Retail Express - 28 November 2023 by BetterRetailing

LIGHT UP YOUR SALES

Retailers reveal the ways they are using tobacco to drive profits across their business P16 28 NOVEMBER-11

CATEGORY ADVICE TOBACCO

DECEMBER 2023 betterretailing.com

LIGHTING UP THE SALES Y OPPORTUNIT

28 NOVEMBER-11 DECEMBER 2023 STRICTLY FOR TRADE USERS ONLY

rs can finds out how retaile CHARLES WHITTING e in tobacco sales and use declin halt the national ts elsewhere in store them to drive profi

STILL GOING STRONG

share split bemight 50/50 market WHILE some retailerstobacco tween factory made cigarettes have concerns that and roll-your-own (RYO) becoming (FMC) at 54% and 46%, as a category is custom- categories, ” less popular among like respectively. Broaders, as next-gen productstheir Rayesh Nayi, from Ofdisposables continue Newsagent & Post cigarettes field West Sussex, exponential rise, are fice in Crawley, and associated products and gets around £25,000 a week still incredibly relevantthem from tobacco sales. “Of course stocking,” he those retailers giving enjoying it’s worth with the changed ample focus are says. “Even getting rid of the benefits. year packaging, “Worth £14bn each cat- 10-packs and everything else, sales (before tax), the tobacco demand and the to hold a the there.” egory continues of value are still significant amount The retailers and suppliers Tom Gully, for retailers,” says that cigarettes sales market- agree pillars: head of consumer built upon two key at Imperial are and price. ing UK & Ireland nearly a availability Tobacco. “There is

EVRI BLACKOUT HITS SALES AND FOOTFALL • 200 stores lose out on compensation after printer switch-off leaves them hundreds of pounds out of pocket

• Evri changes network provider in desperate attempt to save Christmas sales P3

RETAIL CRIME

VAPE SALES

STORE ADVICE

Police to offer training to indies to better support them during incidents

Experts reveal why upcoming legislation is set to push shoppers away from disposables

Three retailers share how they are making social media work for their stores

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Gemma Bateman, sales director, JTI UK knowledge key. Having up-to-date growing “KNOWLEDGE is trends, such as the and on the latest tobacco products, is vital popularity of ultra-value level of customer to provide a good use all enables retailers and their staff shouldJTI’s trade service. Retailers to them, including platforms available co.uk, to learn and talk confidently website, JTIAdvance. about new products. a full range and maintaining “Through stocking can provide a of products, retailers customers. good availability and service to their successful offering Business Advisers, who provide “Reach out to JTI’s to help identify commercial a bespoke service er advice and tips for retailers.” off opportunities and

our say

Megan Humphrey, editor

Be smart on socials this Christmas I SPOTTED a popular specialist magazine newsagent in the background of a viral TikTok video earlier this month. Good News is situated on Berwick Street in Soho. The video itself has nothing to do with retail, but it has gained a lot of attention, meaning it has been streamed millions of times. Apparently, the pub it was filmed outside of has experienced a surge in visiting revellers, and I imagine more than a few of them would have swung by the highend luxury-mag store at the same time. Although featuring in the video was a fluke, it reinforces the power of social media. We are living in a digital age, and there’s no limit to what its users will go to for streams or followers. We’ve heard that from several independents, who have made it ‘big’ on TikTok, and seen customers travel across the UK to try their wacky slush flavours, for example. THERE’S NO As we approach Christmas, LIMIT TO WHAT there are countless opportunities to get shoppers flocking to SOCIAL MEDIA you. Sophie Williams, of Premier USERS WILL Broadway Convenience in Edinburgh, is taking full advantage GO TO with her latest sweet-bundle competition (p13). My advice is to take 30 minutes, and think about which social media platform is most popular with customers, and think of a way to drive traffic to it. Competitions, and anything getting shoppers to interact with you to ‘win’, are always going to be popular. A small amount of time thinking about this can have a huge impact on your sales, and help future-proof your business.

The five biggest stories this fortnight 01

Police reveal localised plans to tackle retail crime

MEGAN HUMPHREY

INDEPENDENT retailers are to be given training by the police on reporting incidents of crime, as part of wider plans by the National Police Chief’s Council (NPCC). In line with the announcement of a new crime action plan, known as Pegasus, last month, the NPCC has outlined how it intends to increase en-

forcement to better support local shops. The NPCC con�irmed a new organised retail crime capability will be formed, funded by Pegasus, to help forces identify organised crime groups (OCG) working in their area. A key activity of this unit will be to provide training to retailers on the appropriate information and intelligence to share with police.

Elsewhere, the group revealed that policing received 274,000 reports of retail theft in the past �inancial year. Detailing how police attendance will be prioritised in future, the NPCC said it will abide by the following: where violence has been used; where an offender has been detained, with repeat offenders treated

with elevated priority; and where evidence needs to be promptly secured, which can only be done in person. In recognising the need to patrol high-crime locations, the NPCC also con�irmed it would be identifying the top locations and patrol plans to provide a highly visible presence to prevent crime.

@retailexpress betterretailing.com facebook.com/betterretailing Editor Megan Humphrey @MeganHumphrey 020 7689 3357

Editor – news Jack Courtez @JackCourtez 020 7689 3371

Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

News editor Alex Yau @AlexYau_ 020 7689 3358 Features editor Charles Whitting @CharlieWhittin1 020 7689 3350

News reporter Alice Brooker @alice_brooker 07597 588955

Editor in chief Louise Banham @LouiseBanham Features writer Jasper Hart @JasperAHHart 020 7689 3384 Specialist reporter Dia Stronach 020 7689 3375

Production editor Ryan Cooper 020 7689 3354

Production coordinator Chris Gardner 020 7689 3368

Account director Lindsay Hudson 07749 416 544

Sub editors Jim Findlay 020 7689 3373

Head of marketing Kate Daw 020 7689 3363

Account managers Megan Byrne 07530 834 009

Robin Jarossi

Head of commercial Natalie Reeve 07856 475 788

Lisa Martin 07951 461 146

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

Senior account director Charlotte Jesson 07807 287 607 Commercial project manager Iff y Afzal 07538 299 205

Cover image: Getty Images/simonkr

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Living wage rise

THE National Living Wage (NLW) is to increase by more than a pound an hour from April, marking the biggest rise to date. It will see the NLW rise from £10.42 to £11.44 an hour, with the change worth more than £1,800 a year for a full-

time worker. POSTMASTERS have been told Eligibility will also be ex- to expect more parcel carriers tended by reducing the age and services to be introduced threshold to 21-year-olds for from early next year. the �irst time, with them rePost Of�ice (PO) managing ceiving a 12.4% increase, from director of parcels and mail £10.18 this year to £11.44 Neill O’Sullivan con�irmed the next year, worth almost company has an “ambition to £2,300 a year. expand quite a lot going into

For the full Autumn Statement announcement, go to betterretailing.com and search ‘government’

the �irst quarter of next year”. He said: “This will include a mixture of pick-up and dropoff (Pudo), and more buy-in branch solutions.” O’Sullivan con�irmed a profit share update on Evri’s Pudo service is due at the end of the �inancial year.

For the full story, go to betterretailing.com and search ‘Post Office’

Volume sales fall

INDEPENDENT retailers are experiencing the worst volume sales since the 2021 lockdowns, according to the Of�ice for National Statistics (ONS). Overall food retail sales volumes fell by 0.3% in October compared with the same peri-

PO parcel growth

od in 2022. ONS blamed slowing shopper spending, costof-living pressures, reduced footfall and poor weather. The results surprised retail experts, as sales had previously been forecast to grow in October.

Forecourt fines

FORECOURT retailers found overcharging consumers on pricing will be hit with new �ines, as the Competition and Markers Authority (CMA) is granted new powers. This month, the CMA was given the right to monitor

pump prices and report “any sign of malpractice to the government”. Non-complying retailers could face a �ixed �ine of up to 1% of their worldwide turnover, or an ongoing �ine of up to 5% of daily turnover.

