Retail Express - 12 July 2022

FUNCTIONAL DRINKS

How to take advantage of this growing £1.7bn category ICE CATEGORY ADV KS FUNCTIONAL DRIN

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BENEFIT MORE FROM FUNCTIONAL DRINKS

drinks subses the functional TAMARA BIRCH discusers are looking for and what to stock category, what shopp

12-25 JULY 2022 STRICTLY FOR TRADE USERS ONLY

AL WHAT ARE FUNCTION

DRINKS?

drink lines, includthe en- on energy differhave made a comeback, ing zero-sugar options, that provide a great sales ergy drinks market has grown those ent flavours, and offer added drinks for stores.”

FUNCTIONAL drinks than 17% in the past offer more multivitamins and like opportunity Bull, the by more height of benefits to shoppers, According to Red year. As we enter the stock up minerals. or protein. to energy category as vitamins, minerals worth sports and had a steep up- summer, make sure has The category is UK drinks a whole growth over £240.2m to the ward trajectory in gure fi more the market, with past year, now worth highlighting the and totalling more expected to grow, for than £1.7bn a strong opportunityreview than £276.4m versus 2021. to fuelled independent retailers “This growth has been for demand. their range and meet willing by the increased demand energy among shopConsumers are also double functional Bull spokesperson a Red to pay more than drink than pers,” drinks alone have for a functional soft says. “These in more than £197.7m they would an average marketing added last year and have drink. Nigel Tarn, says: value versus manager at Fentimans, that exceeded the billion-pound than shows today worth more “This not only functional mark, for love consumers’ than £1.2bn annually.” missions drinks is more popular Now on-the-go functional ever, but also that

‘ABSOLUTE RUBBISH’

• Retailers left hundreds of pounds out of pocket after waste broker allegedly fails to deliver on promised service • CheaperWaste under trading standards investigation P3 POST OFFICE

STUBBING OUT ILLICIT

SHOP SECURITY

Justice as original victims of Horizon IT scandal receive £19.5m interim payout

The UK is secondlargest market for dodgy tobacco, new figures reveal

Top retailers share valuable tips on how to keep your store and employees safe

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Harj Dhasee, Village Stores Mickleton, Gloucestershire but nothof functional drinks, “WE’VE got a couple Red Bull leads the way in the that. a few different ing much beyond category. We’ve tried they aren’t functional drinks a vegan option, but products, including very healthworking for us. demographic isn’t “Our area’s customer closer to a gym or we had a we were but here conscious, but if drinks would work, sales depend on younger crowd, functional us. Functional drinks customer it’s not really for retailer’s a If demographic. store location and more health-conscious then go for base is younger and them in the market. for would work it. There’s a place of what you think “Try a couple of lines different ones and see which and then keep trialling one works.”

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our say

Alex Yau, acting editor

Inflation could provide opportunity LAST week, pictures of empty shelves throughout Tesco stores filled the headlines. It turned out the supermarket was in a stand-off against suppliers Mars Petcare and Heinz over rising prices.

Tesco said the row was necessary to ensure “customers get the best possible value”. Elsewhere, Iceland was also the victim of inflation as pictures on the internet showed a £9.35 tub of Lurpak in one of the retailer’s stores.

The challenge of price increases isn’t just restricted to the multiples, of course. This is apparent in many of my conversations with retailers and independent wholesalers. Last week, one retailer said: “I thought the pandemic would be the biggest challenge I’d face, but inflation means it just keeps going on and on.”

I am by no means suggesting there are easy solutions. HowI’M NOT ever, retailers went above SUGGESTING and beyond during Covid-19 to stand out from their compTHERE ARE EASY etition, and inflation could SOLUTIONS provide similar opportunities.

The spat between the supermarkets and their suppliers gives you a chance to advertise better availability of affected products. For stores with customers who might be put off by increased prices, there’s a chance to encourage them to purchase own-label. In times of financial pressure, shoppers have been known to buy a lot more non-branded goods.

For those feeling understandably frustrated, I urge you to look through this issue, as it’s filled with victories for retailers, and examples of stores who are going above and beyond, even during the toughest times. @retailexpress betterRetailing.com facebook.com/betterRetailing Acting editor Alex Yau @AlexYau_ 020 7689 3358

Editor – news Megan Humphrey @MeganHumphrey 020 7689 3357

Features writer Jasper Hart 020 7689 3384 @JasperAHHart

News reporter Noemi Distefano @NoemiDistefano_ 07597 588955 Deputy insight & advertorial editor Tamara Birch @TamaraBirchNT 020 7689 3361

Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

Editor in chief Louise Banham @LouiseBanham

Production editor Ryan Cooper 020 7689 3354

Production coordinator Chris Gardner 020 7689 3368

Account manager Marie Dickens 020 7689 3366

Sub editor Jim Findlay 020 7689 3373

Head of marketing Kate Daw 020 7689 3363

Sub editor Robin Jarossi

Senior account director Charlotte Jesson 020 7689 3389

Senior Account managers Barry Lavis 020 7689 3372 Lindsay Hudson 020 7689 3366

Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380 Junior Designer Lauren Jackson

Head of commercial Natalie Reeve 020 7689 3372 Business delivery manager Ifzal Afzal 020 7689 3382

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The five biggest stories this fortnight 01

Gov’t issues interim payout to original 555 postmasters MEGAN HUMPHREY

THE government has con�irmed it will pay an interim £19.5m payout to the former 555 postmasters who brought the �irst Group Litigation Order (GLO) against the Post Of�ice (PO) in the Horizon IT scandal.

Minister for small businesses Paul Scully made the announcement at the end of last

02

month. “These postmasters played a crucial role in uncovering the scandal, but, due to legal and funders’ costs, have received less compensation than others,” he said. “This simply isn’t fair.”

Scully stressed “this is the next step to provide recompense to the GLO who had their lives blighted by the Horizon IT scandal”. He added: “There are some hurdles still

Retail crime law

COMMON assault against anyone working in a retail environment is now classed as an aggravated offence.

The changes to the Police, Crime, Sentencing and Courts Act received Royal Assent on 28 April, following years of campaigning.

The Fed’s national president, Jason Birks, said he is “pleased that we are now being given the same protection in law as other frontline workers”.

The news comes nearly a year after a similar law was enacted in Scotland.

to clear in terms of �inalising the full scheme, but I can promise that my team are working at pace on this. I can also announce our intention to appoint Freeths – which represented postmasters during the GLO – to provide data as part of this work.”

The Communication Workers Union’s (CWU) branch secretary, Mark Baker, told Retail Express: “We hope

03

Bestway hybrid shop

BESTWAY has of�icially opened its second Costcutter and Bargain Booze hybrid store in Whiston, Merseyside.

The site is a part of a concept launched by Bestway in April, where a standalone Bargain Booze section is situated within a Costcutter store.

A re�it costing £100,000 was made to help the Whiston store boost its chilled, grocery and food-togo range. The �irst hybrid was opened in Meopham, Kent.

The wholesaler con�irmed it has plans to develop more stores soon.

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

National Lottery bid

CAMELOT has lost its legal bid to prevent the handover of the National Lottery licence to Allwyn.

Last week, a suspension that was put in place after Camelot challenged the Gambling Commission’s (GC) decision to award Allwyn the next

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

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these interim payments reach the claimants as quickly as possible without any undue interference or further prevarication.

“The CWU urges all parties to also work at pace to reach full and �inal settlements of all claims, including those who have had their criminal convictions overturned.”

10-year licence was lifted.

The new licence is due to commence in 2024. The GC said its priority “is to continue to work to implement our decision and ensure a seamless transition to the next licence, for the bene�it of participants and good causes”.

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

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BID ‘levy’ sting

RETAILERS with stores in business improvement districts (BIDs) have unexpectedly started receiving bills costing them hundreds of pounds.

Store owners across England reported receiving the bills, or annual ‘levy’, last month. The rate charged to

individual businesses varies between BIDs, but it is between 1-4% of a property’s rateable value.

BIDs are specialised areas in towns and cities where local businesses invest together to improve their surrounding area.

Audit Bureau of Circulations July 2020 to June 2021 average net circulation per issue

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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 ‘Bestway’

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

@retailexpress facebook.com/betterRetailing

12-25 JULY 2022 betterRetailing.com

alex.yau@newtrade.co.uk 020 7689 3358

Waste firm investigated over poor-service allegations ALEX YAU RETAILERS have accused CheaperWaste of leaving them hundreds of pounds out of pocket over alleged “poor service”.

The Newcastle-based broker operates throughout the UK, commissioning bin companies to collect businesses’ waste.

