PROMO BETRAYAL Stores left to face the consequences of brands ditching deals and raising prices 5-18 MAY 2020 STRICTLY FOR TRADE USERS ONLY
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PRICING ANGER
DIGITAL DELIVERIES
SUMMER SALES
The CMA receives 18,000 profiteering tip-offs during the pandemic
Retailers respond to changing customer needs by launching new home order services
How to make the most of summer nights in and barbecue sales over the coming months
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COMING UP IN THE MAY ISSUE OF VAPE RETAILER
NEXT ISSU E 13 MAY Special report – changing vape sales: How convenience stores can hold on to new customers won since the lockdown forced specialist shops to close
• Nic salts: How to sell them, what you need to do to switch menthol customers post-menthol ban and how to retain them
• Pod mods and closed systems: What you need to stock, and how to sell the fastest-growing product trend in vaping
Order your copy from your magazine wholesaler today or call Kate Daw on 020 3871 6490 To advertise in Vape Retailer, contact Matthew Oliver on 020 7689 3367
15 DAYS TO GO
What you need to be doing now to get ready for the menthol ban 22
5-18 MAY 2020 betterRetailing.com
CATEGORY ADVICE MENTHOL BAN
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15 DAYS TO GO
this month. DARYL comes into effect your staff are ready The menthol ban nds out if you and WORTHINGTON fi
5-18 MAY 2020 STRICTLY FOR TRADE USERS ONLY
SUPPLIER
PREPARE FOR A HARD STOP in make up nearly one ban comes sales WHEN the menthol will act, four cigarettes in the UK. it is one of into force on 20 May “The menthol ban ons directhe tobacas JTI’s communicati as the biggest changes has seen,” adds tor, Mark Yexley, explains, for sale of all co industry “Don’t just wait a hard stop on the Much has Yexley. to happen. Make sure affected products. exactly the ban been written about ready.” you’re with but what the ban entails, it beuntil just 15 days to go now is the comes a reality, those final time to be making to ensure steps and checks your staff you, your store and the are ready. From stockingto anable right range to being swer customer questions. of the The significance the size of The menthol ban ban is shown in Imperial the menthol market. director comes into force UK corporate affairs points Duncan Cunningham crushball out that menthol
20 May 2020
VIEW
Mark Yexley, communications director, JTI your staff are aware to make sure that “IT’S really important menthol ban, and the plan your store the also need of all the details of after the ban. You has in place for compliance knowledge and have strong product you’re stocking in to make sure they alternatives that understand the menthol ion is key – making sure your staff have. store. Finally, communicat any questions customers .uk/ are able to answer – jtiadvance.co microsite ban “Our menthol information and – includes essential out a range of mentholban2020 JTI is also sending retailers. an educational video. to category guides, resources, including knowledge to see that they’re happy the “Check your staff’s a time, perhaps between and prepared. Dedicate rush, when you’ll speak to them morning and lunchtime and test that they’re prepared using ban, about the menthol training module.” the Advance microsite’s
PROMO BETRAYAL Stores left to face the consequences of brands ditching deals and raising prices
P3 PRICING ANGER
DIGITAL DELIVERIES
SUMMER SALES
The CMA receives 18,000 profiteering tip-offs during the pandemic
Retailers respond to changing customer needs by launching new home order services
How to make the most of summer nights in and barbecue sales over the coming months
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our say
Megan Humphrey, editor
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Staying in touch will help us through dark times to IN our last issue, I wrote about the difficulty of finding a positive to focus on in the current climate, and that has never been truer for the team at Newtrade Media right now, following the devastating death of our much-loved friend and colleague, Ashley Reid. Ashley’s team moved onto the same floor as mine a few months ago, and during that time, football discussions became a regular staple of our days. With me being a Tottenham Hotspur supporter, and Ashley backing Arsenal, I’m sure you can imagine the tormenting that took place – especially after match days. It’s memories like this that I will treasure of Ashley, a man who was always seen to be bobbing along to music on his headphones, bringing a smile wherever he was in the office. I know I’m not alone when I say that all of our thoughts continue to be, and forever will be, with his family at this truly heartPLEASE DO breaking time. When tragedy strikes, as I know CONTINUE some of you have experienced LOOKING AFTER in recent weeks within the retail YOURSELF community, it’s heartwarming to see how it brings people together. Newtrade Media is a small company, and we are more of a family than just colleagues, so I’m sure you can understand why the loss of Ashley has hit us hard. I’d like to thank those of you who have personally sent your condolences in the past few weeks. Please do continue looking after yourself, and each other – a text, or a quick phone call, can go a long way in times like these, trust me. @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357 Features editor Daryl Worthington @DarylNewtrade 020 7689 3390 Insight reporter Tamara Birch @TamaraBirchNT 020 7689 3361 Editor in chief Louise Banham 020 7689 3353 Production editor Ryan Cooper 020 7689 3354 Sub editor Jim Findlay 020 7689 3373 Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380
Editor – news Jack Courtez @JackCourtez 020 7689 3371 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355
Editor – insight Chris Dillon @ChrisDillonNT 020 7689 3379
Director of sales and marketing Matthew Oliver 020 7689 3367
Account manager (new business) Jimli Barua 020 7689 3364
Senior account director Charlotte Jesson 020 7689 3389
Sales support executive Michela Marino 020 7689 3382
Senior account manager Natalie Reed 020 7689 3372
Managing director Parin Gohil 020 7689 3375
Account manager Adelice Tatham 020 7689 3366
Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler. Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600
The five biggest stories this fortnight
Reporter Alex Yau @AlexYau_ 020 7689 3358
CMA data reveals raft of profiteering tip-offs
MEGAN HUMPHREY THE Competition and Markets Authority (CMA) has received more than 18,000 pro�iteering tipoffs during the coronavirus pandemic. A request under the freedom of information act revealed the scale of public anger towards shops in�lating prices of core lines.
02
The regulator said it could not reveal how many were related to convenience stores as it was still processing the data. However, in accounts by local trading standards of�icers, food bought from independent stores accounted for more than half of all complaints. Retail Express contacted seven regional departments
Menthol take-back
requesting a breakdown of mium of 50p per unmarked how many complaints could bag, without any allergen or be attributed to convenience weight labelling. A spokesperson said: stores, but only received “Barnsley Council is fully two responses. Cumbria said it had re- committed to ensuring loceived eight complaints at cal businesses continue to four independent food busi- meet their legal obligations nesses, with Barnsley report- during this crisis, and complaints of this nature reing just one. They stated the incident ceived into the service will involved a retailer who broke be investigated and approdown and sold �lour at a pre- priate action taken.”
03
Subpostmaster scam
RETAILERS have encouraged asked by Retail Express, while THE National Federation “displaying some knowledge of for SubPostmasters (NFSP) Post Of�ice’s systems, includstores to stop selling menthol Imperial and BAT refused. NFRN Scottish district con�irmed a “handful of ing Horizon and Grapevine”. tobacco lines from suppliHe reminded subpostmasers that fail to outline plans president Ferhan Ashiq said: scams” are targeting Post ters: “Unless Post Of�ice Ltd to take back non-compliant “If suppliers are evasive, re- Of�ice retailers. Head of policy Peter Hall has formally noti�ied them, tailers should stop purchasstock after the 20 May ban. JTI and Philip Morris out- ing their menthol lines a said they include a rise in tel- there are no changes to standephone calls from scammers ard procedures.” lined their returns, when week before the ban.”
Digital content editor Jody Porter 020 7689 3378
Management accountant Abigayle Sylvane 020 7689 3383
47,895
Audit Bureau of Circulations 1 July 2018 to 30 June 2019 average net circulation per issue
Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor. Newtrade Media Limited accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.
To read each supplier’s full response, go to betterRetailing. com and search ‘menthol stock’
04
ATM fees slashed
CASHZONE has slashed the commission retailers receive on its ATM transactions by 65%. The move followed a decline in withdrawals during lockdown. Retailers received letters
stating the reductions were effective from 1 April. One retailer said their commission had dropped from £1 to 35p per withdrawal. Cashzone said it had to make “dif�icult decisions” to protect its future.
05
Snappy sales
CONVENIENCE store home delivery platform Snappy Shopper has reported a 534% increase in sales since lockdown. Customers have increased by 360% compared with the �ive weeks before 23 March,
and average basket spend rose by 51%, from £21.52 to £32.49. Chief executive Mark Steven said: “Our top retailers are regularly generating delivery sales in excess of £10,000 per week.”
@retailexpress facebook.com/betterRetailing
5-18 MAY 2020 betterRetailing.com
megan.humphrey@newtrade.co.uk 020 7689 3357
Stores complain of slashed margins after promo cuts MEGAN HUMPHREY RETAILERS have blamed price rises on shelves and in cash and carries on suppliers for axing planned promotions during the coronavirus. Retail Express received con�irmation that KP Snacks, Nisa, Kepak, Heinz and Princes all amended their promotional offers. Ravi Raveendran, of Columbo Food & Wine in Hounslow, west London, said the move has driven up prices. “I noticed £1 pricemarked packs being del-
isted with the replacement products being above £1,” he said. “I now have to put my prices up. “Suppliers need to be held accountable because they aren’t the ones having to defend their prices to customers who don’t understand the supply chain.” An anonymous Scottish retailer added that Booker is currently not meeting the promotions listed in its catalogues. “We are being told at checkout that the promotions are no longer running,” they said. “I’m used
to making a 25% margin on my products, but that’s dropped to 15% because we are buying higher and selling lower dependent on which cash and carry I use.” A Booker spokesperson blamed availability issues for being unable to operate six Premier promotions and said: “Hundreds are still available for our retailers. The six products remain at our standard wholesale price and recommended selling price.” Kev Murjii, owner of a Go Local in Bury, Manchester, explained that availability
issues are leaving him unable to run any promotions. “I can’t get hold of any of the products under promotion,” he said. “I have to go elsewhere, but can’t put them on promotion because I would lose money.” Parfetts retail director Guy Swindell responded: “Once our suppliers made us aware they couldn’t guarantee availability we moved to be as �lexible as possible.” Atul Sodha, of Londis Peverills in Uxbridge, London, expressed sympathy
for the issues faced by suppliers. He explained: “I understand why there are fewer promotions running because ranges have had to adapt.”
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express yourself “As if we don’t have enough to deal with, we had a letter from Cashzone telling us commission is to be reduced by 65% as a contract variation. For example, if the customer withdrawal fee was £2, you would previously receive £1 per transaction, with Cashzone earning the other £1. The new contract with Cashzone means the customer still pays £2 but you now receive 35p and Cashzone now get £1.65.” Anonymous store owner
purchases now include grocery items
14%
Average daily footfall in stores
Year-on-year drop in footfall the column where you can make your voice heard
CASH: The Post Office (PO) has launched a service to deliver cash to the homes of the vulnerable during the coronavirus pandemic. Launched in partnership with the Department for Work and Pensions (DWP), it will deliver money using Royal Mail Special Delivery by 9pm the following day. Part of PO’s foreign exchange cash delivery business has been repurposed to allow for the deliveries. BASKET SPEND: The average basket spend in independent convenience stores broke the £10 mark for the first time last month, according to EPoS data from The Retail Data Partnership. Retailers said £10-plus baskets were being driven by home deliveries, shoppers looking to complete weekly-style shops, and expanding fresh, chilled and frozen ranges to meet demand.
BAD WEEK
What are the latest buying habits in convenience stores?
Year-on-year increase in basket spend to £10.59
GOOD WEEK
Go to betterRetailing.com and search ‘basket spend’ for the full story
AVERAGE BASKET SPEND
67%
DHL: The parcel firm has promised to “explore options around payment” after criticism for legal threats made against shops forced to close during the coronavirus pandemic. Despite David Lomas, owner of Lomas News in Bury, informing DHL of the closure of the site, they wrote to give “formal notice of our intention to commence legal proceedings” over debts. MAGAZINES: The Jewish Chronicle and its free sister newspaper, Jewish News, are to close, with the publications citing the impact of the coronavirus pandemic as the cause. Both titles said “every effort” would be made to continue publication over the next two to three weeks as a new owner is sought. Go to betterRetailing.com and search ‘magazines axed’ for the full story
How will Cashzone’s latest commission cuts affect you?
“I’ve responded asking that they either make it free to use to protect the footfall or they provide a break clause. They deny they have to offer this. They have chosen to look after themselves, but we can do the same. We’ll offer and promote free cashback at the till and see how long they want to keep the machine there once the transactions drop even further.” Chris Watson, KeyStore Express Corseford, Johnstone, Renfrewshire
“This new reduction will mean we will get rid of the machine. We’ve been with the company for six years and we have a lot of problems with it jamming, especially with the new £10 note. The number of transactions has tailed off after the charges were introduced. We were doing more than 1,000 a month, whereas now we do maybe 100.” Ian Handley, Handley’s News and Convenience Store, Northwich, Cheshire
Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk
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Ian Handley
NEWS
04
5-18 MAY 2020 betterRetailing.com
Shops go digital for deliveries MEGAN HUMPHREY RETAILERS are adapting to changing delivery needs from their customers by moving to digital. As lockdown continues, retailers have experimented with how they can not only retain new customers, but reach those who are vulnerable or self-isolating. Atul Sodha, of Londis Peverills in Uxbridge, told Re-
tail Express he has started using WhatsApp to send his customers videos of what’s in store to help them make orders. “I wasn’t geared up for online, so I started using my phone to add customers’ contact details,” he said. “I send each of them a video of what stock we have on our shelves every morning, with shelf-edge pricing.” Sodha has seen his orders double, with average
basket spends of between £30 to £40. “This is giving us the opportunity to show people what we can do,” he said. “We’ve also taken on 40 new home news delivery accounts, and offer them the option of adding groceries.” In the same month, Mital Morar, owner of eight independent stores in Manchester, revealed plans to launch his own delivery ser-
vice, called aconvenient.store. Due to be launched this month, he said: “It was a part of our business plan anyway, but it’s been fast-tracked now because of the situation.” Sodha added that it is important to maintain recommended prices. “Retailers must stay responsible,” he said. “I always keep my prices streamlined – this isn’t about making money, but retaining new customers.”
Coronavirus Retailer Support Hub betterRetailing.com/news/coronavirus
A screenshot from one of Atul Sodha’s videos
Camelot scratches claim extension plan CAMELOT has decided against extending its current 180-day claim period for National Lottery players on draw-based games. The company said in a message last month that it was “looking at the possibility” to ease pressure on retailers, but Retail Express has since learnt it won’t be changing. However, Camelot did con�irm its retailer hotline hours would be changing to 8am to 8pm Monday to Saturday.
Sunday hours will remain unchanged from 9am to 5pm.
PAYPOINT DELIVERY TIE-UP
All the latest news and advice on dealing with the coronavirus pandemic in one place Information, tips and support to ensure you can serve and reassure your customers The help you need to secure your business for now and the future For advice on adapting to these unique challenges, call 020 7689 0500 Lead supporters
Supporters
PAYPOINT has reported strong retailer interest around its new partnership with Deliveroo. Retailers contacted by PayPoint were told they would not have to pay the standard Deliveroo joining fee if they signed up through PayPoint. Instead, the delivery company will place a 29% surcharge on every order, and the agreement will be on a 30-day rolling contract. PayPoint sites in areas covered by Deliveroo will be able
to offer a core range of products through the tie-up.
Booker responds to availability concerns BOOKER Retail managing director Colm Johnson said he is “working with suppliers and Tesco to increase order levels” amid continued shortages in depot. The comments came after the wholesaler was accused of diverting stock and resources to Tesco. While retailers reported empty shelves in cash and carries, Tesco boss Dave Lewis said its availability was near normal. In a statement, Johnson said availability was improving, though challenges at sup-
pliers meant it had “to continue to restrict quantities of some products”.
RECYCLE!
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PRODUCTS
06
Intense launches into c-stores PRIYANKA JETHWA JTI has made its Logic Compact Intense range available to convenience retailers, after initially being launched in supermarkets last year. The nic-salt range comes in an 18mg nicotine strength and in �ive �lavours, including Amber Tobacco, Peppermint, Berry Ripple, Banoffee and Chai Latte. Nic-salts give consumers a bigger hit of nicotine compared to regular e-liquids. They are popular with smokers when they start vaping because they deliver an experience that is comparable to cigarettes. The Logic Compact In-
tense pods are compatible with the Logic Compact device. The Logic brand is worth £27m in convenience stores and supermarkets, and is growing 34% year on year. Nick Geens, head of reduced-risk products at JTI, said: “We are continuing to innovate to ensure we meet the needs of existing vapers, and the Intense range offers a pro�it opportunity for retailers catering to those customers looking for a better vaping experience.” For retailers who are looking for more information about the range, call Retail Express on 020 7689 3355
Three spicy flavours Swizzels goes retro for Mini Cheddars with new Drumstick
PLADIS is spicing it up this summer with the launch of Jacob’s Mini Cheddars Mexican, available to retailers from Sugro wholesale members. The new range comes in three �lavours, including Lime & Chilli, Nacho Cheese & Jalapeno and Chipotle Chicken Wings, and is designed to attract younger shoppers to the brand. The range is available in sixpacks with an RRP of £1.89, and Christopher Owen, marketing controller at Pladis UK and Ireland, said: “Our core range of Jacob’s Mini Cheddars includes Original, Red Leicester and BBQ �lavours, and has helped the brand reinforce its position as a staple
for 35% of UK households. “We’re seeing a host of global cuisines making their way into British snacks, with 41% of consumers aged between 16 and 44 actively seeking spicy foods.”
ACCOLADE Wines’ new social media campaign for its premium red wine brand, Jam Shed, ‘Jammy’, will focus on reminding consumers that its bottles can be used for other purposes. This includes candle holders when the bottle is empty, and the wine itself can be used in chocolate cake recipes. It follows the supplier’s recent in-store campaign for Jam Shed, which gave consumers a chance to win vouchers worth up to £1,000. The campaign will be posted on Instagram through social media celebrity
channels using the hashtag #jamshedisnotjustfordrinking, and re-shared on the @jamshedwine Instagram page.
Jam Shed’s jammy social media drive
SWIZZELS has added to its Drumstick range, with a new Rhubarb & Custard �lavour. The company says it follows the launch of Rhubarb & Custard Squashies, and Swizzels 10p bars growing by 13%. Swizzels Drumstick
Rhubarb & Custard are available in cases of 60, with each bar individually wrapped. The chew bars are vegan, and will be available from all major wholesalers, including Unitas members, Booker, Confex members, Bestway and Hancocks.
Sweetstake returns for Mars Wrigley MARS Wrigley UK is back with its Sweetstake competition, which partners with National Emergencies Trust (NET) for its coronavirus appeal. The promotion will give away top prizes of £20,000 and run across Mars, Revels, M&M’s, Galaxy Minstrels, Maltesers, Twix, Galaxy Ripple, Snickers, Starburst,
Skittles and Extra brands. Promotional codes can be found inside packs, which consumers can register at thesweetstake.com. Rather than the prize outcome being dependent on scenarios associated with live football matches, consumers will be given two virtual football scenarios and an associated prize that can be won.
5-18 MAY 2020 betterRetailing.com
Get a kick of Lucozade Sport cherry flavour CHERRY Kick is the latest �lavour to join Lucozade Sport’s range, launched in partnership with Manchester City and England footballer Raheem Sterling. The new limitededition �lavour is available now to retailers, and follows the launch of Fruit Punch last year, which was made in collaboration with boxing champion Anthony Joshua. The new Cherry Kick bottle will feature Sterling’s image, along with the message ‘Always believe’, and will come in singles with
an RRP of £1.19, or a dual price-marked format with an RRP of £2.20.
JTI has expanded its Logic Epiq e-liquid range to include nic-salts and 70/30 e-liquids. With an RRP of £2.99 each, the new formats will be rolling out across wholesale and independent channels to tap into the growing demand for affordable e-liquids. The Logic Epiq nic-salts range (18mg of nicotine/ml) offers a smoother and more intense �lavour in a variety of �lavours, including Amber Tobacco, Peppermint, Berry Mint and Forest Fruits. The 70/30 e-liquid range (3mg of nicotine/ml) is designed for mod devices and open systems, for consumers looking for a bigger vapour cloud. The �lavours in the range in-
clude Coconut Macaroon, Mint Royale, Berry Crumble and Cherry Apple. Mods are larger devices compared with e-cigarettes that have been modi�ied to produce a higher vapour (more cloud).
DANONE Waters has introduced a new limited-edition variety to its Volvic Touch of Fruit range with a Mango & Passionfruit sugar-free �lavour. Available in a 750ml bottle with an RRP of £1, and in a 1.5l format with an RRP of £1.25, the new drink is de-
signed for lunchtimes and on the go. Both formats are available now.
Nic-salt and 70/30 e-liquids from JTI
A sugar-free fruity flavour for Volvic
THE DEADLINE IS APPROACHING… Make sure you’re ready in time for 20th May Mark Yexley,
Communications Director at JTI UK, says:
Any Questions? From 20th May, all cigarette and hand rolling tobacco products sold in the UK must carry ‘track & trace’ coding and the UK security label. By the deadline, retailers must have registered for an Economic Operator ID (EOID) and a Facility ID (FID) for each store. Without these, retailers cannot buy cigarettes or hand rolling tobacco from wholesale, cash & carry or via tobacco company representative. If you have not already done so, register for your EOID and FID here - https://eutpd.uk.delarue.com
Scan the code below with your smartphone camera to access www.jtiadvance.co.uk/ trackandtrace Or speak to your JTI sales representative.
I first started reading RN in 2012. It inspired me to be as successful as the retailers being profiled. I still read RN to soak up as much information as I can.� Ferhan Ashiq Levenhall Village Store
Order your copy from your wholesaler today or visit betterRetailing.com/subscribe
PRODUCTS New Mondelez football promo PRIYANKA JETHWA MONDELEZ has unveiled a new ‘Win the captain’ promotion for its Cadbury and Maynards Bassetts range. The ‘Win the captain’ promotion will run from this month to July, and offers shoppers the chance to win a day with an international football captain, including Belgian footballer Eden Hazard, Dutch footballer Virgil van Dijk and England footballer Harry Kane, alongside thousands of other prizes consisting of stadium tours, esports video games and bubble football games. An on-pack ‘Win the Captain’ stamp will roll out on more than 100 packets
across the Cadbury and Maynards Bassetts range, including sharing bags, singles, multipacks and biscuits. Among the brands with the on-pack ‘Win the Captain’ stamp are Dairy Milk, Twirl, Wispa, Fingers and Maynards Bassetts Wine Gums. Other participating lines within the brands will have an off-pack promotion. After buying the product, shoppers can enter the code on the pack on captain.cadburyfc.com to claim the prize. Mathieu Maggi, brand manager for Cadbury Dairy Milk, said: “We’re excited to be able to launch the campaign, building on the success of Cadbury and Cadbury FC.
“We’re going bigger and better with this promotion by including a wider range of both Cadbury and Maynards Bassetts products.”
PepsiCo launches new Stax format
Juul expands flavour range with Menthol
PEPSICO is expanding its Doritos range with the launch of Stax, available now with an RRP of £2.50. Doritos Stax comes in three �lavours: Ultimate Cheese, Sour Cream & Onion and Mexican Chilli Salsa. Available in triangular 170g tubes, the company said Doritos Stax are designed for those shoppers looking to try a snack with “more excitement”. The launch marks the brand’s biggest-ever launch and will be supported with a TV ad and digital advertising campaign, as well as social media celebrity partnerships online.
it is critically important to provide access to potentially less-harmful nicotine products. He added: “It is estimated that a quarter of UK adult smokers – roughly 1.7 million people – currently smoke menthol or crushball cigarettes.”
Cathedral City has a slice of success
JUUL Labs has launched a new Menthol �lavour JuulPod to the UK market to offer smokers a wider range of alternatives to traditional cigarettes. Menthol is the latest �lavour to join the JuulPod range of e-liquids, which includes Glacier Mint, Mango Nectar, Golden Tobacco and Alpine Berry varieties. It is available in a four-pack with an RRP of £10.99. John Patterson, the company’s UK sales director, said smoking-related diseases are responsible for almost 96,000 deaths in the UK annually, and smokers should try to give up combustible cigarettes �irst – but if they can’t or won’t,
Raise your cereal bowl with Kellogg’s
SAPUTO Dairy has added Sandwich Slices to its Cathedral City range in Mature and Lighter Mature varieties. The product will come in larger cheese slices suited to the shape of bread, with an RRP of £2. The sliced cheese category is worth £241m and is outperforming the total cheese category. Neil Stewart, Cathedral City marketing controller, said: “The UK is a nation of sandwich-lovers, each of us eating an average of four sandwiches a week “Cheese remains the nation’s favourite �illing (with ham & cheese a close second), and these cheese sandwich occasions are by far the biggest contributor to sliced cheese volume.”
‘RAISE your bowl’ is Kellogg’s new social media campaign, aimed at supporting the NHS and key workers across the UK. The campaign raises awareness of Kellogg’s pledge to distribute 500,000 servings of food direct to frontline staff in NHS hospitals and medical facilities. It encourages key workers to visit Kelloggs.co.uk, where they can request a donation for their own staff or break rooms. The launch comes after Kellogg’s announced it would also be distributing a minimum of three million servings of food to its charity partners, to reach food banks, schools and com-
munity groups supporting the most vulnerable people. As well as these donations, the business will be recognising the hauliers who are continuing to ensure food reaches shelves, by providing food for the staff rooms of its three main UK hauliers.
5-18 MAY 2020 betterRetailing.com
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Red Bull zeroes in on bigger energy sales RED Bull Zero, a new a zerosugar variety added to the Red Bull range, is available now to independent retailers. The new formula has a similar taste to classic Red Bull Energy, but contains no sugar, giving consumers the choice to pick a zero-sugar product with a different taste to the brand’s Sugarfree variety. Alongside diet soft drinks experiencing growth, zerosugar varieties are driving the growth within soft drinks at 20.7%, showing an increasing demand for zero options. The launch will be supported by in-store and outdoor media, and a price-marked can will be launched later in the summer.
Swizzels launches pudding Chew Bars
SWIZZELS has extended its range with Swizzels Great British Puds Chew Bars, available now through Sugro. The new bars were launched as a result of a ‘sweetest invention’ competition, which was run by Swizzels to celebrate the company’s 90th anniversary.
Swizzels Puds Chew Bars include four �lavours, which are inspired by British puddings. The �lavours are: Apple Pie & Custard, Lemon Meringue, Sticky Toffee Pudding and Rhubarb Crumble. They are available in a 135g mixed bag with an RRP of £1.
Oven Chips get a naked makeover MCCAIN is rebranding its Oven Chips to Naked Oven Chips, designed to catch the eye of consumers looking for healthier frozen products. The redesigned packs promote the fact the chips contain just two ingredients – potatoes and sun�lower oil – and that they are vegan and gluten-free.
The chips are available in crinkle and straight-cut types, and will be available to independent retailers from midMay with an RRP of £1.79 for a 900g bag, and £2.79 for a 1.7kg bag.
OPINION
10
DON’T MISS THE 15 MAY ISSUE OF RN
LEADING INDUSTRY OPINION ON THIS FORTNIGHT’S HOT TOPICS
What do you think? Get in touch for the chance to be featured in Retail Express
AVAILABILITY: Have catering wholesalers helped stores fill stock gaps? “WE thought we were in crisis when the pubs shut because we were sat on 10,000 cases of beer and cider. However, we’ve seen demand from retailers and sold them on promotion. The pack sizes are in cases of 24, which aren’t ideal for convenience, but we sold 10 when we had a case deal.” Nick Ramsden, managing director, Dee Bee Wholesale
TOBACCO: Will suppliers take back menthol stock post-ban?
The latest trends and opportunities in hot-food and drinks to go
SALES TRENDS Page 4
r Booke19 Coviicd-ismsaler crrsitslam whcooleand M&S
RETAIL NEWS THAT MATTERS
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Tobacco firms reveal terms for surplus stock returns after 20 May Page 3 »
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CATEGORY MANAGEMENT
for mints and gums Find out how to grow sales in this staple counter category Page 22 »
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To read each supplier’s full response, go to betterRetailing.com and search ‘menthol stock’
“JTI representatives will exchange menthol and capsule stock held by every retailer our sales reps visit as part of our standard 12-week call cycle. While the Covid-19 situation is unprecedented, we are determined to continue to support our trade partners through this period of uncertainty.”
We are determined to support our trade partners
“OUR ‘buy-back’ system goes live on 20 May. Retailers then have until 1 July to register and submit the quantity of menthol cigarettes they possess. Stock should be returned no later than 1 September. Philip Morris will use a combination of courier services and recorded delivery options.” Philip Morris spokesperson
JTI spokesperson
KEY WORKERS: How are indies being recognised for their work?
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Sezer Ozkul, chief products of�icer, JJ Foodservice
We’ve seen demand from retailers and sold them on promotion
Special Report: keeping your staff safe PLUS
THE LEADING TITLE FOR NEWS AND CONVENIENCE RETAILERS THE LE ADING ILERS Breaking the TITLE E RETA £10 barrier FOR NE ENIENC How the average convenience basket WS AN D CONV topped £10 for the first time D CONV WS AN NE » R ENIENC FO E RETA TITLE G IN ILERS AD THE LE
“WE have had 35,000 new customers, including retailers, since we made home delivery orders available to the public. We have a wide range of key impulse categories that are suitable for retail customers to purchase, including soft drinks, snacks, confectionery, beers, bread and milk.”
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The best independent retailers stay ahead by reading RN each week. Do you? ORDER YOUR COPY from your news wholesaler today or contact Kate Daw on 020 3871 6490 TO ADVERTISE in RN, please contact Matthew Oliver on 020 7689 3367
“RETAIL is a vital lifeline for those self-isolating, and for all of us adhering to social distancing guidelines. The goods you supply make a difference to our ability to get through this crisis together. I would like to convey my heartfelt and personal thanks for everything you are doing.” MP Alok Sharma, business secretary
“I AM incredibly impressed by the service independent retailers are giving local communities. We’ve seen retailers quickly change their business models. Speed and agility are the key to success in the current climate. I encourage retailers to do right by their customers.”
The retail sector is a vital lifeline for those selfisolating
Greg Deacon, chief operating of�icer, NFRN
GOVERNMENT: Will new rent collection measures protect retailers?
We welcome action to support local shops
“WE welcome action from the government to support local shops with more breathing space to pay bills and avoid aggressive debt recovery during the Covid-19 outbreak. This is especially relevant to local shops trading in city centres and transport hubs.” James Lowman, chief executive, ACS
“RENTS are a huge burden for retailers that must be paid even where shops are closed. We have raised this problem with government and the announcement protects �irms who – during these extraordinary times – are unable to meet their rent obligations. ” Helen Dickinson, chief executive, BRC
LETTERS
5-18 MAY 2020 betterRetailing.com
11 Meon Vale
jeet Londis, Stratfordbansi upon-Avon
Letters may be edited
Building a bright future for our business
‘Uber Eats has debited money from me unfairly’ I SELL my groceries through Uber Eats. Please can Retail Express help in getting the company to reimburse me for the money I’m owed. In one month, I received an order worth £31.98, which included a 70cl bottle of E&J brandy priced at
£21.99, and a pack of Ferrero Rocher priced at £9.99. Uber deducted this money from my sale after stating the customer said the items were missing from the delivery. I have been in touch with Uber so many times trying to �ight for the money back,
after explaining that I have evidence to show that I put the items in the delivery bag. I am not getting anywhere, and just keep being told by Uber Eats that it’s company policy and it can’t be changed for me. An anonymous retailer
TWEETS OF
An Uber Eats spokesperson responded: “We are currently investigating the incident.” The retailer later told Retail Express: “We have had an email from Uber telling us we will get a refund. It wouldn’t have been possible without the help of Retail Express.”
THE WEEK
WIN £50-worth of Flora
Tweet us to get featured!
@retailexpress
There is no place for abuse, threats or assaults directed towards shop workers. Shocking to hear from @UsdawUnion incidents of this kind doubling during the coronavirus emergency.These key workers deserve our respect and gratitude for the work they do. @JackDromeyMP
THE past few weeks have been a monumental challenge for us, as they have for every retailer. Our biggest achievement, without doubt, has been keeping our shelves full. Throughout, we’ve had pasta, hand sanitiser, flour, toilet roll and all the other key products on our shelves, while other shops and Each issue, one of seven top supermarkets retailers shares advice to have struggled. make your store magnificent How has this been possible? The answer is building strong relationships with your suppliers. Our long-term business model has seen us sacrifice some margin to work locally, and also to build a strong rate of sale. Both have strengthened the relationship we have with suppliers, and it’s paying dividends now. Take eggs as an example – a few weeks ago we had people coming from 10 miles away to buy eggs from us because they couldn’t get them elsewhere. It’s not about making a profit, though. For me, the biggest test of how good a job you’re doing as a retailer at the moment is availability – are people able to get what they need in your store, at a fair price? This is what will benefit our businesses in the long run. The current situation is seeing more people visit our shops than ever, and how we respond will affect how they see us after the crisis. If customers have a good experience in your shop now, they’re more likely to turn to you again. It’s about how you portray yourself – shoppers need to see that we sell brands and products they didn’t expect, that we offer good customer service and we’re there for the community when they really need us. You also need to get the community buying into what you’re doing. For instance, right at the beginning of this crisis, we posted in local Facebook groups about what we were planning to do in store to aid social distancing, and also asked for suggestions. We got positive responses, and it raised awareness. Covid-19 is shining the spotlight on convenience stores, and if we do great work now, it could benefit all our businesses in the future. After the crisis, when someone is making a distress purchase, we want them to remember us as the place they could depend on.
Convenience stores across the country are doing a fantastic job of supplying their communities and, in particular, the most vulnerable within them. Surely there is a moral obligation on suppliers to ensure those stores have the stock needed? @ForecourtJJ RETAIL Express has teamed up with one of the UK’s leading plant-based companies, Upfield, to give five lucky retailers the chance to win £50-worth of Flora. The prize will include Flora Original, Flora Light and Flora Buttery spreads, all made using ingredients from natural origins, that are perfect for spreading, baking and cooking.
TO ENTER Fill in your details at:
betterRetailing.com/competitions Our competitions remain online for four weeks from publication date. Editor’s decision is final.
Going back 30 years ago selling large bags of potatoes. Customers now buying large bags. One Stop Tachbrook Road Leamington Spa @sundersandher
Get in touch
@retailexpress betterRetailing.com facebook.com/betterRetailing megan.humphrey@newtrade.co.uk 020 7689 3357
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ROUNDTABLE BAT UK
Earlier this year, BAT UK hosted leading retailers at its research & development (R&D) facility in Southampton to explore the challenges and opportunities in vaping. Retail Express joined the session to find out more
INSIDE VAPING MERCHANDISING Start with counter displays. Kamal Thaker says: “I wanted to get higher profits and make a bold statement with my vaping range, so putting it on the counter made sense. As my customers get more used to using my store for vaping products, I’ll put the whole range together in a gantry.” Merchandise behind the counter. Harj Dhasee says: “For me, vaping is always going to be positioned behind the counter. I’ve got an all-in-one Vape Station display solution, so if a new product or brand doesn’t fit into that, it’s very difficult for me to list it.” Bring your range together. “Every manufacturer has their own counter PoS, so it’s tough to bring it all together. We need to stop merchandising by brand and bring it together in one display to take a category approach,” Thaker adds. Expert view: Mustafa Mohammad Zaidi, retailer engagement manager, BAT UK “Whatever display you go for, it has to be a category solution. Whatever you have in place has to be flexible to the different product pack sizes, so you can react quickly to trends. “Our vaping gantries are designed to provide maximum utilisation of space and cause minimum impact to retailers when installed. “With the menthol ban just around the corner, we have created a specific planogram that focuses on menthol and alternatives, which is designed to help retailers meet all their customers’ needs.”
5-18 MAY 2020 betterretailing.com
In partnership with
RANGING Price with confidence. “We’ve tried £1 e-liquids before, and they didn’t really sell for us. Customers thought they were dodgy because they were so cheap,” says Meten Lakhani. Get the right mix. “Surprisingly, it’s not tobacco that are our most popular flavours,” says Jey Sivapalan. “I find that fruit flavours are most popular as people wanting to quit smoking want to get away from the taste.” Offer choice. “About 30% of my vape customers buy small e-liquids and pods, with about half buying bigger bottles,” says Imtiyaz Mamode. “But you have to make sure you are catering for different preferences.” Expert view: Brad Rogers, acting head of field force, BAT UK “The normal customer journey from smoking does not start with e-liquids. It used to start with cigalikes, but now we’re finding more often customers go to closed pod systems first, like Vype ePod. A lot of people don’t find it convenient to carry a little bottle in their pockets and mix e-liquids themselves. “The research we’ve carried out suggests that the average consumer uses two devices. They’ll have a bigger, open system at home, which can be a pain to carry around all the time, and then potentially two closed systems with them – one for the car and one on their person, for example. “When it comes to flavours, you could keep growing your gantry to accommodate all the varieties, but unless you give space to quality, you’ll be adding lines for the sake of it.”
STAFF TRAINING Always keep learning. Vip Measuria says: “I train my staff with what I learn from other retailers, suppliers and trade press. With the menthol ban, customers aren’t hearing about it through the media, so it’s fallen on us and our staff to tell them.” Use the tools available. Anita Nye says: “I don’t smoke, so I find it hard to know what to pass on to my team. We use supplier tools to train my staff, which gives them confidence in selling. We aren’t concerned about selling tobacco as much anymore.” Create staff advocates. “I had no idea about the science behind the claims that vaping is less harmful than smoking before today,” Measuria says. “This will be useful to pass on to my team to make them advocates for switching smokers.” Expert view: Robin Stephenson, trade marketing representative, BAT UK “There are now so many flavours and strengths, there is something for everyone. If 18mg of nicotine is too harsh for a customer, retailers can recommend 12mg, for example. For a heavy smoker, we recommend 18mg. We find that smokers will start on the higher strengths and work their way down. Then there’s the shopper who smokes less often, so may start on 12mg. “For menthol smokers, it depends on how harsh they are. Some will want a higher strength, but others will start on 12mg or lower. If you don’t smoke, consider getting your staff to ask customers who buy vaping products regularly why they buy what they do.”
THANK YOU, RAJ AGGARWAL This event took place in March and was also attended by Raj Aggarwal before his passing. As on so many occasions, Raj’s expertise and insight was invaluable to everyone in the room. Once again, Retail Express and BAT UK want to offer our sincere condolences to his family and friends.
Do you want to work with BAT UK and learn how to grow your vaping sales and profits? Call 0808 169 5000
THE
ATTENDEES SESSIONS LEAD BY NEWTRADE MEDIA CHRIS DILLON Editor – insight
SAMANTHA GUNSTON Head of events
TAMARA BIRCH Insight reporter BAT UK EXPERTS MUSTAFA MOHAMMAD ZAIDI Retailer engagement manager
BRAD ROGERS Acting head of field force
ROBIN STEPHENSON Trade marketing representative RETAILERS KAMAL THAKER Stop Shop News, London HARJ DHASEE, Nisa Village Stores, Mickleton, Gloucestershire
VIP MEASURIA One Stop Draycott, Derbyshire
JEY SIVAPALAN 1 Stop Convenience – Go Local, Derby
METEN LAKHANI St Mary’s Supermarket (Premier), Southampton
ANITA NYE Premier Eldred Drive Stores, Orpington, Kent
IMTIYAZ MAMODE Premier Wych Lane, Gosport, Hampshire
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CATEGORY ADVICE SUMMER NIGHTS IN & BARBECUE
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5-18 MAY 2020 betterRetailing.com
EXPECT THE UNEXPECTED It’s hard to predict what will happen this summer, but TOM GOCKELEN-KOZLOWSKI runs through some of the options to consider in your shop
AN UNCERTAIN SUMMER WHAT will a summer without sport, music festivals and the Edinburgh Fringe look like? In an uncertain world, we can be sure of one thing – when the weather gets warm, Brits will head to their gardens. Whether lockdown is lifted by the summer months or not, customers with a garden will still be able to have a barbecue with the family they live with, making it something worth catering for in store this summer. However, it’s also worth
factoring in those who’ll be looking for a special summer night in, especially if the lockdown continues into the summer months. As Mondelez trade communications manager Susan Nash points out, summer nights in are worth more than £6.5bn, and the opportunity is growing. Depending on how the next few months develop in terms of social distancing guidance, there’s a good chance that many people this summer will be socialising through
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virtual nights in, or the more traditional night in front of the TV, making a strong range of snacks and treats vital.
Susan Nash, trade communications manager, Mondelez International “CHOCOLATE is still the number-one choice for those settling down for a night in with friends and loved ones, followed by sugar confectionery, biscuits and crisps. There are plenty of opportunities for cross-category selling to create the perfect night-in offer with chocolate at the centre. What’s more, 52% of all confectionery consumption takes place with other people present, so having a range of premium sharing formats is key to maximising this opportunity and encouraging trade-up.”
P LY M O U T H & T O N I C .
PROPER GOOD. PLYMOUTH SHOPPERS WILLING TO PAY ADDITIONAL £6.60 ON AVERAGE BOTTLE OF GIN.*
STOCK UP NOW
SUPER PREMIUM GIN GROWS
+7.5% YOY, CONTRIBUTING 30% OF GIN CATEGORY VALUE.**
Please drink Plymouth Gin responsibly.
*Source: AC Nielsen, Total Coverage, Total Impulse, Price per 75cl, MAT to 04.01.2020 **Source: Nielsen Scantrack. Total Coverage1. Total Impulse.Value Sales. Data We. 21.03.20
ALL FLAVOURS WELCOME NO.1 flavoured VODKA IN THE
NO.1 PREMIUM VODKA*
OFF TRADE*
Absolut CANS are in value growth
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STOCK UP NOW *Source: AC Nielsen Scantrack, Total Coverage, MAT to 04.01.2020. **Data source: Nielsen Scantrack. Pre Mixed Drinks. Total Coverage. MAT. We.23.03.20.
ENJOY ABSOLUT® RESPONSIBLY
cider
CATEGORY ADVICE SUMMER NIGHTS IN & BARBECUE
5-18 MAY 2020 betterRetailing.com
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BARBECUE OPTIONS SO, what does the (hopefully) sun-soaked, barbecuing, summertime customer want in 2020? A safe bet is that stress-free options will be popular, and hoping to make our barbecues easier this year is Bar-BeQuick, the company behind the first instant barbecues. Caroline Morris, head of sales at Bar-Be-Quick, says:
“Our original Instant Barbecue is quick and convenient to use, easily recycled and there’s very little clean-up required. It appeals to both the busy consumer and those who don’t want to invest in expensive barbecuing equipment.” Of course, at the heart of any barbecue range has to be the food itself. Jeremy Gilboy,
founder of St Pierre Groupe, says: “We’re anticipating a big summer for barbecues, so we’d advise retailers to make sure they capitalise on this potential. Merchandising barbecue products together, such as meat, bread and sauces, will help boost sales, as will crosspromoting the products in sets and meal deals.”
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Jai Singh, MJ’s Go Local Extra, Sheffield “WE’RE stocking what we usually do – small and large instant barbecues, charcoal, kindling and firelighters. We’re stocking whatever meat we can because anything like steak, burgers and vegetables will go on barbecues. “We’re not creating a display for our barbecue range this year – even though we have all the component parts such as alcohol, snacks, meat and the barbecues themselves. We’ve made this decision because we don’t want people to congregate in one section of the store – it would make social distancing really difficult. Instead, we’re focusing on making sure our availability is as good as possible.”
6019717_Cadbury Win the Captain Trade Adverts_LAYERED FILES.indd 2
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CATEGORY ADVICE SUMMER NIGHTS IN & BARBECUE
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SNACKING OCCASIONS NOT every summer social event (or in the short term, at least – ‘night in’) will revolve around a barbecue being lit. Snacks are a category that can help turn any evening into an ‘occasion’. The snacks market is buoyed by a host of trends including premium lines, healthier eating and value – all of which are represented within the KP Snacks range. Tyrrells, for example, is one of a number of premium brands that have become must-stocks for retailers alongside Kettle Chips and Walker’s Sensations. Brands such as Popchips, meanwhile, offer customers a
big flavour hit at 100 calories, according to KP Snacks. And Popchips are one of a number of brands available in £1 PMP formats, including Hula Hoops, McCoy’s and Nik Naks. The company says 83% of retailers believe PMPs sell faster. Importantly, snacks can play another role – becoming an extra purchase that boosts basket spend. Matt Collins, trading director at KP Snacks, advises retailers who can to “boost crosscategory sales by positioning nuts and crisps in the beers, wines and spirits aisle”. Of course, a good night in also needs something to drink, and
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this is worth bearing in mind in your store and factoring into a big night in display. “There are many opportunities for retailers to use crosscategory selling to create the perfect night in offer for their shoppers this summer,” says Matt Gouldsmith, channel director for wholesale at Lucozade Ribena Suntory. “Soft drinks are an important part of big nights in, as shoppers look for larger sharing formats of their favourite brands to enjoy with meals and snacks. “We’ve seen strong growth of 20% in Lucoz-
ade Energy’s take-home range, including 1l bottles and multipacks. The top three 1l lines represent 21% of the brand’s total sales, so it’s increasingly important that retailers make sure they have a larger format offering in store for this demand.”
Matt Collins, trading director, KP Snacks “AS the warmer months approach and consumers spend a lot of time at home, barbecues are likely to become a regular weekly meal occasion and shopping mission. Around 79% of shoppers say it would be useful to have commonly purchased products merchandised together, and 38% bought something because they saw it in a secondary location. “Independent retailers looking to maximise the summer snacking occasion should consider dual-siting and dedicated displays, space dependent, to make shopping as simple as possible.”
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Matt Gouldsmith, channel director for wholesale, Lucozade Ribena Suntory
top tips Five things to try in store Be ready for last-minute barbecues The British summer is reliably unreliable, so make sure you are stocked up for opportunities at short notice. Good merchandising boosts profits Thinking about positioning products together will add high-margin incremental sales to customers’ baskets. Customers’ tastes are craving more premium lines Trends for street food and ‘craft’-style burgers mean shoppers now expect brioche buns and other premium barbecue ingredients. Stock several options for the snack bowl Premium crisps, popcorn, budget favourites… snacks are a quick way for customers to prepare for a social occasion. Help shoppers set up their barbecues Most of us hate faffing with the barbecues itself (yes, some love it). For the rest, stock easy options to get the cooking started.
“A SPIKE in sales can normally be expected at this time of year given the weather and summer events. And when the sun comes out, this can be boosted even further. “This isn’t a typical summer, though. At the time of writing, people are still exercising, and hydration in the warm weather remains important. Usually, we’d see soft drinks sales increase by 1.6% for every 1°c temperature change. This makes it hugely important for retailers to have their drink-later soft drinks range ready for the added demand as shoppers enjoy a summer night in the garden with their favourite soft drinks.”
EXPERIMENTING AT HOME INDUSTRY data shows that bread particularly benefits from hot weather, becoming the third-most-purchased grocery item (in 49% of baskets) behind ice cream (69%) and salad ingredients (66%). A major trend in this market is shoppers looking to trade up to more premium options. Alongside a range of burger and hot dog buns, St Pierre has developed a ‘gourmet’ range of brioche buns including Burger Buns, Seeded Bri-
oche Burger Buns and Brioche Hot Dog Rolls, RRP £2.49, £2.19 and £2.19, respectively. Bar-Be-Quick’s Caroline Morris agrees that customers are getting more demanding – and more ambitious with what they choose to cook on their barbecues. “We know consumers are looking for barbecues that offer versatility, as they experiment with what they can do within the comfort of their own home and garden,” she says. “We expect a large
number of people will be attempting to replicate their favourite dishes from loved restaurants or past holidays, whether that’s Portuguese piripiri, Greek-style kebab skewers or Jamaican jerk chicken.” Brands that stand to benefit from this are cheeses like Président’s goat’s cheese, manufactured by Lactalis. The company has launched Président Goat’s Cheese Cubes, which are designed as a “the perfect accompaniment to sal-
ads, aperitifs and sprinkling on pizzas”. A 120g pot (RRP £2.25) comes with a drainable system, which helps customers create the foodie experience they’ve been missing in a convenient “no-mess” format. Héloïse Le Norcy-Trott, the firm’s group marketing director, says: “This is the first in a raft of new products that Président is launching in 2020, all of which will make consumers’ lives easier without compromising on taste.”
cider
CATEGORY ADVICE WINE
5-18 MAY 2020 betterRetailing.com
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GRAPE EXPECTATIONS TOM GOCKELEN-KOZLOWSKI looks at the latest wine trends you need to know for your store
EVALUATE YOUR RANGE IF YOU’RE not careful, wine can be the one part of the alcohol category that gets left behind in your convenience store – viewed by many retailers as a more intimidating category to get right than beers and spirits. Yet stocking the right brands and capitalising on the latest innovations in the market can also make it the most dynamic, and potentially profitable, too. This has never been more true than now, with pubs and
bars closed indefinitely in the wake of the coronavirus. “With the outbreak of coronavirus, food and drink trends are shifting to reflect the current climate,” says Mark Stammers, sales director for UK and Ireland at E&J Gallo. “Now that events, parties and other social gatherings have been banned until further notice, consumers will be looking for easy and flexible ways to consume alcohol at home.”
NEW FORMATS THE big news in the wine market comes from the can format, used by a number of brands. Following the success of readyto-drink cans elsewhere in the alcohol sector, it’s perhaps no surprise that wine is getting in on the portable action. “Convenience plays a large part in the increase in demand for on-the-go formats,” says Ben Blake, head of marketing for Treasury Wine Estates (TWE). “Wine cans’ value sales
are steadily increasing and grew 177.9% last year. We introduced Blossom Hill Gin Fizz last summer, to tap into the botanical flavour trend.” Another major brand to embrace cans is Barefoot. Last summer, E&J Gallo launched its most popular white and rosé wines in a can format. Echoing Blake, Stammers says Barefoot Pinot Grigio and White Zinfandel cans are “convenient and lightweight”.
CATEGORY ADVICE WINE
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LIMITING ALCOHOL OF COURSE, another benefit of canned formats is portion control and they suit the single-serve market. Yet, single-serve bottles are also in growth, according to Stammers. “The 187ml bottles of Barefoot White Zinfandel, Pinot Grigio and Merlot provide a solution to drinking at home. “They have a growing con-
sumer base who are choosing to moderate their alcohol consumption while staying at home,” he says. Another important element is the rise of low- and no-alcohol wines, and here, Blake says well-known brands can assist consumers. “Offering customers a broad, diverse range of lowand no-alcohol products
IT’S ROSÉ’S TIME OF YEAR SOME trends show no sign of abating. It now seems almost inconceivable that rosé was once sniffly considered the least fashionable of the wine colours – it now stakes claim to a high percentage of most retailers’ fridges with a number of must-stock core products. It also benefits from the hot weather to come. “As the days get warmer and longer, we expect sales of rosé to increase, especially as shoppers are looking for wine to drink in the garden while they wait for the coronavirus storm to pass,” says Stammers. The company’s Barefoot brand is now the number-two rosé brand in the UK, despite selling at a 4.7% premium to the market average. E&J Gallo says Barefoot rosé added £3.6m to its sales in 2019. Concha y Toro is also invest-
ing in this part of the market, launching two new rosés this year, one from Cono Sur (a Pinot Noir) and a Malbec rosé from Trivento.
5-18 MAY 2020 betterRetailing.com
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means people are able to browse through a collection of familiar brands they recognise and are more inclined to engage with,” he says. TWE’s low- and noalcohol range includes Blossom Hill Spritz (5% ABV) and Lindeman’s Alcohol-Free range (0.5% ABV).
Laurie Billson, senior customer marketing manager, Concha y Toro “MERCHANDISE by occasion – such as Father’s Day – and make sure your range is clearly priced, faced up and uses PoS as is appropriate. Success is not so much about being unique as having interesting wine options. “There has been a big movement in the past 18 months for so-called ‘statement’ wines that appeal to younger adult drinkers. Brands like 19 Crimes from TWE, or our own Diablo Dark Red, are not the average varietydriven choice. They are premium wines which, by their distinctive branding, say something about the choice of the person buying them.”
5 top tips
Stock new formats that offer opportunities for growth The canned wine market is bringing new customers and drinking occasions to the category. Use budget wines to cater to a new market Retailers have seen wines take the place of other budget lines, such as cider, in Scotland where minimum unit pricing has come into force. Remember that rosé is here to stay The wine market is as fast-moving as it’s ever been, yet while some trends, such as prosecco, appear to have peaked, this segment keeps growing. Hunt out ‘statement’ wines At the premium end of the market, shoppers are looking for statement wines – this means bold brands have pushed out grape varieties.
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Faraz Iqbal, Premier Linktown, Kirkcaldy, Fife “ROSÉ and white are still our main sellers. Brands such as Echo Falls Summer Berries attract slightly younger customers. The majority of wines still sell for £5-6, but it’s slightly different in Scotland because of minimum unit pricing. “There’s a whole range of new lower-alcohol wines for the £4 mark, such as Copper Ridge, which have, in Scotland, replaced the strong cider market. Prosecco is still an important market, but places like Aldi and Lidl have really focused on getting cheaper products. As long as you have one prosecco at a cheap price, then that’s enough these days.”
Don’t forget ‘low and no’ Like rosé, this is another trend with sticking power – are you catering for those shoppers who want to cut down on their alcohol intake?
CATEGORY ADVICE MENTHOL BAN
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5-18 MAY 2020 betterRetailing.com
15 DAYS TO GO The menthol ban comes into effect this month. DARYL WORTHINGTON finds out if you and your staff are ready
PREPARE FOR A HARD STOP WHEN the menthol ban comes into force on 20 May it will act, as JTI’s communications director, Mark Yexley, explains, as a hard stop on the sale of all affected products. Much has been written about exactly what the ban entails, but with just 15 days to go until it becomes a reality, now is the time to be making those final steps and checks to ensure you, your store and your staff are ready. From stocking the right range to being able to answer customer questions. The significance of the ban is shown in the size of the menthol market. Imperial UK corporate affairs director Duncan Cunningham points out that menthol crushball
sales make up nearly one in four cigarettes in the UK. “The menthol ban is one of the biggest changes the tobacco industry has seen,” adds Yexley. “Don’t just wait for the ban to happen. Make sure you’re ready.”
20 May 2020 The menthol ban comes into force
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Mark Yexley, communications director, JTI “IT’S really important to make sure that your staff are aware of all the details of the menthol ban, and the plan your store has in place for compliance after the ban. You also need to make sure they have strong product knowledge and understand the menthol alternatives that you’re stocking in store. Finally, communication is key – making sure your staff are able to answer any questions customers have. “Our menthol ban microsite – jtiadvance.co.uk/ mentholban2020 – includes essential information and an educational video. JTI is also sending out a range of resources, including category guides, to retailers. “Check your staff’s knowledge to see that they’re happy and prepared. Dedicate a time, perhaps between the morning and lunchtime rush, when you’ll speak to them about the menthol ban, and test that they’re prepared using the Advance microsite’s training module.”
Become an IQOS stockist and earn up to
£70 welcome bonus After the menthol ban you will not be able to sell menthol cigarettes. But you will be able to sell IQOS and menthol HEETS. The new alternative for your menthol smokers. I’m confident the introduction of the IQOS menthol kit will help protect my sales.
IQOS MENTHOL KIT CONTAINS IQOS 2.4 Plus device, HEETS Turquoise and Blue packs.
Shahid Hussain United Supermarkets, Bristol
Get ready for the menthol ban and register NOW! For more information on stocking the IQOS Menthol Kits, our menthol cigarette buy-back scheme and our rewards programme. Register now at SCAN ME
menthol-ban-retail.co.uk
or scan the QR code
NOT A VAPE. NOT A CIGARETTE.
This material is restricted to those who are involved in the business of the sale or distribution of tobacco who are aged 18 years or over. This material should not be made available to the public or sent to anyone else. IQOS is not risk free and is for adult use only. The menthol ban affects menthol cigarettes only and excludes specialist tobacco products such as Cigars and Cigarillos.
This product is addictive and is not risk-free. Not for sale to persons under the age of 18. PHI0671_Menthol May Ban Ad_RE_AW3.indd 1
27/04/2020 17:57
CATEGORY ADVICE MENTHOL BAN
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GAINING SUPPORT ADDING further complications to retailers’ preparations for the ban is the impact of the coronavirus outbreak, which has put a hold on sales representatives visiting convenience stores. Fortunately, major tobacco suppliers have responded to this challenge. JTI’s Mark Yexley says that the company’s sales representatives are regularly phoning retailers to provide support and help shops pre-
pare for the ban. He also highlights the extensive resources available on the company’s trade website, JTI Advance, which has a dedicated menthol ban microsite. Similarly, Philip Morris Limited (PML) is moving to provide retailers with as much additional support as possible. “Our plans to support retailers through the upcoming menthol cigarette ban remain unchanged,”
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says Kate O’Dowd, head of field force in the UK and Ireland at PML. “The Philip Morris team is working hard to ensure that retailers are informed of the ban and the impact it will have on their business. We will continue to raise awareness of the alternative products still available to sell, so retailers can continue generating sales after the ban comes into effect on 20 May.”
Kate O’Dowd, head of field force, Philip Morris Limited “A RECENT survey we conducted with more than 100 retailers found that 78% of retailers expect customers to seek guidance from them on what alternatives are available. “With low awareness of the menthol cigarette ban among smokers, retailers have an important role in getting the message out to smokers, who have a right to know what options are available to them after the ban. “Our retailer hub at menthol-ban-retail.co.uk is a valuable resource for retailers with information on the ban, which can help educate them about the alternatives available so they can inform their menthol customers that are looking for a new tobacco or nicotine alternative.”
FINAL COUNTDOWN “TO SUCCEED post-ban, it’s crucial retailers and their staff understand what changes are coming and know what products and brands they have on offer in order to advise customers effectively,” says Cunningham. “Training is key to success in this regard, so taking time to talk staff through the ranges on offer will go a long way
to help protect and maximise sales post-ban.” Making sure your staff are prepared can be done in a number of ways. As well as explaining the ban to them and what you expect, take the time to test them, for example, with quizzes or expected customer enquiries, and, of course, encourage them to come to you with any questions they have.
It’s not just about preparing your staff, though. The last 15 days should also be spent making sure your customers know what will have changed when they come into your shop on the morning of 20 May – and what alternatives you offer. “By proactively engaging with menthol shoppers, retailers can raise awareness of the menthol ban and encourage
them to consider what alternative products will be available to them after 20 May,” Cunningham continues. “As well as providing great customer service, having conversations with shoppers will help retailers gain valuable insights into what action they might take once the ban is in effect and use this to shape their range.”
what to stock Menthol alternatives to consider in your store Rizla Flavour Infusions Rizla Polar Blast Crushball Menthol-flavour JuulPod Logic Epiq Mint Chill Nordic Spirit Mint Menthol Heets for Iqos
test your
staff
TO BAN OR NOT TO BAN INCLUDED IN THE BAN
Find out how prepared your staff are by testing them with these FAQs from JTI What is the menthol ban? Is hand-rolling tobacco included? Are there any exceptions to the menthol ban? When do retailers need to phase out menthol products?
For more training resources from JTI, visit jtiadvance.co.uk/ training/28/view
The products you need to remove on the night of 19 May
NOT INCLUDED IN THE BAN
All menthol cigarettes
Menthol-flavoured vaping products
Rolling tobacco packaged with menthol filters or papers
Menthol papers and filters when not packaged with tobacco
Capsule cigarettes
Menthol-flavoured cigars and cigarillos
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PROFILE
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5-18 MAY 2020 betterRetailing.com
RETAILER PROFILE MIV CHAHAL NISA LOCAL PRUDHOE Location: Prudhoe, Northumberland Staff: Six Size: 1,700sq ft Trading since: 2017 Facebook: facebook.com/NisaLocalBiverfieldRdPrudhoe
REACTING FAST TO CHANGE DARYL WORTHINGTON THE story behind why Nisa Local Prudhoe launched a home delivery service is one that will be familiar to many retailers. “Shortly after the crisis started, an elderly customer called us and asked if we could drop some juice off because their partner was unwell,” says Miv Chahal, who has run the familyowned store with his mother and brother for three years. “I said, ‘Of course,’ and it got me thinking about how many more people need this service?” From that initial customer, the delivery service quickly grew. “We put out a notice on Facebook saying we were ready to help people who needed home deliveries,” he continues. “The response was huge – we had people ringing us up straight away. We asked people to share it on their Facebook pages with others who needed it. Before we knew it, that initial post had been shared 1,300 times.” For a shop that had never even considered offering a home delivery service before, the �irst few weeks were a challenge that took some adjusting to, but they now have a system in place.
“We’re not a supermarket, and we don’t have the facilities to offer an online service,” he explains. “People phone us, then one of us will grab a basket and go around the store picking up their shopping – we then give them the option of paying with cash or card. We couldn’t take phone payments before, we had to speak to our supplier Worldpay to get it set up.” They’ve made other adjustments to the store since then, such as reducing the opening hours to 8am to 6pm to cope with the extra workload. “Otherwise it wouldn’t have been sustainable,” says Miv. Home delivery is just the latest step that the store has taken to connect with the local area. The shop was recently re�itted, which has resulted in a big-
ger focus on chilled and frozen food, and food to go, as well as new vinyl work, which has made the store more welcoming, according to Miv. “We’ve always had a massive community focus,” says Miv. “Through Nisa’s ‘Making a difference locally’ initiative, we’ve donated to a lot of local causes, including supplying de�ibrillators to local retirement homes, and supporting local schools.” The shop’s Facebook pres-
YOU'VE GOT TO LOOK AT WHAT'S GOING ON AROUND YOU
ence is another area where it really stands out. “It’s the best way to get the message out,” says Miv. “But it can’t just be about yourself – you’ve got to look at what’s going on around you. For instance, if something good or interesting is happening in the community, you should share it.” Miv says it’s also important to take time to think about what you post, and how it can be most bene�icial to your shop. “I’ll spend 30 minutes a day working on Facebook, but a lot of that is just re�lecting on what we need to say. For instance, recently we got to the end of the day and I realised that we needed to reinforce social distancing in store, so I put up a post to remind customers about that," he adds. “Facebook is also a great way to remind people about things you can offer they might not expect. In the current crisis, it’s been really helpful for letting us communicate with the community.” For more pictures of Miv’s store, go to betterRetailing.com/ nisa-local-prudhoe
something new 1 Tryto stand out “The store was starting to feel a bit stale,” says Miv. “That’s why we had the refit – we wanted to try something new. The new Skwishee machines were a hit straight away." time to plan 2 Take social media well “You can’t just post about your range on Facebook. Plan what you’re going to post, whether it’s your community work or a specific message you want to get across about the shop,” he says. sure your 3 Make wines are chilled “We’ve had a bigger chiller installed in our alcohol section,” he says. “This means we can now keep our rosé and white wines chilled. Before, we had to keep them at an ambient temperature.”