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megan.humphrey@newtrade.co.uk 07597 588972

Evri retailers lose hundreds over printer blackouts ALEX YAU EVRI retailers are missing out on hundreds of pounds in parcel commissions due to an ongoing network outage preventing in-store printers from working. Retail Express understands 200 retailers experienced outages last month, after Evri’s mobile network provider reduced the signal coverage to internet dongles required to operate the machines. This meant customers were unable to print labels for parcels in stores, impacting parcel volumes and shop reputation. Carol Forsyth, of the Corner Shop in Motherwell, told Retail Express she had been without a printer for more than four weeks, claiming Evri had provided no date for when she would get a working device. She added: “The in-store printer broke down. I was able to get through to someone who told me it was a national issue. We were told we couldn’t get a new one until they �ixed another one elsewhere. It doesn’t make sense. There’s a Tesco nearby which has a working Evri printer. Other retailers have recommended moving the machine or changing printer paper to help resolve the problem.” Forsyth added the outages have resulted in losses of commission worth hundreds of pounds,

with further concerns that she wouldn’t have a machine available to meet demand during the Christmas period. Another retailer raised similar concerns about having an unavailable machine during the peak seasonal period, with customers already giving negative reviews in store after being unable to use the service. They said: “It is a major concern for us as we get hundreds of parcels during Christmas. It’s a lot of commission and additional store sales we’re worried about losing.” Although some retailers reported that they are still yet to receive a date on when they will receive a replacement printer, Retail Express understands Evri has been working proactively and the number of stores affected by the issue has been shrinking. The �irm is working with another network operator to secure new dongles in batches and is con�ident it will receive these at short notice. Some stores have already received a new device, although no timeline has been given as to when the backlog will be cleared entirely. Retail Express also understands affected retailers will receive no compensation for losses in footfall and commission. Affected sites have also had their online listings as parcel shops temporarily removed, cre-

express yourself “IT’S a balancing act. We found that after 3pm on Christmas Eve, it gets a bit dead anyway. I’ve got a big Sainsbury’s and a Tesco Express near me, and they’ll be open regardless. When the superstores used to close early on Christmas Eve, we’d stay open later, but those days are gone. Now there’s no need to stay open financially and it’s important to give the staff that time off as well.” Chris Cobb, Cults Stores, Aberdeen

GOOD WEEK PARCELS: PayPoint has added Yodel and Vinted carriers to its Collect+ network. PayPoint chief executive Nick Wiles said: “Our fantastic retailer partners will now have an even greater opportunity to serve the needs of their customers in communities across the UK through our leading out-of-home parcel pick-up, drop-off and send service. The deal will see retailer partner earnings increase significantly.” BOOKER: Premier has launched a new ‘pop cave’ concept for soft drinks, which runs 30% cheaper than the same number of drinks out on the shop floor. Automatic doors work to keep the area cool, with multiple refrigeration units grouped together. The idea is modelled on beer caves, which were added to sites in 2021. For the full story, go to betterretailing.com and search ‘Premier’

BAD WEEK

ating additional strain on demand. One affected store claimed they were removed without notice from Evri. Sue Nithyanandan, of Costcutter Epsom in Surrey, also experienced issues with her printer, and added: “There is de�initely a problem with the connection dropping in the area. The machine will continue having issues until Evri �ixes it. “We’ve been put on the list for a new machine, but we have no idea when we will get it. Our rep has

the column where you can make your voice heard

helped and spoke to Evri. They told us the best option would be to move it and try to connect to the WiFi.” Another store owner, who asked not to be named, said it took weeks for their printer to be �ixed. They told Retail Express: “It took several weeks as opposed to the usual several days. I was told the delay was due to a backlog of 200 retailers with similar problems across the UK. Evri is a major part of my business, and I have one customer who

regularly uses the service when they sell products through their TikTok shop.” Asked by Retail Express to respond to the issues, an Evri spokesperson said: “We’re sorry that a small number of our retail partners have been impacted by a technical issue regarding signal strength, and we have swiftly implemented plans to upgrade the hardware. Our team are in regular contact with those impacted and answering any concerns.”

REACH: The publisher has announced a new batch of job cuts likely to affect its print titles. The firm seeks to reduce costs by 5-6% in 2023, and claims to be “on track” to deliver this. Four-hundred-and-fifty full-time roles are being cut, 320 of them in editorial, according to chief digital publisher David Higgerson. SHOP TEAMS: Retailers have been urged to stay vigilant after two retailers were nearly stung by a card-holder-not-present scam this month. It involves the ‘shopper’ attempting to purchase a high-value basket – normally spirits and tobacco. They use the card terminal to begin a card-holder-not-present transaction and manually enter a stolen 16-digit card number on the keypad. When the transaction is contested by the actual card holder, the retailer suffers a chargeback.

How are you managing opening hours this Christmas?

“WE worked it out over time through trial and error. But it’s one of the busiest periods for us – between 10am and 2pm – because everyone’s getting ready for Christmas lunch and they decide to get a cheeky bottle of whisky or vodka, or they realise they need more foil for the turkey or batteries for a present. Each store is different, though, so you need to talk to people. It’s about talking to the community.” Marty Uppal, Fixby Stores, Huddersfield, West Yorks

“WE open for one hour every Christmas Day from 10am until the pubs open at 11am. It’s a meet and greet that we’ve done for years now. I live in the village, so it’s a chance to have a chat before we go straight to the pub. You’ve got to balance what you need for you and your family. I’d recommend shop owners get their priorities straight. It’s only one day a year and you should spend it with your family.” Harj Dhasee, The Village Shop, Mickleton, Glos

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

Harj Dhasee

NEWS

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

Disposable vape demand drops ALICE BROOKER

remained buoyant, but consumers will soon move to VAPE suppliers are act- “more convenient products” ing quickly as upcoming as new legislation looms. Rex Zhang, strategy direclegislation is likely to push shoppers away from tor at vape manufacturer disposables, according to Smoore, reinforced this by claiming a “de�inite” deexperts. Speaking at the UKVIA crease in disposable vape forum earlier this month, sales globally. He said that at an event chairman of the Independent European Vape Alliance Dus- in September, “half the exhibitors” 2 were introducing tin Dahlmann saidA4 the shortGA Day 2022 Double Sided Poster_AW.pdf 07/02/2022 16:14 term picture for disposables closed-system pods.

Alongside a shift of buying habits, the move is also in line with the government’s upcoming pledge to crack down on vaping, with restrictions on �lavours, packaging, shop displays and an outright ban on disposables all under consideration. Adrian Simpson, non-executive director at the Chartered Trading Standards Institute, said: “We are seeing a number of disposable vapes turned

into rechargeable products. Retailers can see where this is going. Many retailers also foresee tighter restrictions in descriptors for vapes.” Matt Capon, sales director at vape brand Rito Labs, said: “It’s very important, with the environmental impact of disposables, that the industry makes simple-to-use products that can change buyers’ behaviour from the throwaway culture of disposables.”

Card payments king CARDS are now the preferred payment method for more than half of all categories purchased from the average local convenience store. Data from more than 3,000 ShopMate tills revealed cards now account for more than

#LetsTalkGroceryAid

half of all sales across 10 out of 16 product and service categories in 2023, up from one in four in 2022. Cash is still preferred for confectionery, hardware, lottery, newspapers, magazines, and phone and travel cards.

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 ‘card’

FROZEN FOOD CONCEPT GROWS

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

SCOOP-YOUR-OWN-FROZENFOOD brand Fieldfare is recruiting independent retailers to take on its concept, boasting margins of up to 30%. The company provides a range of upmarket loose and individually portioned frozen products. Fieldfare managing director Matt Whelan revealed he is already working with 40 local shops. Retailers are required to

CMY

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

For the full story, go to betterretailing.com and search ‘frozen’

source their own freezer, while Fieldfare supplies the branding, point-of-sale material, ranging advice and products.

Free-to-use ATM risk ATM operator NoteMachine has warned that more free ATMs are at risk after it lost a legal bid to overturn cuts to fees paid by banks. Last month, judges in the company’s High Court challenge ruled against NoteMa-

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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chine’s claim that the Payment Systems Regulator should have intervened in the cuts. The fee changes led to thousands of free ATMs being removed. A spokesperson said it “could disproportionately affect local retailers”.

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

04/04/2022 15:49

DEPOT TO SHELF When launching new products and promotions on big brands, getting wholesale and retail joined up is crucial to ensure success.

Tom Wood and Octavia Ludlam from Suntory Beverage & Food GB&I (SBF GB&I) visited Darren Pugh from Lioncroft Wholesale (Birmingham) and Harj Gill from Select & Save, The Windmill, to follow the journey of Lucozade Alert Zero Sugar Mango Peachade, from depot-to-shelf, to see how retailers can unlock more sales opportunities.

WHOLESALE Tom Wood, Regional Account Manager, SBF GB&I explains: “It is key for wholesalers to engage with NPD, as it drives excitement with both retailers and consumers. Over the last eight months, Lucozade Alert has more than doubled its retail sales value share,1 demonstrating the momentum behind the brand from retailers and shoppers. “It is important to promote NPD in wholesale to bring awareness of new products, and give retailers the information they need to update their shoppers.” Darren Pugh, Head of Purchasing, Lioncroft Wholesale adds: “New launch activity like Lucozade Alert Zero Sugar Mango Peachade is important for our category. Activating these well in depot helps drive sales and awareness for retailers, who are also ultimately consumers as well, to come and shop for these products at our depots. “Soft drinks are a key category within our business, which makes it important for us to work with key suppliers such as SBF GB&I.”

RETAIL

WHY ENGAGE? BACK GROWING BRANDS!

We know NPD gets shoppers excited, and ultimately drives sales

Lucozade Alert is capitalising on year-on-year growth of 64.5%, making the brand worth more than

£120M

Lucozade Alert Zero Sugar Mango Peachade is available through wholesale in 500ml cans, including a £1 pricemarked pack, to help retailers deliver value in their range at a time when consumers are increasingly price-conscious.