However, independent retailers have claimed the company has failed to collect their waste “repeatedly” and applied incorrect excess weight charges on bins since 2020.

Asif Din, of Din’s Convenience Store in Coatbridge, North Lanarkshire, told Retail Express: “I signed up with them before the pandemic, but there was a onemonth period where my bin wasn’t emptied. I kept phoning them, but I waited an hour just to get through.

“I’m in a housing scheme where customers were complaining about rats. It got to a point where I cancelled my direct debit, and the bin still sits outside my shop. I’ve got photos of the bins when they were full (pictured).”

In January, former customer Kiru Nadarajah, of Everydays in Twickenham, London, received a letter from debt collectors demanding £500.96 because he refused to pay early termination fees after cancelling his contract over a bin weight disagreement.

Nadarajah had previously

disputed claims by CheaperWaste that he had exceeded his 70kg weight limit by 182kg, 32kg and 46kg in three consecutive weeks in January and February 2020.

As a result of the dispute, he requested an early cancellation of his contract, but CheaperWaste stated that Nadarajah would be subject to an early cancellation fee as a result.

Another business also received letters from debt collectors demanding hundreds of pounds because they terminated their contract after they alleged waste collectors, appointed

by CheaperWaste, had missed collections.

They said: “There’s been a great amount of stress caused at an already very dif�icult time and something needs to be done to highlight these business practices.”

Two Facebook groups were set up in 2020 with a combined membership of more than 1,500, featuring various complaints against the broker.

In September of the same year, CheaperWaste sent emails to customers admitting “extremely poor” response times due to the pandemic. It said: “This resulted in many missed collections, aggravation and upset for a lot of you, for which we apologise.”

Retail Express received con�irmation from Newcastle City Council that there is an “ongoing investigation”

express yourself “Costs are going up and I have started to move away from price-marked packs that don’t offer me decent margins. I used to sell a range of hanging bags and the margin was at least 20%. Now it’s down to 16%.

Any products like that I now consider boycotting, but there are some low-margin PMPs I will stock because my customers want them. I offset this by mixing pricemarked with higher-margin products.”

Hitesh Pandya, Toni’s Newsagents, Ramsgate

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GOOD WEEK INFLATION: The subject of inflationary pressures on independent retailers topped the bill when small business commissioner Liz Barclay met with a government minister at the end of last month. Posting about the meeting with small business minister Paul Scully on Twitter, the independent body said: “On the agenda this morning [was] inflation, recruitment and getting quicker payments from bigger customers.”

LOYALTY: Jisp’s Scan & Save scheme reached a milestone of 150 stores across Nisa, Londis, Budgens, Premier and Family Shopper nationwide. Since its launch in September 2021, the app has achieved 260,000 scans, had 142,000 vouchers issued and 122,000 redemptions.

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

BAD WEEK

by trading standards into CheaperWaste, following a number of complaints from its customers.

In addition, in May this year, the Advertising Standards Authority (ASA) ruled against a misleading advertisement from businesscostcomparison.co.uk, claiming to be a comparison site.

The online ad in June 2021 claimed it would “compare over 200 waste suppliers”. However, following a complaint, the ASA ruled that CheaperWaste had entered into a contract with the website to generate leads for itself.

Contracts from 2020,

the column where you can make your voice heard

seen by Retail Express, offered insurance to customers with a clause stating: “Separate container insurance is available from the company for an additional cost.”

However, the Financial Conduct Authority con�irmed to Retail Express the company is not regulated to do this. Retail Express has submitted evidence to the regulator, which is to be examined.

Meanwhile, under law, transfer notes are legally required to authorise the transfer of waste from one business to another. They also require a signature from both parties. However,

three waste transfer notes seen by Retail Express show signatures from CheaperWaste, but none of the business owners.

Former CheaperWaste customer Leona Bull, who claimed she had her waste provider changed without consent on the transfer note, said: “The service has been absolute rubbish.

They’ve caused a lot of upset in the context of the pandemic and the tough economic times. It’s just the �inal straw for some of these businesses.”

CheaperWaste and its owner, Waste Managed, failed to comment as Retail Express went to print.

CAMELOT: Retailers are earning £1,000 less per store in commission from National Lottery sales, compared with this time two years ago. Operator Camelot published its latest annual results at the end of last month, with commission earned totalling £6,000, falling from £6,200 last year, and £7,000 in 2020. Retail director Jenny Blogg attributed the fall to changing shopper habits driven by the pandemic.

For the full story, go to betterRetailing.com and search ‘Camelot’ FROZEN: Premium frozen meal supplier Cook is to reduce retailer margins temporarily by 1.85% from 18 July. In a letter sent to businesses, it blamed rising inflationary pressures.

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

Are you seeing a margin squeeze on price-marked packs (PMPs)?

“I’ve moved away from price-marked on some soft drinks because of the low margins. I find customers will pay the extra for these, but for grocery it’s a little more difficult. We used to have margins of 30%.

Now it’s anything from between 16% to 25%. And I also really feel it on newspapers because, unlike other goods, I can’t just swap. The margin cuts have hit us hard and we feel that we are being very badly treated.”

Abdul Qadar, Ramzan & Sons, Edinburgh

Do you have an issue to discuss with other retailers? Call 020 7689 3358 or email alex.yau@newtrade.co.uk

“Retailers really need to take manufacturers to task and start boycotting goods because the increasing rate of reduced margins on a growing number of pricemarked goods is not acceptable. A retailer needs 16% just to break even, but with rising costs we now need a margin of at least 19%. Margins on big brands are now between 14.2% and 17.5%. It’s not good enough, because our bottom line is taking such a huge hit.”

Mo Razzaq, Premier Mo’s, Blantyre

Mo Razzaq

NEWS

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12-25 JULY 2022 betterRetailing.com

Counterfeit cigs driving illicit trade ALEX YAU

AN 87% surge in counterfeit goods drove the �irst increase in illegal cigarette consumption for a decade, according to KPMG’s latest report.

The report, commissioned by supplier Philip Morris International (PML) last month, examined dodgy cigarette usage across 30 EuroGA Day 2022 A4 Double Sided pean countries.

It revealed

that the UK was the secondlargest market for illicit tobacco after France in 2020.

This was due to £5.3bn of counterfeit cigarettes being consumed across the region.

The north-east of England, Yorkshire and Humber saw the highest concentration of counterfeit cigarettes during the pandemic in the UK. KPMG’s report also looked at the impact of the panPoster_AW.pdf 07/02/2022 16:14 demic on2 the illicit tobacco

trade. Although Covid-19 and border controls put a stop to some illicit activities, some rogue traders were still successful in selling illegal cigarettes.

Interviews conducted with law enforcement as part of the survey suggested this was due to criminals moving operations within the EU border. A large proportion of counterfeit goods sold during 2020 were believed

to have been manufactured in illegal factories within the EU. Commenting on the report’s �indings, PML head of UK �ield force Cem Uzundal said: “This report should be a wake-up call to everyone involved in making or selling illicit cigarettes. My message to retailers selling illicit product is that your actions put both your customers and your business at risk.”

#LetsTalkGroceryAid

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

IT glitches still hitting KP Snacks and Walkers IT glitches that hit the availability of KP Snacks and Walkers products are still being felt by retailers and wholesalers.

In February, KP Snacks was the victim of a cyberattack, while Walkers’ parent

HERE FOR EMOTIONAL SUPPORT Call our Helpline for ‘in the moment’ emotional support and to discuss what other services may benefit you

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

NISA LAUNCHES HFSS SUPPORT

GET FINANCES BACK ON TRACK Get help managing your finances and budgeting for the future. You may also be eligible for a non-repayable grant

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SYMBOL group Nisa has rolled out the latest in support for stores affected by upcoming anti-obesity legislation.

Planograms for 2,000sq ft, 4,000sq ft, 5,000sq ft and 8,000sq ft shops were made available to help retailers tackle high fat, sugar and sale (HFSS) restrictions from October.

The legislation will clamp down on the placement and promotions of products

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company, PepsiCo, suffered glitches following a major IT upgrade last year. The availability of both companies was affected by the issues, and major wholesalers told Retail Express that availability still hasn’t recovered.

TAKE POSITIVE PRACTICAL STEPS Receive accurate information on everyday issues, including legal, financial and consumer law

such as crisps and confectionery.

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

New c-store chain A NEW chain is set to “reinvent convenience” as part of a major expansion drive next year.

Hodnetts Stores will open its �irst shop in Preston, followed by other openings in Lancashire, Cumbria, Merseryside, Cheshire,

Free and Confidential Support Available 24/7, 365 days a year, through the FREE Helpline and website, for grocery colleagues, their partners/spouses and dependants

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Greater Manchester, West Yorkshire, South Yorkshire, Lincolnshire, Scotland and London.

Founder Justin Hodnett told Retail Express the �irm is in talks with Amazon, as well as a major symbol group.

For the full story, go to betterRetailing.com and search ‘Hodnetts’ RN Full page ad.indd 1

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PRODUCTS

12-25 JULY 2022 betterRetailing.com

Rich’s to launch Nestlé range BAKED by Rich’s and Nestlé Professional have collaborated on a range of thawand-serve cookies.

Available to convenience retailers from August, the Baked

by Rich’s Made with… range will launch with Matchmakers Zingy Orange, Aero Peppermint and Little Rolo varieties, each with an RRP of £2.29 for a bag of four cookies.

It is designed for retailers who want to offer a fresh bakery option but don’t have the space for an in-store bakery.

Premium cookie sales were up by 20% in 2021 and �illed cookies have contributed to this growth.

John Want, sales, marketing

and R&D director at Rich’s, said: “Nestlé Professional’s range includes some of the most recognised confectionery brands in the world, and our development team has loved using these unique and delicious ingredients to create mouth-watering new cookies for independent retail.

“With more of us out and about for work and pleasure in 2022, there’s a real opportunity to make the most out of the recovering food-to-go sector and offer premium, fresh cookies to shoppers. There is also still a sizable working from home contingent, which provides convenience stores in residential areas with more top-up and treat occasions throughout the day.”

DEAD Man’s Fingers is moving into the ready-to-drink (RTD) category with three new launches.

Spiced Rum & Ginger Beer, Spiced Rum & Cola and Passion Fruit Rum & Lemonade each have a 5% ABV and are available now in 330ml cans with an RRP of £1.99.

The supplier says the new formats provide an opportu-

nity for the brand to pick up more on-the-go sales as well as attract shoppers to the brand’s established formats.

Rachel Adams, global marketing manager at Dead Man’s Fingers, said: “The launch of our new RTD format is a natural next step for our brand, particularly as we enter into the summer months when convenience is key.”

JASPER HART

The Independent Achievers Academy (IAA) joined AMIT PUNTAMBEKAR, owner of Ash’s Shop in Fenstanton, Cambridge, to discuss how he’s driving value with strong promotions and ranging effectively to ensure every product earns its place

KEY TAKEAWAYS 1

To offer value to his customers, Amit works with different suppliers and buys on promotion. For example, over the Jubilee weekend, Amit sold 20 cases of Stella Artois six-pack because it was on a strong promotion of £3.

2

Amit uses his sales data to determine top sellers and is training his team to scan each bay individually, analysing the rate of sale in order to delist lines or increase facings. This has helped boost spend in each category.

3

Amit has invested in an export range, including American lines. He analyses the rate of sale of his grocery category to uncover what lines are slow sellers so he can delist them in favour of expanding his export range.

AMIT’S TOP IDEA “Have a checklist to walk the store with to give you an idea of what’s been done and what hasn’t. This will give you a starting point to improve your business.”

Read the full coverage of Amit’s session by scanning the QR code or visiting betterRetailing.com/amit-puntambekar

Dead Man’s Fingers launches RTD trio

Carabao launches 500ml PET bottles CARABAO has launched 500ml PET bottles across its core range.

The new bottles are available in Original, Mango Burst, green Apple and Mixed Berry.

Their launch comes in the wake of Carabao’s Original bottle launch in Poundland stores in March, which the supplier says has been a success.

They will be available to convenience and wholesale later this summer, following an initial launch in Poundland and on Carabao’s website.

John Luck, chief marketing of�icer at Carabao UK&I, said: “Carabao research revealed that 87% of frequent energy drinkers would buy a 500ml resealable bottle version of

their favourite energy drink with convenience and responsible consumption being the main drivers.”

Retailers interested in stocking the new products are encouraged to contact nestle@rich.com.

PVM launches Chupa Chups chews PERFETTI Van Melle is expanding the Chupa Chups brand with Incredible Chew, its �irst range of chewy singles.

Chupa Chups Incredible Chew will launch in the UK in August 2022, having already become popular in Australia.

The range will come in Green Apple, Orange and Cola varieties in a 45g stick format of individually wrapped chews, with an RRP of 75p.

Kate Howe, brand manager of Chupa Chups UK, said: “Adding

Incredible Chew to our range means we can deliver the taste that Chupa Chups customers love across a range of textures, formats and prices, variations that always entice shoppers in the confectionery category.”

STORCK has launched four limited-edition Tof�ifee family packs, available to retailers over the next two months.

The 100g boxes have an RRP of £1.43. Their launch comes with Tof�ifee currently the third-fastest-growing brand in the boxed chocolate category with sales of more

than £10m, according to IRI �igures.

Andy Mutton, managing director at Storck UK, said: “Tof�ifee is a now a £12.1m brand and is in the top seven bestselling lines in the boxedchocolate category.

“Despite �lat growth in the category (0.6%), Tof�ifee has maintained strong growth of 9% and has a growing loyal fan base, which is driving healthy sales.”

Limited-edition Toffifee packs

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Limited-edition Gold Leaf range JASPER HART IMPERIAL Tobacco is set to launch a range of limitededition papers in Gold Leaf pouches this summer.

Available until the end of September, the new collection will launch in four distinctive designs in 30g and 50g formats, at an RRP of £14.60 and £24, respectively.

The four designs will rotate throughout the launch period and the outer will also have an on-pack �lash highlighting the limitededition nature.

Tom Gully, head of consumer marketing UK&I at Imperial, said: “As the costof-living crisis takes hold of

households nationwide, the economy price sector is the driving force behind sales within the roll-your-own (RYO) category, accounting for 56% share of sales and growing at 5% year on year.

Through this latest launch,

Seabrook Loaded rebrands CALBEE is launching Seabrook Loaded Rings alongside a packaging redesign across its entire Loaded range.

New Sour Cream & Onion Rings are available now in a multipack, sharing bag and £1 price-marked pack (PMP).

Additionally, Loaded Seaside Salt & Vinegar Fries will be available in a sharing bag following success as a multipack.

The Loaded range is worth more than £8m since launching last year, with the broader Seabrook Crisps brand growing annually by 32.2% and worth £74m.

Claire Hooper, marketing director at Calbee

UK, said: “The new pack design gives Loaded real shelf standout and links it more closely to the Seabrook brand, which has a loyal consumer following.”

BRIOCHE Pasquier has launched two new on-pack promotions in partnership with upcoming �ilm Minions: The Rise of Gru. The promotions, which run until 30 September, appear across the supplier’s Brioche Rolls and Pitch brioche snacks.

Customers who

buy Brioche Rolls have the chance to win a retro party bundle containing a karaoke machine, space lava projector, mirror ball, Bluetooth suitcase turntable, vinyl records, a Nintendo Classic Console with games, space hoppers, a fondue set and a party food delivery.

Meanwhile, buyers of Pitch brioche snacks have the chance to win a two-night family glamping adventure for four.

Both promotions also include 2,000 instant win Minion prizes including stationery, tote bags and water bottles.

Pasqiuer’s on-pack Minions promo

we’re providing the same great value and high quality Gold Leaf blend, with the addition of these engaging new limited edition designs.

“In recent years, we’ve found these limited-edition papers have become highly

sought after as collectables

by RYO customers, so we’d recommend retailers stock up on the new limitededition Gold Leaf pouches as soon as they launch to take advantage of the additional sales while stocks last.”

12-25 JULY 2022 betterRetailing.com

Launch of doublelayered Oreo Twists MONDELEZ International is expanding its Oreo biscuit brand with the launch of Oreo Twists, its �irst major Oreo launch in three years.

The double-layered biscuit range is available now in Vanilla & Caramel and Vanilla & Raspberry varieties, each with an RRP of £1.19.

They mark Oreo’s �irstever double-layered biscuit launch in the UK.

Currently, Oreo Original Cookies are growing by 21% in the UK. Katya Savelieva, brand manager for Oreo at Mondelez, said Oreo Twists were the “�irst in a strong innovation pipeline for the brand”, hinting at more new products. Mondelez will support the launch with a digital, social media and instore campaign.

Ambrosia relaunches New Walkers Max Choc Orange Custard Strong duo PREMIER Foods is relaunching Ambrosia Chocolate Orange Custard as a permanent line due to popular demand.

The line saw a limited-edition launch at Easter last year, becoming the �irst UK chocolate orange custard launch. It marks the latest in a line of chocolate orange launches in recent years from brands including Twirl, Yazoo, Maltesers, Butterkist, Yorkie and Weetos.

It is available in a 400g can with an RRP of £1.49.

Daniel Jalalpour, brand director for desserts at Premier Foods, said the variety would be available in a limited-edition winter pack

design throughout November and December to drive festive sales.

ALPRO has launched a multimillion-pound crosschannel campaign to mark the launch of its oat-based This Is Not M*lk.

The ‘M*lk Believe’ campaign is aimed at challenging perceptions around the taste of plant-based milk alternatives and attracting new customers to the category.

It comprises a TV advert playing on Channel 4, as well as YouTube and Amazon

advertising.

There will also be a sampling campaign at high-footfall sites in London and Birmingham, as well as Tesco and Sainsbury’s stores nationwide. A partnership with recipe box provider Hello Fresh will also see 40,000 samples distributed.

Alpro will also use social media ambassadors on TikTok to produce bespoke content.

Alpro marks launch of oat brand

PEPSICO is adding Fiery Prawn Cocktail and Hot Sauce Blaze to its Walkers Max Strong range.

The non-HFSS �lavours will be available to convenience retailers from 1 August, following a 27 June launch in Tesco.

They are part of Walkers’ ambition to have 50% of its snack sales to come from products classi�ied as non-HFSS or from products sold in portions of 100 calories or less by 2025.

The launch comes as a quarter of Brits currently purchase Walkers Max products, with the brand seeing 9% sales growth since 2019.

Additionally, Prawn Cocktail �lavours have grown by 120% and hot �lavours by 15%.

ALKALINE ionised water brand Actiph Water has partnered with Marvel Studios alongside of the release of the �ilm Thor: Love and Thunder.

As part of the brand’s “Charge up. Be Actiph” campaign, it is launching three limited-edition 600ml bottles (RRP £1.39) featuring three of the �ilm’s main characters: Thor, Mighty Thor (Jane Foster) and Korg.

The bottles are available from the following wholesalers: Brakes, CLF, Tree of Life, Health Store, Epicurium, Aqua Amore and Muscle Finesse as well as Clearline and Leydons in Northern Ireland.

They are also available

directly from Actiph Water’s website. The supplier also has dedicated FSDUs which retailers can request by contacting sales@actiphwater.com.

Actiph alkaline water teams up with Thor

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PRODUCTS

10

Jacob’s expands savoury range The three new lines are launching in wholesale later this year following initial availability in Sainsbury’s (Jacob’s Mediterranean) and Sainsbury’s, Morrisons, Tesco and Asda (Jacob’s Cheddars Red Leicester).

According to the supplier, Jacob’s has seen almost half a million new shoppers since the start of 2020, while 42% of UK households view products within its savoury biscuit portfolio as essential.

Leighton Wall, marketing director for savoury at Pladis UK&I, said: “Starting out as a bread replacement when shelves were stripped bare in early 2020, now even more shoppers are

reappraising the category as so much more than an accompaniment to cheese. Whether dunking into hummus, or topping

SNACKING company Humdinger has partnered with Budweiser to launch three new varieties of peanuts.

The partnership sees the launch of Smokey Texan BBQ, Buffalo Chicken Wings and Flamed Grilled Ribs varieties, in 60g and 150g bags with respective RRPs of £1.75.

They launched in select UK supermarkets on 26 June, with convenience and wholesale availability to follow later this year.

Emma Perrett, marketing controller at Humdinger parent Zertus, said: “We are delighted to join forces with the Budweiser team to bring these products to market.

This category has enjoyed

strong sales in recent years and with the increase in social gatherings and events like the FIFA World Cup coming up, this will no doubt continue.”

PLADIS is launching McVitie’s Digestives Wholesense, a lighter version of its top-selling McVitie’s Digestives range.

The new variety intends to capture the taste of the original Digestives line, with 30% less sugar and 50% more �ibre, making it non-HFSS. It is available in a 300g pack with an RRP of £1.59.

This is McVitie’s second ‘lighter’ launch this year, following the launch of Rich

GENERAL Mills has launched a new non-HFSS Nature Valley range, Nature Valley Fruit & Nut. The new range is launching in convenience and wholesale later this year in Apple, Raisin, Almond & Peanut and Cranberry, Raisin, Almond & Peanut varieties, following a launch in Tesco on 27 June.

It is high in �ibre and contains no colours, arti�icial �lavours or preservatives.

Each variety

is available in a case of four bars, at an RRP of £2.19.

The supplier will support the launch with marketing activity including on-demand, social media, online video, in�luencers and product sampling campaigns.

JASPER HART PLADIS has launched three new savoury biscuits under its Jacob’s brand.

The new launches include the Jacob’s Mediterranean range, available in Pinch of Salt and Tomato & Basil varieties, and Cheddars Red Leicester.

Jacob’s Mediterranean comes in cases with �ive packs of four biscuits at an RRP of £1.59. The supplier says they are suitable for toppings as well as an addition to salads.

Meanwhile, Cheddars Red Leicester is a full-sized version of the already-popular Mini Cheddars variety, with an RRP of £1.45.

Budweiser-branded peanuts launched

Non-HFSS Nature Valley range

with avocado, shoppers are considering crackers, crispbreads and savoury biscuits throughout the day, at lunchtime and beyond.”

McVitie’s launches lighter Digestives Tea Delights.

David Titman, marketing director for McVitie’s at Pladis UK&I, said: “We’re making it even easier for shoppers to tuck into their biscuit-tin favourites, whether they are looking for an indulgent treat or something a little lighter.

Thanks to the added bene�its they offer, McVitie’s Digestives Wholesense are perfect for broadening choice in the biscuit aisle.”

Yoplait launches Wildlife four-pack YOPLAIT is aiming to drive incremental growth this summer with the launch of a new four-pack of Wildlife Big Pots.

Previously available as a pack of six, the new four-pack has an RRP of £1 and includes Strawberry and Peach varieties.

Currently, Yoplait’s Wildlife portfolio is worth £31.3m, up 5.4% year on year, and has contributed to 46% of the growth in the kids yoghurt category in the past year.

Ewa Moxham, head of marketing at Yoplait UK, said: “Making our Wildlife Big Pots available for only £1 means we can focus on accelerating growth whilst remaining accessible to all.”

New limited-edition Mini Cheddars PLADIS has launched two new limited-edition varieties of Jacob’s Mini Cheddars inspired by popular restaurant dishes.

Classic Cheese Pizza and Bangin’ Cheese Burger – the supplier’s �ifth annual limited-edition �lavour launches – are intended to attract younger shoppers seeking modern �lavours and drive incrementality.

They are available in 6x23g multipacks with an RRP of £1.50.

Previous Jacob’s Mini Cheddars limited-edition launches have attracted 2.8 million new shoppers to the £94.3m brand, according to

Pladis. The Red Leicester variant became a permanent addition to the range after strong sales and is now the second-largest-selling variety.

FRIESLANDCAMPINA has extended its partnership with the animated Minions franchise through a Yazoo Kids repackaging.

From November, Yazoo Kids will switch from plastic to more sustainable cardboard carton packaging. Minions will appear on three- and six-packs of Yazoo Kids to distinguish the range from the core Yazoo portfolio.

Additionally, to coincide with the launch of the �ilm Minions: The Rise of Gru, a digital advertising campaign highlighting the Yazoo Kids range will run this summer.

Maren Fuhrich, brand manager at FrieslandCampina, said: “Sustainability is

a key focus for us so we’re proud to introduce the new eco-friendly cardboard carton packaging this autumn. Coupled with Yazoo Kids, great nutritionals and the Minions tie-up, we’re con�ident it will be a hit with parents and kids alike.”

COCA-COLA Europaci�ic Partners (CCEP) has launched a marketing campaign for Oasis aiming at tapping into the lunchtime occasion.

The campaign, which comprises out-of-home in high-footfall areas of city centres, social media and digital advertising, is expected to reach 81% of young adults multiple times.

Martin Attock, vice president, commercial development at CCEP GB, said: “Across the juice drinks category we have seen sales of on-the-go formats return to growth, up by 29% over the past 12 months, with Oasis on-the-go formats up by more than 42%.

“We expect this trajectory to continue, particularly throughout the summer, and this new campaign will help keep Oasis front of mind with consumers on their lunchtime shopping mission.”

Yazoo Kids teams up with Minions

CCEP aims to drive Oasis sales

RETAIL

IN ACTION

PAID FEATURE BRAND SPOTLIGHT

12-25 JULY 2022 betterRetailing.com

In partnership with

Why stock Havana Club?

FOCUS ON:

HAVANA CLUB 7 PERNOD RICARD UK (PRUK) has launched a limited-edition Havana Club 7 bottle in collaboration with world-acclaimed artist Burna Boy, exclusively available to convenience stores in July

In action The brand has produced 72,000 of this year’s limited-edition bottle, inspired by Nigerian culture and each one carrying a ‘Burna Boy’ signature handwritten by the artist.

Burna Boy and PRUK have curated a campaign film showing the interconnection between Lagos and London lives, bringing together the common culture of each country.

PRUK has developed a range of a PoS, including counter mats, posters, strut cards, shelf-edge barkers and glassware to disrupt the shopper journey and drive rate of sale.

RUM is performing ahead of the total spirits category and Havana Club is experiencing double-digit value growth in the off-trade. The brand has been building its proposition as a street culture icon in order to accelerate its growth and attract younger shoppers. Havana Club 7-year-old is growing 29% in impulse stores year on year and the brand has a 10% share of the golden rum category in the impulse channel.

PRUK and its Havana Club brand recognises there has never been a better time to support local businesses. Following the success of the past Havana Club 7-year-old collaboration with Skepta, the new limited-edition bottle has dropped exclusively in convenience stores, available in July, to embrace and support the retailers who are the cornerstone and heart of communities.

For local residents, these stores are more than just places to buy goods, they are familiar checkpoints playing an integral role within the locales they serve.

Three bestsellers Havana Club 7-year-old RRP: £24.99

Havana Club Cuban Spiced RRP: £22

Havana Club 3-year-old RRP: £19.25

To request a Havana Club x Burna Boy sales driver kit, get in touch with your local PRUK representative

11

OPINION

12 WIN £1,000 for your store, your staff or your community

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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

COMING UP IN THE 15 JULY ISSUE OF RN

COST OF LIVING: Are customers limiting their spend in your store?

“MANY of our customers use pay-as-you-go for utilities, but with the price of these services skyrocketing, they are now prioritising gas and electricity first, and using any leftover money for groceries. Most of them are also capping their weekly shop at between £25 to £30.”

Improve workplace culture: a guide to creating a healthy and efficient team at work

Asif Aktar, Premier Smeaton, Kirkcaldy, Fife

“VERY budget-conscious customers are sticking to just buying the essentials. If a person comes in who would usually buy two bottles of wine at the weekend, they are now only buying one.

Customers are not setting limits, but they are cutting back on extras.”

Bobby Singh, BB Nevison Superstore, Pontefract, W. Yorks

+ EPoS companies compared: what you should look for in a provider

Customers are cutting back on extras

Pricewatch: see what other retailers are charging for petcare and boost your own profits

NATASHA’S LAW: Have authorities enforced the allergen legislation?

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3,451 retailers’ sales data analysed for every issue

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71% of RN’s news stories are exclusive

Our local authority isn’t the most diligent

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Amit Puntambekar, Ash’s Shop, Fenstanton, Cambridgeshire

“WE sell food to go in the shop, so we have to be compliant with the regulations.

However, I’ve not had visits from the local council since Natasha’s Law came into force. They don’t see convenience stores as places that sell food to go, so we are largely ignored.”

Anonymous retailer

REACH: How will newspaper margin cuts affect you?

“CUSTOMERS are either leaving completely or cutting back. This is not only about profits, but it is also about being able to sell copies in the first place. Customers cannot cope with these inflated prices.”

Trevor Whitehouse, Court News, Suffolk

“IT seems to me, publishers don’t care about us as retailers, and they also completely neglect the few customers who do buy and read print copies of their titles. The pace at which these increases are happening is shocking.”

Shailesh Patel, Jans of Cockfosters, north London

Customers are leaving completely or cutting back SUSTAINABILITY: Is a complete ban on plastic bags in Wales a good thing?

STAY INFORMED AND GET AHEAD WITH RN ORDER YOUR COPY from your magazine wholesaler today or contact Kate Daw on 020 7689 3363

“OUR local authority isn’t the most diligent on checks, but we’ve seen lots of support from suppliers like Cuisine de France that constantly upgrade their equipment. We’ve can now include information such as calorie counts. We’ve been so far fully compliant.”

It is a very blunt instrument

“IT’S a very blunt instrument. If you ban plastic bags outright, people will trade up to bags-for-life and these become the new disposables.

I am in a holiday area, so people want convenience. They aren’t in the habits they are in at home, and they forge to bring their own bags.”

Vince Malone, Tenby Stores & Post Office, Pembrokeshire

“IF plastic bags were banned outright, my community charities wouldn’t get the money I raise from them, and while the number of people asking for bags has decreased, I do keep them in stock. I also offer paper carriers, but these aren’t always practical.”

Trudy Davies, Woosnam & Davies News, Llanidloes, Powys

RN 30 Under Thirty: Shining a light on the rising stars of independent retail

Entries for 2022 are now open!

RN 30 Under Thirty recognises and celebrates the young retailers who are shaping the future of independent retail with their innovation and drive.

After a successful first year that saw retailers from across the UK and Ireland receive recognition for their achievements, we are delighted to announce that the 2022 campaign is now open!

We are looking for retailers, owners and managers under the age of 30 who are driving their businesses forward through innovation, modernisation, leadership and dedication.

Nominate yourself or put forward a fellow retailer who you admire, who inspires you or who really deserves recognition for their hard work and commitment.

“

You get recognition for what you are doing and if you’re doing something well. Why not apply? I’m so happy I applied and now I can shout about my success and bring new ideas back to my business.”

Enya McAteer, Mulkerns Spar, Jonesborough, Co. Armagh

Scan our QR code to enter your submission or find out more by visiting betterRetailing. com/RN-30-under-thirty-2022 or email michael.sharp@newtrade.co.uk

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LETTERS

14

12-25 JULY 2022 betterRetailing.com

Letters may be edited

Shop, amit Ash’s Fenstanton, Puntambekar Cambridgeshire

Category analysis needed to weather storm

‘Faulty Tango Ice Blast machine hasn’t been fixed’ I KNOW Retail Express has previously tried to help retailers with ongoing issues related to broken Tango Ice Blast machines, and I’d like to see if they can help me.

My Tango Ice Blast machine has become faulty through no fault of my own and has started to leak. The tray at the bottom of the

machine has become full, and leaks enough to �ill up a cup. I spoke to someone from the company who promised they’d send someone out within a day. Nobody came during the promised time window. The person on the other end of the phone was nice, but couldn’t actually say if my issue had been assigned

to an engineer. They were doing the best they could, but I �ind the process to resolve issues is so �lawed.

What is the next stage in the procedure now? If it doesn’t get allocated to someone, it gets left there with nobody to pick it up.

They give an estimated time of arrival, but they don’t

give an answer about why it hasn’t been ful�illed. This would not be good enough in any other industry.

Ken Singh, BB Nevison Superstore, Pontefract

Frozen Brothers failed to comment by the time Retail Express went to print.

COMMUNITY RETAILER

OF THE WEEK

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SBF GB&I is giving five retailers the chance to win £50-worth of Ribena stock to mark the launch of ‘Chin up’, its newest campaign. ‘Chin up’ helps shoppers laugh through life’s little stumbles and will make a splash for retailers with a new TV advert and online marketing, prompting shoppers to reach for the brand.

TO ENTER Fill in your details at:

betterRetailing.com/competitions This competition closes on 9 August.

Editor’s decision is final.

Mo Razzaq, Premier Mo’s, Blantyre – @BlantFamily

‘It’s a difficult period for customers’

This month I relaunched my in-store loyalty scheme, which is free for customers. Now is a good time to help customers save money because the cost-of-living crisis has made it difficult for their personal finances. Customers can get 1p for every £1 they spend, with other varying discounts on everyday staples such as bread and milk.

Customers get a Premier-branded key fob. They can then scan this at the till and each transaction is linked to an account under their name. It’s really hard for us to offer any additional discounts because of the costs we have to absorb ourselves.

THE increasing prices coming through remains the main challenge for retailers.

Summer will hide some of the future contraction, but there’s only so much you can increase prices before consumers stop shopping with you. It’s a really hard balance right now.

The warmer weather will keep people purchasing – fresh food, beers, wines Each issue, one of seven top and spirits, soft retailers shares advice to drinks and ice make your store magnificent creams. But longterm, it will be about trying to hold onto sales. We should be looking at how much we can afford to lose before we look at changing operational models.

It’s a bit pessimistic, but I’ve got minimum targets I need to hit. If the numbers start tracking behind those targets, I’m going to have to start having some honest discussions because it’s not a financially feasible way to run a business.

I’d say it’s a good time to expand your food-to-go operation, but if you wanted to target this summer period, you should really have got that organised back in February.

Maybe we need to be looking at higher-margin categories where you don’t need as much volume.

I have spoken to people whose stores aren’t offering as rounded a convenience package as before and are instead going more specialist. We’ve been asking ourselves this question as well. Tinned grocery and meat – for example, Fray Bentos or Princes – the modern shopper doesn’t seem to purchase these products any more. Is there demand there for them? I don’t think so. I’m thinking of removing these products and using that space for specialist categories that offer higher margins.

I want to remove 100-200 ambient lines to make space for products imported from the USA and Japan. At the moment, we don’t have the space to display a full range.

It’s a tough category, with high shipping and handling fees, supply chain issues and the need to be constantly on the ball looking for the next big thing. But it’s potentially a more rewarding category if you can get into it. In the summer, we do really well with toys from what is a tiny section. Maybe it’s worth expanding that area?

When the gas prices rise again in October 2022, and again in March 2023, disposable income will be hammered.

I think we’ve got a challenging first quarter of next year. But I think trade will be good for the next six months. Retailers, though, shouldn’t be monitoring net sales, this will be skewed by inflation and could be misleading. They need to look at net volume – how many products are you selling?

Look at your categories and find out what’s selling, and what is not selling.

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing alex.yau@newtrade.co.uk 020 7689 3358

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CATEGORY ADVICE HFSS

16

THE BUILD-UP TO HFSS JASPER HART looks at key early challenges presented by HFSS restrictions and how retailers are preparing for them

THE PROMOTIONAL DELAY SINCE Retail Express last explored the potential impact of HFSS restrictions on convenience retail, a major new change has occurred. In May, the government announced a one-year delay to the implementation of promotional restrictions such as 50% extra free and buy-oneget-one-free in response to the cost-of-living crisis.

This means a large number of symbol group stores under 2,000sq ft now have no considerations to make ahead of the regulations taking effect on 1 October, although the lingering

location restrictions for stores with more than 2,000sq ft of trading space and more than 50 employees (as part of a symbol or franchise membership) remain a significant challenge.

“The multibuy rule gives us a bit of slack,” says Jeet Bansi, who runs Londis Meon Vale in Stratford-upon-Avon.

“We reintroduced a two-for-£1 promotion on Jack’s sharing bags of crisps and we have had an uplift in sales. It goes to show there is a need for this and customers perceive the extra value.”

Bansi also thinks the delay to promotional restrictions means that when they do take effect next year, customers will have come around to the locational changes and will be ready for healthier promotions.

“It will be interesting to see, but hopefully consumer habits will have changed by then and they will be more used to not seeing promotions on HFSS items,” he says. “We’ll have Easter between now and then, and customers will be used to not seeing walls of eggs in the usual places.”

12-25 JULY 2022 betterRetailing.com

A4 Suntory_HFSS_FP Trade Ads 260x339.pdf 3 11/03/2022 12:45:31

All of our favourite soft drinks brands are already NON-HFSS C

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CATEGORY ADVICE HFSS

18

EXPERT

SUPPLIER SUPPORT THE suppliers that will be most affected by the legislation have started to step up awareness about their products. “To help retailers adapt and easily identify appropriate products, we have introduced product cases stamped with a newly developed KP Snacks non-HFSS flash,” says Matt Collins, trading director at KP Snacks. “The clearly

marked non-HFSS cases will support retailers by making it easier to navigate the wholesale aisle and locate products free from location restrictions. In-store staff will also benefit from these easily identifiable product cases, making it simpler for them to arrange and replenish nonHFSS stock.”

KP Snacks will also provide a list of its compliant bestsellers to retailers, and has launched its own HFSS retailer guide available to download. Furthermore,

its range of non-HFSS launches continues to grow through a combination of new products and reformulations of popular lines. Collins says the supplier aims to have 110 non-HFSS lines by October, a quarter of its total range.

Soft drinks are also targeted by the legislation, but the category has undergone sweeping changes recently due to the sugar tax. “As one of the few categories to have already reformulated at scale, soft drinks are ready to fill the spaces on shelves

SEASONAL HURDLES AS soon as the legislation starts, retailers will be gearing up for Halloween – a key period for HFSS sales. “The last quarter of this year is a critical 12week trading period and a huge opportunity for retailers with Halloween, the World Cup and Christmas,” says KP’s Collins.

“Event execution is going to be really important. It will need to be repurposed and relocated in store to help drive seasonal growth, encouraging additional impulse purchases, securing bigger baskets and interrupting shopper missions.”

Sue Nithyanandan, of Costcutter Epsom in Surrey, has already made sure to alter her

Christmas pre-sells. “We were conscious not to order little things we would normally put on the till, and we’ve gone for bigger packs,” she says. “For Halloween, we’ve already ordered lollies and things that would sell individually, and are putting them in a different part of the store, it will be interesting to see how sales are impacted and if people buy higher-value items.”

Rachael Hockmeyer, of Spar Sleaford in Lincolnshire, has previously relied heavily on seasonal sales from an aisle in her store’s doorway. “We have two large bays that rotate between Halloween, Christ-

mas, Easter and barbecue.

We’ve had to move this seasonal space to a new aisle, it’s not within any space infringements,” she says. She has already experimented with new hampers. “We did a car-care hamper for Father’s Day, which sold very well. We’ve also ordered a lot more Christmas gifts that aren’t food-related, like toiletries and gadgets,” she says.

Retailers who offer bespoke seasonal products such as hampers should reassure customers in advance to stop them struggling to find them in a newly compliant store layout.

12-25 JULY 2022 betterRetailing.com

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when non-compliant products from other categories are removed,” says Oliver Crick, category development director at Coca-Cola Europacific Partners (CCEP).

“Two-thirds of our volume sales (67%) come from lowand no-sugar varieties, and 86% of all our soft drinks brand ranges will be non-HFSS come October. Coca-Cola Zero Sugar is the fastest-growing cola in Great Britain and Monster Ultra is the fastest-growing and number-one zero-sugar energy drink in Great Britain.”

Joe Harriman, strategic consultant for HFSS, IRI “Typically, convenience retailers have a higher sales reliance on HFSS products than larger grocers. Across the market, total HFSS categories make up 50% of food sales in supermarkets – but in convenience this increases to 69%. The most affected categories in store will be those associated with the impulse occasion, which make up a large part of convenience store stock. For example, biscuits, cakes, ice cream, crisps, snacks and nuts currently benefit most from display space, driving additional sales, so to lose this could be detrimental. As an example, for the crisps, snacks and nuts category, IRI estimates sales risk for multiples to be 8%, while in convenience the risk is estimated to be 11.1%.

“With less space to adapt, choice to rearrange will be more limited. However, retailers have options – for example, using promotional spaces in aisles to signpost products and offers.

“Preparing early ahead of restrictions and understanding shopper behaviour changes once October hits will be key to cushioning the impact.

“It is important to remember there is an increasing number of brands that are reformulating to become nonHFSS or introducing new, HFSS-compliant offers into their ranges. Healthier snacking options or soft drinks have the chance to take advantage of newly vacated HFSS display space, which they may rarely have had the opportunity to occupy before.”

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CATEGORY ADVICE HFSS

20

THE EFFECT ON IMPULSE DUE to location restrictions, the biggest risk is posed to impulse sales, which Hockmeyer says is crucial for new and promoted products. “Real impulse lines are either on offer or are new. When Cadbury Orange Twirl came out, it was in a unit by the till. Everybody saw it and that’s why people bought them.

“If it was in the normal chocolate bar display, you would probably sell more because it was new, but someone not looking for a chocolate bar wouldn’t go to the aisle and see it,” she says.

Nithyanandan agrees there will be an impact on sales before customers’ behaviour adapts. “I feel a little bit bad for the children with pocket money, the items they want will start disappearing – or will children start looking around the shop more? They might change the way they shop,” she says.

On the flipside, Scott Annan, retail consultant at Blue Ananta, believes the rate

of ‘true impulse’ sales that customers weren’t considering before going into a shop is lower than retailers think.

“Impulse is important, but it’s overrated, and we need to put it into perspective,” he says.

“Two big chocolate bars for the price of one would stimulate an impulse purchase perhaps, but the majority of shoppers still wouldn’t want it and came for something else. Impulse will go down, but from a lower base than people think.”

David Gilroy, managing director of retailer platform Store Excel, agrees that customers will still seek out the HFSS products they are used to buying, citing research by product intelligence platform Vypr, which says 89% of customers would still buy sweets or chocolate if not on offer.

“This would follow the pattern experienced in the soft drinks category where there is still a consumer demand for drinks high in sugar content,” he says.

RETAILER

VIEW

Rachael Hockmeyer, Spar Sleaford, Lincolnshire “WE are going to have to move our bagged sweets to a large section of flat wall and are moving stationery, hardware and haberdashery to the tills.

“We’ve had to move most of the shop round because we’re having to relocate a lot of household lines to make everything flow. We’re still not sure whether we’re going to take out the aisle we have our impulse lines in because they are in what we would currently call our queuing system.

“If we take it out, they are queuing in an aisle, which is allowed. But we might remove those and put beer stacks there.

“Our biggest issue is where we put our Maxivision freezer, it’s the only thing we don’t have a plan for.

“I’m not worried about promotional restrictions because there will be different ones and everybody will be in the same boat because it’s unlikely manufacturers will support promotions for large shops and for small shops.

“If somebody wants a bar of chocolate, if they have to go and look for it, they will. I hope our margin will increase because there will be fewer promotions, and that may negate the loss in sales.”

12-25 JULY 2022 betterRetailing.com

Things to know Location restrictions for affected stores HFSS items cannot be displayed: • On end-of-aisle units • Within two metres of or behind checkouts • Within two metres of designated queuing areas • Within 2.4 metres of a store entrance HFSS items can be displayed: • Within two metres of a checkout as part of an aisle • On island display units with no prominent ends that are not within any of the above restricted areas

18650 GMILLS Retail Express Snacking Trade ad.pdf

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CATEGORY ADVICE FUNCTIONAL DRINKS

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BENEFIT MORE FROM FUNCTIONAL DRINKS TAMARA BIRCH discusses the functional drinks subcategory, what shoppers are looking for and what to stock

WHAT ARE FUNCTIONAL DRINKS? FUNCTIONAL drinks offer added benefits to shoppers, like vitamins, minerals or protein.

The category is worth £240.2m to the UK drinks market, with the figure expected to grow, highlighting a strong opportunity for independent retailers to review their range and meet demand.

Consumers are also willing to pay more than double for a functional drink than they would an average soft drink. Nigel Tarn, marketing manager at Fentimans, says: “This not only shows that consumers’ love for functional drinks is more popular than ever, but also that functional

drinks provide a great sales opportunity for stores.”

According to Red Bull, the sports and energy category as a whole has had a steep upward trajectory in growth over the past year, now worth more than £1.7bn and totalling more than £276.4m versus 2021.

“This growth has been fuelled by the increased demand for functional energy among shoppers,” a Red Bull spokesperson says. “These drinks alone have added more than £197.7m in value versus last year and have exceeded the billion-pound mark, today worth more than £1.2bn annually.”

Now on-the-go missions

have made a comeback, the energy drinks market has grown by more than 17% in the past year. As we enter the height of summer, make sure to stock up

on energy drink lines, including zero-sugar options, different flavours, and those that offer more multivitamins and minerals.

RETAILER

VIEW

Harj Dhasee, Village Stores Mickleton, Gloucestershire “WE’VE got a couple of functional drinks, but nothing much beyond that. Red Bull leads the way in the functional drinks category. We’ve tried a few different products, including a vegan option, but they aren’t working for us.

“Our area’s customer demographic isn’t very healthconscious, but if we were closer to a gym or we had a younger crowd, functional drinks would work, but here it’s not really for us. Functional drinks sales depend on store location and demographic. If a retailer’s customer base is younger and more health-conscious then go for it. There’s a place for them in the market.

“Try a couple of lines of what you think would work and then keep trialling different ones and see which one works.”

12-25 JULY 2022 betterRetailing.com

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HEALTH IS A CORE MISSION IT’S no secret the pandemic helped shoppers move more towards low- and no-sugar options, but the demand for these lines isn’t a new phenomenon.

“We have seen a trend towards drinks with lower sugar as consumers are becoming more aware of their health and well-being,” says Matt Gouldsmith, channel director for

wholesale at Suntory Beverage & Food GB&I (SBF GB&I).

“There was a 43.5% decrease in the amount of sugar in takehome soft drinks between March 2014 and March 2020, and low- or no-calorie continue to outperform regular soft drinks, with a 68.6% share of total soft drinks.”

The Fentimans 2022 Market

Trends Report identified that 73% of consumers are proactively trying to lead a healthy lifestyle, so functional and sports drinks have never been in more demand.

“Products, such as Kombucha, fit into this product range, and by stocking these, retailers put themselves in a great position to capitalise on the

functional drinks sector,” says Fentimans’ Tarn.

Stimulants continue to thrive and have overtaken cola as the number-one soft drinks segment in the convenience sector, as noted by Chris Newman, head of category management for convenience and impulse at Britvic.

“Stimulant brands are taking

advantage of this opportunity by providing more choice and flavours to consumers, including Rockstar, whose core range will also be compliant with high in fat, sugar and salt (HFSS) restrictions coming into force this year,” says Newman.

HFSS will further push the demand for functional drinks and towards healthier options. If

you haven’t already, make sure to review soft drinks and functional lines to determine which will be impacted.

“Every bottle and can of Lucozade and Ribena in all flavours and varieties are already HFSS-compliant due to the reformulation we’ve carried out to reduce the sugar content,” says Gouldsmith.

top products Purdey’s Retailers can stock Purdey’s and its two most recent flavours, Refocus and Replenish. Refocus is a blend of dark fruits and contains guarana and b-vitamins, while Replenish is a lighter blend of sparkling raspberry juice with rose extract and is under 50 calories per bottle.

Red Bull In March, Red Bull launched the latest seasonal Edition with the release of 2022’s Red Bull Summer Edition in a new Apricot-Strawberry flavour. The flavour aims to continue to drive category growth within sports and energy, while satisfying the ever-expanding 41% of energy drinks consumers who are looking to try more exotic fruit flavours.

Lucozade Alert Available in three flavours – Tropical Burst, Cherry Blast and Original – Lucozade Alert was launched in September 2021. Lucozade Alert has generated £1m in sales under two months through wholesale and convenience, according to Matt Gouldsmith.

Fentimans Good & Fruity Fentimans launched its Good & Fruity range earlier this year to tap into the growing audience of health-conscious drinkers. The range consists of three flavours: Cherry & Bloody Orange, Apple & Elderflower and Lemon & Pink Ginger. The range has 35% fruit juice, as well as calcium, zinc and vitamin B6 to support digestion and metabolism.

Tenzing Plant Power Shots The new range comes in 150ml can formats in Apple, Matcha & Ginger and Black Cherry, Guarana & Goji varieties. Each flavour contains 120mg of natural caffeine and 22% of a consumer’s daily recommended vitamin C intake, with 30 calories per can.

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STOCK UP NOW

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MORE CHOICES. MORE SALES.

CATEGORY ADVICE FUNCTIONAL DRINKS

CAPITALISE ON FUNCTIONAL DRINKS MAKING the most of the functional drinks opportunity is about driving visibility of the category. SBF GB&I’s Gouldsmith recommends providing a choice of bestselling sports, energy and stimulation soft drinks to meet the different needs of consumers in each product type.

Gouldsmith also suggests stocking a range that works for different shoppers. He says: “Stock a good a range of sports and energy drinks, such as Lucozade Sport, Lucozade Energy and Lucozade Alert, if you are located close

to a leisure centre or gym.

“And include simple PoS messages to help educate shoppers on the difference between sports, energy and stimulation drinks to assist them in making suitable choices.”

With functional drinks part of the health mission, consider running a ‘healthier’ meal deal. This could be done as part of any meal deal, but merchandise functional drinks with any healthier snacking options to create alternative options. Similarly, merchandise them in conjuction with

RED BULL 250ML RANGE.

top tips

RED BULL GIVES YOU WIIINGS.

Suntory Beverage & Food GB&I offers its top three ranging and merchandising tips to improve the shopper experience

Make the chiller easy to navigate by ranging soft drinks together by category Group similar drinks together, for example by having stimulation, energy and sports sections, so they can be shopped more easily by the customer.

Give stimulation drinks more prominence Low-price stimulation drinks are a big seller, so keep these near higher-priced stimulation drinks to range together and give the whole range more importance.

The stimulation category is growing by 22%, so make sure to stock up on drinks such as Lucozade Alert to take advantage of this trend.

Incorporate price-marked packs into the range Price-marked packs tend to be more popular in suburban areas than standard packs, so retailers in these areas should make sure to incorporate more PMPs to cater for this and drive sales.

your energy drinks range in a highly visible location to boost sales.

Functional energy consumers are brand loyal, according to Red Bull, and will look for their drink of choice when seeking a functional boost. “Thirtythree per cent always go for their favourite brand in store and choose it regardless of their venue or situation,” the spokesperson says.

“Red Bull Energy Drink 250ml is the number-one single-serve drink in the UK, making it the essential sports and energy product to stock.”

ADVICE FEATURE SECURITY

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KEEPING YOUR STORE SECURE CHARLES WHITTING finds out how retailers can keep their stores safe from theft and abuse

THE STATE OF STORE SECURITY INCIDENTS of violence and abuse towards retail workers are on the rise, while there have been increases of shoplifting as well. According to the British Retail Consortium Crime Survey Report 2022, 1,301 incidents of violent or abusive incidents took place every day in 2020/21, with crime costing the industry £1.5bn.

Figures from the ACS 2022 Crime Report show that in the past year, 89% of colleagues working in convenience stores have faced abuse in their job, with more than 35,000 incidents of violence taking place and more than 16,000 incidents including the use of a weapon. Polling conducted for the #ShopKind campaign

found that more than a third of consumers had witnessed violence and abuse against shopworkers.

With inflation and the costof-living biting, retailers face further challenges when it comes to security, so it is even more important they are on their guard, invest in security equipment and train staff to deal with situations before they arise.

As well as looking at security in store, retailers should also think about looking after their businesses in the online world.

In some cases, this simply requires the same thought processes and suspicions that are employed in the physical store itself, making sure you

are doing your due diligence when it comes to online sales.

“It’s an extension of what you do when someone visits the store,” says Rav Garcha, who runs fives stores in the Midlands. “You’ve got to be suspicious. We had people

trying to buy thousands of pounds’ worth of stock online and we refused because we simply didn’t believe that they could pay that on their credit card. We made them come into the store and it turned out they were using a stolen card.”

supplier TIPS Practical advice from Volumatic

Ensure you have adequate members of staff for every shift and that staff are never working alone Provide security screens and alarms Invest in products that offer extra security – such as forgery detectors, secure cash storage and anything where exposure to cash is limited for both employee and customer Invest in CCTV and security tags for high-value/highly desirable items Be vigilant when handling cash and when accepting card payments Be aware of who is in your store and any suspicious behaviour Ensure cash handling is minimised on the shop floor to minimise temptation

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ADVICE FEATURE SECURITY

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TECHNOLOGY AND COOPERATION WORKING with local authorities and the police, along with neighbourhood and community groups and other businesses in the area, is essential to building a network of support that can communicate and respond quickly to potential problems.

Community Alcohol Partnerships (CAP) have helped to reduce underage drinking and have had the effect of reducing antisocial behaviour. There are currently more than 250 CAPs in the UK and the findings from its 2021/22

annual report highlighted a 42% reduction in antisocial behaviour and a 68% reduction in residents reporting underage drinking as a problem.

“Community Alcohol Partnerships have made a huge difference to residents, young people and retailers in more than 250 areas across Britain.

The core principles of CAP – to engage local partners, prevent underage access to alcohol and educate young people – have been proven to be the most effective approach to tackling underage drinking

and associated harm,” says ACS chief executive James Lowman.

As well as this, retailers can invest in new technologies, with Rav Garcha, who also has a security technology company, highlighting AI cameras that look at aisles and identify whether someone is looking to steal something, as a real gamechanger. However, he believes the way retailers use what they have is the key to effective deterrence.

“People have the wrong kit in the wrong place doing the

wrong thing,” he says. “Often there are too many cameras in places where they’re not necessary. Installing different cameras looking at things in a different way can be expensive, but would mean you need fewer of them.

“Another thing we can do is have a guarded response.

You shut the store and set the alarm. If it goes off in the night, a guard comes to assess whether it’s worthwhile for you to check it out, too. You don’t have to wake up yourself or hand over any keys.”

NEW LAW COMES INTO FORCE Following years of campaigning, on 28 April 2022, the Police, Crime, Sentencing and Courts Act received Royal Assent, bringing new provisions that make attacking an individual who serves the public an aggravated offence.

The Fed’s national president at the time, Narinder Randha-

wa, said he was pleased with the introduction of the Act. “Being attacked verbally or physically while going about your daily business should not be tolerated and seen as part of the job. The important thing is that the police and the Crown Prosecution Service work together to

ensure this new law is an effective deterrent and not just a piece of paper.

“It’s essential that retailers report all incidents to highlight the scale of the problem, and the police response has to improve if retail crime is to be tackled head on.”

ACS’s James Lowman

agreed, adding: “We need to ensure abuse is not seen as part of the job and that all incidents are reported, and, in response, police and crime commissioners must prioritise crimes committed against retailers and their colleagues.”

RETAILER

VIEW

Kiefer Shea-Godden My Local Convenience Stores, Newport “IT’S harder in smaller stores because you don’t have the staff members there to be constantly watching cameras and dealing with people who might be causing problems. Often, it’s just one person in the store.

If someone is shoplifting and they catch them on the monitor, they’ll say something, and if not, they’ll ban them from the shop.

“What we’ve done is put security tops on all our wines. We had them on other high-end products, but they’re now on the whole wine range because wine is the top thing people are targeting to steal. We still have a few bottles go missing, but it’s not as much.

“In our newer store, which is a bit bigger, we’ve added door alarm panels for the security tags. We put the tags on the higher-value things and the alarm goes off if a shoplifter goes through the door with those products in their pockets.

“Another thing we’re trying out is a cheap PA system where you press a button and it plays a pre-recorded message out loud in the store. I’ve spoken to other people who’ve introduced this and they said it had had a big impact as a deterrence.

“If you see someone acting suspiciously or you think someone’s going to pinch something, you press a button and a message plays across the store saying something like ‘CCTV is in operation in this store to stop theft and improve safety’. It makes them double-check and think again. You can also play it at them in their section of the store and it will make them think you’re watching them even if you’re not.”

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ADVICE

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HEALTHY LIVING The RETAIL EXPRESS team finds out whether customers are looking for healthier options and how retailers are responding to demand

We don’t have much demand for healthier options in our store. Are other retailers seeing much value in bringing in these products? – Himansu Patel, Londis Parkhouse Road, Shipton Bellinger, Hampshire

1

Shisan Patel, JASP (DPS), Birmingham

“SUGAR-FREE drinks sales have increased, but that’s more because of the price difference now. You can get six cans of Coca-Cola for £3.99, but you can get a 12-pack of Diet Coke for £4.50. It’s just the impact of the sugar tax and that difference in price is really starting to show.

“People were more than happy to swallow some of the cost before, but now that everything is going up in price, they’ve seen normal Coca-Cola go up more than Diet Coke. It’s the same with Pepsi and Pepsi Max. “We’ve also noticed products like protein bars, protein cereals and yoghurts are all selling well at the moment as more customers are focusing on their protein intake, whether before or after workouts or just generally.

“We have a gym close to our store, so people are buying water, Grenade protein bars and ready-made protein shakes a lot.”

2

Muhammad Rashid, Attock Superstore, Oldham, Greater Manchester

“WE haven’t seen much of a decline in sales of chocolate, crisps and other unhealthy things. But we have added healthier lines to our ready-to-eat sandwich range and I have seen growth in demand for that. It’s de�initely a trend. We’ve tried bringing in other healthier options and we’re stocking them side by side with the normal, ‘unhealthy’ products. We’re doing it with things such as pizzas and frozen ready meals, but there’s not really a massive demand for them yet.

“Some customers do want them, though. There’s a local family who wants healthier meals for their kids and they asked for a few speci�ic lines. And if they ask for something we’ll bring it in and we’ll try it.

“We also have seen much more demand for sugar-free drinks since the sugar tax came in and we do stock more of them as a result.”

3

Danny Wilson, 13 One Stop stores, Yorkshire

“OVER the past year there has been more growth in demand for protein shakes and things like that. It can be fragile and dif�icult to predict. Being based in Scarborough, we’re not going to be shifting them at the same rate as a store in London would. But even in the countryside, you’ve got a lot more people who are very healthy now.

“It takes a while to sell them through. We promote them the same way as other products and we follow One Stop’s advice.

There are lots of healthier options in our meal deals now and the protein bars are on offer sometimes. We don’t sell as many crisps as we used to in our meal deal. We sell more fruit mixes instead, so people are moving onto healthier options.

“You’ve got to balance it with the price. When they’re in a meal deal, they’re perceived as good value and can seem very good to customers and will sell well.”

In the next issue, the Retail Express team finds out how retailers are keeping their stores clean and tidy.

If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk