Retail Express - 18 October 2022

ILLEGAL VAPE DARK SITES

SAVOURY

The illicit

our say

IT’S good to be back in the saddle after six months heading up Retail Express’ sister title, RN, and this issue we are turning our attention to the hidden world of illegal vaping.

Our reporter Alex went undercover last month with illicit investigators and discovered how the focus of dodgy sellers is somewhat changing. The sale of illegal tobacco has been impacting convenience stores for years, and continues to do so, but with the surging popularity of vaping recently, it seems criminals have already created a new black market.

With cigarettes and plain packs, we’ve tended to see the same patterns of selling, most of which are sold by dodgy retailers, or everyday people, either on social media or out of car boots. However, more recently, strategies have become a lot more sophisticated, and this is most definitely a cause for concern.

We have evidence that ‘dark sites’ are popping up and operating as wholesalers selling illegal vape products. Not only does this represent a new threat to the sales of genuine products in convenience stores, but it highlights how dodgy sellers are adapting quickly to new products and capitalising on the changing financial economy.

As the cost-of-living crisis worsens, I suspect we will see a report next year detailing how the sale of illicit goods, even outside of tobacco and vaping, grew substantially, But, for now, at least the right people are monitoring it, and taking action. We will endeavour to keep you updated of any new advances, and lobby for better protections where we can.

Frozen Brothers slammed over ‘unjustified’ price increase

ALEX YAU

RETAILERS have hit back at Frozen Brothers for increasing the price of Tango Ice Blast supplies by 7%, claiming the hike is “unjusti�ied” due to ongoing poor service.

The price increase came into effect on 15 October. A pricing list detailing the rises, seen by Retail Express, showed that

one case of 10l syrups rose from £95.54 to £102.23, while the cost for a case of 300ml cups increased from £66.24 to £70.88. The 7% increase also applies to Robinsons Fruit Ice and Coca-Cola or Fanta Frozen products, whch Frozen Brothers also supplies.

Retail Express �irst reported on poor service by the supplier in May 2021, after store

owners accused the �irm of failing to install machines and mixing up orders, despite payment. Retailers have since reported ongoing issues with breakdowns.

Ken Singh, of BB Nevison Superstore in Pontefract, said his latest monthly bill for the leasing of his machine rose from £158 to £193 with no notice.

He explained: “The service

is so bad. My machine constantly breaks down. Where is the money going to go from this price increase? Will they improve their workforce?”

Another Frozen Brothers customer added: “Faults are common with our machine and they’re not reliable. The increase is unjusti�ied.”

Frozen Brothers failed to comment as Retail Express went to print.

packaging Natasha’s

HEINEKEN has improved the sustainable packaging on its cans, following criticism from independent retailers.

This year, the supplier’s ‘Green Grip’ packaging is being rolled out across multipack cans of Heineken, Birra Moretti, Strongbow and John Smiths,

and replaces plastic can rings. Previously, retailers and wholesalers had criticised the packaging across all brewers for being too fragile.

UK head of sustainability Chelsey Wroe said ‘Green Grip’ had been made more robust as a result.

TRADINGstandards of�icers have warned breaches of food-allergen legislation Natasha’s Law are rife in convenience stores.

Implemented on 1 October 2021, the law requires UK businesses that sell fresh pre-packed food for di-

rect sale to list all the ingredients and allergens on the packaging.

One environmental health of�icer based in the south of England said “compliance isn’t great” and “some businesses are consciously trying to get around the restriction”.

Price-marked boycott

MAJOR

A

packs

Mars

depot

ers the brand had increased the wholesale price, but had not adjusted the PMP accordingly.

Commenting on the decision, a Mars Wrigley spokesperson said the decision was due to rising costs of raw materials.

Card payment wait

CARD-SERVICES provider

Paymentsense has blamed a “technical issue” for a delay in payment of weekend transactions to retailers.

One newsagent revealed: “We’re a small shop, so £2,500 is quite a miss.

“We’ve got over £7,000 go-

ing out tomorrow to Smiths [News] and Camelot – it’s going to be interesting.”

A spokesperson for the �irm said: “All transfers expected on 3 October were paid on 4 October by 4pm. We understand how important cash �low is to businesses.”

has entered a

Megan Humphrey,

C-stores under threat by sellers operating ‘dark sites’

ALEX YAU

SENIOR reporter Alex Yau exposes the underworld of illicit vaping as he spends a day on the hunt for rogue traders with plain-clothed investigators and tobacco �irm Philip Morris Limited (PML).

It’s 10am in west London when I meet plainclothed anti-illicit investigators Stephen and Claire, alongside former detective chief inspector, and PML’s illicit trade consultant, Will O’Reilly.

Our mission was to conduct test purchases on shops suspected of selling dodgy tobacco. Stephen and Claire already completed a reconnaissance the day before, and O’Reilly popped open the boot of their car to show me the haul.

It had various products you’d expect rogue traders to sell: non-plain-pack Marlboro Gold and cigarettes smuggled in from Eastern Europe and Africa.

It was also hard to miss the �luorescent Elux and Vapmod boxes, popular vape brands which illicit sellers have tried to take advantage of. This also indicated illegal vape products were on the rise.

According to O’Reilly, illicit vaping has been on the rise due to the popularity of the category, but warned dodgy sellers were easily �lying under the radar of

law enforcement. He told Retail Express: “There is still a lack of awareness among some retailers and law enforcement bodies on what an illegal disposable product might look like.

“Although we’re seeing an increase in the sale of non-compliant disposable vapes, illicit and counterfeit cigarettes remain a top priority and for good reason.”

When Stephen and Claire �inish their test purchasing, O’Reilly sends any illicit products to the relevant trading standards of�icers. However, he warned enforcement varies due to individual funding.

He added: “Some of the illicit vapes that are being sold offer up to 10,000 puffs, which is equivalent to roughly 660 cigarettes.

The packaging and �lavours may also be designed to look like confectionery products, which may also appeal to youth.”

Under law, vape products sold in the UK cannot exceed 20mg of nicotine strength per 2ml of e-liquid capacity. Any nicotinecontaining disposable device promoting 3,500 puffs or more may possibly be non-compliant and illegal. Retailers are advised to consult the Medicines and Healthcare Regulatory Agency (MHRA) database, as compliant products are listed there.

Our test purchasing of 10 stores revealed how

easy it was to buy illegal vapes. One shop looked legitimate, as a selection of vapes on display appeared to be legal.

However, Stephen explained to the owner that he visited previously and asked for an Elux Pro with 3,500 puffs. Stephen told me it was important to gain the trust of illicit sellers through repeated visits. Without any hesitation, the owner reached into a hidden spot and gave us what we wanted.

In another shop, Stephen didn’t even ask the question before the assistant asked if we wanted a “proper” Elux Pro.

We said “yes” and he handed us a device with

3,500 puffs for £8. The usual retail price is £15.

The biggest surprise came at the end, when we visited an industrial estate of vaping “cash and carries”. This estate was tucked away, evading the sight of the general public and any potential law enforcement or trading standards of�icer. According to the illicit investigators, there has been a rise in these vaping ‘dark sites,’ units which trade both online and on their premises.

We visited three sites. In two stores we were unsuccessful as the staff had grown suspicious of Stephen and Claire from previous visits. However, the �inal site was much more

relaxed, as they allowed Stephen to purchase a box of RandM Tornado Vapes with 7,000 puffs without asking any questions.

Although there is a lack of awareness from authorities on illicit vapes, it was encouraging to see that PML was being proactive in helping them crackdown on it by providing vital information.

Explaining how retailers can avoid buying dodgy vapes, O’Reilly said: “The best advice I can give to honest retailers is to purchase stock from a reputable wholesaler.

“For vapes, when in doubt, enquire as to whether products have been authorised by the MHRA.”

SUPPORT: The government has extended the eligibility criteria for businesses to benefit from its energy support package. Retailers who renewed their contracts at any point after 1 December 2021 will now be eligible – previously this was 1 April 2022. It comes in the form of a wholesale price set at 21.1p per kWh for electricity, and 7.5p per kWh for gas.

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

PAYPOINT: Partnered stores can now receive card payment funds into their account under the firm’s Next Business Day Settlement. The initiative was announced in July for PayPoint One retailers, but went live to all customers on 1 October.

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

BAD WEEK

INDEPENDENTS: Co op has announced plans to treble its existing franchise stores within three years, making it the biggest convenience retailer in the UK. Its new-look food strategy, unveiled this month, detailed intentions to grow its ecommerce business by building on its tieups with rapid delivery grocers, and lowering prices in response to the cost-of-living crisis.

For the full story, go to betterRetailing.com and search ‘Co-op’

PORK PIES: Brand Vale of Mowbray entered administration this month, leaving stores to find alternative suppliers Wholesalers recommended alternative brands including Higgidy, Dickinson & Morris and Pork Farms, all of which offer snack-sized lines designed for food-to-go ranges. Administrators blamed “signifi cant financial challenges” for the company’s decline.