So we know this launch starts from a strong position.

Octavia Ludlam, Key Account Executive, SBF GB&I said: “It’s very important for retailers to take advantage of new product launches - straight from the depot and into their store, both on and off fixture. It’s crucial for retailers to make sure that any NPD goes across all the different touchpoints around the store: in a chiller, on a gondola end or on FSDUs, to highlight the product to the shopper. Harj Gill, Select & Save, The Windmill “Lucozade is important to me because it’s a big, well-known brand. We’re always on the lookout for new launches from big brands like this, because our customers are also always looking for new products, formats, and flavours. We always give new launches from Lucozade a try because they always seem to work well. They make a big difference to our sales.” 1 Nielsen, Total Market, value sales 52 weeks w/e 26.08.23

TO SEE THE FULL VIDEO OF SBF GB&I’S DEPOT-TO-SHELF JOURNEY, WATCH HERE, OR FOLLOW @SUNTORYBF_GBI ON TWITTER AND LINKEDIN FOR MORE NEWS.

PRODUCTS

SBF’s Lucozade update PRIYA KHAIRA SUNTORY Beverage & Food GB&I (SBF GB&I) has announced it will be discontinuing its Lucozade Energy 380ml single bottles, moving the range to 500ml and adding a £1.50 price-marked variety. The supplier says the move is in response to a demand for larger pack formats in the energy segment. It is retaining 380ml multipacks and is continuing to offer 250ml and 330ml cans. Additionally, the standard non-price-marked single 380ml bottles of Orange and Original varieties will still be available in Northern Ireland. Lucozade is currently see-

ing 6.6% annual growth in value sales in convenience, amid a 17% growth for the wider energy segment. Matthew Gouldsmith, channel director for wholesale and out of home at SBF GB&I, said: “The energy segment, and Lucozade Energy within that, are driving real demand, so it’s a great time for us to be offering more of the drink they love to shoppers. Ensuring uniformity across our range helps us bring the Lucozade Energy range in line with many other standard bottled soft drinks offerings. “We know price-marked packs are a key driver for shoppers. With a £1.50 pricepoint, price-marked 500ml Lucozade Energy bottles offer

Urban Eat unveils festive range URBAN Eat is bringing back its lineup of festive sandwiches for Christmas 2023. The three limited-edition lines – Brie & Cranberry, Turkey Feast and Brie & Cranberry Toastie – are available until 24 December. The Brie & Cranberry Toastie is replacing last year’s Turkey, Stuf�ing & Cranberry Panini as the range’s hot option. Charlotte Assinder, brand manager at Urban Eat, said: “Our Christmas sandwiches are a seasonal hit year after year, helping our customers delight hungry students, shoppers and commuters with tried-and-tested festive favourites. “People will be looking for

small treats that don’t break the bank, particularly as we approach the holidays. And what better way to get into the festive spirit than with a delicious Christmas sarnie.”

JAMMY Rich Red, the latest addition to Hardys‘ Bin 161 wine range, is now available exclusively to Booker customers. With �lavours of blackberry, plum and a touch of spice, the new variety is available at a £6.99 RRP. It is also on a Christmas promotion at two for £12. Its launch accompanies a pack redesign for the Bin 161 range, giving each �lavour a distinct colourway and a peelable price-mark. Additionally, Booker is launching a golden ticket competition for its retail customers starting this month. The competition sees 103 golden tickets placed at random inside Bin 161 cases.

There are 100 free cases of wine and three Eskuta home delivery bikes up for grabs.

Hardys’ latest wine available at Booker

32% more liquid for only 20% more money. These bigger packs offer better value.”

The shift is being supported with a consumer campaign and PoS.

Nestlé discontinues Caramac bar NESTLÉ is discontinuing its Caramac bar, citing a “steady decline” in sales of the confectionery brand after more than 60 years on shelves. In a statement, a spokesperson for the supplier said: “We are very sorry to disappoint fans of Caramac. There has been a steady decline in its sales over the past few years and we had to make the dif�icult decision to discontinue it.”

Caramac was �irst launched in 1959 and has since been a recognisable �ixture in retailers’ confectionery range, garnering a loyal fanbase thanks to its caramel �lavour and distinctive packaging. “We know fans will be disappointed to see it go, but this change will enable us to focus on our bestperforming brands,” the spokesperson added.

KP launches winter campaigns KP SNACKS has invested £1.4m in support of two new campaigns for KP Nuts in the event of driving sales to the end of the year. The campaigns will focus on Christmas and the growing Flavour Kravers range The �irst campaign runs until the end of December and centres on Christmas. It will run across outdoor, digital and print, and the supplier expects it to reach 84% adults, giving them inspiration for in-home social occasions. Meanwhile, the second campaign is running this month until the beginning of December, focusing on KP’s Flavour

Kravers range. Running across social media and outdoor, the campaign focuses on evening relaxation events and how snacks can be an ideal accompaniment.

KBE launches Kingfisher Zero KBE Drinks is expanding its King�isher beer range with the launch of a non-alcoholic King�isher Zero variety. The new variety comes in 330ml bottles, available from wholesale in cases of 24 for £19.99. Its launch comes amid growing interest in the lowand no-alcohol category, with 50% of adults having purchased low- or no-alcohol drinks in the past year. Andy Sunnucks, senior brand manager for King�isher, said: “After successfully repositioning the brand last year, we want King�isher to continue to lead the Indian beer category.

“It was also important to us that we’re not just ticking a box and that the new liquid is not only of good enough quality to replicate the original, but also stands on its own as a quality drink.”

DEDICATED low/no-alcohol brewer Nirvana Brewery has brought back its limitededition London Porter variety following a £750,000 fundraise. The porter (0.5% ABV), last available in 2021, is available via the supplier’s wholesale partners LWC Drinks and InnExpress, with Nirvana aiming to add new stockists in the coming months. It comes in a 330ml bottle with a £2.50 RRP. Nirvana anticipates further growth of the low- and noalcohol category due to the increasing frequency of beer drinkers varying their rounds between full-strength and low- and no-alcohol beers. Founder Becky Kean said:

“People aren’t just switching to no-and-lows occasionally – or exclusively for Dry January – they’re genuinely embracing them. The fundraise and the return of this seasonal favourite both add further impetus to 10 months of growth.”

CRAFT beer supplier Freedom Brewery has updated the pack design across its core range. The brewer aims to capitalise on craft beer’s rapid growth. The new design will roll out across Freedom Craft Lager, Freedom Helles, Free-

dom Pils and Freedom NZ Pale varieties. Freedom’s wholesale stockists include Matthew Clark, LWC Drinks and Inn Express, among others. Craft beer is the fastestgrowing category in the onand off-trade, estimated to be worth £500m by 2025.

Low-alcohol beer from Nirvana

Freedom Brewery unveils updated can

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

Limited Christmas pasty unveiled

CCEP unveils winterthemed Schweppes COCA-COLA Europaci�ic Partners (CCEP) has launched winter-themed limitededition bottles and cans of Schweppes alongside the return of its ‘Born Social’ campaign. The campaign runs across cinema, video on demand, outdoor advertising, social media and digital partnerships. It focuses on friends and families enjoying festivities together, by going out and staying in. Rob Yeomans, vice-president for commercial development at CCEP GB, said: “More people in Britain are planning to host get-togethers in the home this Christmas as they

cut back on going out, making it a key period for retailers to drive sales. “We expect there to be huge appetite for nights in socialising over the coming weeks, so it’s important for retailers to stay stocked up on our 1l or multipack can formats.”

of the busy festive season. Google search data shows that over Christmas shoppers consistently look for ways to cure a hangover.

Bacardi launches RTD vodka range

BOUNCE Back, a sparkling functional drink that aims to help prevent hangovers, is now available nationwide from Costco. The drink initially launched last year across �ive of the wholesaler’s sites, and has also secured a nationwide listing at Asda. Available in a 250ml can with a £2 RRP, it features a blend of 17 vitamins, minerals, amino acids and prebiotics. It is also the �irst drink in the UK with choline, a nutrient which supports healthy liver function. It is designed for consumers to take before going to bed after drinking. The supplier anticipates interest from shoppers ahead

Glebe Farm launches revamped site

BACARDI has launched Eristoff, a new brand of ready-todrink (RTD) cocktails. Eristoff is launching into retail in Pink It Up! and Passion Star! varieties. Pink It Up! contains vodka mixed

OAT drink supplier Glebe Farm Foods has launched a revamped website to make ordering for its retail customers more streamlined. As part of the redesign, retailers can now set up a trade account to use in a dedicated trade portal. Purchasing products requires a minimum spend of £40, which the supplier says allows businesses of all sizes to try stocking its range. Tony Holmes, chief operating of�icer at Glebe Farm Foods, said: “Small businesses hold a special place in our core values, and by becoming part of our customer

network, we guarantee they’ll receive great-quality gluten-free products time and time again. “We are committed to supporting local businesses and contributing to their success by offering easy access to our range.”

