convenience”. “Over the past year we have observed a trend towards premium spirits as people look to make their at-home occasions special by crafting cocktails they would otherwise be enjoying in the bars,” says Charlotte Rann, director of impulse and route-to-market, UK & Ireland at Bacardi. “Research shows that 35% of shoppers are unaware of the premium range of spirits available in convenience.

We also know that twothirds of shoppers will spend more than they originally budgeted.” However, for others, this will simply not appeal to their customer base, who will be more interested in the price than the label. According to Edrington Beam-Suntory, “more than 80% of spirits sales in convenience retail are standard varieties”. As a result, regardless of what premium options you have on the shelves, a strong value range is likely to be the principal source of sales. “Have a selection of premium options if they like that,” says Dhasee. “A bottle of gin for £14 would be the cheapest you have, with Gordon’s at £16, and a £25 premium and a £40 super-premium bottle. Make sure you have at least three varieties within those price brackets.”

Amish Shingadia recently reduced his range of spirits at his Londis Caterways store in Horsham, West Sussex, to reflect his local neighbourhood. However, he made sure to keep his gin selection varied as it’s a category with plenty of innovation and attracts lots of interest. “Gin is a big one for variety, but I still think that you don’t necessarily need as many varieties for your vodkas and flavoured vodkas, and your gins and flavoured gins. We’ve got quite an elderly demographic, so lots of different gins isn’t going to work. You have to analyse and see what works for you,” he says.

new SpiritS PRODUCTS Jameson Orange Pernod Ricard UK has launched Jameson Orange into the UK market, available now from Booker and Costco with an RRP of £23.95. The supplier said flavoured spirits have driven 80% of all off-trade spirits sales in the past two years. Orange has been one of the key growth flavours in the past three years, with more than 25% of consumers typically picking orange-flavoured drinks. Havana Club and Skepta Pernod Ricard UK has unveiled its second collaboration between Havana Club and UK grime artist Skepta, with a limited-edition Havana Club 7 bottle. The brand is increasing the number of bottles produced to 60,000. The launch has been supported by an outdoor and digital campaign since August. Smirnoff Raspberry Crush Diageo has unveiled Smirnoff Raspberry Crush (37.5% ABV) to the UK, available in a 70cl bottle (£16.50 RRP) and encased in striking packaging to enhance its shelf appeal, featuring vibrant colours to match the raspberry flavour.

CATEGORY ADVICE WINTER REMEDIES

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ARE YOU PREPARED FOR WINTER? Colds and the common flu are back. After a year off thanks to lockdown, suppliers say it’s essential stores get their winter remedies ranges in shape again. TOM GOCKELENKOZLOWSKI reports

WHAT TO EXPECT IN 2021 AFTER a year of face masks and social distancing, millions of Britons’ will likely succumb to a wave of colds and flu this winter. While hardly something to look forward to, it will come at a good time for retailers with a strong range of winter remedies, according to Jon R White, regional business manager at Fisherman’s Friend, who says the firm has seen a slow return to traditional sales patterns throughout 2021. “Earlier in the year, visits to retailers were down by almost 10%, while basket sizes were up by more than 25%, as shoppers tried to limit the number of trips they were making. And although we are yet to establish the long-term impact of Covid-19, we have started to see a positive shift since March,” he says. On top of this, value will be a prominent mission to focus on when reviewing your winter remedies range this year. Suppliers are helping retailers cater for this by launching products with a lower price

point. Fisherman’s Friend, for example, is launching its first-ever price-marked pack (PMP), retailing at 80p, for its Original and Original Extra Strong sachets. To capitalise on the winter remedies opportunities, it’s important to factor in pain relief, such as ibuprofen and paracetamol. What’s more, Victoria Gell, fruity confections portfolio director at Mars Wrigley UK, says over-the-counter medicine is vital to stock over winter as more become reliant on their local stores. She says: “Mars Wrigley has a dedicated range of eyecatching PoS to help make the most of over-the-counter medicines and encourage customers to buy on impulse. Having a fully stocked display will help maximise profit potential and encourage repeat visits from customers. “With this is mind, our range of PoS will support retailers and help boost their sales during the winter season.”

*Nielsen, Total coverage, value sales , Mat 19.06.21

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CATEGORY ADVICE WINTER REMEDIES

WHEN TO STOCK KNOWN BRANDS AS the key opportunity that cold weather brings nears, suppliers emphasise the importance that well-known brands bring to the market. “Quality, trust and efficiency remain key for consumers. This means branded remedies win out over own label in the cold and flu category, with 15% actively investing in quality known brands,” says Claire Campbell, brand manager at Olbas. “With our strong heritage, providing the power to breathe for generations, Olbas continues to perform ahead of the total market despite the market turbulence experienced in 2020 and 2021.” Other key trusted brands can be found in the medicated confectionery sector. “As a familiar and trusted brand, Lockets has helped keep Brits going through the winter

months for many years,” says Mars Wrigley’s Gell. “This is a brand consumers depend on to help them get through the day. Lockets contain a soothing liquid centre and a clearing menthol flavour that helps consumers keep a clear head. Each pack contains 10 sweets, and the range includes three flavours: Honey & Lemon, Extra Strong and Cranberry & Blueberry.” This year, Mars Wrigley is providing PoS to catch consumers’ eyes and remind them that there are options in the confectionery category that can sooth the symptoms of a winter cold. Another leading brand in this sector is Halls. “Halls has a cohesive look and feel across the range, allowing consumers to find their chosen solution with confidence and ease, including bestsellers Halls Mentholyptus

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Paul Patel, WHSmith Local, Dibden Purlieu, Hampshire “WE focus on a core range in our store because our village also has a chemist. We see extra sales at weekends and later in the evenings, however, because convenience stores like ours can open longer and cater to these distress purchases when customers need them. Alongside medicated confectionery, such as Lockets and Halls, we also stock a range of painkillers and Lemsip Max, both in powder and capsule formats. With things such as ibuprofen, my customers are less brand-driven, and I tend to get the products in which I can get at the best price and margin at the time.”

Extra Strong and Halls Soothers Blackcurrant,” says Susan Nash, trade communications manager at Mondelez International. “We advise retailers to stock the full range this winter to meet all shoppers’ needs and flavour preferences and the anticipated increase in demand.” Where budgets are tight, consumers have been known to remain committed to brands when buying remedies for their children, and suppliers have responded by creating products tailored to this need. “Many brands offer dedicated paediatric products within their ranges,” says Campbell. “Siting [these products] alongside the original adult remedies will help consumers recognise the brand to further support sales. “Olbas Oil is also available in a formula especially for in-

fants aged over three months. Displaying this next to Olbas Oil will enable parents to quickly identify the best product for all the family. Olbas for Children, meanwhile, is a gentle yet effective decongestant oil that helps relieve congestion and catarrh to restore easy breathing.” Nurofen for Children is another example of a brand aimed at meeting the needs of consumers’ youngsters. Parents could likely stock up as kids return to school, so if your availability on children’s medication isn’t what it should be, review your range and take note of what you should be stocking. Maintaining availability is key to capitalising on winter remedies, especially as many purchases will be made as a distress, last-minute purchase.

TOP tIPS

Focus on cold and flu products Lockdown restrictions gave us all a year off colds and flu symptoms, and customers will want to soothe symptoms as soon as they arrive. Include established brands in your range This is a category where name recognition – and trust – is important. Make sure your range has the brands consumers are looking for. Stock child-friendly options Parents will always want the best for their children and suppliers recommend keeping a range of big brand products for youngsters. Don’t forget Covid-19 Suppliers recommend keeping well stocked with products such as hand sanitiser and disinfectant throughout the next few months. Take advantage of support From PoS to PMPs, manufacturers are investing in helping stores grow their sales this winter. Make sure you capitalise on these opportunities.

7-20 SEPTEMBER 2021 betterRetailing.com

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Claire Campbell, brand manager, Olbas “OVER the past 18 months, we’ve seen consumers adopt new behaviours towards preventative ailment management and, as such, a shift in consumer behaviour towards prioritising health. This has driven demand for products that are deemed to have additional health properties, such as vitamins, minerals and supplements, as well as a demand for natural remedies, which are perceived as healthier. Made from a combination of pure plant oils such as eucalyptus, mint, clove, juniper and cajuput, Olbas Oil combines these natural ingredients to create the famously soothing and relieving natural vapours that ease congestion.”

HOW COVID-19 SHAPED THE CATEGORY COVID-19 means many consumers are now putting health first. This means many will reach for medication at the first sight of a cold. They’re also more likely to buy hand sanitiser and continue to wear face masks in the colder months. Matt Stanton, head of category and insight at DCS Group – which owns kids’ brand Calpol alongside Lemsip, Strepsils, Sudafed and Vicks – says that retailers should be ready to tailor their ranges to a customer base that still has the pandemic in their minds. “Hand sanitiser gel and hand sanitiser wipes will remain important and will be an important impulse purchase, especially for people on the move,” he says. “Many people have turned to antibacterial and medicated mouthwash products in an attempt to reduce the spread of infection, so make sure you have mouthwash in stock as part of your dental care range.” Such is the strength of

well-known brands that companies such as Fisherman’s Friend believe consumers will know where to turn when a surge of winter colds return in the months ahead. “This past year has shown that we have a loyal customer base, and during times of uncertainty, people are turning to familiar and established brands that they know and trust,” says Fisherman’s Friend’s White. “Therefore, we advise retailers to take advantage of the year-round sales opportunity by stocking the brands and products that consumers want – so they can be ready for whatever the day throws at them. “That said, as life begins to return to normal – and as incidence of cold and flu are likely to increase as a result – we expect to see a return towards more normal sales levels as a whole.” Stores that respond to this shift will, suppliers believe, be perfectly placed to profit from the category this winter.

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HALLOWEEN AND BONFIRE NIGHT This year, with restrictions largely lifted, Halloween and Bonfire Night are likely to be big events. RETAIL EXPRESS finds out how retailers are preparing

What are retailers are going to do this year? Are they scaling back or gearing up for a big one? – Shakeel Arshad, Spar Sauchie, Scotland

Anil Patel Costcutter Chislehurst, Kent

“WE ordered what we want for Halloween back in June. We’ve ordered the same as last year, but upped the orders a bit for everything. We don’t know what’s happening with lockdown, but turnover has increased in the past 18 months. We’ve gone through a massive refurb that has put our store on the map and resulted in sales growth. This gives us con�idence for Halloween. We have masks, hats and costumes from stationery suppliers, and toffee apples, candy apples and lots of Halloween cakes from Co-op. We’re stacking up confectionery items in bins around the store. “We’ve got a 1.5-metre chiller as you walk into the store and we dedicate that to a different season to add some theatre. It’s important to make it a feature. That whole bay will be dedicated to Halloween. Then, for Bon�ire Night, we’ll have sausages, burgers and drinks.”

Sophie Towers Kibble Bank One Stop, Burnley, Lancashire

“WE’VE already ordered for these events and we have started on Christmas as well. We were in lockdown last year, so there were no big bon�ires. People will be back out at the bon�ires this year. But everything is still a bit unknown at the moment, so we aren’t sure what to expect sales to be like. “We’re with One Stop, so we can only order what they’re offering. They’ve got lots of Halloween products and new products. Big boxes of chocolates at three-for-£5 did really well last year, so we’ve ordered lots of those. We haven’t got any concrete plans in place as of yet, but we will do something to get the store ready and decorated for the holidays. We usually start thinking about that at the end of September. Now the kids are back to school, we’ll start planning and shouting about Halloween and Bon�ire Night.”

Sandeep Bains Co-op Faversham, Kent

“WE’VE gone a bit bigger with our orders this year. There’s a lot more excitement that we’re building up in preparation for Halloween and Bon�ire Night. We’re going in big and we’re going in earlier. “We ordered our range back in May. This included lots of confectionery products that will also lead into our Christmas products. With our delivery side of the business and our social media we can really drive people into the store. The business is in a strong position. “You don’t want to be missing out on Halloween, even if it’s a last-minute dash for trick-or-treat sweets, toys or Halloween masks. If you’ve never done it, then at least offer the core range and then you’ll know where to go from there. Use social media to let people know that you’re taking part, and get involved in local activities.”

In the next issue, the Retail Express team looks at where retailers are two months after ‘Freedom Day’. If you have any problems you’d like us to explore, email charles.whitting@newtrade.co.uk

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UNLOCK NEW SALES • Galaxy has grown 3% worth £222M in value sales [1] • #2 UK Confectionery Brand [1] • £5m media spend and 28 weeks on TV

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