“No. There’s been a huge negative reaction to the investment from every retailer I’ve spoken to. They’ve got it spectacularly wrong. I don’t think a consumer would notice 15p difference in pricing. There are pointless savings on a number of products. Some lines have also gone up as well. Irresistible Coleslaw, for example, has increased by 8%. The drop on some lines is 5%.”

Anonymous retailer

“On the surface, this sounds like positive news and any change in pricing to the benefit of retailers is always welcome. Margins have been a contentious subject between Nisa and its retailers, and we’ve not been shy in making that known. However, the impact isn’t as strong as initially made out. When you spread the investment across 2,000 lines, the overall benefit is thin.”

Anonymous retailer

“The overall result is rubbish. Nisa appears to be giving with one hand and taking twice as much with the other. The RRP at Nisa on Co-op own label is still more expensive than the RRP on the same products in Co-op stores. The disparity between Nisa stores and competing Co-op shops is an issue we’ve always raised, and this still hasn’t been addressed.”

Anonymous retailer

Is Nisa’s £5m investment into reducing Co-op own-label pricing making a difference?

Senior reporter Alex Yau undercover with plain-clothed investigators

PO accepts late Horizon applicants

MEGAN HUMPHREY

THE Post Office (PO) is now accepting late applications by postmasters to the His torical Shortfall Scheme, following new government funding.

The scheme was launched in May 2020 to compensate those postmasters who had to cover financial shortfalls in their branch accounts caused by the Horizon IT sys

tem, but were not convicted.

Despite 82% of eligible claimants having now re ceived an offer, and £52m distributed in total, individu als remain who were unable to apply for the scheme while it was open, due to illness or being abroad.

New postal affairs minister Dean Russell welcomed the move. “My priority is to en sure that all those impacted by the Horizon scandal re

ceive compensation fairly and quickly,” he said.

“By coming forward with additional funding, we are ensuring that innocent post masters who were unable to tap into the Historical Short fall Scheme do not miss out on the compensation they deserve.”

PO confirmed it would be writing to all individuals who have contacted them about a late application to inform

them of the update.

The news comes four months after the govern ment confirmed it would pay an interim £19.5m to the former 555 postmasters who brought the first Group Litigation Order against the PO, who form the Historical Shortfall Scheme.

At the time, previous small business minister Paul Scully stressed: “This is not the final compensation.”

45p tax rate reversal

THE government has dropped plans to cut the 45p rate of income tax for higher earners. Chancellor Kwasi Kwarteng told the BBC last week that proposals made in his mini Budget had become a “massive distraction on

what was a strong package”.

The initial plan was to re move the rate, paid by people earning more than £150,000 a year. Instead, he claimed:

“There is humility and contri tion in that. And I’m happy to own it.”

DELIVEROO has opened its first bricks-and-mortar gro cery store in partnership with Morrisons.

The Deliveroo Hop outlet, situated on New Oxford Street in London, operates as a dark site, and allows customers to order on digital kiosks, or through the app for immedi ate collection.

Open from 8am to 11pm, it boasts a range of 1,750 gro

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

cery items, from Morrisons Ready to Eat and The Best ranges, as well as everyday staples and snacks.

Morrisons’ sales slump

MORRISONS blamed the costof-living crisis for a decline in sales, but stressed “the mar ket is still growing”.

In its latest financial results, for the 13 weeks ending 21 July 2022, the supermarket reported group like-for-like

sales, excluding fuel, as being down 3.1% on the compara ble period a year ago. Howev er, including fuel, like-for-like sales were up 4.3%.

Chief operating officer Da vid Potts said the crisis “is changing shopping patterns”.

the full story, go to betterRetailing.com and search ’Morrisons’

PRODUCTS

KP relaunches SnackPartners

JASPER HART

KP SNACKS has relaunched its SnackPartners website, which offers support and advice for retailers and wholesalers.

The online hub offers insight into the crisps, snacks & nuts (CSN) category, providing data on trends, retailer viewpoints, and ranging and merchandising advice.

There are bespoke guides such as ‘Perfect Store’, ‘Perfect Depot’ and guidance on HFSS regulations.

This guidance includes recommended blockograms and the supplier’s digital HFSS guide, which it launched earlier this year.

Matt Collins, trading director at KP Snacks, said: “The website acts as a hub of useful resources and information, perfect for supporting retailers by helping them navigate retail challenges while maximising CSN sales. It builds on the

existing SnackPartners programme, which serves to offer expert advice and insight from KP Snacks.

“As a category leader, our aim is always to drive growth, and retailers are a crucial part of that goal. We’re proud to be develop-

ing our existing SnackPartners programme with this platform, and hope retailers will use it to maximise the CSN opportunity and boost their sales.”

Currently, KP Snacks is growing annually in value by 6.5%.

CCEP expands attached-cap rollout

COCA-COLA Great Britain and Coca-Cola Europaci�ic Partners (CCEP) are partnering to extend the rollout of attached caps to the brand’s 500ml plastic bottles.

As of this month, attached caps will begin to appear across 500ml bottles of CocaCola Zero Sugar, Diet Coke and Fanta Zero, before being rolled out across all Coca-

Cola brands and pack sizes by 2024.

This latest stage of the rollout will start in the supplier’s manufacturing site in Edmonton, north London.

CCEP started the rollout of attached caps across 1.5l bottles of Coca-Cola Zero Sugar, Diet Coke and Fanta from its bottling plant in East Kilbride, Scotland, in May.

KP makes Popchips HFSS-compliant

KP SNACKS has reformulated its entire Popchips range to be HFSS-compliant.

Launching in a phased rollout, brands in the Popchips range (alongside other HFSS-compliant KP brands) will be stamped with an improved ‘non-HFSS’ �lash.

This �lash includes clear messaging which reads: ‘This non-HFSS product can be merchandised anywhere in store’.

Popchips is currently worth £42.5m and is growing in value by 24.6%, ahead of the overall healthier crisps, snacks & nuts category, to which it has contributed 58% of growth.

Matt Collins, trading director at KP Snacks, said:

“Popchips is a leading brand in the healthier snacking segment and its HFSS-compliant reformulation across the range cements this position.”

Batchelors 89p PMP range launched

PREMIER Foods has launched a range of 89p price-marked packs (PMPs) across its Batchelors Super Noodle and Pasta ‘n’ Sauce ranges.

Available now, the packs with the 89p on-pack �lash are: Batchelors Super Noodles Chicken, Curry and BBQ Beef varieties, and Batchelors Pasta ‘n’ Sauce Cheese & Broccoli and Chicken & Mushroom varieties.

Courtney Lewis, customer director for independent, convenience and wholesale at Premier Foods, said: “We expect our new PMPs to help retailers drive sales by engaging shoppers through a strong value message on-shelf which in turn will

help convert more impulse purchases and increase basket spend. By having a value price point captured on the pack, we have also made this simple for retailers to execute.”

Fisherman’s Friend returns to TV

FISHERMAN’S Friend is returning to TV with the return of its ‘Whatever the day throws at you’ campaign.

The campaign includes a series of six �ive- and 10-second adverts as lead sponsor of Channel 5’s Every Day Heroes programming, as well as on 5 Action and 5 Star.

They will also support Channel 5’s daily weather

reports. The supplier estimates the �irst burst of the campaign, which runs until Christmas, will reach more than 22 million UK adults. The campaign will also feature across digital and social media.

Fisherman’s Friend had a 26.1% volume increase in the �irst three months of the last winter season.

PRUK launches limited-edition bottles

WITH the �irst winter World Cup taking place this year, Pernod Ricard UK is launching limited-edition bottles of some of its popular spirits.

It is launching a limitededition range of �ive Jameson bottles next month. Each bottle features a football shirt and will be supported by a £1m media campaign across digital, social media and in store.

Havana Club 7-Year-Old is also getting a festive makeover with a new black and gold limited-edition bottle, which features a metallic screen-printed �inish.

The supplier said premium spirits still commanded a higher share of the market compared with pre-pandem-

ic levels. Cocktails at home also remain a popular choice among consumers.

Tyrrells launches limited Xmas packs

KP SNACKS has launched limited-edition Christmas packaging across Tyrrells.

Rolling out this month, the festive packaging features across sharing bags of the top �ive Tyrrells �lavours: Lightly Sea Salted, Mature Cheddar & Chive, Sea Salt & Cider Vinegar, Sweet Chilli & Red Pepper and Veg Crisps with Sea Salt.

It features traditional Tyrrells imagery with added decorations, such as paper crowns, Santa and elf hats, and gifts.

The packaging also features an on-pack �lash highlighting the 25% plastic reduction made across the range earlier this year.

Tyrrells is currently worth

£57m and is growing by 3% annually in the UK, with a 13.1% share of the premium crisps and snacks category.

M&M’s adds Purple to mascot lineup

MARS is expanding its M&M’s mascot roster with the introduction of a new “spokescandy” – Purple.

Purple, the �irst new M&M’s character in a decade, joins existing characters Red, Yellow, Orange, Brown, Blue and Green.

She is intended to represent acceptance and inclusivity. Her introduction follows the refresh given to

the existing characters this January.

To mark her debut, Purple has released a song and accompanying music video, called ‘I’m Just Gonna Be Me’. For every stream of the song, a $1 donation up to $500,000 will be made to arts charity Sing for Hope.

M&M’s will spotlight Purple with social media updates.

PRODUCTS

Win a weekend off with SBF GB&I

retailer network C-Talk.

SUNTORY Beverage & Food GB&I (SBF GB&I) has launched a competition exclusively for independent retailers called ‘Win the weekend’, giving them a chance to win some time off.

The winner of the competition will be taken on an all-expenses-paid weekend break worth £5,000. During that time, their store will be guest-managed by experienced retailer Paul Cheema alongside members of the SBF GB&I team.

Cheema is the director of Malcolm’s Stores (Nisa) in Coventry, board member of the ACS and co-founder of

To enter, retailers should visit suntorybeverageandfood-europe.com/en-GB/ gbi/competitions/win-theweekend and �ill in the form. Entries close on 28 October.

SBF GB&I launched the competition in light of a survey of retailers it commissioned which found that almost 40% hadn’t been able to take time off from their stores in the past year. Additionally, 28% had not taken any time off in the past three years.

Matt Gouldsmith, channel director, wholesale at SBF GB&I, said: “What I found most troubling is that a huge majority of retailers (78%) value the health of their business over that of their own

Mondelez cuts plastic in Dairy Milk packs

MONDELEZ International has updated the packaging of its Cadbury Dairy Milk and Mini Snowballs 110g sharing bars so it has 30% recycled plastic.

The packaging will be certi�ied by the Independent Sustainability and Carbon Certi�ication (ISCC) and supplied in partnership with packaging developer Amcor.

It is part of Mondelez’ wider goal to reduce the use of virgin plastic material in its plastic packaging range by 5% by 2025.

Dirk Van de Put, CEO of Mondelez, said the UK business is leading the way in its use of recycled material. Mondelez Dairylea Lunchables already use 75% rPET.

physical or mental health. That’s a balance that urgently needs addressing in our in-

dustry – and no better time to do that than after a challenging couple of years.”

Heineken updates eco-packaging

HEINEKEN UK has launched an updated version of its sustainable Green Grip packaging.

The supplier has updated the 100% recyclable cardboard packaging, which initially replaced plastic can rings in August 2020 and has saved 336 tonnes of singleuse plastic.

As part of a £14m investment, the Green Grip now has a double layer of cardboard, which is meant to be sturdier and easier for retailers and customers to handle.

It is now rolling out across the off-trade, having been trialled in some Tesco stores

to stress-test its strength for retailers and shoppers.

In the past year, retailers have complained about issues with sustainable beer packaging disintegrating, leading to lost sales through wastage and risk of injury.

Nestlé cuts plastic packaging

NESTLÉ Confectionery is updating the packaging of its Quality Street and KitKat brands to make them more sustainable.

Quality Street’s twistwrapped sweets will move to recyclable paper packaging, which the supplier says will remove more than two billion pieces of material from its supply chain.

Nine of the 11 Quality Street sweets will move to

paper packaging. Orange Crunch and Green Triangle will remain in foil, as they have traditionally not had cellulose wrappers.

Meanwhile, KitKat will introduce wrappers made with 80% recycled plastic, which can be recycled at more than 5,000 supermarkets across the UK, as well as through household recycling in the Republic of Ireland.

Coca-Cola launches World Cup campaign

COCA-COLA has launched its campaign for the FIFA World Cup, ‘Believing is magic’, which includes an on-pack promotion across certain topselling lines.

As part of the campaign, shoppers buying 500ml bottles and promotional multipack cans of Coca-Cola Original Taste and CocaCola Zero Sugar will have the chance to win one of 10,000 limited-edition branded footballs.

Advertising for the campaign runs across TV, radio, outdoor, social media and digital into November.

Additionally, Coca-Cola and FIFA have partnered for the �ifth time to bring the FIFA World Cup Trophy Tour by

Frubes Halloween packs return

YOPLAIT is bringing back its limited-edition Halloweenthemed Frubes multipacks.

The nine-pack has undergone a makeover with three seasonal pack designs, and its �lavours have been renamed Ghoulish Strawberry, Howling Red Berry and Scary Peach.

According to the supplier, demand for lunchbox formats is growing as parents try to avoid school meals to manage spending.

Ewa Moxham, head of marketing for Frubes, said: “Our limited-edition packs are a great way of creating excitement for kids during mealtimes, while also fuelling them with calcium, vitamin D and protein to help them grow strong and healthy. Frubes’ Scary Tubes are the perfect addition to kids’ lunchboxes or as a snack and are a must-stock for any retailers looking to drive sales during Halloween.”

Fever-Tree relaunches limited winter tonic

MIXER brand Fever-Tree has brought back its limitededition Refreshingly Light Damson & Sloe Berry Tonic Water after its popularity with shoppers last year.

Made to complement the autumnal drinking occasion, the �lavour replaces the brand’s summer limitededition, Passionfruit & Lime, which will return to shelves next March.

It is available in 500ml bottles at an RRP of £1.90. The supplier recommends pairing the tonic water with a London Dry gin, but says it can also be served on its own over ice. The gin is made with warming spices including cardamom, star anise, nutmeg and cinnamon.

Coca-Cola to football fans.

For the �irst time, the tour will start its UK leg in Cardiff, to celebrate Wales’ �irst appearance at the tournament in 64 years, before going to Wembley Stadium.

Walkers renews Foxes tie-up

PEPSICO has renewed its Walkers partnership with Leicester City Football Club, which now includes sponsorship of the women’s team for the �irst time.

Throughout the 2022/23 season, the partnership will involve a series of activations and Walkers branding being visible on home matchdays at the club’s King Power Stadium.

The stadium is located less than �ive miles from Walkers’ factory in Beaumont Leys. Walkers previously sponsored the club’s shirts from 1987 to 2001.

The decision to sponsor the women’s team comes in the wake of Walkers’ parent company PepsiCo’s

partnership with Women in Football. The partnership sees the supplier sponsor 45 aspiring female coaches on a Football Association course.

JASPER HART

Help for Hobbies

support for newstrade families who are unable to meet

children’s pastimes.

your children are passionate about sports, arts, music, drama or simply love going to Scouts or Brownies, the cost to participate in these activities can be a huge challenge for families on a limited income.

for Hobbies is there to help families

children

their

PRODUCTS

19 Crimes’ glowing labels

JASPER HART

TREASURY Wine Estates (TWE) has launched a limited-edition glow-inthe-dark label design across two of its 19 Crimes wine products.

The label appears across 19 Crimes Red and 19 Crimes Uprising. It sees skeletons replace the convicts who are the usual face of the wine, which glow in the dark at night if exposed to natural light during the day.

According to the supplier, Halloween is a signi�icant sales period for 19 Crimes. Last year, sales increased by 20% over the month surrounding Halloween

compared with the four-week average throughout the year.

TWE is targeting millennial shoppers, among whom 19 Crimes is the most popular wine brand, according to Nielsen data.

Sarah Featherstone, 19 Crimes brand manager at TWE, said: “Halloween is one of the biggest dates in the calendar for drinks retail, and is a key sales period for 19 Crimes. This year we are looking to capitalise further on the brand success that we typically see during this key period for the brand with the launch of limitededition labels across our 19 Crimes Red and 19 Crimes Uprising wines.

“Through these limited-

STG launches Ström nicotine pouches

SCANDINAVIAN Tobacco Group UK (STG UK) has entered the nicotine pouch category with the launch of Ström, its �irst non-tobacco product.

Ström is a plant-based product, made with a resinbased formula, as opposed to many competitors which are salt-based. Its container is also made from 100% plant-based plastic made with pine tree oil extracted from pine leftovers.

Launching in Fresh Mint, Minty Orange and Juicy Berry varieties, Ström is initially available to retailers across Manchester for a sixmonth trial period between October and March, before a wider expansion across the

UK throughout 2023.

STG UK will be supporting the launch by sending members of its sales team to stores to offer retailers free stock to sell.

edition time labels, we intend to increase shelf standout, continue with our intention to recruit

millennial consumers into the red wine category and encourage repeat purchase of this brand.”

Mars Wrigley launches Xmas lineup

MARS Wrigley has unveiled its Christmas 2022 range, with new launches accompanying returning popular sellers.

Among the new launches are M&M’s Santas, hollow chocolates �illed with miniM&M’s and wrapped in foil (RRP £2.99); Maltesers Mint Reindeers, available in 29 self-eat bars and 59g sharing bags (RRPs 65p and £1.29); Galaxy Truf�les Assortment and Maltesers Assorted Truf�les, both available in a range of formats.

Returning lines include original Maltesers Reindeers and Celebrations tubs, both of which have undergone

a packaging update. There is also a range of gifting formats for Maltesers, and a range of Selection Boxes from Skittles, M&M’s, Galaxy, Maltesers and Milky Way.

Robert’s non-HFSS pork crackling

ROBERT’S Dorset has launched its �irst HFSScompliant pork crackling, Proper Pork Crackling Natural Triple Zero.

Available in a 100g pot at an RRP of £3.50 as well as 3l re�ill bags, the crackling is unseasoned and contains just a single ingredient, pork rind.

The Triple Zero branding refers to the fact that it contains no sugar, salt or carbs, while still providing a strong crunch and pork �lavour.

Robert Parkin, founder of Robert’s Dorset, said: “Our new products are very much led by our customer feedback, with an aim to make products for all without

comprise, whether that’s in line with government guidelines, allergen updates or simply to satisfy a craving.”

Ritter Sport Salted Caramel and Orange

RITTER Sport has launched Salted Caramel and Orange varieties of its square chocolate bars.

Available at an RRP of £1, both bars are available from Bestway Wholesale, Dhamecha, Rayburn, SOS Wholesale and T&R.

Their launch comes with both �lavours experiencing growth. Caramel is the UK’s third-largest chocolate �lavour sector after milk and nut, worth 11% of the total market. Meanwhile, orange block chocolate is growing by 66% annually, ahead of the overall block category’s 7% growth rate.

The supplier is supporting the launch with its largest marketing campaign to date,

Jakemans lozenges see brand refresh

LOZENGE brand Jakemans is undergoing a brand refresh, which features a new logo.

The brand will retain its traditional styling and colours, but now features the new logo and a white label, as well as a new ‘J’ icon.

The new look is designed to help enable customers to recognise the brand on shelf.

Additionally, the supplier

has changed bag sizes across different varieties. Throat & Chest, Honey & Lemon, Cherry, Peppermint, Menthol & Eucalyptus, Blackcurrant and Blueberry are now available in a 73g format, while the three top-selling lines – Throat & Chest, Honey & Lemon and Cherry – will be available in larger 160g and smaller stick pack formats.

Jacob’s partners with FareShare charities

PLADIS UK&I has announced a one-year partnership between Jacob’s and charity network FareShare.

The tie-up will see Jacob’s donate 40,000 meals to support FareShare’s network of nearly 9,500 charitable organisations across the UK.

The partnership comes in the wake of research by the supplier, which found that Brits throw out £412m-worth of food per week. It highlighted this with a 4.5-metre-high fridge on London’s Southbank �illed with plastic models of the most-commonly wasted food items.

Additionally, Olympic track-and-�ield gold medallist Greg Rutherford and his wife, in�luencer Susie Verrill,

will be creating a series of social media content for Jacob’s highlighting how shoppers can reduce food waste at home.

James Hall & Co’s pumpkin partnership

JAMES Hall & Co, the Spar wholesaler for the north of England, has partnered with pumpkin supplier T&E Forshaw for the third consecutive year.

This year, T&E Forshaw will supply six times as many pumpkins for James Hall-supplied Spar stores than it did in 2019.

New varieties include the Munchkin (RRP £1.35), white Ghost pumpkins (RRP £2.75) and a jumbo XXL variety, which is being trialled in a select number of stores (RRP £6.50).

Also available is the standard orange pumpkin, available at £2.35 or on a deal with a carving kit for £6.

‘Start your love affair with the square’. The campaign includes social media content featuring Denise van Outen, print and digital media, and sampling.

Irn-Bru promo marks winter World Cup

BARR Soft Drinks has launched an on-pack promotion across packs of Irn-Bru to tie in with the upcoming FIFA World Cup.

The promotion offers shoppers a chance to win a ‘winter footy kit’, which includes branded woolly jumpers, slippers and socks to keep them warm while watching the tournament.

It is available across 8x330ml, 24x330ml and 8x330ml (6+2 free) £3 price-marked multipacks of Regular, Sugar-free and Xtra varieties.

Irn-Bru has performed strongly at recent football tournaments.

During the 2018 World Cup, it saw 74% more sales than the same period in 2019, while during the Euros last year it grew three times faster than the total carbonates category.

The supplier will support the promotion with in-depot displays featuring PoS.

PepsiCo’s Pepperoni-fl avoured Doritos

PEPSICO is launching a variety of Doritos inspired by pepperoni pizza to drive sharing occasions.

Doritos Loaded Pepperoni Pizza has more corn than previous Doritos launches, which the supplier says provides more crunch, and is also HFSS-compliant. It is currently available in a 70g £1.25 price-marked pack.

The launch of Loaded Pepperoni Pizza comes as the sharing occasion is worth £2.5bn, and Gen-Z, which is heavily targeted by Doritos,

makes up 67% of sharing moments with friends.

Alex Nicholas, Doritos marketing manager, said:

“Doritos Loaded Pepperoni Pizza taps into a very clear need from Gen-Z for new �lavours they can enjoy during sharing occasions.

“Taste and experience remain a priority for our brand, so by combining the indulgent �lavour of pizza with our iconic chip, this launch will ensure we remain well-placed to meet this demand.”

Jägermeister’s new promotional bottles

MAST-JÄGERMEISTER has produced 500,000 promotional bottles with a temperature-sensitive back label to highlight the perfect Jägermeister serve – a shot chilled to -18°C.

The bottles are now available in 70cl and 50cl (plain and price-marked) sizes.

When kept in the freezer, they reveal a secret code upon reaching the optimal temperature.

Entering this code online gives shoppers the chance to win more than 1,500 prizes,

including mini Jägermeister freezers, a Jägermeister ‘cradle’ which keeps a bottle at its optimum temperature, £50 Jägermeister e-shop vouchers and branded green shot glasses.

A grand prize of a European Jägermeister festival experience in 2023 for four is also up for grabs. Other bigger prizes will be announced on social media through to the end of the year, alongside Jägermeister’s ongoing ‘The secret is ice cold’ campaign.

stock

RUBICON Raw has performed phenomenally since launch. Now worth £12m2, the range has sold more than 20 million cans3.

Sixty per cent of the brand’s sales have been incremental by recruiting new and lapsed energy consumers4, while current shoppers are also buying Rubicon Raw more frequently than other brands. The HFSS-compliant range includes four 500ml big-can energy drinks – Raspberry & Blueberry, Orange & Mango, Cherry & Pomegranate and Apple & Guava.

The new flavour, Apple & Guava, exceeded expectations in research, with 90% of shoppers saying they would buy it again and 87% rating it as ‘good’ or ‘excellent’5. Rubicon Raw delivers exciting flavours more than its big-can energy competitive set6, enabling retailers to invigorate their category with a product that delivered exceptional results in consumer research.

FLAVOURS drive growth in the energy category, accounting for over half of all volume sold7 and growing faster than original energy8

This is driven by changing consumer needs. Energy is no longer the reserve of young gamers. The consumer base has shifted, and shoppers need the category to be exciting and varied to keep them engaged.

Rubicon Raw meets the needs of this new audience. It has captured consumer attention, according to AG Barr, growing ahead of total mainstream energy9. The number-one reason consumers like Rubicon Raw is that it’s made with 20% real fruit juice10, which, together with caffeine from green coffee beans and B-vitamins, provides a big energy hit that’s full of flavour.

Existing energy shoppers buy into the brand for its great taste and it’s also bringing in new shoppers who have that energy need, but haven’t yet found the brand that’s right for them.

Stock Rubicon Raw next to other leading energy drinks using supplier PoS as a signpost for the category. This helps shoppers find the energy drink easier on shelf, resulting in increased demand.

Give shoppers a choice by having a minimum of two facings per brand. Keep branded lines together to brand block and drive visibility to maximise the category and boost sales.

Thirty-three per cent of the soft drinks category is sports and energy, so give it at least 33% of shelf space in store. Where space allows, give more room to high-profit drinks.

“I DO a lot of trade with Barr and have done for several years. When Rubicon Raw launched last year, we highlighted the £1.29 pricemark at fixture. We had an amazing response. As well as being priced competitively against other big cans, the range is colourful and eye-catching. There’s a lot of innovation in the energy category, so we like to keep our fixture fresh and swap out flavours so there’s always something different next to shopper favourites. The new exotic Apple & Guava flavour gives them something new to try.”

Anand Cheema, Costcutter – Fresh, Falkirk

OPINION

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

“THE 1.25% rise in National Insurance being reversed on 6 November will make a real dif ference to us. There is no easy answer, and we need to brace ourselves for a tough trading season. However, this change will definitely help us when it comes into force, as it is a saving we wouldn’t otherwise have had.”

“THE freezing of gas and elec tricity prices for six months is most definitely a relief for businesses. I recently took on a part-time job because I was worried about how I was going to continue to pay for increas ing bills over the winter. This support has completely eradi cated any concerns I had for surviving.”

“WE’RE paying a number of service fees to be with ITS. A lot of customers are so used to paying with mobile devices, especially those live nearby. They tend not to carry physi cal cards. I minimised any potential losses by arranging alternative payments with customers I trust.”

Anonymous retailer

“MY papers arrived an hour and 15 minutes late from Menzies. I was supposed to have the day off, but had to come in. I also had to bring in extra staff to help because my paper boys and girls had to leave the shop to go onto their other jobs.”

“I NEVER get a straightforward answer from anyone when this happens. My newspapers turned up short of the order and I wasn’t given an explana tion as to why. I feel like this is happening so much lately and it is leaving me more frustrat ed with the newstrade.”

“RECENTLY, we’ve started to look more at value and every day products at a lower price. We’re buying teas, coffees and cereals in bulk and p utting them on offer. We’ve recently done Cheerios for £1 – it was a one-week offer, but we bulk bought so we could run it for longer.”

Ronak Patel, Nisa multi-site retailer, Cambridge

“OUR promotions are laid out by department to encourage customers to walk the floor, rather than going to designat ed points. Promotional bays encourage shoppers to only shop in certain areas, so you don’t get extra sales. You’re trying to create a value point with branded products.”

James Wilkinson, Pybus Newsagent, York

Ali Awan. H&H Convenience Store, Gateshead

TRANSACTIONS: How did you deal with payment issues with IT Retail Systems?

Amit Puntambekar, Ash’s Shop, Cambridge

PROMOTIONS: How are you using them to boost sales and increase footfall?

We lost up to £600 in transactions

I also had to bring in extra staff to help We’ve started to look more at value

MINI-BUDGET: How will the latest gov’t cost-of-living support help you?

PAPERS: How have recent reruns with the Telegraph affected deliveries?

Samantha Coldbeck, Wharfedale Premier, Hull

What do you think? Call Retail Express on 020 7689 3358 for the chance to be featured

I recently took on a parttime job to pay my bills

Gaurave Sood, Neelam Post Office, Hillingdon, west London

LETTERS

‘Camelot is charging me £250 for uncollected scratchcards’

I’VE been having issues where Camelot is charging me for scratchcard returns, which they claim I haven’t submitted to them.

It’s for �ive sets of scratchcards at £50 each. The total cost is £250, which is a lot for a small shop like mine.

Throughout the pandemic, no Camelot reps came at all to collect scratchcards. Suddenly, I was sent the invoice for £250 on 7 September. They claimed a rep had visited the store on 15 June to collect the scratchcards, but I have proof this wasn’t the case. I checked the store CCTV for the entire day and saw nobody from Camelot.

I also asked all the staff

who were working on the day and they said nobody from the company came in.

The issue has been raised with Camelot and they just say they’re reviewing the case every time. They stress scratchcards must be collected by a rep. It would be so much easier if we could just send them by post.

I’ve been doing business with Camelot for 10 years, and this is the �irst time something like this has happened.

Vijay Aanasane, Foxhall Stores & Post Of�ice, Cornwall

A Camelot spokesperson responded: “We’ve looked into

the retailer’s circumstances and, given that they have a good history of scratchcard returns, we’re going to waive the charges for them on this occasion. We’ll be calling the retailer to let them know, then following up in writing to con�irm.

“To be clear, according to our records, a visit did take place and a returns bag left at the store with an employee.

“We communicate the scratchcard returns process to National Lottery retailers in a number of ways – including a printed letter, messages on their National Lottery terminal and via Jackpot magazine. The returns process is,

primarily, that a Camelot rep will come and collect any remaining unactivated scratchcard stock.

“If a rep cannot make it out, or the stock is not available to be collected when the rep visits, we provide returns bags for retailers to return the stock themselves.

“It’s also worth pointing out that the reason we apply a £50 charge for unreturned stock is so that we can guarantee the safe return of unused scratchcards, which we then dispose of in a responsible way. This ensures that they don’t end up in the wrong hands, which could potentially damage the National Lottery brand.”

Susan Connolly, Connolly Spar, Tidworth, Wiltshire –@connollyspars

of SBF stock

SUNTORY Beverage & Food GB&I (SBF GB&I) is giving five retailers the chance to win £50-worth of stock to celebrate the launch of its new retailer website, Simply Soft Drinks. Filled with free category insights, channel-specific planograms, and tips on ranging and display – it’s all a retailer needs to strengthen their soft drink sales. Visit now at simplysoftdrinks.com.

Alan Mannings

not all about price

PEOPLE are watching their wallets these days, but I am finding that there are some lower-end products that just aren’t selling nearly as well as higherpriced products. There doesn’t seem to be much rhyme or reason to it, but we’re looking to take advantage where we can.

I got some flowers in from Londis a few weeks ago, we’re selling bunches of them at £4, £6 and £7, and people are paying that without even thinking about it, bringing us a 30% margin.

STAR

of two leading retailers shares advice on how to make your store rise to the

Similarly, we have a local tea and coffee supplier, and some teas sell at £5.50 or £5.95, and we are selling more of them than the Euro Shopper products that cost £1.25. We have eight different expensive coffees and a good tea range from Kent and Sussex Tea – you don’t get the reflux with their teas, they’re very good. It sometimes makes you wonder who’s shopping with you. In some cases, we’ve had customers returning to the store because of our tea and coffee range. We’re also generating impulse sales from customers who see it on the shelf.

We stock another local company that makes curries. If you go to a curry house now, you’ll be spending £9-£10.50, but our prices start at £7.85 for a chicken curry without rice. It’s fresh – the spices are authentically Indian and the meat and vegetables are from local suppliers. We consistently do £150-£200 every fortnight with these curries.

We’re selling more frozen sausages than fresh sausages. They’re buying 3lb of sausages, which we get from a local Kent-based company called Corkers, at £10.65, and they’re ignoring the Jack’s range, which sells at £2.49.

We have local wines we sell from a vineyard 120 yards away from the shop. We sell them at the same price they’re sold for in the vineyard and some of them are £27 a bottle. We sell more of those than bottles of gin.

I think most retailers are already always trialling out new products and usually have a product on offer at the lower end and then something with a higher price. And there’s often not much logic as to what will sell. But it’s whether we’re brave enough to take that chance and say ‘we’re going to spend £150 or £200 on these products and then try to sell them at a good margin’. Can we always afford to take that risk? If you’ve got something good, people will always pick up on it.

CONNOLLY Spar had its first float in the Pewsey carnival last month. All the people on it were members of the community, staff, friends and family. We had a fantastic evening, and we want to give a huge thank you to everyone who came out to watch and cheer us on along the procession. We lost music as soon as we started as our generator kept cutting out, but despite this we had a great time. We are looking forward to doing it again next year.

Letters may be edited

‘We had a float in the community carnival’

OF THE WEEK

CELEBRATING 30 YEARS

MAYFAIR LEADING THE WAY

This year marks the 30th Anniversary of Mayfair, one of JTI’s most iconic brands. Since its launch in 1992 Mayfair has continually developed to meet the changing demands of consumer markets and trends, and 2022 is no different.

30 years of heritage, quality and value have come together to create the latest addition to the range – MAYFAIR SILVER, which was launched earlier this year.

MAYFAIR SILVER is a new ULTRA VALUE alternative for value conscious consumers. Available in both KING SIZE and SUPERKINGS 20s at a recommended retailer price of £10.151 it’s our lowest price across the entire JTI portfolio of cigarette brands.

The ULTRA VALUE RMC category is now the fastest growing RMC segment2, catering for adult smokers seeking affordable options from trusted tobacco brands.

Steve Bassett Abbotsbury Road Post Office, Dorset

My JTI Business Adviser presented MAYFAIR SILVER to me when it was launched back in May, and I’ve been stocking it from the start. The ULTRA LOW PRICE is proving to be extremely popular with my customers and it’s already one of my top selling cigarette brands.

Mayfair Original has a loyal consumer base so I’m keeping this range available at its current price point so that it continues to deliver profitability.

So, stock Mayfair Original and Mayfair Silver at RRP1 to ensure your customers keep coming back and make the most of all the profit opportunities available to you.

HOT BEVERAGES AND CHILLED COFFEES

CHARLES WHITTING examines what customers are looking for in caffeinated drinks, and how retailers can tailor their range accordingly

WHAT CUSTOMERS ARE LOOKING FOR

THE UK used to be a nation of tea drinkers, but these days coffee holds as much sway over the population, if not more. Regardless of the source, the need for that caffeine fix remains strong and stores should have something on offer in this department, no matter how big or small they are. Even the smallest CTN usually has one facing of teabags and one of coffee for customers.

Expectations have shifted in recent years as well, with takeaway coffee machines becoming more prevalent in

convenience stores, a wider range of new flavours within coffees and herbal teas becoming available, and the growth in popularity of chilled coffees in cans.

“The past 12 months have told a positive story for the ready-to-drink (RTD) coffee sub-category. RTD coffee is now worth £209m, a growth of 35.4%,” says Adam Hacking, head of beverages at Arla. “Part of its popularity can be attributed to the fact it meets more than one consumer need – taste, hydration, an energy

boost and satiety. It attracts a wider number of shoppers as consumption is driven by different need states, at different times of day. Worth £107m, Starbucks is one of the wider soft drinks category’s most successful brands.”

In the midst of a cost-ofliving crisis, customers will be looking for promotions, deals and lower prices. Products such as teabags and instant coffee form a core part of many essential shops, so offering some with price promotions on them can yield positive results. Con-

versely, retailers should also consider the more premium market, whether that’s in coffee, where people’s tastes have been heightened by their experiences in cafés, or in both tea and coffee where Fairtrade concerns are rising. A blend of value and premium can attract a wider range of customers into the store.

“There are two key purchase drivers in the tea category –the first is taste,” says Bryan Martins, Clipper marketing and category director at Ecotone UK. “The second driver is

sustainability. We know that consumers care about reducing their impact through shop-

ping choices. They want to feel assured that their tea is made ethically and sustainably.”

KENCO MILLICANO

HOT BEVERAGES

SUPPLIER VIEW

Adam Hacking, head of beverages, Arla

“THE RTD coffee category should be sited within the soft drinks fixture alongside dairy drinks and as close as possible the energy category. It is also important to give RTD coffee appropriate space within the feature, with multiple facings a key way to encourage a purchase. RTD coffee is also an ideal addition to meal and link deal executions.

“Innovative new launches are continually hitting the shelves, keeping this sub-category fresh and relevant as it progresses at pace to match ever-changing consumer consumption habits. We expect to see the demand for multipack and multi-serve offerings grow among consumers. In addition, the category also offers scope for innovation around flavour profiles and limited-editions that replicate popular serves in coffee house ranges.”

TOP TYPES OF COFFEE

TOP COFFEE FLAVOURS

“PERSPECTIVE is important when it comes to hot drinks machines. What works in one store doesn’t necessarily work in others. We have Rijo 42s in two of our stores, a Franke machine in another where we use our own beans, and we’re getting a Pret machine installed at another. There’s no ‘one size fits all’. You have to work out the best fit for your space, your environment, your customer base and your budget. I would advise retailers to tread carefully.

“When it comes to promoting your takeaway coffee, hit hard when you first get it and then it builds from there. We intend to do some more promotion again soon to remind people what we’ve got.

“With take-home, tea and coffee are the same but different. With both, you’ll sell your mainstream products like Nescafé. But with tea, we’re down from five lines to two, with Yorkshire Tea becoming more and more popular because of its heavy and constant promotional mechanics.

“In coffee, you’ve got Nescafé and Nescafé Gold, and outside that it’s the Wild West. You’ve got instant sachets, coffee in a can, Arabica beans and ground coffee. And the customer isn’t sure what they want. They’ll take whatever you can offer them and whatever is on promotion, which is then decided by the supply chain and the promotional mix.”

the stat £209m

The value of the hot milky drinks category

New releases

Starbucks Multiserve Starbucks launched two of its chilled coffee flavours – Caffè Latte and Caramel Macchiato – in a multiserve format. Available in fully recyclable and ethically sourced 750ml packs, the coffees are made with 100% Arabica coffee beans and have an RRP of £3.50.

Cadbury

Cadbury recently altered the flavour and pack design of its Cadbury Highlights Milk Chocolate. This lighter alternative to hot chocolate has 38 calories per cup as it looks to meet shopper demand for lowercalorie options.

Clipper Teas

Clipper Teas has extended its green tea range with the launch of Super Greens. Each bag contains 15% of people’s daily recommended vitamin C intake (12mg). Sourced entirely from natural ingredients, Super Greens contains superfood acerola and matcha, helping to support the normal function of the immune system. It has an RRP of £2.50.

Rav Garcha, five stores in the Midlands

DIFFERENT WINTER DEMANDS

WHILE coffee and tea are the predominant hot beverages, retailers should consider the autumnal and winter opportunity that is hot chocolate treats or the seasonal extravaganza that is ‘pumpkin spiced’ products.

“The hot chocolate segment as a whole is in strong yearon-year growth, proving its ongoing relevance to shoppers throughout the year,” says Susan Nash, trade

communications manager at Mondelez International.

“Cadbury is the UK’s number one hot chocolate brand and is growing at 8.7% year on year.”

It is also important to consider herbal teas, particularly in winter, as people look for products that will help to boost their immune systems through flu season or to detox after Christmas overindulgence.

“While infusions perform

well all-year-round, with consumers renewing their focus on wellbeing during the winter, some of our infusions do well as the clocks go back. This includes Clipper’s Mood Infusions range,” says Martins.

Rav Garcha, who runs five stores in the Midlands, expects sales of take-home tea and coffee to grow this winter as people look to hot drinks to keep them warm instead of central heating.

“Coffee is a high ticket item. Even a single person will go through a small jar of Nescafé a week,” he says. “And then when you consider the economic environment, people aren’t necessarily going to put the heating on, but they will consume more hot drinks to keep warm instead.”

That need to keep warm goes beyond take-home coffee to takeaway coffee as well. There are plenty of machines

available now to retailers, but they should think hard before selecting one. Cost, contract and machine footprint are all important considerations, as well as the variety of serves on offer, quality and brand recognition. Winter is also when people tend to indulge more in sweet treats, so having a coffee machine complemented by pastries can help to grow sales on a cold day.

“We’ve got a takeaway coffee

machine on our counter, which is customer facing, but we serve them the coffee. We sell about 30-40 cups a day. We also have a cake stand on the counter and we do tray bake of the day,” says Jonathan Cobb, from Misersen Stores and Post Office in Gloucestershire.

“We do a lot of brownies and rocky roads and they crosssell quite well. Where we are there’s not much competition for coffee so it works.”

SPORTS & ENERGY

SELLING AN ENERGISED CATEGORY

Sports and energy drinks sales are fizzing in the independent sector, and the cost-of-living crisis doesn’t look like it’s slowing them down any time soon, writes CHARLES SMITH

THE RISE OF SPORTS AND ENERGY

THE sports and energy drinks category is showing steep growth, up £276m annually to more than £1.7bn in June.

The British Soft Drinks Association says carbonates were the UK’s largest soft drinks category overall in 2021 with a 38% share, while sports and energy drinks contributed 6% in unit sales, but its importance to convenience stores can’t be understated.

“Energy is the largest soft drinks category in independents with over £1 in every £3 spent on soft drinks going on energy drinks, and symbols’ and independents’ value sales

growing over 20% annually,” says Adrian Hipkiss, Boost Drinks’ marketing and international business director.

Since Covid-19 restrictions eased, sport has resumed – for spectators and participants.

Increased footfall and no restrictions have brought something of a return to a prepandemic sense of normality.

This has meant sports drinks sales are rising rapidly, up 33% in value annually. By definition, sports drinks are functional drinks designed to help athletes and other active people hydrate before, during and after exercise, with

minerals such as sodium and potassium frequently added to replace losses through sweat.

There are three types of sports drinks: hypotonic, isotonic and hypertonic, with various levels of fluid, electrolytes and carbohydrate.

To help support retailers drive sales within the sports and energy drinks category, Suntory Beverage & Food GB&I (SBF GB&I) has launched a new website, Simply Soft Drinks.

Matt Gouldsmith, channel director for wholesale at SBF GB&I, says: “The website is designed to support retailers in every aspect of these sales.

The new website is completely bespoke and features a wealth of SBF GB&I’s latest insights to give retailers the best snapshot of the soft drinks category.

“Firstly, there’s a category insight guide, which will break down the latest macro trends that are currently helping to grow the soft drinks category.

“Retailers can use this to plan their ranges. They could consider checking in here regularly to see if there’s anything they should bear in mind for the next few weeks or months – from health and wellbeing, to sales spikes around sport or seasonal events.”

SPORTS & ENERGY

WHO’S BUYING THESE PRODUCTS?

JEET Bansi, from Londis Meon Vale in Stratford-upon-Avon, Warwickshire, sells £1,000 a week or more of these products. “We’ve got seven metres of soft drinks, of which five metres is dedicated to sports and energy,” he says. “We’re next to a leisure centre, with people coming in pre- and postworkout. We’re also on a walkway to Stratford, with a skate park and football pitches nearby.”

For Bansi, there’s clearly a big local sports-related market for these products. But, with 37% of energy and sports drinks volume sales com-

ing from consumers wanting exciting flavours, other convenience shoppers may be seeking more of a pick-me-up than their usual soft drink delivers.

The most common Red Bull Sugarfree shopper profile, says Red Bull’s spokesperson, is 35-year-old affluent females seeking a functional energy boost to help manage their sugar intake. Sugar-free energy drink varieties are growing in consumer penetration by nearly 50% annually and, in independents, growing 21%, ahead of full sugar’s 16%. Energy drink flavours generate 38% of sales, and are

up 39% annually. “Shoppers desire more physical energy than ever since the lockdowns, but are also seeking a balance between enjoyment, practicality and health,” says Red Bull’s spokesperson.

In the pandemic, on-the-go sports and energy drinks consumption became more prominent, resulting in growing consumer demand for 1l and multipack formats. The habit’s stuck, and now large packs and multipacks of these products sell strongly in convenience. Bansi confirms this. “Our biggest sellers are Monster and

Lucozade Sport multipacks, when they’re on offer. We also sell a lot of multipacks of Red Bull and Euro Shopper,” he says.

Finally, the protein sector isn’t strictly speaking part of sports and energy drinks, but nevertheless continues to be an important part of consumers’ functional drinks repertoire, growing 66% in value annually.

Red Bull says protein-shake drinkers average 9.1 units per month, higher than energy, sports or iced coffee.

Protein drinks come into the spotlight after Christmas for AJ Singh,

from Premier Morley in Leeds.

Price-marked packs (PMPs) are controversial for some retailers, with wholesalers clamping the margins. Bansi is realistic, however. He says: “You need to find a price to suit you, but remember that energy drinks with PMPs draw people in. The margins wholesalers give aren’t great, but I use them to reinforce the perception of value. You may only make a few pennies, but if it’s a repeat customer that’s fine, because they’ll be back. They know they won’t find the same price anywhere else.”

VIEW

Matt Gouldsmith, channel director, wholesale, Suntory Beverage & Food GB&I

“ENERGY drinks have grown 50% in value in the past five years, with consumer choice and a strong range of relevant flavours crucial to the category’s success. In fact, new flavours are also important for retailers to drive excitement and target different shopper demographics.

“Meanwhile, the stimulation energy drinks category is worth over £1bn and is experiencing strong growth, increasing by 57% in the past five years, with a further 20% predicted growth in the next few years. The sports drinks segment is also incredibly buoyant. Sports drinks shoppers are loyal, and if retailers don’t have the brand, format or flavour they’re looking for, they may go elsewhere. This means leading brands like Lucozade Sport, which has had a change in share value by 44.2% year on year, are an incredibly important part of any chiller.”

AJ Singh, Premier Morley, Leeds

“WE sell thousands of pounds a week in sports and energy drinks – Red Bull, Monster, Euro Shopper and the rest. Everyone buys them – millennials, builders, single mums, vodka drinkers, all ages. The biggest seller is 500ml Monster, and we sell 10-to-15 cases a day across the flavours.

“The cost-of-living crisis won’t stop people buying these products. It’s still the same customer, and the same psychology. If the first thing you think of when you wake up is ‘I want an energy drink’, you’re determined to buy one and that’s it. People might switch to cheaper ones if money’s tight, but they’ll still buy them.

“Sports and energy sales haven’t really dropped since the summer. We also stock protein drinks, with branch chain amino acids. Sales of those pick up after Christmas when people are thinking about getting fit, along with energy drinks as people get back to normal routines.”

VIEW

& ENERGY

Top SELLERS

battle of the brands

Energy drinks flavours are growing, with over half of purchasers trying energy drinks for the first time. There’s always room for new entrants in this market, but in the current climate, shoppers are looking to brands they trust. Talking to the retailers, the consensus is to look at the market trends and focus on the brands and products that meet what your shoppers want.

Energy market leader Red Bull’s range includes Red Bull Original, the Red Bull Editions flavour range and fast-selling sugar-free alternatives such as Red Bull Tropical Edition Sugarfree.

Number-two energy brand Monster has increased sales by 21% in value over the past year, adding almost £80m to the category. Brand owner Coca-Cola Europacific Partners is adding two flavours to its Monster energy drink line-up this autumn, Monster Reserve White Pineapple and Monster Reserve Watermelon.

Boost is the only brand operating across energy and sports drinks, RTD iced coffee and protein shakes, and is third-largest brand in the energy category. Boost Original is available in 1l, 500ml and Boost’s leading line, 250ml Original Energy. Boost Red Berry is the largest-selling 250ml energy flavour product. Boost Sport is the number-two sports drink brand, outselling the next three brands combined, growing 72% in value annually. Boost is celebrating its extended sponsorship with the FIFA World Cup and its third year as an Official Partner and now first ‘Gold Tier Partner’ of iconic Yorkshire football club Leeds United.

AG Barr’s Rubicon Raw 500ml big can launched 18 months ago and is the third-largest flavoured big-can energy brand. Last December, AG Barr introduced a 500ml Irn-Bru Energy, bringing the Irn-Bru brand into the energy sector for the first time, and a 4x 500ml Rubicon Raw multipack. In May, AG Barr launched its fourth Rubicon Raw flavour, Apple & Guava.

Top Tips

advice from Red Bull

Align category space with share of value sales to maximise sales opportunities.

Give 60-70% of space to the top brands, in line with category share.

With tropical and exotic flavours growing by 39% more than all other mainstream flavours, capitalise on the demand for flavoured variants and maximise sales.

Shoppers only see products within a 1.3-metre breadth. Vertical blocking helps them easily find the product they are looking for, improving their ease of shop.

Stock PMPs across bestsellers at all times, to demonstrate range and offer customers a transparent choice while driving sales and profit for operators.

RETAILER

Ushma Amin, Londis North Cheam, Worcester Park

“WE sell a lot of sports and energy drinks – eight-to-10 cases of Red Bull a week and similar amounts of the different Monsters and energy drinks from Londis. It’s mainly teens-to-under-30s buying. Our biggest sellers are 330ml and 500ml.

“The cost-of-living crisis hasn’t hit fully yet, but I expect it will at the end of October when the energy-bill rises come in. Saying that, some shoppers have switched to cheaper ones such as Euro Shopper and Boost instead of Red Bull.

“Energy drink sales don’t slow down here after the summer, there’s no noticeable difference. With other soft drinks, there are definite summer lines. For the afterChristmas detox, we stock sugar-free versions of Boost and Red Bull, and see slight increases in sugar-free sales.

“We’ve got wall-to-wall chillers for energy and sports drinks. Energy and sport is on the top shelf, in cans, then bottles of these things, then Lucozade on the third shelf down.

“If someone’s starting to sell sports and energy drinks, I’d say keep to branded products and well-known brands or brands shoppers request by name, then slowly expand and ask for feedback about flavours people want.”

The Retail

SAVOURY SALES SUCCESS

With savoury snacking proving to be a resilient category even with tighter budgets, JASPER HART looks at how retailers can maintain momentum

AS customers shift their spending habits to adapt to the cost-of-living crisis, it’s important to see which categories are proving resilient. Thus far, the savoury snacking category is one of them, growing ahead of the total packaged grocery category at 9.5%, according to KP Snacks – more than any other food and drink category. “Crisps, snacks & nuts (CSN) shoppers are

spending an extra £100 in the category, a 14% year-on-year increase,” says Matt Collins, trading director at KP Snacks.

The routine of purchasing these small-scale treats is something to which customers are clinging in trying times. “Crisps and snacks are enjoyed by virtually all households and form an important part of the nation’s routine,” says Asli Özen Turhan, chief

marketing officer at Pladis UK & Ireland.

Kirsten Reid, impulse category management channel lead at PepsiCo, adds that much of this extra spend is coming from convenience stores, as a holdover from the pandemic. “Within the convenience channel, crisps and snacks have continued to be a critical sales driver for retailers. Over the past five years,

savoury snacks have delivered consistent value growth of 2.4%,” she says. “Trips to convenience stores for savoury snacks are in year-on-year growth at 6.4% and performing ahead of other food and beverages and sweet snacking. Post-pandemic, the convenience channel has also performed well, up 6.8% versus a year ago, up 3.4% versus 2020 and up 5.1% versus 2019.”

SAVOURY SNACKS

WHAT TO STOCK

BRANDS, particularly established top sellers, are key to making the category work, especially at a time when shoppers crave familiar comforts. According to KP’s Matt Collins, 42% of sales come from the top five brands.

However, certain shopper profiles will mean the balance between the established hierarchy and category newcomers is shaken up. These will typically be younger shoppers and those looking to trade up, as

Pratik Patel has discovered at Jay’s Budgens in Crofton Park, south London.

“There are a lot more adventurous flavours that have moved away from the traditional palette. You now get truffle and oysters instead of cheese & onion and salt & vinegar,” he says. “A lot more tortilla-based crisps are now available. We have the full Manomasa range and sales have gone through the roof.”

“Shoppers love to experi-

ence new textures and strong flavours, which is more important in this channel than in others,” says PepsiCo’s Kirsten Reid. “Shoppers continue to look for ways to add excitement to snacks, and this is particularly the case for Gen-Z, who over-index in this channel compared with other channels.”

However, with availability issues a persistent thorn in a consistent range’s side, some retailers are aiming to keep

shelves full of recognised flavours. “I’m trying to play it safe at the minute and am going with popular brands,” says Kesser Mahmood, of Da Shop in Stockport, Cheshire. “I go to cash and carries two-to-three times a week on top of van sales and Walkers rep visits.

“I’ve tried other brands, but they’re generally hit and miss, or have a peak and slow down. Launches have a lot of promotional noise, but don’t always last beyond that.”

VIEW

“WE sell a lot of savoury snacks, but everybody has got availability issues across the board. We’ve just been getting what’s available, that’s the bottom line. It’s been dreadful in some instances, I’ve never seen it this bad in my whole life.

“Standard, sharing bags and multipacks all sell really well. We’ve got people coming in for a variety of missions. Own-label Euro Shopper and Happy Shopper lines also sell well. I don’t think there’s been so many new lines with availability issues, but you’ve still got to bring them in. Usually, suppliers will try to push them to give you an incentive, and everybody at least tries them.

“We’ve got ends we can use and a promotional area. Price-marked packs (PMPs) are important to stock because they give your customers confidence you’re not overcharging them.”

Tyrrells’ seasonal packaging

KP Snacks has launched limited-edition festive packaging across its top-five Tyrrells varieties: Lightly Sea Salted, Mature Cheddar & Chive, Sea Salt & Cider Vinegar, Sweet Chilli & Red Pepper and Veg Crisps with Sea Salt.

Doritos Loaded Pepperoni Pizza

PepsiCo’s new HFSS-compliant Doritos flavour has more corn for a crunchier bite and is aimed at Gen-Z shoppers who are driving sharing occasions.

Popchips reformulated

KP Snacks has reformulated Popchips to make the range HFSS-compliant as part of its aim to make a quarter of its range compliant with the new legislation. An on-pack flash stresses that the product can go anywhere in store.

SnackPartners relaunched

KP Snacks has relaunched its SnackPartners website, which offers support and bespoke ranging advice for retailers and wholesalers.

Dennis Williams, Broadway Premier, Edinburgh

RETAILER

Top tips

Matt Collins, trading director, KP Snacks

Must-stock ranging

Stock a strong core that covers the top-selling lines for delivering category growth – 42% of sales go through the top five brands. Excite and engage shoppers with a range of new products.

Understand your shoppers’ missions and cater to them

Capitalise on the growth of PMPs – they offer great value-for-money perception and have been a key driver of growth for convenience. And be ready for a resurgence in food to go.

Make your fixture easy to shop

Blocking similar type products together, such as ridged crisps, will make it easier for your shoppers to find what they need. Seventy per cent of baggedsnacks shoppers buy on impulse.

Drive impulsive purchases in store

Fifty-three per cent of impulse crisps and snacks are picked up in secondary locations. Use displays and secondary sightings to drive snacking sales and locate in complementary categories – soft drinks or sandwiches, for example. Make use of impactful branded displays and PoS such as stackers and dump bins to drive basket spend.

THE ROLE OF PMPS

WHILE they are increasingly a bone of contention for retailers, PMPs are still a crucial piece of the savoury snacks puzzle. The fact is shoppers, more than ever, like perceived value, and PMPs ease their mind.

“PMPs are good for us –there’s a headache where it’s difficult for us to put a recom-

mended price,” says Patel. “Sometimes we’re not sure, so it simplifies things and shoppers have confidence. They feel that if it has come from the manufacturer, we’re independent of that choice so they’re getting the right price.”

KP Snacks’ Matt Collins adds: “£1 PMPs have had sig-

nificant growth in the past few years and this format will stay increasingly relevant postpandemic. Our £1 PMP range currently has a retail sales value of £74.7m and is growing by 22.1%.” KP’s £1 range now spans 35 products, including the relaunched Nik Naks Scampi ’N’ Lemon.

PMPs will only take on more importance as spending on snacks increases going into the World Cup and Christmas trading periods and shoppers want to keep track of spending, which will incorporate more big-night-in categories such as alcohol, soft drinks and condiments.

SAVOURY SNACKS

FORMAT FLUCTUATIONS

SHOPPERS’ search for value doesn’t stop with PMPs, but has spread to sourcing larger formats that offer more for their money. Despite singles recovering slightly at the end of last year with a return to post-lockdown office working, the subsequent economic climate has pushed people back to larger formats that can last longer and offer more value.

“The market has changed, we stock a lot fewer small bags than we used to,” says Patel. “It’s more £1 bags and up-

wards. If you look at it, you’re getting much more for just 1015p more. Some of the pricing of singles is counterintuitive.”

Drilling down into the time of day when shoppers are buying your snacks can also help you to decide which formats deserve more attention.

“We know from our research that the late afternoon and evening is a key time of day where larger sharing savoury snacks play a big role,” says PepsiCo’s Kirsten Reid.

“There are three key after-

noon/evening occasions that make up 42% of all impulse snacking occasions – these are fun moments with friends, family time together and evening unwind and treat.

“So, whether it’s part of a barbecue with friends, a night in, watching a key sporting event or simply a routine evening in, sharing packs play an important role in all of these occasions.”

Meanwhile, retailers with more transient customer bases should bear in mind the hybrid

working in place for many office workers, which has caused a bounce-back of singles sales.

This is an opportunity where meal deals and crossmerchandising with soft drinks and chilled or hot food to go can help drive bigger basket spend.

“We’ve already had sales of singles crisps and snacks grow by 11.3% this year, and we expect this to continue as more consumers combine working from home and the office,” says Reid.

THE HFSS HIT

Kirsten Reid, impulse category management channel lead, PepsiCo

“Enjoyment and health are both primary needs across all snacking occasions*, and with the introduction of HFSS regulations, we’re expecting the overall demand for snacking products that meet these needs to grow.

“Our digital HFSS guide is the go-to tool for helping retailers understand the impact of the new legislation. It focuses on how to grow your snacking sales and includes category guidance to help maximise your sales.

“This includes key dos and don’ts, such as concentrating on maintaining space of bestselling products in the main fixture, maximising off-fixture displays in high-traffic areas around the store, which will help drive impulse purchases, and supplementing both with reformulated or new HFSS-compliant products from well-known and trusted brands.”

HFSS location restrictions are here, although the effect has been somewhat mitigated by the delay to promotional restrictions. “There are a relatively small number of stores over 2,000sq ft and with more than 50 employees – we estimate 20% if looking at total convenience channel excluding Tesco Express, Sainsbury’s Local, Little Waitrose and Co-op,” says Reid.

That said, even though

many convenience stores are currently unaffected, they are still caught up in the changes brought about by the legislation, as suppliers adapt their ranges to cater to the entire off-trade, and many shoppers continue to look for healthier options.

For instance, more than a quarter of KP’s range is now HFSS-compliant, while Walkers aims to have 50% of its sales come from HFSS-compliant

products by 2025.

“Health-conscious shoppers present a big category opportunity with a prediction that the ‘better for you’ category, currently worth £379m, will grow to around £420m by 2024, fuelled by HFSS changes, which will have a significant impact on the crisps, snacks and popcorn category,” says Claire Hooper, marketing director at Calbee UK.

If retailers do try to stock

healthier options, they should remember that flavour remains a key factor regardless of health credentials, says Toby Smart, chief marketing office at Graze. “Flavour is a key decision maker, which is why we have made sure we deliver on the traditional flavours that shoppers know. Our Crunch range comes with the familiar tastes of Salt & Vinegar, Lightly Sea Salted, Smoky Barbecue and Sweet Chilli,” he says.

DEALING WITH SHOPLIFTING

RETAIL EXPRESS finds out what steps retailers are taking to reduce shoplifting in their stores

1Amit Puntambekar, Ash’s Shop, Fenstanton, Cambridgeshire

“I DON’T think there’s anything you can do to de�initely deter it. If someone has decided they’re going to steal, then 80% of the time they’re going to go for it. But we have certain soft measures in place, like getting the staff to wander about the store and talk to people, asking if they need any help.

“We check our stock controls. A dedicated thief will steal, but good stock control is a great way to assess if you’re being stolen from and what’s being taken. After that, you can ask your staff to be more vigilant around those products. We were losing £300 a week in theft of classic products like coffee and cheese. So, we put more staff in and told them to concentrate more on those areas, walking around and checking things. It pretty much knocked the theft on the head within a few weeks. Products to look out for are cheese, coffee, vapes if they’re on the �loor and baby milk – anything that people need day to day.”

2John Green, Premier Green End Road, Huntingdon, Cambridgeshire

“IT’S very dif�icult to quantify shoplifting’s effect on the store or what affect your measures are having, but I �ind that vigilance and positivity with customers is key. We live in a large village, and there are lots of people coming in. It’s a matter of conversing with them and getting to know them. They get to know you, and you give them the idea that if they steal from you, they’re almost stealing from a friend. If you treat people with respect, they’ll treat you and your property with respect.

“If it’s children or young people, I make a point of telling their parents, even if I suspect it, because most of the time the parents will be concerned if they �ind out their kids are shoplifting. I had an incident where a woman confronted me for selling her 12-year-old a bottle of Boost. We knew we wouldn’t have sold it to someone underage, so we checked the CCTV and saw he’d stolen it. I’ve never seen that woman again.”

3

“

BECAUSEwe’re near a local comprehensive, we have a very good relationship with the school itself. It’s mostly the schoolkids that try their hand at shoplifting. I phone the school if it happens, and one of the deputies will come in and look at the CCTV. They will work out within a day who it is, and that person is then brought in to apologise to us and pay for what they’ve stolen. We usually do that instead of going to the police. The police are good, but we mainly deal with the school and have a strong relationship with it.

“We’ve got cameras in the store and if we notice anything, we get in touch. We’ve got two screens, so people can see they’re being watched. During the pandemic, we only allowed one person in the store at a time, so that knocked shoplifting on the head. It’s relaxed now, but we’re watching them and we’ve still got the Covid-19 screens, which remain a deterrent to theft.”

In the next issue, the Retail Express team finds out how retailers are preparing for Christmas in a cost-of-living crisis. If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk

Gerald Thomas, Arcade News, Ammanford, Carmarthenshire

There’s definitely been an increase in shoplifting in the past six months. How are retailers reacting to this? – Vasanti Jesani, Cellar 57, Atherton, Greater Manchester