WEST Cornwall Pasty Co is bringing back its limitededition Christmas Dinner Pasty for the festive season. Last year’s run of the pasty saw 16,000 sold. The pasty aims to emulate a traditional Christmas dinner, with turkey, potatoes, parsnips, cranberries, bacon, stuf�ing and Brussels sprouts all in a hand-crimped pastry. Ross Richardson, brand manager for West Cornwall Pasty Co, said: “Our retailers and customers alike have been very vocal about how our indulgent winter treat is fast becoming a Christmas classic. We have high hopes for even more festive pasty

cheer this year.” The supplier will support the launch with �ixture PoS, store posters and social media activity.

GLOBAL Brands has unveiled VK Chocolate Orange, a seasonal limited-edition variety of its popular alcopop brand. The new �lavour (3.4% ABV) is available to independent retailers through select cash and carries in a 70cl bottle with a £2.79 price-mark, and is also available in Mixed Packs from Nisa and Booker. Each festive Mixed Pack contains a code that gives shoppers a chance of winning a limited-edition VK Christmas jumper. To be in win a chance of winning, shoppers can send their code to VK’s Instagram account. There are 100 winning codes. Global Brands has run

a campaign nominating 25 November as ‘National Christmas Day for students’. A digital campaign will see 12 days of giveaways with more than £3,000-worth of prizes to engage VK fans.

with lemonade and strawberry, while Passion Star! combines vodka with soda and passion fruit. Both varieties have a 5% ABV and come in 250ml cans with a £2 RRP. The supplier says they are a response to growing demand for RTD in berry and tropical �lavours, as well as the growing popularity of RTDs beyond summer. “Staying in will be as popular as going out this festive season,” said Bacardi impulse controller Sharon Kearney. “Shoppers looking for a cocktail experience at home without the hassle of making it themselves are buying RTDs.”

VK launches festive flavour

Bounce Back expands listing

PRODUCTS

New WKD X flavours and design Carte D’Or Baileys PRIYA KHAIRA

It will support the launch with in�luencer and social media campaigns from January, as well as through student ambassadors on university campuses. It will also support trade partners through social media, online and print advertising. Alison Gray, head of brand – WKD at SHS Drinks, said: “Since its introduction, WKD X has attracted an overwhelming response from both the trade and consumers, and this next stage of development is all about helping customers further grow the enhanced RTD segment. “The high-energy/higherABV segment is seeing massive growth – at a rate

well in excess of the total RTD category – and we know that ‘newness’ is key to continuing to drive sales. “Consumers want enticing

IRISH whiskey liqueur Shanky’s Whip has launched three new formats for UK retailers. The 350ml, 1l and 1.75l bottles are now available from spirits distributor Craftwork. Each bottle size re�lects the supplier’s aim to target different retailers who serve different customer demographics. Tim Dunlop, commercial director at Shanky’s Whip, said: “Now available in more than 50 markets, Shanky’s Whip has earned its place on shelves around the world. “With the launch of the new formats, we’re broadening its appeal even more. We’re in a period of signi�i-

cant investment for Shanky’s Whip and its success is testament to its striking brand proposition, quality liquid and unique offering.”

FOX’S Burton’s Companies (FBC UK) has launched a multimillion-pound campaign in support of Maryland cookies, including a new TV advert. The TV advert is set to reach 62% of Maryland’s target audience, and comes as the brand’s retail sales value is now worth £63m, having grown by 18% annually. It highlights how Maryland

NEW ready-to-drink (RTD) cocktail brand The Drinks Bureau has launched a range of 150ml cans and 10-serving boxed cocktail Party Boxes. The cans and Party Boxes each have a 10% ABV and are launching in Spicy Margarita, Espresso Martini and Passion Fruit Martini varieties. They are currently available directly from the brand’s website.

Cans are in four-packs with a £15 RRP, while Party Boxes are £30. The supplier intends to reveal wholesaler availability in the next few weeks. The Drinks Bureau is the brainchild of mixologist and entrepreneur Frankie Snobel, whose pre-bottled cocktail mixer brand Tipplesworth was acquired by Diageo in 2019.

SHS Drinks is expanding its energy drink-inspired WKD X range with three new varieties and an updated can design. The supplier has added Mango Passion, Dark Berry and Blue Raspberry �lavours to its 7% ABV range, responding to increasing RTD consumer preferences for fruit �lavours. They are available in standard and £2.99 price-marked 500ml cans – lower than the current £3.29 price-mark. SHS Drinks has also given the ‘X’ design elements onpack more prominence to help with standout in chillers and in consumers’ hands.

new �lavours and they want packs that look special and interesting, so we’ve evolved our offering to better meet changing shopper needs. ”

FBC launches Shanky’s Whip launches new bottles Maryland campaign

RTD cocktails from The Drinks Bureau

is a popular biscuit for families and also shows its new packaging. There will be digital advertising across social media, apps and websites. Convenience stores will have access to online and in-store PoS. Colin Taylor, trade marketing director at FBC UK, said: “The Maryland cookies restage is a signi�icant investment for FBC UK.”

collaboration

CARTE D’Or is launching a collaboration with Irish cream liqueur Baileys, marking its �irst branded alcohol partnership. Although the new variety is available ahead of the festive season, it will be available beyond it as a permanent new �lavour in a 825ml tub with a £4.50 RRP. According to market research from Carte D’Or, 68% of adult shoppers have expressed “de�inite” or “likely” intent to purchase it. Jennifer Dyne, head of ice cream UK & Ireland at Unilever, said: “Bringing together the number-one premium desserts brand with

one of the UK’s most-loved festive drinks is guaranteed to drive excitement in the ice cream aisle throughout this busy season.” The supplier will support the launch with in-store PoS and social media activity.

Lindt & Sprüngli supports NSPCC

LINDT & Sprüngli is supporting the NSPCC for the seventh consecutive year. Lindt has raised more than £600,000 to date for the NSPCC. The donation will help raise vital funds for Childline this Christmas. From 1 December, for every Milk and White chocolate Lindt Teddy (100g) purchased from Lindt chocolate shops, major grocery channels, retailers and online, Lindt will donate £1 to NSPCC, with a target of £100,000. Lindt sponsored the NSPCC’s annual ‘Merry Little Christmas’ charity concert for the third year. The concert took place 27 November at Cadogan Hall.

Country Choice’s KP Snacks launches 2023 Christmas range media campaign COUNTRY Choice has announced its 2023 Christmas range. It will feature three new offerings, including the ‘Savour It’ Pigs Under Blankets Toastie. The 215g toasties come in cases of 20 at £58.65 per case. The Sticky Toffee Loaf Cake has a shelf life of 14 days once defrosted. The thaw-and-sell 85g loaf

cakes come in cases of 24 at £34.65. Lastly, the Chocolate Cupcake comes in cases of 20, priced at £28.85. The individually wrapped cakes have a shelf life of 14 days once defrosted. These additions will join Country Choice’s established lines, including handheld seasonal bakes, shallow- and deep-�illed mince pies.

KP Snacks is launching a media campaign to drive sales of popcorn brand Butterkist. The campaign will feature on online video services including Sky, Vevo, YouTube and across social media platforms until the end of the year. The campaign is designed to engage consumers and to capitalise on the growing evening sharing occasion. It will reference moments from popular shows, including I’m a Celebrity Get Me Out Of Here and Strictly Come Dancing. The campaign encourages shoppers to “Go Grab the Butterkist”. Rachael Rayner, brand manager at KP Snacks, said: “We are delighted to

have launched this new media campaign. We hope this will establish Butterkist as the ideal accompaniment to much-loved TV moments while driving overall brand growth.”

RETAIL

IN ACTION

PAID FEATURE BRAND SPOTLIGHT

In partnership with

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

What is the project?

FOCUS ON:

INCH’S CIDER

INCH’S CIDER has partnered with Nisa’s Making a Difference Locally (MADL) charity to collaborate with three stores across the UK to create a vibrant exterior plant makeover for their local communities to enjoy. RETAIL EXPRESS finds out more

WITH convenience stores at the heart of the community, this project celebrates retailers who are integral to their local area. By enhancing their outdoor spaces, they are not only adding value to their store, but also improving their local communities. The three Nisa stores in Dallam, Ely and Wigan, which all have a strong connection to their community, have been provided with a vibrant outdoor area, complete with Inch’s Cider planters that have built-in benches, to provide shoppers with an area to sit and relax. Each planter is packed full of colourful plants, as well as apple trees – a nod to the Inch’s brand – and all of the plants have been specially selected to be lowmaintenance and suitable for the light level and exposure of each store. Each store owner has been provided with a detailed plant-care guide, to help them look after the plants and ensure they have all the necessary information to keep their plants looking healthier for longer.

More about Inch’s

In action

Inch’s sustainability credentials are a huge part of the brand, even down to the product, with all Inch’s Cider made from 100% British apples grown within 40 miles of the Hereford mill, and any waste being converted into biofuel. “WE really appreciate Inch’s support in installing the community garden, and it has made the storefront look a lot softer and more welcoming for shoppers and passersby.”

“WE have had many positive comments from within the community telling us how nice the store looks. The seating area is also being well used and becoming an outdoor hub.”

“WE have noticed about a 70% increase in Inch’s four-pack sales and have just recently started listing the 10-pack. It’s been hard to keep up as every week we sell out.”

Inch’s contribution to supporting the MADL charity was recently recognised at the Nisa Expo 2023 Gala Dinner and Awards Ceremony.

Mike Sohal, Nisa Dallam, Warrington, Cheshire

“IT’S such a great feeling to be able to help and support wherever and in whichever way you can, and the community garden has been a small way for us to give back to our shoppers. The makeover has been warmly received by customers and has brought a smile to many people’s faces. We even had one customer ask if he could look after an apple tree from one of the planters.”

To hear more about Inch’s Cider, visit inchscider.co.uk, and to learn about Nisa and its MADL charity, visit nisalocally.co.uk/community

COMING UP IN THE 1 DECEMBER ISSUE OF RN

OPINION

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

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 NEW YEAR: How are you intending to start 2024 successfully? “WE’LL make connections. Join the Fed and the ACS, and talk to other retailers. The more you engage, the easier problems become. I wonder what would happen if retailers got together and bought in bulk to bring prices down.”

Spirits: how you can create a specialist range this Christmas

Alan Mannings, Shop on the Green, Chartham, Kent

“IT’S tough to gauge what’s going on, with the weather, inflation, turmoil in the world. I recommend focusing on the short term and taking each week as it comes. I’ll make plans around big occasions, such as Easter and Christmas.” Bay Bashir, Belle Vue Convenience, Middlesbrough

+ Cereal and cereal bars: perfecting your morning range

It’s tough to gauge what’s going on

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

VEHICLES: How are you sourcing them and making them viable?

At RN, our content is data-led and informed by those on the shop floor

3,451

retailers’ sales data analysed for every issue

69+

unique retailers spoken to every month

71%

of RN’s news stories are exclusive

Look into van-sharing schemes with symbols “I LIKE the way Ireland and Scandinavia are less focused on products like alcohol and vapes, and instead concentrate on providing the essentials. We need to get over this fear of wastage, there is room to become a food retailer.” Anish Panchmatia, One Stop Wylde Green, Sutton Coldfield, Birmingham

Dean Holborn, multi-site retailer, Surrey

“I USE TikTok to identify new trends and store ideas, which can take me to the other side of the world. Their displays of fresh food look fresher because of the way they display it. I need to invest in different shelving, stands and displays to bring these ideas to life.” Shisan Patel, Jasp (DPS), Birmingham

Their displays of fresh food always look fresher FOOTPRINTS: How are you making your bigger store a success?

ORDER YOUR COPY from your magazine wholesaler today or contact Kate Daw on 020 7689 3363

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Arjun Patel, Premier Cavendish Square, Swindon, Wiltshire

“IF you lease it, you can write the rentals back against the tax bill on your own business and a lot of people are clued up to it now. It’s a very tax-efficient way of getting a vehicle through your business, and you’re also not having to spend a lot on petrol, either.”

INSPIRATION: How are you implementing global ideas?

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“I’VE been talking to a lot of retailers who are focused on electric options. I advise looking into van-sharing schemes with symbol groups. Booker has an agreement with Mercedes, where the van is decorated with a store’s branding and can be used for a monthly fee.”

You have to roll with the punches

“YOU have more presence on the street, the opportunity to sell more and create much more of a shopping experience. You’ve got to have confidence in what you’re doing to take that risk and know what customers need. You have to roll with the punches in terms of losses.” Mital Morar, General Stores Deansgate, Manchester

“IT’S important to cultivate a loyal customer base that thinks only of you when they head out to shop. We have 2,600 customers signed up to our loyalty scheme. They sign up to a taster card and they get a penny off every pound they spend, which they can redeem.” Jack Cross, Warner’s, Gloucestershire

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DON’T MISS THE DECEMBER ISSUE OF VAPE RETAILER: • Appealing to first-time vapers: how to get your next-gen nicotine range right for customers ready to make the switch • 2024 trends: what a profitable vape fixture will look like in the new year • Product spotlight – e-liquids and pods: how to successfully manage this category in your convenience store, including top products to stock

PLUS Product news and reviews Vape specialist store proﬁle Quick guide to sub-ohm vaping And much more!

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LETTERS

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

Harj Mickleton Village Stores, Dhasee Gloucestershire

Letters may be edited

Prepare for a general election

‘I’m confused over staff rent rate’ I HAD a recent visit from the Department for Work and Pensions (DWP) where disputes over staff uniforms were addressed. However, one topic raised was the amount of rent retailers can charge a member of staff when renting them a �lat either above or near their shop premises, if they are all owned by the same company. I was told I could only

charge a rate of £9 per day. It’s not an issue that impacts me, but I found it surprising as I wasn’t aware of this law. Other retailers I spoke to also found it surprising, so there is de�initely a lack of awareness across the industry. I know rental rates will vary depending on where you are based in the UK, but the £9 daily rate works out at £3,285 total rent a year,

COMMUNITY RETAILER

OF THE WEEK

Sophie Williams, Premier Broadway Convenience Store, Oxgangs, Edinburgh

which can still be a massive loss for many retailers who rent accommodation to staff and pay other housing costs. It’s clear there’s unawareness about this and it would be great to get some clari�ication on the topic. This is especially important as I was told the penalty for not complying with this regulation is a potential �ine. Anonymous retailer

Retail Express editor Megan Humphrey responded: “Unfortunately, we are still trying to get an answer on this. We’ve contacted the DWP, which doesn’t seem to know, and was not able to get back to us by the time this issue of Retail Express went to print. However, I can assure you we will continue looking into this, and will contact some experts, who we hope will be able to give you an answer.”

COMMUNITY RETAILER

OF THE WEEK

Trudy Davies, Woosnam & Davies News, Llanidloes, Powys – @trudydavies1964

‘TikTok sweet bundle ‘Raising funds for competition’ local Xmas lights’

“WE have started a competition via TikTok, giving customers the chance to win one of our Christmas sweet bundles. The response has been amazing. We have put a secret four-digit number that is significant to the store on the bottom of one of the baskets, and people have to guess it. It’s had a lot of traction, and it’s something a bit different. Each basket is made up of products worth £5.99. We wanted to do something for our customers, especially in the cost-of-living crisis.”

“WE are doing our part to help light up the local area this Christmas. We have placed a collection bucket on our counter for the festive season to encourage donations. Anything that’s collected will be given to to the committee that arranges the town displays. On the evening of the switch-on, we invite organisations of the town to have a stall so they can raise money. There is also a local band on the night, as well as Father Christmas visits.”

THERE are lots of big events happening in 2024, but, most importantly, we’re going into an election year. With the cost-ofliving crisis still alive and active, we’re going to get lots of promises from both sides in the run-up to the election. Things like that really affect how people vote. It’s looking like Labour are Each issue, one of seven top going to win it, or retailers shares advice to there might be a make your store magnificent hung parliament. Either way, we’re in for a change of government, which could have a big impact on business as a whole. If that happens, I think there will be a shock in the markets and there will be more inflation. There’s not much belief in the economy at the moment, so it’s important to stay close to any economic changes. Inflation is coming down and interest rates might follow, but I think food inflation is here to stay and those prices won’t be going back down. There’s also a chance there could be a recession after the election. Retailers should prepare themselves for upheaval, but they shouldn’t be too disheartened by bad news. Convenience stores generally do well in recessions, so long as they market themselves right. People will be going out into the on-trade less and the shopping frequency will change – as it’s already changing – to small and daily shops rather than big weekly ones, and that helps us. It’s about creating an honest perception of value. I think the multiples’ perception of value is decreasing and will continue to decrease, so for retailers it’s about having the right products at the right prices and running the right promotions. Another thing retailers can do to improve their customers’ perceptions of them is by understanding and knowing their place in the market, and then leaning into it. Partnering with the right symbol group for your customers will be very important. Over the next 24 months, retailers are going to need the support of strong brands and good partners. For me, having Morrisons above the door is very important.

Get in touch

@retailexpress betterretailing.com facebook.com/betterretailing megan.humphrey@newtrade.co.uk 07597 588972

A DV E R T I SE M E N T F E AT U R E F RO M J T I

The Generational Smoking Ban: Explained What it is and what it means for you In October 2023 the UK government proposed new legislation that would ban future generations of adults from ever legally being sold tobacco products. The ‘Generational Ban’ proposal is an experimental policy not supported by evidence. The Government of New Zealand, which passed, but has not yet implemented, similar legislation earlier in 2023, acknowledged as much in the corresponding Departmental Disclosure Statement, stating that the policy has not been “tested or assessed in any way to ensure [the policy is] workable and complete”1. If passed into law, the smoking age would rise by one year every year, with the aim of eventually banning smoking altogether. This legislation will affect all retailers that sell tobacco products in the UK, so it is imperative to take the time now to understand the proposed changes, what this means for your business and how you can have your say.

What is the proposed legislation? The proposed legislation would see the minimum age at which a person can be sold tobacco products, including cigarettes, cigars and heated tobacco, increase each year, starting in 2027. This means that the minimum smoking age in 2027 would be 19, rising to 20 in 2028, with one year added each subsequent year that passes. Therefore, anyone born on or after 1st January 2009 will never legally be allowed to be sold tobacco products.

What does this actually mean? By 2037, 28-year-olds won’t be able to buy tobacco products, but 29-year-olds will. Retailers will be expected to distinguish this difference when deciding whom to sell tobacco products to. The UK Government, Scotland, Wales and NI will also make it an offence for anyone at or over the legal age to purchase tobacco products on behalf of someone born on or after 1 January 2009 (‘proxy purchasing’). 1. https://legislation.govt.nz/bill/government/2022/0143/latest/LMS708154.html

What are the key dates? The Government’s ‘Smokefree Consultation’ began on 12th October and runs for eight weeks

12th October 2023

Smokefree Consultation opened

6th December 2023

Consultation period closes

Early 2024

Legislation could be published in Parliament

Retailer viewpoint on the proposed legislation Impossible to enforce Atul Sodha, owner of Londis Harefield, Uxbridge, said: “It’s difficult to see how this proposed tobacco ban would be properly enforced. It’s a deeply impractical law, which means at some point retailers will be expected to distinguish between 33 and 34-year-olds when deciding who to sell tobacco products to. An increase in ID checks will likely slow down transactions instore which can lead to frustrated customers.”

A slippery slope to other products Kay Patel, owner of Best-One Wanstead, said: “It is almost certain that a generational tobacco ban will in turn lead to an associated generational vaping ban, as the Government only recognises vaping as a smoking cessation device. Taking this further the proposed generational ban could be a slippery slope to more draconian legislation around the sales of alcohol as well. It could set a dangerous precedent, which would have a huge knock-on effect on the livelihoods of thousands of smalland medium-sized businesses at the heart of their local communities.”

Rise in an already burgeoning illegal trade problem Nishi Patel, owner of Londis Bexley Park, said: “We’re already battling a growing illicit tobacco problem across the country, and I have no doubt that this ban would simply hand more of the UK tobacco market into the hands of criminals. Smuggled tobacco already costs law-abiding retailers thousands of pounds as smokers switch to cheaper, un-taxed and un-regulated illegal products. The police and Trading Standards would need significant additional support to ensure both the ban is enforced and to keep a lid on illicit trade.”

Concerns of increased crime and violence Paul Cheema, owner of Malcolm’s Convenience and Forecourt, Coventry, said: “The proposed tobacco ban will hit convenience retailers the hardest. We know from recent reports, and our own experiences, that violence or abuse towards shopkeepers is on the rise, with ID checks or refusal of sale often a common cause of this. It’s fair to say that the proposed ban would highly likely exacerbate this issue and drive a further increase in threatening behaviour against retailers.”

How can I take action? Retailers are listed as one of the groups from whom the Government want to hear from in the consultation - “the retail sector and the independent vaping industry”.

The time to act is now BEFORE 6th DECEMBER

Contact your local MP to raise your concerns directly. Find yours here:

What should I do now?

Respond directly to the consultation here:

For now, it’s business as usual, with no decision made on whether the legislation will be passed or not. Retailers should continue to sell tobacco products as normal to keep profiting from the category.

CATEGORY ADVICE TOBACCO

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

LIGHTING UP THE SALES OPPORTUNITY CHARLES WHITTING finds out how retailers can halt the national decline in tobacco sales and use them to drive profits elsewhere in store

STILL GOING STRONG WHILE some retailers might have concerns that tobacco as a category is becoming less popular among customers, as next-gen products like disposables continue their exponential rise, cigarettes and associated products are still incredibly relevant and those retailers giving them ample focus are enjoying the benefits. “Worth £14bn each year (before tax), the tobacco category continues to hold a significant amount of value for retailers,” says Tom Gully, head of consumer marketing UK & Ireland at Imperial Tobacco. “There is nearly a

50/50 market share split between factory made cigarettes (FMC) and roll-your-own (RYO) categories, at 54% and 46%, respectively.” Rayesh Nayi, from Broadfield Newsagent & Post Office in Crawley, West Sussex, gets around £25,000 a week from tobacco sales. “Of course it’s worth stocking,” he says. “Even with the changed packaging, getting rid of 10-packs and everything else, the demand and the sales are still there.” The retailers and suppliers agree that cigarettes sales are built upon two key pillars: availability and price.

SUPPLIER

VIEW

Gemma Bateson, sales director, JTI UK “KNOWLEDGE is key. Having up-to-date knowledge on the latest tobacco trends, such as the growing popularity of ultra-value products, is vital and enables retailers to provide a good level of customer service. Retailers and their staff should use all platforms available to them, including JTI’s trade website, JTIAdvance.co.uk, to learn and talk confidently about new products. “Through stocking a full range and maintaining good availability of products, retailers can provide a successful offering and service to their customers. “Reach out to JTI’s Business Advisers, who provide a bespoke service to help identify commercial opportunities and offer advice and tips for retailers.”

LUCKY STRIKE

RED & BLUE GREAT VALUE GREAT PRICE

SPEAK WITH YOUR

LOCAL BAT REPRESENTATIVE

It’s an offence to sell tobacco to any person under 18 years of age. For tobacco trade use only. Not to be left in the sight of consumers.

Smoking kills

CATEGORY ADVICE TOBACCO

THE RIGHT PRICE ALL tobacco products will come with an RRP and as long as retailers don’t stray too far from these prices – either too high or too low – then the category will continue to be a decent seller for them. “You have to be competitive on price,” says Chris Cobb, from Cults Stores in Aberdeen,

whose tobacco sales are 5% up compared to last year. “We’re in a wealthy part of Aberdeen, but price is still a major issue for people. Most customers in this area are moving from the Silk Cut and Marlboro, which cost around £15 a pack, to cigarettes that cost £11.60.

“Some stores are selling cigarettes for £1.50 more than we are. People will buy them, but they won’t go back to that store. “You don’t want to be known as the most expensive place to buy cigarettes because then people will think all your other prices are expensive.”

new PRODUCTS Mayfair Gold JTI has expanded its ultra-value range with Mayfair Gold. Mayfair Gold is available in King Size and Superkings 20s formats. It shares Mayfair Silver’s £11.60 RRP. Mark McGuinness, marketing director at JTI UK, says: “The ultravalue sector remains a key priority. As of July 2023, ultra-value brands have a 27.9% share of RMC volume and this continues to grow month on month.” Players Max Imperial Tobacco extended its Players cigarette range with the launch of Players Max, which features longer cigarette sticks and a new tobacco blend. With an RRP of £10.50, £1.35 less than Players Kingsize, Players Max’s cigarette sticks are 12% longer in size than a standard Kingsize stick. The new variety also comes in a pack with bevelled edges. RYO Embassy Signature Imperial also extended its Embassy Signature range with the addition of a new RYO tobacco variety. The new variety comes in a 30g pouch with an RRP of £15.80. “We know value is a major factor for shoppers at present, with many adult smokers shifting into the economy and value RYO price segments,” says Gully. Henri Wintermans Half Corona STG has unveiled a limited-edition pack of Henri Wintermans Half Corona cigars for the run-up to Christmas. The supplier says the new packaging (RRP £14.17) should appeal to adult cigar smokers as the Half Corona is the UK’s bestselling medium-large cigar.

MAINTAINING MARGINS FOR retailers concerned about shrinking margins on their tobacco products if they are sold at the RRP, it’s worth talking to your reps about the special deals and promotions available that can help to offset that. “When there are promotions, you stock up more with them,” says Cobb. “You have to be competitive on price.” Cobb and Nayi also stress that retailers need to think less about the margins on to-

bacco products and instead think about the cash coming into the till and the footfall tobacco drives into the store. After all, getting 8% margin on a £12 packet of cigarettes will result in you getting more money in your bank account compared to 35% margin on a £1 soft drink. “You have to understand the maths and think about the roll-on effect,” Nayi says. “If your cigarettes are cheaper

than competitors, then people will come to you and buy everything else from your shop as well.” It’s also worth thinking about your cigars and cigarillos offer, as they can bring in far greater margins than cigarettes, with Nataly Scarpetta, marketing manager at Scandinavian Tobacco Group (STG), citing Moments Blue as offering margins up to 18% when sold at its RRP.

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

ENSURING AVAILABILITY AS well as having the right prices, it’s imperative that you have the stock at all times. Even though tobacco can’t be displayed, empty drawers and gantries will generate the same poor reputation as empty shelves, even in a category that is no longer as dominated by brand loyalty as it once was. If there is a brand known for

being affordable, you need to have plenty of it and your staff need to know you have it, too. “Making sure stock levels are continuously maintained is key to improving sales. If retailers run out of popular products, it can be costly,” says Imperial’s Tom Gully. “With this mind, store owners and their staff should consistently check

their stock levels – both on the shelf and in the stock room – to ensure they’re not missing out on any sales opportunities.” Given the number of promotions on tobacco products, it’s important to stock up when they’re on to make sure you’re not just providing the products customers want, but they’re at competitive prices.

ROLLING TOBACCO

ROLLING TOBACCO RRP £15.80*

Sarj Patel, Pasture Lane Stores, Sutton Bonington, Nottinghamshire

OUR FASTEST SELLING AND FINEST TOBACCO BLEND** *Based on ITUK RRP as of October 2023. For the avoidance of doubt, customers are free at all times to determine the selling price of their products. For Tobacco Traders Only. **EPOS data from Independents in Scotland June 2023.

ROLLING TOBACCO

“TOBACCO sales have gone down now since vapes were introduced, but it’s still worth stocking it. It’s a footfall driver. “You need to sell the main brands and whatever’s popular in your area. Years ago, people would stick to a brand and smoke nothing else. But now it’s all driven by the price. Anything that’s £10.50, they’ll buy it. We keep the tobacco in drawers underneath the counter. We have one for tobacco and three for cigarettes. So, if someone asks, we can tell them what we’ve got. Staff need to know what the cheapest cigarette that day is, straight off the bat. “We get on with our reps well. JTI tries to give shopkeepers a bonus and if you stock certain barcodes, you will get money back. At the moment, for every outer of Mayfair and Benson & Hedges we sell, we send the barcodes in and we get £10 back. It gives us the chance to sell them at a reasonable price, tell the customer that they’re cheaper and still do well.”

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“It’s about working with the tobacco companies to make sure you don’t run out of stock,” says Cobb. “Also, we can get any product, so if someone wants something specific, our availability can be a point of difference to the big multiples. And you’ve got to have that as a convenience store.”

ROLLING TOBACCO

CATEGORY ADVICE TOBACCO

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

THE GENERATIONAL BAN THE major news story surrounding tobacco in recent weeks has been the proposed legislation around the generational tobacco ban, whereby it will be an offence for anyone born on or after 1 January 2009 to be sold tobacco products – effectively raising the smoking age by a year each year until it applies to the whole population. While some retailers have voiced little concern about the proposition, Sarah Connor, JTI UK’s director

of communications, is worried about how this ban could impact convenience stores and fuel the illicit tobacco trade. “We believe the proposed generational ban is going to be almost impossible for retailers to implement and could be detrimental to their businesses,” she says. “It effectively means that there will come a point in time when retailers are expected to distinguish between 36- and 37-year-olds when deciding whom to sell

tobacco products to. “A generational ban will hit retailers the hardest and could further fuel illicit trade in tobacco products. In the UK, the illegal tobacco trade is already thriving, with 9% of cigarettes and 34% of rolling tobacco being smuggled into the UK in 2021/22 according to HMRC. The prohibition of legal products always has dangerous side effects and opens the door to criminal gangs to sell illegal products.”

FURTHER SALES OPPORTUNITIES THE tobacco category extends beyond cigarettes into rolling tobacco and its associated accessories – cigars, cigarillos and pipe tobacco. For stores with a strong RYO customer base, having a good range of flavoured and unflavoured filters along with different-sized papers is as critical as stocking

the right tobacco blends. “As demand for RYO tobacco grows in light of the rising consumer appetite for value, the tobacco accessories category provides a substantial sales opportunity for retailers,” says Gully. “Recent figures show that filter tips are worth a sizeable £114m of

sales, and while regular papers account for £44m, king size papers at £29m and combi papers are also proving to be popular at £33m.” As well as this, it’s worth looking at your local demographics and competition to see if there are any gaps in the market you could exploit.

A small range of pipe tobacco could be a point of difference in the right area, while cigars and cigarillos can drive sales and margins alike. “Always talk to your customers about what tobacco products they are looking for and what you have on offer,” says Scarpetta. “STG carried

out some research a while ago which showed 81% of tobacco customers are open to a conversation with a retailer about brands and 79% would be prepared to try an alternative tobacco product that was recommended to them, but you’ll only find that information out if you talk to them.”

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CATEGORY ADVICE VEGAN, VEGETARIAN & GLUTEN-FREE

FREE-FROM DESIRES PRIYA KHAIRA reveals what shoppers are looking for in the category, and how retailers can get their share of sales

Three main takeaways

Image credit: Getty Images/KatarzynaBialasiewicz

DEMAND FOR VEGAN, VEGETARIAN AND GLUTEN-FREE IN recent years, there has been a growing demand for vegan, vegetarian and gluten-free foods among consumers, with roughly 14% of the UK’s population now following a meatfree diet in 2023, according to Kathryn Hague, head of marketing at Hancocks. However, it can prove difficult for retailers to know whether there is clear demand for each of these categories in their stores, and to know how

far they should extend their offering. “We used to have a small section in one of our freezers dedicated to meat-free frozen meals,” says Shisan Patel, from Jasp DPS in Birmingham. “I have noticed there is a bigger demand from customers for vegetarian options than there used to be. We’re seeing the bigger, traditional brands offering vegetarian and meatfree alternatives on the major-

ity of meal items. Now we have a larger space in our freezers to accommodate vegetarian and vegan foods.” Although more brands are stepping up to meet the rise in demand for plant-based and gluten-free alternatives, it is important for retailers to remain realistic about the range they can stock, and how well this will resonate with their customer base. “With smaller fixtures,

top tips

independent convenience stores have to be even more discerning with their range,” says Sam Maguire, head of marketing at Rude Health. “Offering the right mix of products is key. “This will involve addressing the widest possible market with the smallest range. Taking top sellers across each category will be key to winning shoppers rather than having a very broad range.”

Customer demographic It is vital that retailers understand whether they have a strong demographic of customers for the category before expanding their range. This can also be dependent on the location of your store, and the spending habits of customers in your location. Value Products that provide customers with a sense of value for money are key to driving sales in this category. It is important to stock the right range that offers customers the best pricing. Be realistic It is important for retailers to cater to different dietary requirements and needs, which includes providing customers with meat- and gluten-free options. However, retailers need to be considerate about how large a range they can stock, and should prioritise providing alternative main dishes and lunchtime meal options.

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

WHAT ARE CUSTOMERS LOOKING FOR? CUSTOMERS shopping in this category will likely be on the lookout for cooking essentials or quick meal options, with a range of expectations. Maguire says: “Across all demographics, people are increasingly looking for high-

quality ingredients that taste great – they are uncompromising on a short ingredients list and a product that will be delicious.” With the variety of plantbased and gluten-free alternatives on the market, customers

are likely to gravitate toward brands that deliver on taste and price. Gill Riley, consumer director at Quorn Foods UK, says: “As economic uncertainty continues to impact shopping habits, value for money is increasingly

impacting shopper purchase decisions, alongside the everpresent health and sustainability considerations. “We know that budget-conscious shoppers focus more heavily on frozen foods as affordable meal solutions.”

recent launches Products and promotions Gelatine-free pick’n’mix Kingsway has launched its Mega Value range that offers customers vegan-friendly sweet options. The bulk bags range from 2.5kg to 3kg and retail for £7.99, or £1.29 per 100g. Moo Free Moo Free chocolate is vegan and gluten-free. Its latest Fizzy line is available in Fizzy Cola, Fizzy Lemon and Fizzy Orange. The 20g bars retail for 70p. Cathedral City Saputo Dairy UK expanded its Cathedral City vegan range last month to include Plant Based Extra Mature Block and Plant Based Cheddar Flavour Spread. Plant-based milk Rude Health has expanded its plant-based milk range to deliver No Sugars Oat and Almond Drinks. Vegan Deli Style Slices Quorn recently launched Vegan Deli Style Slices. The range includes Quorn Yorkshire Ham, Roast Beef, Finely Sliced Ham and Roast Chicken Style Slices.

category insight RETAILER Vegan Vegans do not eat any foods that derive from animals, including dairy products, eggs and honey. According to Whole Food Earth, only 2% of the UK population identify as vegan, while a further 3% say they will likely join the Veganuary campaign. January is a good time for retailers to highlight any vegan products in their store for customers looking for plantbased items in the new year. Vegetarian A vegetarian diet excludes meat and seafood – however, many vegetarians might still consume eggs and dairy products. There are 3.4 million vegetarians in the UK, with London, East Midlands, West Midlands and the northeast containing the most vegetarians. Gluten-free Gluten-free customers do not eat any foods that contain gluten. Gluten is found in wheat, rye and barley. This is typically done for medical or health reasons, but also for personal reasons or preferences as well. It is estimated that 8.5 million people in the UK are gluten-free.

VIEW Shisan Patel, Jash DPS, Birmingham

“KNOWING your demographic is really important. We tried introducing gluten-free products to our bread offering and found that it was quite difficult for us to sell. This was because gluten-free items tend to be more expensive than regular items are. “You can then easily fall into the issue of having food going to waste if you don’t have enough customers shopping the category. “It is clear price is a driving factor for customers. If you are located in an area where people can typically afford to buy high-end products, then you might be able to sell gluten-free items more regularly. If there was this strong demand for us, then we would accommodate for more gluten-free items. “We are limited in the space that we do have, so we want to try and avoid dedicating too much space to something that might be hit and miss with our customers at times.”

CATEGORY ADVICE PANCAKE DAY

28 NOVEMBER-11 DECEMBER 2023 betterretailing.com

AN ANNUAL SALES OPPORTUNITY Help shoppers beat the winter blues this Pancake Day. CHARLES SMITH finds out how retailers can boost home-baking sales

Image credit: Getty Images/SolStock

WHAT’S NEW AND DIFFERENT FOR RETAILERS? PANCAKE Day 2024 falls on Tuesday 13 February, with roughly 80% of the UK population planning to take part, making more than 135 million pancakes in total – that’s seven pancakes per household. It’s a cheery moment in the winter gloom, that everyone can join in and pimp their pancakes with their favourite toppings and garnishes. Pancake Day is a fun time for families with children, especially if they let their kids toss the pancakes, and a great first step in introducing home baking. Busy parents are likely to leave buying ingredients until the day, or just before,

and visit local stores, rather than the supermarket. So, make your store the local goto for Pancake Day essentials, and remind shoppers what other home-baking items you have to offer. To make the most of Pancake Day, you need to interrupt the customer journey as much as possible, and dual site products for maximum impact. Jeet Bansi, at Londis Meon Vale in Stratford-upon-Avon, Warwickshire, puts out his ambient Pancake Day products three weeks before the day in a dedicated promotional bay, away from the home-baking section.

Bansi also has a fridge at the front with fresh pancakes from Ma Raven, and fresh lemons and limes, cream, honey and Nutella on the top shelf shelf, to help to generate interest in the lead-up. “The fresh pancakes are pre-done for people who want to ‘do’ Pancake Day without the effort,” says Bansi. “We’ve sold them like this for the past four years. We put them out a week to 10 days beforehand, and get a lot of linked purchases and good basket spend. Having them there also helps sell the featured products singly.”

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Jey Sivapalan, 1 Stop Go Local, Derby “OUR core Pancake Day range is branded and cheap flour, instant pancake mixes, a wide range of fruit, lemons, limes and oranges, maple syrup and Nutella. We display Pancake Day items in a dedicated bay at the front of the shop, and work with suppliers to put it in place a week to 10 days before. “We normally do well the day before and on the day, and it makes people revisit the main home-baking section, which is quite large, led by cake mixes and icing. There’s not much demand here for free-from products for Pancake Day, but we would try them on promotion. We don’t usually sell kitchen utensils unless they’re on offer, but they might be around for Pancake Day.”

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CATEGORY ADVICE PANCAKE DAY

STRETCH SALES BEYOND PANCAKE DAY MANY Pancake Day products, from pancake ingredients to toppings, are also used in home baking. Pancake Day is a popular time for parents to engage their kids with a bit of cooking, and afterwards they’re likely to want to do more. So, use Pancake Day to encourage people to visit your home-baking section, and stay

stocked after the event. Bansi promotes Pancake Day on his Facebook page. He says: “The impact of all we do around the occasion goes way beyond Pancake Day, especially because we take steps to ‘drip’ it in advance and build awareness.” With food allergies increasingly common, if you sell free-

from bakery products, showcase those, too. It’s all more reason to celebrate Pancake Day, and make your bake-off section take off. Take advantage of your wholesaler’s or symbol group’s pre-sells and ranging advice for the occasion. Start planning for Pancake Day now and stock early.

Top Toppings Forty-seven per cent of shoppers would like to be more adventurous with their fillings and toppings. Kathryn Hague, Hancock’s head of marketing, recommends: Lotus Biscoff caramelised biscuit flavour spread crunchy and smooth, RRP £4.49. Lotus Biscoff Topping Sauce 1kg, RRP £11.29. Lotus Crumbs 750g RRP £6.69. Bonds Sweet Toppings Kit 210g, RRP £3, includes mini marshmallows, Dolly Mixture, Unicones and Snowies. Hershey’s Chocolate Flavour Syrup 680g, RRP £4.79. Lindt chocolate spread, Hazelnut Chocolate and Dark Chocolate, RRP £6.

TOP TIPS what TO stock Core Pancake Day products The traditional way to serve pancakes is with lemon juice and sugar. The classic ingredients are plain flour, milk and eggs, and oil or butter for cooking. For shoppers in a hurry, stock pancake mixes such as McDougalls Classic Pancake Mix, McDougalls American Pancake Mix and Bisquick Original Pancake & Baking Mix. Inspire creativity with a choice of toppings in different formats: golden syrup, maple syrup, marshmallows, chocolate, honey, cream and caramel, and spreads such as Nutella and Whole Earth’s Drizzler squeezy peanut butter. Draw free-from shoppers away from the supermarket by including gluten-free flour and pancake mixes, milk and egg alternatives, and plant-based chocolate. Meet last-minute needs for kitchen utensils with a selection of measuring jugs, mixing bowls, sieves, frying pans, whisks, wooden spoons, and plastic or metal flippers.

Top tips to boost sales in the run up to, and during, Pancake Day Know what’s trending with your shoppers. Sales vary by store, so ask your customers what takes their fancy. In Whole Earth’s pancake survey, chocolate spread with strawberries or bananas was second favourite after lemon juice and sugar. American-style options like bacon and syrup, and cheese and ham, are also growing in popularity. Think linked sales. Pancake Day is a great opportunity for linked deals on these products, and related items such as bacon, ham, cheese and strawberries. Ensure your Pancake Day range stands out. Make the products visible in a dedicated section to capture shoppers’ attention, even if they don’t come in planning to buy anything for the occasion. Put out your range at least a week before. This ensures people see it and recognise you as the place to get ingredients for the big day. Many shoppers buy them the weekend before, particularly if they’re expecting it to be a challenge finding vegan or free-from options. Give them plenty of opportunity to see the fixture. Have recipe leaflets in store and promote your Pancake Day offers on Facebook.

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SOCIAL MEDIA

The RETAIL EXPRESS team finds out how retailers are using social media to grow their business

One of our resolutions next year is to get on top of social media. How are other retailers using it to improve their business? – Jeet Bansi, Londis Meon Vale, Stratford upon Avon, Warwickshire

Dean Holborn, Holborn’s, Redhill, Surrey

“WE have a Facebook page for each shop and we want to get into Instagram as well. We know we should be upping the ante on Instagram. My wife and my sister-in-law handle the Facebook pages and they’re very good at shouting about what’s new in the store and letting people know about events. “The store looked amazing for Halloween and if you look on our Facebook page, you can see all the pictures and videos that we uploaded. We had hundreds of people come to the shop as a result of those posts. We run a big event around Bon�ire Night as well – we’ve run it for years. We put some great videos and pictures up of that as well. Social media is really good from an events perspective. I take my �irst delivery of Christmas trees in a few days and that will be all over socials as well. We sold 400 Christmas trees last year – £20,000-worth of business – and social media played its part.”

Umar Majid, Baba’s Kitchen, Glasgow

“WE’RE mainly on Facebook, where we have around 4,000 followers and likes. We have TikTok and Instagram, but we post very rarely there and don’t have as many followers. Our demographic is mostly over 30 years old and they’ve grown up with Facebook and still use it as their primary social media outlet compared to younger people on TikTok and Instagram. “We’ve found that we get a lot more engagement if we put a face in the picture – whether it’s me, my dad, a staff member or even a customer. You just get more traction than you would with a simple promotion or deal. “Find out what your community and customers like, and focus your posts on that. We’re in the Buckfast triangle, so we did a post on our Facebook page about how you can drink Buckfast in a cocktail, with recipe ideas and challenges, and that got 2,500 likes and comments.”

Priyesh Vekaria, One Stop Carlton Convenience, Manchester

“I POST across all the platforms. I usually create my content on TikTok and then share it to Facebook and Instagram. You don’t need to post multiple times a day, but with the algorithms the way they are, the more you post, the more reach you generate organically. If you only post once a week, you’ll sit at the bottom of people’s feeds. Whereas if you post every day, even if it’s repetitive, people will see you more. “Events are always good, people love events. We did a Bon�ire Night party and we shared that with the customers on social media. Also, when you win an award, posting that on social media gives you an edge. People like to know that their local store is an award-winning store. “Don’t bombard people with offers because you come across as desperate. It’s a balancing act and it has to have relevance to the customer.”

In the next issue, the Retail Express team finds out what retailers are excited about for in 2024. If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk