Scottish Grocer Dec 2014 by Peebles Media Group

December 2014

E H T M O R F T I F PRO

No.1

SCOTTISH GROCER* Y BRAND

S A M T S I R H C R O F S E FILL YOUR SHELV

*Source: Kantar Worldpanel, Value Sales, Take home non-alcohol brands, MAT to 25.05.14, Total Scotland

WINTER

ESSENTIALS

Also available in pmp

THE MUST STOCK GROCERY RANGE

contents

December 2014

NEWS 4 Lidl denies convenience move 5 Christmas chance for Scots stores 6 Fresh thinking from Fife 8 Aldi jobs claim questioned 9 Booker man’s SWA return 10 A Christmas to click and collect 12 Six months into food sales slump 14 New face for chocolate giant 16 Delving into the shopper’s mind 20 Ethnic food sales on the rise 22 (^HYKZ WYVÄSL! Tobacco retailer 24 Collaborate to face new era 26 (^HYKZ WYVÄSL! Community champion 28 News review of the year

BUSINESS, PROPERTY AND LEGAL 38 New rules on parental leave 40 9LHZVUZ [V YLÄUHUJL FEATURES 42 Christmas drinks 49 Frozen food 50 Scottish brands review (non-alcohol) 84 Scottish brands review (alcohol) 92 ( WYVÄ[HISL 100 Retail resolutions 106 Crisps and snacks 109 Mints and gum

106

MARKET NEWS 30 -LZ[P]L LɈLJ[ VU NYVVTPUN 32 Ferrero takes a bite 34 More drinks from Mars 35 ,ɈVY[ [V JOHUNL IPZJ\P[Z SG workSHOP 36 Pepsico project revisited December 2014 l

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Re. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683.

You are not alone.

Whatever your problem the GroceryAid Helpline offers everyone in the grocery industry free and conďŹ dential guidance and support 24 hours a day, seven days a week. Call freephone 08088 021122 or visit www.groceryaid.org.uk Real lives. Real problems. Real help. GroceryAid

@groceryaid

MANAGING EDITOR Patrick Duffy 0141 567 6074 patrick.duffy@peeblesmedia.com ASSISTANT EDITOR John McNee 0141 567 6032 john.mcnee@peeblesmedia.com

welcome Editor’s comment

SALES DIRECTOR Lucie Cooney 0141 567 6021 lucie.cooney@peeblesmedia.com

by Patrick Duffy, managing editor, Scottish Grocer

Time for new beginnings

ADVERTISING MANAGER Catherine Melaney 0141 567 6026 catherine.melaney@peeblesmedia.com PRODUCTION MANAGER Caroline McGeachie 0141 567 6063 caroline.mcgeachie@peeblesmedia.com PRODUCTION ASSISTANTS Claire Alexander 0141 567 6064 claire.alexander@peeblesmedia.com Barry Lochhead 0141 567 6002 barry.lochhead@peeblesmedia.com GRAPHIC DESIGNERS Linda Park. Ashley Johnston CIRCULATION & SUBSCRIPTIONS Russell Pharo 0141 567 6025 russell.pharo@peeblesmedia.com

Member of the Audit Bureau of Circulations Printed by Headley Brothers Scottish Grocer (monthly) £69.00 (UK), £80.00 (overseas) Enquiries to Russell Pharo russell.pharo@peeblesmedia.com © Peebles Media Group 2014

Peebles Media Group 11-12 Claremont Terrace, Glasgow G3 7XR Telephone: 0141 567 6000 E-mail (advertising): scottishgrocersales@peeblesmedia.com ISSN 1759-1252

WHERE did the year go? 2014 was busy, busy, busy in Scotland. Politically we answered the biggest question we have faced for many years only to find that many people think it might be asked again before long. In sport a magical Commonwealth Games and an exceptionally well-run Ryder Cup took place within weeks of each other on Scottish soil. Beyond Scotland there was a very exciting World Cup which sadly didn’t feature a Scottish team (then again look what happened to the Brazilians) and may not have delivered the sales boost some had hoped for. But it was entertaining and combined with very decent weather to give June and July an upbeat rhythm. But commercial life remained tough and fiercely competitive. A few years ago it would have been almost impossible to imagine it but in 2014 there were convenience retailers who could say: “Well at least I haven’t got a supermarket!” As a couple of our stories in this issue report, the overall market figures – and the figures especially for the multiples – have been exceptionally tough in 2014. But also in this issue we have stories and features about looking forward. In Fife the young management team at Eros Retail is embarking on an ambitious food-to-go venture, working with one of Scotland’s leading bakers. Research company HIM is highlighting opportunities for c-stores at Christmas and beyond. Other researchers see positive paths for convenience retail too. At the end of the year, a time traditionally linked to looking back, it’s also very important to look to the months to come. Have a great December and, when it comes, a great Christmas and New Year season.

ShelfHelp.co.uk For healthier, more beautiful sales.

For the best tips and ranging advice in Health & Beauty get ShelfHelp. December 2014 l

l 03

news

Christmas with a K or 12 from Keystore CONVENIENCE group KeyStore has its own take on Christmas carols this month. Its 12 Ks of Christmas ad campaign runs on Radio Clyde in a bid to attract consumers to Keystore shops before and through the festive season. The 12 Ks campaign, the second time the company has run the activity with the

Festive ﬁrst for Londis LONDIS UK has launched a national media campaign running in the period before and through Christmas and New Year. The campaign, the ﬁrst of its kind for Londis, runs in national newspapers and on radio and supports direct marketing and in-store promotional activity. Themed ‘Stacks of Seasonal Offers’ the activity promotes seasonal ranges including confectionery, party food beers, wines and spirits.

station, gives listeners the opportunity to win prizes and one will win £12,000 in time for Christmas. Trailers will highlight deals across a range of brands, including Irn-Bru, Pringles and Foster’s. Ian McDonald, sales and marketing director at Keystore symbol owner in the UK, Glasgow-based wholesaler

JW Filshill, said: “It’s a really uplifting campaign for KeyStore at an important time of the year for our retailers. “Last year’s campaign saw Radio Clyde reach 34% of people within the station’s transmission area, with each listener hearing the KeyStore name and key messages 8.9 times.”

Convenience not in our plan says Lidl Discounter says news reports of small shops are off the mark NATIONAL newspaper reports suggesting low-priced grocery chain Lidl plans to open convenience stores have been rebuffed by the discounter. The Daily Mail claimed: “Aldi and Lidl are to carpet Britain with dozens of smaller convenience outlets.” And The Independent said the two main discounters had revealed that they both plan on opening their own high street convenience stores. But Lidl told Scottish Grocer

there was no such plan. It already has some stores which are slightly smaller than its standard units but it had no intention of opening c-store sized units.

Scotmid to run Scottish pilots with Bargain Booze owner National deal for island beer GLASGOW-based wholesaler Filshill is to distribute the Shetland-produced beers of Lerwick Brewery across Scotland. Gerry Monaghan, senior alcohol buyer at Filshill, said: “Lerwick Brewery is one of the most exciting breweries in Scotland. Their recent award wins are testament to the quality of their product.” 4l

l December 2014

EDINBURGH-based independent co-operative Scotmid and franchised off-licence company Conviviality Retail (the owner of the Bargain Booze fascia) are to pilot a small number of stores in Scotland. The trial, to be launched early next year, will see Scotmid become Conviviality Retail’s exclusive Scottish franchisee. Conviviality Retail is the owner of the UK’s largest franchised off-licence operation with more than 600 stores in England and

Wales, operating mostly under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack brands. The pilots are part of a new venture, no current Scotmid outlets will be involved. John Brodie, chief executive of Scotmid Co-operative said: “We will be Conviviality’s exclusive Scottish franchisee and if the trial proves successful for both parties there is the potential for further stores to be rolled out across Scotland.”

“We are continuously exploring opportunities for new Lidl stores across the UK as part of our ongoing expansion programme,” a spokesperson said. Some sites that it had identiﬁed, including the site in north London’s Kentish Town Road at the centre of the news reports, suit a ‘high street’ format, it acknowledged. “However convenience stores are not a focal part of our expansion strategy,” the spokesperson added.

Wiseman takes Dairy Crest milk MULLER Wiseman Dairies, owner of the Black and White brand, is to take over the milk operations of Dairy Crest. Under the deal, subject to regulatory and shareholder approval, MWD will acquire several facilities south of the border. A number of milk brands, including ﬂavoured milk Frijj, will also transfer to MWD.

C-stores set for strong season? HIM sees major 2014 festive opportunities for local shops and CTP ﬁgures show how Scotland is different COULD 2014 end with a particularly strong Christmas season for c-store retailers? Well, hot on the heels of its news that c-stores had seen an increase in consumers making planned top-up shopping visits, leading industry market analyst HIM Research & Consulting reckons it has identiﬁed major festive opportunities for convenience outlets. Using consumer information from its HIM Christmas Eyes and Ears study, the researcher said: “Only 12% of UK adults plan to buy all of their Christmas food and drink in one big shop this year, leaving a huge opportunity for convenience stores to attract seasonal top-up shoppers. “And they’re valuable shoppers; 42% say they’re likely to trade up to more premium brands over Christmas.” The researcher found that the most likely category to see shoppers make Christmas purchases in c-stores were: chocolate; crisps, nuts and snacks; wine; soft drinks; and beer. A study from another researcher Shoppercentric, concerned with wider Christmas shop-

NAME: Peter Wells JOB TITLE: Channel Controller – Impulse COMPANY: Whyte & Mackay HOW LONG HAVE YOU BEEN IN THE DRINKS INDUSTRY? I’ve been in the drinks industry for 7½ years. WHAT ARE THE TOP 3 TRACKS OF YOUR LIFE AND WHAT DO THEY MEAN TO YOU? The Stone Roses, She Bangs the Drum – I moved to Manchester in the mid-1990s and The Stone Roses were the soundtrack to my time there. This song brings back great memories of meeting and marrying my wife. The Jam, Town Called Malice – This reminds me of being at school and growing up in Newcastle.

Almost 90% of shoppers consulted by HIM said they wouldn’t be doing a single big Christmas shop this year. Chocolate was the category that most (33%) said they were likely to buy for Christmas in c-stores.

ping, (see page 10) also found consumers say they would shop around, with many in Scotland expecting to visit stores offering click and collect services. Other analysis from HIM has shown signiﬁcant national and regional differences in c-store shopping patterns across the UK. The researcher found that one in every three visits to a convenience store in London is to buy food to go. But in Scotland,

it says, just 13% of convenience shoppers are buying food to go, with footfall instead being driven by top-up or news and magazine shopping. “Our research re-afﬁrms the real need for both symbol groups and suppliers to be aware of the clear regional differences when forming their convenience strategies,” said Katie Littler, insights and communications director at HIM.

MacAskill swept away by Sturgeon’s new broom

Kenny MacAskill at the launch of the Edinburgh East CAP.

ACKS THE TR LIFE .. . R U O Y OF

POLITICIAN Kenny MacAskill, long-term cabinet secretary for justice, and the man in charge of a series of proposed licensing law changes and alcohol-related policy initiatives, was one of the highest-profile casualities of new first minister Nicola Sturgeon’s Holyrood government reshuffle. One of the final changes in his period in post was the reduction

of the permitted alcohol in blood allowed in drink driving rules. MacAskill had publicly launched the Edinburgh East Community Alcohol Partnership (CAP) a scheme strongly supported by a number of retailers and the SGF. MacAskill’s role as secretary for justice was given to Michael Matheson who was previously minister for public health.

The Killers, Mr Brightside – I’ve used this song to try and prove to my three daughters that there is life away from One Direction and Jessie J. They like the song but 1D rules! CAN YOU REMEMBER THE FIRST ALBUM YOU BOUGHT? I think it was The Gift by The Jam. The ﬁrst single I bought was Heart of Glass by Blondie; I was quite embarrassed to tell anyone that for years but it’s now become quite a cool classic! WHAT WAS THE FIRST LIVE BAND YOU SAW? AC/DC on their ‘For Those About to Rock’ tour in October 1982 at Newcastle City Hall. I remember being in the second back row and having to stand on the seat to see. IF YOU COULD GO TO ANY GIG ANYWHERE IN THE WORLD WHO WOULD YOU SEE AND WHY? It’s a regret that I’ve never been to Glastonbury, but there’s still time!

December 2014 l

AVAILABLE NOW!

news

brio E-cigarette range by CLIPPER

A Brand you can trust a taste you will Love

Stepping up to the plate

The Market Over the past 18 months E-cigarettes have become one of the fastest growing products in any sector, growing beyond expectation. There are now estimated to be over 200 brands in the market with a current UK worth estimated at £91 million. E-cigarettes have been a hot topic in the media over the past year, and with an increased interest in the public’s health and with a rise in the price of traditional cigarettes it’s no surprise so many ‘brands’ have emerged trying to get a slice of the action! However in recent months we have seen a significant decrease in the sales of E-cigarettes (especially disposables) against the continuous rise in popularity of Tank Vaporizers/ shisha style smoking tools and the wide range of exotic and everyday flavours being offered to draw the consumer in. ‘Vaping’ is now a fashion statement rather than a tool to help addicts quit smoking but this is the direction the market is moving in so it is an important product to have on the shelf when offering a complete range to the retailer. We have installed features such as a flexible non-leakage mouth piece and over charge protection chip to ensure the safety of our users. Additionally all our e-liquids are produced in Europe to instil the quality and safety aspect of these products to the consumer in order to gain their trust and respect.

BRIO In 2014 Clipper launched a complete range of e-cigarettes, tank vaporizers and e-liquids. We have had a very positive response to the launch of the new brio range, and have already introduced new accessories such as replacement clearomizers and new flavours to the range to keep it fresh, exciting and in demand! As yet, no brand has been developed with strong recognition in the eyes of the consumer; but at last, CLIPPER has entered as a brand recognised by all smokers. CLIPPER being a brand that has thrived on its promise and delivery of reliable and quality lighters, has taken this approach to our new E-cigarette range in order to bring safe and dependable products to the consumer. We have spent time analysing the market and the best products available, and we feel we’ve gone one better! Firstly, why Brio? Because it sounds good in any language! But most importantly the BRIO’s USP: UNIQUE VAPFLOW SYSTEM – one of the most technologically advanced and reliable in the market! The hypersensitive airflow sensor immediately detects when the user is taking a puff on the e-cigarette and therefore makes Brio’s advanced technology one of the longest lasting E-cigarettes in the market producing more puffs for your money! And the soft filter tip and smooth paper create an enhanced realistic smoking experience. CLIPPER is already a well-established leader in the lighter market for delivering good quality and reliable products, and is therefore known and trusted by existing smokers. CLIPPER maintains huge popularity and loyalty throughout the UK and worldwide which, in a market full of questionable brands and a product that we still know so little about in terms of health, is a benefit that money can’t buy! For our launch we are offering retailers a 5+1 FREE promotion pack on the Disposables and both Mini and Standard size Tank Vaporizers as an incentive to get behind Clipper in our new venture, and prove we can be No.1 in any market we set our sights on!

Brio’s complete range ͻ Disposable – Classic Tobacco flavour Gold (18) / Classic Tobacco flavour Bold (9)/ Menthol (9) ͻ Rechargeable Starter Kit (18) ͻ Cartridges / Cartomizers – Gold (18) / Bold (9) / Menthol (9) ͻ Tank Vaporizer ͻ Tank Vaporizer Clearomizers ͻ Mini Tank Vaporizer ͻ Mini Tank Vaporizer Clearomizers ͻ E-liquids (12 different flavours each in 3 different strengths)

www.briocigs.co.uk 6l

l December 2014

Harris won’t be going for Nisa CEO but he is promising some fresh thinking AN 18-year-old retailer from Fife, widely reported to have set his sights on becoming Nisa Retail’s next chief executive, has told Scottish Grocer he won’t be a candidate for the post. Harris Aslam, of Kirkcaldy, made national headlines in September when it was reported that he was preparing an audacious bid to ﬁll the shoes of departing Nisa chief Neil Turton. However, Aslam, who is already on the board of the mutual wholesaler and retailer, reckons the story was blown out of proportion. “I did tell the Sunday Times that I was considering it, but I don’t know where they originally got the story from,” he said. “It was never more than an interest. I didn’t apply for the role and never said I was going to apply either. “I am all for the younger generation stepping up and I want to do more to get youth involved in our industry, and I did think being CEO could certainly help do that, but after giving it some consideration I

by John McNee decided it wasn’t for me. “On a personal level, would I have even stood a chance? I don’t know.” Born into a retailing family, Aslam started taking on managerial responsibilities when he was just 13. The same year, he left school to pursue an HNC in legal services at Adam Smith College, before going on to university at 15. He now runs three Nisa stores in Fife with his cousin Raza Rehman. Their company, Eros Retail, recently reported annual turnover in excess of £3m. He spoke to Scottish Grocer days before the launch of Fresh Kitchen, a new food-to-go service with Stephens Bakery, based at his ﬂagship store in Leven. “The concept is to offer the ultimate food-to-go solution,” said Aslam. “Our offering before has just been packaged sandwiches. “Fresh Kitchen is our solution

Overtime ruling could see 5m back pay claims As many as ﬁve million employees could make backdated claims after an employment tribunal ruled that voluntary overtime should be included in holiday pay calculations. Paul Kenny, GMB union general secretary, said the judgment ensured workers would be properly paid for

holidays and clariﬁed that voluntary overtime must be included in holiday pay amounts. But several employers’ organisations said the ruling, which some observers expect to be appealed, could put ﬁnancial strain on businesses, many of which are currently fragile.

Food labels change this month

Harris Aslam, above, and his cousin Raza Rehman run three Nisa stores. SG visited their ﬂagship Leven store as the ﬁnishing touches were being put to the comprehensive food-to-go service Fresh Kitchen, being developed with award-winning baker Stephens.

that we should probably have been doing two years ago, because the whole industry is moving towards food to go.” A plan has been put in place to provide a broad variety of fresh food including breakfast

rolls, sandwiches made to order, pastries, baked potatoes and hot coffee. Noodles and choose-yourown pizzas will be added to the menu at a later date. Aslam said: “Fresh Kitchen’s a big part of our retail strategy.

18-20 2015 SECC JANUARY

The branding is fantastic and the quality will be very good, but we’re keeping it affordable. “Leven is our test bed, so we’ll see what works and what doesn’t, before taking it out to our other stores.”

NEW EU regulation means that all food labels must include standardised allergy information. The change comes into force on December 13. Fourteen allergens, from eggs and milk, to soya and sulphur dioxide, must now be emphasised in the ingredients labelling on pre-packed food. Gluten warnings will disappear and individual gluten ingredients, such as wheat, will be highlighted instead. Loose foods that contain any of the 14 allergens used as ingredients will also need allergen info. The British Retail Consortium has further advice for retailers at www.brc.org.

The only trade show in Scotland dedicated to the speciality food and drink retailer. Come and see over 150 suppliers and hundreds of great food and drink products.

Discover a myriad of new products and ideas to stock in the year ahead. To register your free visitor badge or see a full list of exhibitors please visit:

www.scotlandsspecialityfoodshow.com

December 2014 l

news SMART RETAILERS USE THE NEW ‘GREEN RETAIL APP’ “The Green Retail App” provides a dedicated one-stop-shop for Ăůů ƚŚĞ ƌĞƐŽƵƌĐĞ Ğĸ ĐŝĞŶĐǇ ŶĞĞĚƐ of retailers, including videos, ƉƌĂĐƟ ĐĂů ƚŽŽůƐ ĂŶĚ ŝŶĨŽƌŵĂƟ ŽŶ to help the sector use resources ;ĞŶĞƌŐǇ͕ ƌĂǁ ŵĂƚĞƌŝĂůƐ ĂŶĚ ǁĂƚĞƌͿ ĂƐ Ğĸ ĐŝĞŶƚůǇ ĂƐ ƉŽƐƐŝďůĞ͘ dŚĞ ŽŶůǇ Ěŝī ĞƌĞŶĐĞ ŝƐ ŝƚ͛Ɛ Ă ƚŽŽů ǇŽƵ ĐĂŶ ĐĂƌƌǇ ǁŝƚŚ ǇŽƵ ĞǀĞƌǇǁŚĞƌĞ ʹ ŽŶ ǇŽƵƌ ƉŚŽŶĞ͘ dŚŝƐ ƵŶŝƋƵĞ ƌĞƐŽƵƌĐĞ Ğĸ ĐŝĞŶĐǇ ƐŵĂƌƚƉŚŽŶĞ ĂƉƉ ŚĂƐ ďĞĞŶ ĚĞƐŝŐŶĞĚ ƚŽ ďĞ ĚĞĚŝĐĂƚĞĚ ƚŽ ƚŚĞ ŶĞĞĚƐ ŽĨ ƚŚĞ ƌĞƚĂŝů ƐĞĐƚŽƌ͘ ĐůĞǀĞƌ ĂƉƉ ŝƚ ĐŽŵĞƐ ĐŽŵƉůĞƚĞ ǁŝƚŚ Žī ͲƚŚĞͲƐŚĞůĨ ĂŶƐǁĞƌƐ ĂŶĚ ƐŽůƵƟ ŽŶƐ ƚŽ ŚĞůƉ ƌĞƚĂŝůĞƌƐ ƐĂǀĞ ŵŽŶĞǇ ŽŶ ƌƵŶŶŝŶŐ ĐŽƐƚƐ ĂŶĚ ďĞĐŽŵĞ Ă ŵŽƌĞ ƐƵƐƚĂŝŶĂďůĞ͘ /ƚ ŝƐ ĂůƐŽ Ă ĚŽŽƌǁĂǇ ƚŽ ĨƌĞĞ͕ ŐŽǀĞƌŶŵĞŶƚ ĨƵŶĚĞĚ ƐƵƉƉŽƌƚ ŽŶ Žī Ğƌ ƚŽ Ăůů ƌĞƚĂŝůĞƌƐ ŝŶ ^ĐŽƚůĂŶĚ͕ Ăůů ĨƌŽŵ ƚŚĞ ĐŽŶǀĞŶŝĞŶĐĞ ŽĨ ǇŽƵƌ ƐŵĂƌƚƉŚŽŶĞ͘

Jobs claim questioned C-store group says big store expansions likely to hit retail employment

,ƵŐĞ ƐĂǀŝŶŐƐ ĐĂŶ ďĞ ŵĂĚĞ ŽŶ ǇŽƵƌ ƌĞĚƵĐŝŶŐ ǇŽƵƌ ƌƵŶŶŝŶŐ ĐŽƐƚƐ dŚĞ ƌĞĐĞŶƚ ƌĞƚƌŽĮ ƚ ŽĨ ƚŚĞ ^ĐŽƚŵŝĚ ƐƚŽƌĞ ŝŶ ĚŝŶďƵƌŐŚ͕ ƐƵƉƉŽƌƚĞĚ ďǇ ZĞƐŽƵƌĐĞ ĸ ĐŝĞŶƚ ^ĐŽƚůĂŶĚ ĨƵŶĚŝŶŐ ĂŶĚ ĂĚǀŝĐĞ͕ ŝƐ Ă ƌĞĐĞŶƚ ĂŶĚ ƌĞĂů ůŝĨĞ ĞǆĂŵƉůĞ ƚŽ ƚŚĞ ƐĞĐƚŽƌ ŽĨ ǁŚĂƚ ĐĂŶ ďĞ ĚŽŶĞ ƚŽ ƌĞĚƵĐĞ ĞŶĞƌŐǇ ĐŽŶƐƵŵƉƟ ŽŶ͘ ;^ƚŽƌĞ ŚĂƐ ƌĞĚƵĐĞĚ ĞŶĞƌŐǇ ƐƉĞŶĚ ďǇ ŽǀĞƌ ϱϬй ŽŶ ůĂƐƚ ǇĞĂƌͿ ^ĐĂŶ ƚŚĞ YZ ĐŽĚĞ Žƌ ĚŽǁŶůŽĂĚ ǇŽƵƌ ĂƉƉ ƚŽĚĂǇ ĨƌŽŵ ŝdƵŶĞƐ ƉƉ ͬ 'ŽŽŐůĞ WůĂǇ ĂŶĚ ƐĞĞ ŚŽǁ ǇŽƵ ĐĂŶ ƐĂǀĞ ŝŶͲƐƚŽƌĞ͘ Interest free loans from £1,000 to £100,000 ZĞĚƵĐĞ ǇŽƵƌ ŽƉĞƌĂƟ ŶŐ ĐŽƐƚƐ ďǇ ŽƉĞƌĂƟ ŶŐ ŵŽƌĞ ƐƵƐƚĂŝŶĂďůǇ͘ &ƵŶĚŝŶŐ ŝƐ ĂǀĂŝůĂďůĞ ƚŚƌŽƵŐŚ dŚĞ ^ĐŽƫ ƐŚ 'ŽǀĞƌŶŵĞŶƚ͛Ɛ ^D ůŽĂŶ ƐĐŚĞŵĞ͘ Ƶƚ ĐŽƐƚƐ͘ /ŶĐƌĞĂƐĞ ǇŽƵƌ ĐŽŵƉĞƟ Ɵ ǀĞŶĞƐƐ͘ Ğ ŵŽƌĞ ƌĞƐŽƵƌĐĞ Ğĸ ĐŝĞŶƚ͘

www.resourceefficientscotland.com Freephone 0808 808 2268

l December 2014

ALDI’S pledge to create 35,000 new jobs in the next seven years through UK expansion has been called into question amid fears it will force the closure of c-stores. The German-owned discounter had previously announced its intention to have 1,000 stores in the UK by 2022, but added the job-boosting claim during a visit to its HQ by PM David Cameron last month. He described it as “good news for our economy”. However, John Lee, public affairs manager for the Scottish Grocers Federation, said: “Our main concern is that large-scale developments from companies

like these will simply displace jobs and customers from existing businesses and have a negative impact on the local economy.” Oxgangs Premier retailer Linda Williams, who is campaigning against a proposed Aldi on her doorstep, said: “I think it is quite terrifying for our sector. As they try to steal custom from the major multiples, we will be the casualties along the way. It spells disaster for small local stores, and is exactly the scenario we are ﬁghting against.” Aldi had not responded to a request for comment at the time of going to press.

Dreaming of a gin Christmas GIN in teacups is no longer the preserve of the secret tippler in prohibition Chicago. Super premium brand Hendrick’s has a gift pack, called Dreamscapes, that includes a china cup and saucer with a bottle of gin and leaﬂet of dream-themed suggestions. It’s available for all channels including convenience.

Lynagh to head up wholesalers Booker area manager becomes second chief to return to SWA presidency BOOKER area manager, Eddie Lynagh, has been named the new senior vice-president of the Scottish Wholesalers’ Association (SWA). He was unanimously elected to the role at the recent SWA council meeting. The position means he will take over the top job from current president, Asim Sarwar, next summer. Lynagh will then become the second individual to hold the of-

ﬁce for a second term. Graham Benson of Bellevue Cash & Carry was the ﬁrst. Lynagh will take over at the Edinburgh-based trade association’s annual conference at Crieff Hydro in June. “This is an important appointment for the SWA and I am absolutely delighted that Eddie has agreed to accept it,” said Sarwar. “His experience and enthusiasm will bring fresh ideas and

Amber goes for gold INDEPENDENT retailers can share £7,500-worth of stock in a golden ticket promotion from JTI. The 200 tickets are hidden in random outers of price-marked 20g Amber Leaf Signature Blend. Selected at random, 15 of the 200 retailer entries will win £500 worth of Amber Leaf stock, with the remaining 185 retailer entries receiving £5 Love 2 Shop vouchers. POS including A2 posters and wobblers will communicate the competition in the wholesale.

Eddie Lynagh, senior vice president Scottish Wholesale Association.

impetus to the SWA and I look forward to working with him in the coming months.”

AVAILABLE NOW CLIPPER PRESENTS BRIO The complete range of E-Cigarettes

December 2014 l

news

Shoppers plan to click and collect Smart potato PRODUCTION of potato vodka has started at Arbikie, Scotland’s newest farm-to-bottle distillery. Arbikie Vodka is the first spirit to be produced at the facility, with whisky and gin to follow early in the new year. The firm says it will be the first white and brown spirits production operation in Scotland that will grow all its own ingredients and ferment, distil, bottle, label and mature the spirits on site. Described as “super premium”, Arbikie Vodka RRP is £42 per bottle. The distributor is Gordon and MacPhail.

Big cheese GLASGOW cheese expert, George Mewes, won Counter of the Year at the World Cheese Awards 2014 last month. Mewes has run the shop on Byres Road since 2010. Judges commented: “The people of Glasgow are lucky to have such a terriﬁc cheese shop.”

Dundee only? DUNDEE cake has applied to join Parma ham and Jersey Royals with Protected Geographical Indicator (PGI) status. The national consultation to consider the application closes on 5 December.

10 l

l December 2014

SCOTTISH Christmas shoppers are buying their gifts online then picking them up from collection points in greater numbers than ever before. More than two in five of customers surveyed by research agency Shoppercentric said they planned to use click and collect services over the festive season. That’s notably higher than in the whole of the UK, where the figure is just 30%. The survey also found that consumers were pessimistic about the economic recovery and planned to shop around, online and in stores, to find the best prices. Only 9% said they planned to spend more this Christmas than last year. Some 5% of the shoppers surveyed planned to use cstores for Christmas shopping. “The rise in popularity of click and collect will help to drive more shoppers in store and presents retailers with a huge opportu-

Shoppercentric found people plan to shop around at Christmas. But Scottish c-stores, especially, could gain visits through click and collect.

nity to really lay on the ambience, and roll out the tempting displays to play to their strengths and encourage incremental purchasing,” said a Shoppercentric spokesperson.

“If they could tempt each of those customers to pick up just one extra item in addition to their parcel collection, retailers will be able to deliver a seriously big uplift in sales.”

Jetting into five more years AN independent forecourt in Dundee has become the latest to receive Jet’s new branding after signing a re-tie deal with the fuel supplier for the next five years. There are currently 50 Jet forecourts in Scotland, and 21 have received the new livery, which includes illuminated pole signs, canopy pods and undercanopy lighting, designed to improved the look at night-time and reduce costs. The package also includes new uniforms. Sebastian Nonis, owner of the Forfar Road site, has been with Jet, the retail brand of oil firm Phillips 66, for 10 years. During that time he has faced intense competition from new supermarket developments, expanded his convenience store with Booker Premier and fought

Sebastian Nonis’s Forfar Road, Dundee site now has the new Jet livery.

hard to price-match the giants on petrol. On signing for the third time with Jet, he said: “I’m a people person and I like it when someone comes to the ofﬁce to discuss things. Jet doesn’t feel like a huge company

to me because I can always speak to someone.” Paul Yates, Jet territory manager for Scotland, said: “We want to expand our sign-up numbers, get more sites on board and make them part of the Jet family.”

news

‘What retailers say…’

Food sales slump hits six months O 12 month average performance the worst on record O Halloween demand fails to prevent October like-for-like crash

Narinder Singh Sungu, Owner, N S News, Birmingham “Hamlet is the best-selling cigar brand in my store, due to Hamlet Large Whiff and Miniatures performing particularly well. Currently, I sell between six and seven outers of Hamlet Miniatures a week, three to four Hamlet 5s, an outer of Hamlet 10s, followed by half an outer of Hamlet 10s Smooth. I also sell an outer of King Six and ten single Hamlet cigars a week and notice a huge uplift in sales across cigars during the winter months.” “My tip for other retailers would be to treat cigars like you would any tobacco product - my customers come to me because of my range and I make sure I never run out of stock. With the display ban on its way, it has never been more important to demonstrate to existing adult smokers that they can rely on ﬁnding their preferred brand at your store, even when the tobacco gantry is covered up.”

FOOD sales slumped across Scotland last month, with like-for-like ﬁgures down 4.2% on the same time last year, according to ﬁgures from the Scottish Retail Consortium and accountants KPMG. And while demand for Halloween goods was strong, unseasonally high temperatures did not help the sale of cold-weather goods. Total food sales decreased by 2.7% year on year in October, slightly down on September. Year-on-year sales have now dropped for six consecutive months although the category’s three-month performance showed improvement on the previous month and is 0.9% below the 1.4% decline for the UK. However, the 12-month average decline for food deepened to 1.2%, an all-time low, compared to a decline of 1.9% for the UK. David Lonsdale, director of the Scottish Retail Consortium, said: “Food and drink sales continued to wilt further despite good demand for Halloween-related fare.

SRC-KPMG Retail Sales Monitor ﬁgures showed October 2014 was bleak for food sales value. Like-for-like totals were down 4.7% on 2013.

“Looking forward, retailers will be heartened by the news that growth in average pay is now outstripping inflation for the first time in five years. Shopkeepers will be hoping that this – alongside sustained rises in footfall over recent months – translates

Total grocery registers ﬁrst Kantar fall

Latest Kantar 12-week ﬁgures show Sainsbury’s sales down 2.5% on last year.

12 l

l December 2014

into greater levels of conﬁdence as we approach Christmas.” David McCorquodale, head of retail at KPMG, added: “Food retailers will be disappointed to feel the gap widening against the rest of the UK for the last three months.”

THE whole UK grocery market is in decline for the ﬁrst time since Kantar Worldpanel began its records in 1994. Sales are down 0.2% year on year. Fraser McKevitt, head of retail and consumer insight, said: “An average basket of everyday goods now costs 0.4% less than it did this time last year. Price deﬂation is forecast to continue well into 2015.” The discounters continue

to thrive with Aldi‘s sales 25.5% higher. Lidl is up 16.8%. The big four are struggling. Asda’s market share is steady at 17.2% while Sainsbury’s and Morrisons have both declined in share compared to last year. with sales down 2.5% and 3.3% respectively. Tesco’s sales are down by 3.7% although the rate at which it is losing market share has slowed.

Stock up

Now For the

news and people

Hovis chief to leave HOVIS CEO Bob Spooner has resigned from the company to move overseas. Nish Kankiwala will continue as executive chairman and will work with the board to identify and appoint a new CEO. Spooner will leave his position at the end of January. Kankiwala said: “Bob leaves the business in great shape with Hovis achieving a signiﬁcant year-on-year increase in proﬁts as the only UK bread brand that is growing.”

Distributors warn of driver crisis A nationwide shortage of drivers could ruin Christmas according to the Food Storage and Distribution Federation. CEO Chris Sturman said: “A united approach is required to ensure the government and public understand the very real risks the country faces. “Unless the government take action, the impact of driver shortages will affect Christmas gift deliveries, wholesale and foodservice.”

Vandals hit sake project THIEVES and vandals have caused £600,000 worth of damage to the the Arran Brewery’s sake plant in Dreghorn, North Ayrshire. Since taking over the site there have been three breakins in three weeks. Lead has been stripped from the roof, resulting in serious internal water damage internally. The copper boilers have been stolen from all three buildings, leaving one boiler house ﬂooded.

14 l

l December 2014

Blas Maquivar will be president, Mars Chocolate UK.

Jez Pegg, sales and marketing director, Palmer and Harvey.

Riccardo Mazzoni, regional director, Shopper Anonymous.

New face for chocolate giant MARS has a new UK chocolate chief: Blas Maquivar will take up the role of president Mars Chocolate UK & Global Retail next month. He is currently regional president for the Mars Latin American chocolate business. His new role will also include running Mars’ global M&M’s world stores and international travel retail division. Maquivar will move to the UK with his family to take up the job. His appointment follows the promotion of Fiona Dawson to Global President for Mars Food, which was announced in September. s Jez Pegg has joined wholesaler Palmer and Harvey as

sales and marketing director. His CV includes P&G, Unilever and Nestlé, giving him experience in trade channels from grocery to foodservice. Pegg takes up the former role of managing director Martyn Ward, who is now responsible for Palmer and Harvey Wholesale. s Shopper Anonymous has a new regional director for Scotland east. Riccardo Mazzoni will manage the company’s mystery shopping and customer feedback systems as well as running motivational customer service and sales training. s Expansion into mainland Europe means brewer Innis & Gunn has promoted Crawford

Sinclair to the role of European director of sales. He joined the Edinburgh-based company in July 2010 and will concentrate on the ﬁrm’s new territories: Czech Republic, France, Italy, Poland, Russia and Ukraine. s Independent drinks company, Quintessential Brands Group, has named William Ovens as its new international commercial director. He was previously managing director of Simon Howie Foods. s Natural and organic health wholesale distributor, Tree of Life, has two new faces at the top. John Dunne joins in a newly created role as commercial manager. Kirsten Sowerby is the new marketing manager.

Co-op courts the young YOUNG Scot card holders will get 10% off their grocery shopping in a new deal negotiated with the Co-op. The 570,000 young people aged 11 to 25 who have one of the cards can claim their discount when they shop at any of The Co-operative Group’s 400 stores across Scotland, from Shetland in the north to Annan in the south.

It is the ﬁrst time Young Scot has partnered with a food retailer to offer discounted shopping. It applies to food, household products, newspapers and mags. John McNeill, of The Co-operative Food in Scotland, said: “Young people are facing increasing ﬁnancial pressures. We’ve found a way to help them make their money go further.”

PMP 2 FOR 3 ACROSS THE ENTIRE RANGE

news: sgf conference 2014

The mind of the modern shopper SGF Conference delegates heard Scotland’s convenience sector can evolve to meet the needs of consumers on ‘autopilot’. SHOPPERS are making more visits to c-stores than ever before, but retailers need to work hard to keep them out of the hands of competitors. That was the message from Katie Hemmings, commercial director of specialist analyst HIM Research & Consulting, to the recent SGF Conference. “Shoppers are on autopilot more than ever,” she said. “We do research every single year in stores, we observe them, take a look at the routes they take. This year, more than ever, they are in a routine. So it is absolutely vital that suppliers and retailers disrupt that routine and encourage them to purchase.” She said HIM’s work had revealed a “new breed of shopper”, shaped by social and demographic changes over the last decade, who were now more demanding and much less forgiving. “They’ve got a lot on their doorstep now, different retailers to go to, really they have been spoiled and their standards are very high,” she said. “They also want to be spoon-fed everything. They are expecting you to inspire them, to provide them with easy meal solutions.”

John McNeill, regional operations director, Cooperative Food.

Blurred lines in 2020 vision

Katie Hemmings, commercial director of HIM Research, speaks to the SGF Conference about changing consumer habits.

HIM also learned that people in different regions want different things from their local retailers. “In London, good customer service is just smiling at them and letting them get on their way,”

‘In Scotland, customer service means something different.’

she said. “But in Scotland customer service means something different. It’s more of an emotional service, rather than just functional. “They do want a bit of a relationship with you as a retailer, where you know their name. “Higher than the rest of the UK, they put real importance on community retailing and this is an area where you can differentiate against the multiples.”

Convenience is “the golden child” of UK retail, according to Hemmings, who said the sector is in growth and will continue to grow, due to evolving shopper behavior. 16 l

l December 2014

C-STORE operators will have to think carefully about the products and services they offer over the next ﬁve years, as the lines between retailers become increasingly blurred, according to John McNeill of Co-operative Food. Addressing the SGF Conference on his predictions for 2020, he said: “The competitive landscape is changing. We need to regard people like Greggs, Subway, McDonalds as our competition. In terms of how consumers behave and their desire to purchase less, and more frequently, these retailers have as much of an opportunity to capitalise on that. “I’m sure quite a lot of these retailers are thinking about what other opportunities there are to drive footfall in their units. “Starbucks may be thinking about newspapers. Café Nero may think about Paypoint. Those distinctions are blurring in terms of different markets. We need to think about how we get our share of what’s available. “That view we have of the marketplace being neatly split into sectors – in the next few years, it’s not going to be as simple as that.”

Criminals targeting your local market?

illegal tobacco untested, unregulated and costs you sales

The illicit trade impacts

income

youth

quality

communities

Suspect it? Report it! Working together to ďŹ ght the illicit trade

Thursday March 12th 2015 The Hilton Hotel FX[[XP\ BcaTTc } 6[PbV^f

Hosted by

Rory Bremner

Book your tickets now.... Scottish Grocer Awards recognise the very best in Scottish convenience retailing. Be there on the night, book your table/tickets to enjoy networking and meeting friends at the number 1 event in the Scottish convenience calendar.

Table of 12 persons ÂŁ1,500 + VAT or ÂŁ125 per person + VAT For further information call 0141 567 6041 Email: organisers@peeblesmedia.com

www.scottishgrocer.co.uk

WELLPARK BREWERY

news and research

JTI RYO silver goes to value JTI is moving its B&H Silver Roll Your Own brand into the value sector with a new lower price point. As of last month, the 12.5g, 25g and 50g packs have an RRP of £4.15, £7.99 and £15.49 respectively. The 12.5g and 25g pouches are also available in price-marked packs.

Indian food remains popular as customers seek to replicate authentic restaurant dishes at home.

Bold palates fuel ethnic growth Adventurous consumers turn to Japanese, African and Indonesian dishes, recipe kits and ingredients.

Centenary celebration IMPERIAL Tobacco is celebrating more than 100 years in the business with a limited-edition pack this month. The new design, printed on the external rayophane of Imperial’s Lambert & Butler silver range, is intended to highlight the brand’s longevity as well as reﬂecting its personality.

20 l

l December 2014

FOREIGN travel, increased willingness to cook from scratch at home and suspicions that ready meals and cooking sauces are high in fat, sugar and salt are fuelling growth in ethnic foods. That’s the conclusion drawn by research company Keynote, which measured the market last year as up 3.2% on 2012, the fourth consecutive year of growth. Its 2014 market update predicts the market (which includes rice) will grow by 14.8% over the next four years. Mature varieties, such as Indian and Chinese food, are evolving as consumers buy the ingredients, or kits, in an attempt to replicate dishes they have tasted on holiday or in restaurants. Thai, Mexican/Tex-Mex and Caribbean foods stayed stable but the real

growth came from new tastes and ﬂavours. “The smaller sub-sectors performed strongly in 2013,” the report noted. “The market continues to diversify as an adventurous consumer base experiments with new global cuisines. Niche ethnic foods such as Japanese, African and Indonesian, expanded at the most substantial rate in 2013.” And while the report states that the appetite for NPD is limited in

Products need to compete with the extreme convenience of home delivery

mature varieties, such as Indian, “increasing variety within the marketplace is fuelling growth rather than dispersing sales, bolstering the robust nature of the sales base.” Convenience, Keynote stresses, is a key factor, “speciﬁcally as products need to be able to compete with the extreme convenience offered by home-delivery.” As well as ready meals, cooking sauces and recipe kits, Keynote points to NPD such as Uncle Ben’s Rice Time pots as “expanding the demand for away-fromhome ethnic foods”. Rice accounts for approximately 20% of the overall ethnic foods market, but Keynote says growth in 2013 was primarily attributable to higher retail prices, which disguised faltering volume sales.

Youâ&#x20AC;&#x2122;re mentally unwrapping our new packaging, arenâ&#x20AC;&#x2122;t you? Introducing our re-designed confectionery bar range. Available now. T: 01236 441600 E: sales @ leesofscotland.co.uk www.leesfoods.co.uk

awards proﬁle - tobacco retailer of the year award 2014

New smoke signals Winner:

Cults Stores, Kirk Brae, Aberdeen Tobacco Retailer of the Year - Sponsored by Imperial Tobacco Interview with Chris Cobb, owner.

Store details Name: Cults Stores Size: 800 sq ft Opening hours: 6.30am – 8pm Monday – Friday 7am – 7.30pm Saturday 7am – 6pm Sunday Symbol: Keystore

ABERDEEN retailer Chris Cobb has never smoked. But he knows the likes, dislikes, preferences and price sensitivities of his local adult smoker customers very well indeed. And when judges of the 2014 Scottish Grocer Tobacco Retailer of the Year Award, run in association with Imperial Tobacco, visited his shop in the Cults district of the north-eastern city they discovered his product knowledge, presentation and dedication to availability could not be equalled. “I think availability is the thing that’s most important to get right,” he said. “I don’t believe in empty spaces. I think I’m quite a fussy retailer, probably. If I go into a shop and see the gantry’s half-empty I’m horriﬁed. But it’s also about knowing your market and having the right products for your customers.” As the store is located in an afﬂuent part of the city, most of the customers are older or retired people with a healthy bank balance and an inclination towards premium brands. However, with the economic chaos of recent years, even Cults has seen shifting habits. “It used to be that people would

smoke a brand and stick to it. Here it was Marlboro, because of the kind of area we’re in. But even wealthier customers are changing their habits and moving down to other brands. Marlboro is about number four or ﬁve now with Lambert & Butler at the top. “I think with tobacco now you’ve fairly got to change with the times.” The store was a basic newsagent when Chris, who had previously worked for BP, bought it and began transforming it into a c-store. However, the arrival of a Tesco Express down the road meant he had to think hard about the kind of service he was offering. Tobacco quickly became a focus and currently accounts for around 20% of the business. “Our grocery lines are really just basics now,” he said. “Cereals, soups, tea and coffee is about all we really sell there. Most of our tobacco stock, if we can get it, is pricemarked. Tesco Express won’t do price-marked packs, so that’s why we deliberately have that offer to customers. The idea is to get people into the shop. We ﬁnd that if we can get people in, they do buy other things. I do see it as a footfall driver.”

O The store was previously a newsagent but was purchased by Chris seven years ago. It was refitted the following year when he joined Keystore. O Before buying his own store, Chris ran BP petrol stations in Peterculter, Stonehaven and Inverurie. He has also worked for RS McColl. O A Tesco Express and a large Costcutter nearby mean competition is fierce. O Cults is an affluent area and customers tend to be older or retired, though there are local schools so procedures to avoid underage sales are very robust. O As well as tobacco and confectionery, the store does a good trade in newspapers - enough to keep 17 paperboys in work.

22 l

l December 2014

Cults Stores in Kirk Brae, Aberdeen makes around 20% of its turnover through tobacco sales and 25% through news. It arranges news deliveries to over 350 customers every day.

Staff at Cults Stores are careful to make sure the gantry is fully stocked. If it’s an available option, Chris will always order price-marked packs, providing a clear difference with the local Tesco Express. Displayed accessories include lighters, papers and ‘make your own’ cigarette kits.

‘Chris Cobb demonstrates an in-depth understanding of both the importance of the tobacco category to his business and the importance to his customers of having 24/7 availability of key brands.’ Daniel Harwood – retail development coach, Imperial Tobacco. If he’s careful about the number of grocery lines he stocks, Chris takes a similarly realistic approach to trying new products on the tobacco gantry. He’s more than willing to have a go with new lines but he makes frequent use of the information-reporting facilities in his EPOS system and makes ﬁnal stocking decisions on the evidence of rate of sale. “We’ve got quite a good rapport with Imperial Tobacco, which is our stand, and with JTI,” he said. “If they’ve got new products we always do an agreement with them – yes, we’ll try it, but after a few months, if it hasn’t sold then they replace it. They’re always willing to do that.” He’s been aware of the efforts that the tobacco ﬁrms have been making on RYO brands. Once again the economic factors that have fuelled interest in RYO have come into play in well-heeled Cults too. “I would say rolling tobacco’s certainly gone up, but not as much with us as in other areas,” Chris said.

“At the moment they really seem to be pushing rolling tobacco. We’ve now got a whole shelf for RYO and a separate unit for Golden Virginia. Cutter’s Choice we never used to do, but we’ve just got it.” So, the store responds to customer trends, closely analyses performance and attempts to make the most of new products, but a question mark hangs over how all of that will be affected by the display ban that comes into play next April. “When there are new products, how are customers going to know?” he asked. “Are you going to just concentrate on your core lines? It is a worry. Obviously we’ve all got to do it. Bigger retailers have done it and it hasn’t affected their sales too much, but I think we’re at least looking at stock issues.” Of similar concern are new European regulations that will abolish 10-packs and smaller packets of rolling tobacco. “If they want to encourage people to stop smoking, why

are they taking smaller packs away? I think that and the idea of plain packaging is just madness. More so because we’re going dark now.” Meanwhile, the growing problem of illicit tobacco has ﬁnally reached Cults. “I didn’t see that until a couple of months ago,” Chris said. “We had a customer come in who’d bought these cigarettes and he said they tasted dis-

gusting. I had a look at it and it was fake Regal. I asked him if he realised they were fake. He told me he’d bought them for £5. “I didn’t even realise it was such a big thing till I heard from Imperial that ﬁve lorryloads of tobacco are taken from the continent every day. I have to wonder how much is being lost in duty and ask why they don’t do more about that.”

Imperial Tobacco UK’s head of independent retail, Andrew Miller, left, and Georgie Thompson, right, present the Scottish Grocer Tobacco Retailer of the Year Award to Chris Cobb of Cults Stores, Keystore in Aberdeen. December 2014 l

l 23

news and comment

Collaborate and we’ll innovate Menzies teams up for grocery NEWSPAPER and magazine wholesaler Menzies Distribution is to move grocery, drinks and other FMCG lines in a new deal with RetailerSaver.com, a web-based group-buying system aimed at retailers. The agreement will see Menzies Distribution manage the nationwide warehousing and fulﬁlment of products and stock for RetailerSaver.com, as well as the delivery of products to stores across Britain. RetailerSaver.com says it supports traders by providing access to discounted prices gained through group buying power and offers an average saving of 15% off typical wholesale prices on FMCG items including alcohol, confectionery, grocery and soft drinks.

Organic food on the rise ORGANIC food advocate organisation the Soil Association says its Organic September campaign helped boost annual organic sales to more than £100m. Quoting Nielsen Homescan ﬁgures it said 83% of UK households purchase organic products in some form. Nielsen ﬁgures for the year to 11 October are said to show growth of 1.6%, compared to the previous year, in contrast to nonorganic market decline of 0.6%. Organic eggs sales grew by 11.7%, organic dairy sales were up 8.4%, and organic poultry sales grew 6.6%. 24 l

l December 2014

Food manufacturers and others need to work together to ﬁnd solutions for a new era’s challenges says Colette Backwell, director of the Scottish Food and Drink Federation. THROUGHOUT its history the food industry has embraced new ideas and new approaches which have transformed consumers’ lives. By constantly investing for the long-term in our people, products and processes we have increased the supply of safe, affordable and nutritious foods so that the average proportion of income spent on food has dropped from 50% in 1914 to around 10% in 2014. Despite these successes, the UK food and drink manufacturing sector faces major challenges that require urgent attention. We need to reduce our environmental impact, produce more for a growing population from less as pressure increases on resources, reformulate and create new products to meet diet and health requirements, and deliver our sector’s vision of 20% growth by 2020. Meeting these challenges will require innovative transformations in the way we do business at all levels – from the ingredients we use and the products we make, to how we package them and transport them to our customers. However, the UK food manufacturing sector is diverse with over 7,700 companies – many of which are small enterprises employing less than 10 people. The sector relies on a wide range of raw materials and ingredients throughout the whole supply chain. Companies cannot always afford the risk of funding research to drive improvements by themselves. If companies could collaborate on pre-competitive research projects to tackle

are working in partnership with Scotland Food and Drink, Interface, Scottish Enterprise, academia and companies to express the needs and priorities of the sector. The Industry Advisory Group on Resource Efficiency, set up by SFDF, Resource Efficient Scotland and Interface, offers an example of how effective collaborations between the public and private sector can deliver innovation with huge impact. So too does SFDF’s Scottish Government-funded Reformulation Programme which has provided support to SMEs to reformulate Colette Backwell, director of the products for health. Scottish Food and Drink Federation. We must create forums which shared challenges there would actively bring together industry be the potential for improved ef- and academia and in which new ficiency, reduced waste and bet- innovative solutions for the secter nutrition that would benefit tor can be researched and develboth consumers and the wider oped, as well as ground-breaking initiatives such as the recently economy. The Food and Drink Federa- launched Centre of Excellence tion’s vision is for an innovative, in Food Engineering at Sheffield resilient and resource-efficient Hallam University. The ambition food and drink manufacturing for the Centre of Excellence is to supply chain that delivers afford- provide world class engineering able, nutritious and safe food for facilities - acting as a hub for en21st century populations. We gineering-related innovation and have taken the first steps in cre- engineering skills solutions. This ating a better future by working will help improve productivity with the Knowledge Transfer and ultimately competitiveness in Network to identify the top 10 the food and drink manufacturpriority areas for pre-competi- ing sector. By taking a more collaborative innovation. In Scotland, we tive approach to innovaThe average proportion tion we can achieve even more, overcoming the of income spent on challenges facing the secfood has dropped from tor and society and delivering additional benefits 50% in 1914 to around for our businesses, customers and community. 10% in 2014.

B E FO R E

THE

D I S P L AY

BAN

REMEMBER TO KEEP YOUR

SPIRITS UP

make sure you rE stocked up on the uk s no1 a d ditive free tobacco

Smoking kills NO ADDITIVES DOES NOT MEAN A SAFER CIGARETTE THIS ADVERTISEMENT IS FOR THE INFORMATION OF TOBACCO TRADERS ONLY

DISTRIBUTED BY

Smoking seriously harms you and others around you

awards proﬁle - community champion award 2014

The power to change Winner:

Premier Mo’s, Coatshill Avenue, Blantyre Community Champion Award 2014 - sponsored by Mondelez International Interview with Shahid (Mo) Razzaq, owner

Store details Name: Premier Mo’s Convenience Store Size: 1,000 sq ft Opening hours: 7am – 9pm Monday – Thursday 7am – 10pm Friday – Saturday 8am – 7pm Sunday Symbol: Premier O Shahid and Rukhsana – better known as Mo and Roxy - are two of Scotland’s most-awarded retailers and have also picked up UK awards.

IT’S been a good year for Premier Mo’s Convenience Store in Blantyre, with a host of new trophies to add to an already-groaning shelf. One of the latest, Scottish Grocer’s Community Champion Award 2014, run in association with Mondelez International, recognised the tremendously positive impact Premier Mo’s has had on the local area. But as owner Shahid ‘Mo’ Razzaq is keen to point out, that isn’t something that was achieved overnight. “We win awards and people think it’s all for stuff that just happened recently, but we were doing it for years,” he said. “It was just one of those things you get on with. “When we joined Premier, about six years ago, our RDM said to us to go in for the awards. We said no, we’d never win it, because we’re just a cosy corner shop. We’re not one of the big hitters. But then he nominated us on the ﬂy and when we won our ﬁrst award I was shocked.” The journey to this point has been a rewarding one, but it hasn’t always been easy. Before they moved into the heavily-shuttered premises in the Coatshill housing estate in Blantyre, Mo and his wife Roxy were warned

they would face trouble, and they certainly did – shoplifting, grafﬁti, vandalism, you name it. “There were people who thought they could intimidate us and bully us,” said Mo. “We had so many court cases in the early days it was unbelievable. It was a really, really intimidating place … very tough! “We looked at it as us and them. We were saying to ourselves ‘we don’t live here, we’re a business, we make money and that’s it’.” All that changed when a teenage boy was stabbed in the grounds of the local primary school. Mo was among those who came to his aid, helping to keep him alive till the ambulance arrived. Tragically, he died on the way to hospital. “That hurt really bad. I don’t like to talk about it, even now,” he said. “It took me 18 months to get over that. I couldn’t talk to anyone about it. But that’s when we started working in the area, working to make changes. We said to ourselves ‘we’re not going to be the victims. We’re going to do something about it’.” First, the grills came down and the windows were made bigger, to make the shop more open and inviting.

O Premier Mo’s was recently featured on television in STV’s ‘RBS Finding Scotland’s Real Heroes’. The Razzaqs were nominated for Neighbours of the Year – and won. O Charities supported through the shop include Breast Cancer UK, the World Horse Association and St Andrew’s Hospice. O Mo recently introduced a healthier lifestyle range and his own loyalty scheme in store. O The Razzaqs provide deliveries to the elderly and disabled in their community and also offer a ‘losers lotto’ to regular customers. The Premier Mo’s Losers Lotto was cited by judges as evidence of “community in the store”. Other draws include the Christmas hamper rafﬂes, one of which is free to enter for pensioners. 26 l

l December 2014

Mo still helps to coach the youth football team he founded in the 1990s, Coatshill FC. There are currently over 50 children involved, with both an under-9 and under-12 side.

‘The judges of the award saw evidence at every level that Mo runs his business not only in a socially responsible manner, but that he considers himself part of his community. A community leader as well as a well-respected retailer.’ Paul Webb – Field sales development manager, Mondelez UK. Then, the Razzaqs founded a youth football team, which quickly became a kind of social club for local youngsters, organising ﬁshing trips, Christmas parties and outings to places like Alton Towers and Blackpool Pleasure Beach. Mo said: “The idea was to show them something else, something to do other than drink. And we did that. “The young ones got to know us, we got to know them, and the trouble we’d been having was just wiped out.” Today they have two football teams and regularly organise fun days and other events for the whole community. At the start of this year, Mo and Roxy launched their second store, a Booker Family Shopper in nearby High Blantyre. And just like Premier Mo’s, it aims to be a successful shop and community asset. Already, the store’s unsold bread is delivered to the local homeless shelter, while six cases of goods go to the food bank every Tuesday. Cash donations are regularly made to the Hyper Cyber café

children’s drop-in centre and to the Blantyre Miners Welfare Social Club. And no matter the event, the people of Blantyre know they can count on Mo to help out, whether with rafﬂe prizes, sponsorship or organisation. Mo also keeps in touch with his customers through the shop’s popular Facebook and Twitter pages, where he is always making suggestions for things to improve the area. Social media proved its power recently, when a boy staying in the local homeless shelter came into the store and ran off with two bottles of wine. Mo said: “I was ﬁzzing, so I went on Facebook and I said ‘listen, we give bread to the homeless shelter and this is what he does. I’m not happy about this.’ And I got a huge number of replies. “Shoplifting can be seen as a victimless crime. They think that it’s only a shop, they can afford it. My post pointed out we’re giving our spare stock to them and we’re able to spend that money because the shoplifting isn’t as bad in our shop

as it could be. “But if shoplifting goes higher we’d need to cut back. So because of that, people realised it isn’t a victimless crime and the next day the boy came in, apologised, and paid the money.” When it comes to making your community a better place to live, Mo believes local retailers can lead the way. “There are two types of businessmen – the ones that take

and take and complain, and the other ones who will put back in and take an interest in how the area’s doing,” he said. “Now more business people are starting to see that they have to start putting effort in. “People complain their area is terrible, it’s rundown, there’s no respect, or there’s mess, but they’re not even willing to go out and clean it up. “I think if there’s something wrong, sort it out!”

Field sales development manager Scotland for Mondelez International, Caroline Buchanan, left, and Georgie Thompson, right, present the Scottish Grocer Community Champion Award to Mo and Roxy Razzaq and their family. December 2014 l

l 27

news review 2014

Scotland’s very big adventure Supermarket giant Morrisons struggled to turn around its fortunes this year.

Multiple signals new price war IN April, Scottish Grocer reported that troubled supermarket chain Morrisons had begun slashing prices to compete more closely with the likes of Aldi and Lidl. The move sparked fears of a price war, with commentators speculating that Asda and Tesco would join Morrisons in a race to the bottom. The retailer was prompted to act after posting a £176m pre-tax loss after exceptional writedowns. Underlying pretax proﬁts fell 13% to £785m, with like-for-like sales down 2.8%. As well as saying it intended to narrow price gaps, the chain began trials of a new loyalty card, which would eventually be launched nationwide as ‘Morrisons Match & More’.

This year’s news was dominated by cultural and political events, debates on public health and the struggles of the supermarkets 2014 got off to a less than promising start in January, with Scottish Grocer reporting the grim news that around one in seven shops in Scotland was sitting empty. The ﬁgure was included in a report from Stirling University’s Institute of Retail Studies and the Local Data Company. O NHS analysis showed that alcohol consumption in Scotland had fallen 8% since 2009. The Wine and Spirits Trade Association said it showed there was no need for minimum pricing. O In February we reported SRC-KPMG’s ﬁgures for Christmas, which showed that likefor-like sales of food were down 3.2% on the year before. O Scotmid began piloting a scheme with Healthier Scotland to encourage people to eat better. Five stores in Edinburgh ran the trial, replacing sweets and snacks at the impulse counter with fruit and vegetables. O In March Glasgow-based United Wholesale Scotland said

it was on track to complete the major expansion of its Maxwell Road depot in Glasgow. O Business secretary Vince Cable accepted a recommendation from the Low Pay Commission that there should be a 3% increase in the national minimum wage, meaning the rate would rise 19p to £6.50 an hour. Later in the year, Labour leader Ed Milliband pledged to raise the NMW to £8 an hour by 2020. O In April the Scottish Grocers’ Federation announced plans to team up with HMRC to create an intelligence sharing system to tackle illicit trade. O The Budget saw tobacco duty rise by 2%, but Chancellor George Osborne chose to cut beer duty by 1p per pint and freeze duty on spirits and ordinary cider. O May’s Scottish Grocer reported the takeover of Sher Brothers Cash & Carry in Glasgow by wholesaler Bestway. O The number of adults using

e-cigs was said to have tripled in two years to reach 2.1m. O Tesco signalled that it intended to drive further into convenience retailing, with plans to open 150 more Tesco Expresses in the UK over the year. O In June the Scottish Government’s attempt to introduce minimum unit pricing of alcohol was delayed after appeal judges referred the plan to the European Court of Justice. It was reported that a ﬁnal decision would not be reached for at least a year. O The Scottish Government introduced the Air Weapons and Licensing (Scotland) Bill 2014 to the Scottish Parliament. O In July we covered the news from the Scientiﬁc Advisory Committee on Nutrition, which told the Coalition Government that consumers had to drastically slash their sugar intake. O Tributes were paid to Maitland Mackie, the patriarch of the Scottish ice cream dynasty, who

Fun and Games GLASGOW’S c-stores reported mixed fortunes during the city’s Commonwealth Games. Event popularity and large crowds brought success to some stores but disaster to others, with some stores near Hampden Park, the venue for athletic events and the closing ceremony, among the most negatively affected.

28 l

l December 2014

One retailer reported hearing rumours that some local business owners would be seeking compensation for loss of trade. The British Retail Consortium said footfall across Scotland was up 4.4% in the month. In and beyond Glasgow, the Games was said to have sparked an increased demand for iconic Scottish food and drink.

Glasgow marked the Commonwealth Games in spectacular style with ﬁreworks on the Clyde.

Margiotta marches on EDINBURGH-based retailer Margiotta Food and Wine added a store in the Polwarth area of the city to its chain in January. The move came as supermarket and c-store giant Sainsbury’s bought an independently-owned Margiotta unit in the city’s Marchmont area. Margiotta Food and Wine took over the running of Santangelis in Polwarth Gardens after the storeowner, Mark Santangeli, announced his retirement after 15 years in the business. “The store is a perfect ﬁt for us,” said Franco Margiotta. “We hope to continue to offer the best service possible to our new customers in Polwarth.” A Tesco proﬁt overstatement led to the suspension of senior executives. Chancellor George Osborne’s Budget helped beer. The Scottish c-store industry was debated in the Scottish Parliament. And Edinburgh retailers Dennis and Linda Williams organised activity against plans to build an Aldi store on housing land.

died following a short illness. O August’s SG reported that cash & carry chain Bestway Group was buying the Co-operative Group’s pharmacy business for £620m. O Tesco’s chief executive Philip Clarke announced he would be stepping down from the role. O In September, we covered the ﬁrst-ever debate in the Scottish Parliament on the convenience store industry. O Retailers and tobacco ﬁrms told the Coalition Government a proposed ban on cigarette brand-

ing would do nothing for public health but would help criminals, as a Westminster consultation drew to a close. O October’s edition carried reactions to the Independence Referendum, in which Scotland’s people voted to remain part of the United Kingdom. O Tesco’s market share fell below 29% and sales dropped by more than 4% and it was revealed that the company had overstated its proﬁts by £250m. O In November we reported from the SGF conference, where

ﬁrst minister Alex Salmond delivered the keynote speech, announcing a new healthy eating partnership. O Fighting plans by Aldi to open a large discount store near their premises, Edinburgh Premier retailers Dennis and Linda Williams organised a public ‘say No to Aldi’ event. O A survey from HIM found consumer habits were changing, with shoppers planning bigger basket trips to local stores. The change was found to be especially marked in Scotland.

Spar the symbol of success online IN August, fascia group Spar claimed its digital activity was leading the way in UK symbol organisations, with its online services attracting record visitors each month. Since launching into social media in November 2013, the company said its followers

on Twitter had grown to over 4,500 and its Facebook fan count had reached over 17,100 which, it said, made it the number-one symbol group on Facebook. The group said Spar UK was the second-most engaged brand on Facebook in March,

thanks to a competition offering fans a case of Casillero del Diablo wine. Spar UK’s YouTube channel was reported to have clocked up 25,000 views, while its consumer website, following a relaunch, was said to attract more than 70,000 a month.

Abdul takes charge IN June we reported that Bellshill retailer Abdul Majid had been named president of the Scottish Grocers’ Federation. After receiving the chain of ofﬁce from outgoing president Clydebank Coop chief executive Robert Sider, he set out his early priorities in the role, highlighting government plans to act on the nation’s diet and the growth of small format supermarkets from giant multiple grocers. December 2014 l

l 29

market news

Medal winners

THE recently-rebranded Black Wolf Brewery has been recognised for its draught and bottled beers at SIBA Scotland Regional Beer Competition 2014. Black Wolf Brewery’s blonde beer, Gold Digger, won gold in the Bottled Gold Beers category, while Florida Black draught won silver in the Strong Milds Category. Coulls Lager won silver in the Bottled Speciality Beers while ROK won bronze in the Bottled Bitter category. The Stirling-based brewery, previously known as Traditional Scottish Ales, also saw success at the recent World Beer Awards.

Craft ﬁrst ONE of Scotland’s newest craft breweries has won its ﬁrst off-trade listing. Drygate Brewing Co’s core range, including Outaspace Apple Ale, Bareface Lager and Gladeye IPA are all due to go on sale in Tesco stores across Scotland. The brewery opened in May.

30 l

l December 2014

P&G reckons careful health and beauty product merchandising pays off at any time but especially so in the ﬁnal weeks before and the period including Christmas and New Year.

Groomings of the season MASSIVE brands company P&G has produced its own special Christmas card for retailers this year. The latest infographic from its c-store merchandising advice programme ShelfHelp is designed to tell the story of the festive effect on sales of hair, beauty and grooming products. Using data from Kantar Worldpanel, Nielsen, IRI and other sources, the company behind Head and Shoulders, Pantene and Aussie shampoos and Gillette razors and grooming products says last year shoppers making last minute purchases accounted for record sales. Some 6% of shoppers said they expected to

spend more in the four weeks that included Christmas and New Year and average household expenditure increased by 5% in the festive period in 2013. Around 11.4m buyers spent an average of £36 per Christmas gift. Razor sales in one supermarket group were said to have soared by 59% in December 2013. In more general terms the P&G info says hair care product sales are worth £19.6m in c-stores. Arguably, with the party season in full swing, December is a good time to give some extra TLC to the haircare area.

P&G merchandising tips include creating an area carrying products for females that’s separate from men’s toiletries if possible. It also says c-stores should make sure they stock the bestselling brands. Shampoo is bought by more households than other health and beauty products and should be placed at the front of the health and beauty area to attract shoppers to the section. It recommends matching shampoos with correspondingly branded conditioners and where possible merchandising different pack sizes of similarly branded products together on haircare shelves.

market news

Ferrero takes a bite at bite-size FERRERO is expanding its Kinder brand with a new range of bite-sized chocolate confectionery. With two different sizes and three variants to choose from, Fererro plans to win sales for in-home sharing as well as onthe-go treating. Available from January, the range will include Kinder Choco-Bons, Kinder Chocolate Mini and Kinder Chocolate with Cereals Mini. All of the products include individually wrapped bite-sized chocolates, and the larger sharing sizes feature a resealable tab. “Kinder continues to bring incremental growth to the kids’ confectionery category and there is now an exciting opportunity for us to move into a new sector, attracting additional shoppers to the brand,” said Levi Boorer, Ferrero’s customer development director. “This move marks an important new chapter for Kinder and forms an integral part of

Festive to go

Kinder Chocolate with Cereals Mini, above left, Kinder Choco-Bons, centre, and Kinder Chocolate Mini, right. The new bite-size treats come in two sizes, with the larger bags featuring a resealable tab.

Ferrero’s future plans. Kinder is a star performer in the confectionery category, as an £80m brand that is up 52.6% in value terms in a relatively flat market.” Kicking off in January, the launch will be supported by a £1.3m TV ad featuring the tag

line, ‘invented for kids, loved by everyone’, along with instore promotions and displays, stores media and near-store sampling. There will also be free POS available to order from the Ferrero trade website, www.ferrero-trade.co.uk

Dynamite makes a big bang SCOTTISH energy drink Dynamite has blasted onto shelves in a new 3L bottle, price-marked at £1.79. The brainchild of entrepreneur Athif Sarwar and Garvies Soft Drinks managing director Nasir ‘Nish’ Hamid, Dynamite is said to be the ﬁrst product of its kind to launch in the size. The 3L bottle has been introduced in response to consumer demand, according to Hamid, and is aimed at those looking for more Dynamite to fuel their day - as a mixer or to share with family and friends. “Competitive pricing is essential in the energy drinks market,” he said.

32 l

l December 2014

“We are sure that the format will be a great success and will pave the way for us to continue to grow and develop the Dynamite portfolio even further.” The existing Dynamite range includes original and blue raspberry in 250ml cans, and orange and blue raspberry ﬂavour isotonic drinks in 500ml sports cap bottles. More than 2.5m cans are said to be sold worldwide every month. Sarwar said: “We’re always looking for fresh new ideas that are going to grab the attention of retailers who will pass their excitement and enthusiasm onto consumers.”

SANDWICH and wrap brand Urban Eat has ﬁve new limitededition products for shoppers this Christmas. The new range features the Turkey Feast Sandwich and Brie and Bacon Wrap as well as options like the Boxing Day Panini and Posh Nosh White Stilton and Festive Chutney Sandwich. Brand Manager Isla Owen said: “Our monthly limitededition specials are already hugely popular and I am sure that the new Christmas products will prove no exception.”

US beer drops in WORLD Beers Ltd is bringing an American craft beer into the UK off-trade. Brewed in the Midwest by the Minhas Craft brewery, Lazy Mutt Farmhouse Ale is a bottleconditioned, palecoloured ale, 5% ABV. First brewed as a tribute to American and Canadian soldiers who died in World War I in Flanders, the beer is available in 330ml bottles in cases of 24.

OUR SALES ARE GROWING... ARE YOURS? g do

Powe r

Bul l

T S U M OCK

g y dri nk

“STOCK ONE OF THE FASTEST GROWING ENERGY BRANDS IN THE UK, NOW AT NUMBER 11!” ‘Source Nielsen Scantrack Total Impulse, Mat May 14th 2014’

Available At Most Retailers & Superstores

Available at all branches

HYPERAMA

WHOLESALE

Trade enquiries welcome

and many other leading wholesalers.

Tel:020 8575 3700 www.bulldogenergydrink.co.uk

market news

Mars adds more hot chocolate Flavoured spirit drinks take flight DIAGEO has added a new flavoured spirits range to its portfolio with the launch of new Parrot Bay Flavoured Spirit Drinks. 18 months after launching Parrot Bay ‘Freeze and Squeeze’ cocktail pouches, the firm has developed a range of spirit drinks in three flavours - strawberry, coconut and passion fruit. In 70cl bottles, each of the 19% ABV drinks contains Caribbean rum. Diageo says the range is well suited to the Christmas party season, designed to appeal to those looking for a new and different product to drink at casual gatherings. They are available now and have an RRP of £13 a bottle.

MARS Chocolate Drinks and Treats is extending its range of treat-size hot chocolate drinks in pouches with the launch of two new products – Chocolate M&M’s and White Maltesers. The M&M’s hot chocolate contains mini M&M’s while White Maltesers hot chocolate contains white chocolate pieces. Both can be made by adding hot milk or water. The hot chocolate and malted milk retail market has an annual sales value of £138m, according to IRI data quoted by Mars. “Our sharing pouch range brings a sense of fun, innova-

tion and strong brand presence to the category,” said Michelle Frost, general manager at Mars Chocolate Drinks and Treats.

“We believe that the new products will invigorate both the chocolate and malted drinks categories.”

Philadelphia sets out to cause a midweek stir PHILADELPHIA’s Simply Stir range features in a new TV advert as part of a £1m campaign. The 20-second ad follows a couple making time to create a romantic dinner during a busy evening, using Simply Stir to create a midweek meal.

Jennifer Spurr, Philadelphia marketing manager for brand owner Mondelez, said: “We’re conﬁdent that this campaign will get consumers even more excited about the brand, so retailers should stock up in anticipation of increased demand.”

Brand giant moves to let the sunlight in

Grace, 15, from Croydon, is the face of the ad.

34 l

l December 2014

FOR the ﬁrst time Unilever UK has advertised its corporate umbrella brand on television. During a prime time X Factor advertising slot, the company took to TV, as part of its ‘Project Sunlight’ campaign, now running in ﬁve markets around the world. Under the Project Sunlight banner, which the global consumer goods manufacturer launched a year ago, each country hones in on a separate sustainability issue through speeches from young people who have new

visions for the future. Grace Jones, a 15-year-old girl from Croydon, is the speaker in the UK ad. Unilever UK says it aims to highllight the paradox of food waste and food poverty, which according to Unilever and Oxfam UK are closer to home than many people think. Keith Weed, chief marketing and communications ofﬁcer at Unilever, said: “We want the voices of the new generation to be heard – to motivate us all to take action.”

Cider brand lightens up new ﬂavours

A new Fox’s masterbrand, consistent packaging design, and increased attention to convenience outlets, are already illustrating the changes on the biscuit brand. But MD Colin Smith says equally important is investment in plant, machinery and training intended to help build a culture of ﬂexibility and innovation at the company.

Steps to change its category? AS covered in last month’s Scottish Grocer biscuits and cakes feature, a new outlook at biscuit manufacturer Fox’s has already seen the development of an umbrella Fox’s brand and the launch of a £10m marketing campaign complete with TV and social media activity plus in-store activity and a new push in the convenience channel featuring a new-look PMP range. But Fox’s MD Colin Smith was also very keen to tell Scottish Grocer that still more cash is being invested in manufacturing and business fundamentals designed to make the company a UK biscuit leader for the long term. “We’ll be investing £20m on the infrastructure of the business,” he said. “We’re addressing things behind the scenes to give us

the capacity and the flexibility to address future consumer needs. “We’ve developed over the course of 15 months a threeyear innovation pipeline. “We know exactly where we are going. We’ll have some fantastically exciting products that will step-change the category, stuff that people aren’t doing. “We’re investing in more modern equipment to give us the flexibility to make different pack formats. There’s investment in efficiency to give us more capacity. There’s investment in machinery to enable us to make innovative products that aren’t in the market yet.” Meal-deal-friendly packs and packs of individually wrapped single-serve sizes are among the opportunities

that Smith is keen to address. “Our competitors have done a very good job in that area and we’ve been a bit slow on that. The investment will give us the chance to look more at foodservice, convenience channel, cash & carry packs – flexibility by channel really.” While the firm plans to widen its range of pack styles and routes to market it is significantly consolidating its marketing messages. Fox’s becomes a brand name to promote, covering a tight range of priority lines or “hero brands” as the firm calls them – Fox’s Crunch, Chunkie Cookies, Rocky, Viennese, and Party Rings. “We have one very clear, high-quality, delicious, generous brand and the five hero brands underneath that,” Smith stressed.

C&C Group, the owner of Magners Irish cider, has added new flavours to its low calorie range. At 103 calories per bottle, Orchard Berries Light is the first new flavour to be released and will be available in a 4x330ml pack. It will be joined shortly by Magners Pear Light. Ed Shoebridge, head of customer marketing at C&C Group, said: “The new additions to the Magners Light range will attract a variety of audiences but particularly 20-30 year old female drinkers who love the original flavour and refreshment of regular Magners, but are looking for fewer calories. “We believe that this exciting addition to the Magners portfolio will appeal to our fan base of customers and consumers as the range gives them choice and the option to select a product that is right for them. This new proposition is in a strong position to perform well in the UK off trade.”

December 2014 l

l 35

workSHOP

Project 4 PepsiCo – Nisa Coatbridge: revisited

PepsiCo regional manager Colin Frew, pictured above in the left hand picture, and PepsiCo sales development representative Angela Harris, pictured above left in the right hand picture, discussed plans to remerchandise Nisa Coatbridge’s crisps and snacks, juice, food to go and cereals sections with owners Pauline Wales, above right, and her husband Brian. Changes were implemented; how did they work out?

IN the August issue of Scottish Grocer we began the fourth project in the SG workSHOP programme when PepsiCo worked with retailers Brian and Pauline Wales at Nisa Coatbridge on plans for crisps and snacks, juice and food to go, and cereals. From PepsiCo – a major brand player in crisps and snacks where it has marketleading brands in Walkers, Doritos and others, in juice with Tropicana, and in oatbased cereals where it has Quaker Oats and Oat So Simple – regional manager Colin Frew, and sales development representative Angela Harris discussed the store’s current merchandising with Brian and Pauline and then remerchandised several sections of the store. The changes made in the summer are shown and explained once again on the facing page. So did the remerchandising bring beneﬁts? Colin contacted Pauline, to get a general idea of the effect of the changes to

merchandising and the highlighting of promotional activity and use of prominently placed PMP stock, while more detailed sales data was being collected. Pauline had found that running a 2 for £1 offer on the single-serve crisps ﬁxture as a constant promotion had been very encouraging. She thought the majority of customers had switched to picking up a second packet and she had noticed that she had been ordering stock more frequently. The use of stands in the food-to-go area had drawn customers in and encouraged those who would have previously only purchased a sandwich to buy across the snacks and crisps range at the same time. The same had applied to the Perspex bins of snacks in the chilled area. The effect seemed to be to increase the amount spent in store. The Tropicana PMPs worked extremely well in store, especially when the price was marked at £1, she said. Sales had fallen back since moving back to plain pack, but overall the store had

sold more. She also said the product is now more visible in the chiller. And linking it with a meal deal and with porridge pots had brought a positive sales effect. When more complete ﬁgures became available they showed standard crisps and snack sales had indeed seen an increase of 30%, driven by the introduction of the 2 for £1 promo on the main ﬁxture across the standard crisps and snack range and by the introduction of meal deals. The meal deal also had a positive effect on sales of Tropicana immediateconsumption bottle (ICB) juices. The store sold an average of 20 meal deals a day (from a base of zero). That had moved its order of Tropicana from one or two cases a week to six cases a week. And there was also an increase in sales of Quaker lines. The introduction of porridge pots in the food-to-go area and running the link breakfast deal had meant the store’s order increased from a typical one case of pots every four weeks to one every week.

work SHOP

• 2 for 1 deal increases standard crisps and snacks • Meal deal sees juice sales jump • Prioritising porridge pots means orders soar

Changes: single-serve crisps and snacks ﬁxture Doublefaced vertically merchandised premium snacks.

Double-faced best-sellers in prime positions. Scots favourite ﬂavours,such as Tomato Ketchup, introduced. Extensive use of POS carrying upselling messages

Changes: take home sharing and multipacks

The main single-serve crisps and snacks ﬁxture was remerchandised to provide clearer deﬁnition between different sub-categories and to highlight best-sellers and premium lines. Branded POS was introduced and POS materials are now used more extensively and are much more easily seen by consumers.

Changes: cereals

Top shelf premium crisps in sharing sizes.

Oat So Simple branded oats products merchandised together.

Strategically positioned dips on back of gondola end.

POS explaining the breakfast deal and encouraging visits to the foodto-go section.

Extensive use of POS to convey value messages. Sharing sizes given their own clearly deﬁned spaces to encourage purchases for appropriate occasions.

Changes: food to go

Three double-faced £1 PMP Tropicana variants and two Trop 50, all on sliders as part of remerchandised single-serve juices. Breakfast-deal with Oat So Simple POS. 850ml take-home Tropicana variants with POS highlighting value offer.

Clip-on hessian baskets carry four, doublefaced, best-selling crisps variants. A dedicated hanger hosts Oat So Simple and highlights breakfast meal deal.

business, property and legal

Sharing the caring – time to be prepared New rules on parental leave, giving parents the right to share leave entitlement, come into force this month. What will they change? What is the new right to shared parental leave? It is a new entitlement for eligible parents of babies born or children placed for adoption after 5 April 2015, to opt to share existing maternity/adoption leave. The ﬁrst two weeks leave will be available only to mothers but the remaining 50 weeks can then be shared between the parents. Subject to eligibility, there will also be entitlement to statutory shared parental pay of 39 weeks, less any weeks where statutory maternity pay has already been paid. Is existing maternity leave and paternity leave affected? No, the new right is optional. Employees will be able to take the existing leave and pay entitlements as they currently stand, aside from the right to additional paternity leave, which is replaced by the new system. What information do eligible employees have to provide? Employees planning to use the new right are required to notify their employer of eligibility to shared parental leave and give eight weeks notice of each period of such leave they intend to take. Parents can give up to three separate notices of an intention to take shared parental leave. If the notice is for a continuous period of time (a single block), it must be accepted. If the notice requests discontinuous leave (for example requesting to work every other week),

by Alan Delaney Alan Delaney is an associate in the employment & pensions team at Maclay Murray & Spens LLP and a member of the ﬁrm’s Food and Drink team Alan.Delaney@mms.co.uk

an employer must consider the request but may refuse it. If an agreement is not reached, a single block of leave in relation to the number of days requested will apply by default unless the notice is withdrawn. Periods of parental leave may be shared by parents concurrently, by way of overlapping leave periods or consecutively.

While many welcome the ability to take advantage of increased ﬂexibility, the provisions have been criticised as overly complex, with the various notice requirements likely to cause employers headaches.

What about keeping in touch during shared parental leave? Both parties can agree to the use of up to 20 Shared Parental Leave in Touch (SPLIT) days, similar to KIT days under the current maternity provisions.

Is there guidance available for employers trying to get to grips with the new regime? Yes. Both Acas and the Government have now produced detailed guidance for employers attempting to navigate the new provisions, including useful template letters that can be used. See www.acas.org. uk and www.bis.gov.uk

What is the likely impact on businesses? The Department for Business, Innovation and Skills estimates that there will be around 285,000 working couples eligible to take shared parental leave. It remains to be seen, however, how many employees will take up the option of sharing leave.

What steps can we take now to prepare? Businesses should review their existing policies to provide for the new right to shared parental leave. As the implementing legislation comes into force on 1 December 2014, requests are likely to start to appear shortly.

Scotland leads on new town-centre indies THE total number of independent retail outlets in British town centres grew in the ﬁrst half of this year compared to 2013, Scotland showed the greatest growth in town centre indies, and convenience retail outlets continued to show steady growth in numbers, said research ﬁrm the Local Data Company. The number of outlets across Britain was 0.41% higher than 38 l

l December 2014

in the ﬁrst half of 2013. In Scotland net growth was 1.58%, the highest increase in GB. Independent convenience retail outlets and food shops were 0.58% up on the previous year. But greatest growth (78%) was in the number of e-cigarette shops.

Scotland’s Local Broker Since 1988

Bruce_Co w w w. br u cea n dco. co. u k

Digby’s Off Sales & Delicatessen

X HOTELS

SOLD

Mosshead General Store, Udny

Sweet shop, Moffat

F/H

X RESTAURANTS

X PUBS

X INNS

A Selection Of Solds This Year SOLD

“V.....Delightful ” delicatessen and off-licence, established for over 45 years, located in Motherwell. Sold following 4 offers.

X GUEST HOUSES

blog.bruceandco.co.uk

SOLD

Hyslop Hardware, Dumfrieshire

Bearsden Post Office, Bearsden

Sold following 2

Sold following 5

viewings and

recieving 2 offers

recieving 1 offer

recieving 2 offers

Retail store, Perthshire

L/H

Retail store, Aberdeen

L/H

Barholm Beauty Clinic, Johnstone

Sold following 1

Cafe, West Lothian

L/H

> Established for over 120 years

> Established cookware business

> Well established since 2005

> Excellent main street location

> Excellent trading position

> Great location in prime area

> Enviable location

> Great established reputation

> Well presented property

> Kitchenette, WC, storage area

> Enjoys much repeat custom

> Popular with locals and tourists

> Licensed

> Ideal for first time business

> Online purchasing facility

> 70 covers in total

> Unique & exciting opportunity

> Attractive asking price

> Excellent growth potential

> Ideal for first time business

Ref: 43046

£499,995

Convenience Store, Stirling

L/H

£19,995

Ref: 43049

Hairdressers, Stirling

L/H

Ref: 42980

£106,000

Convenience Store, Stirling L/H

Ref: 42979

£74,995

Convenience Store, Lochgilphead

F/H

> Well established

> For ladies & gents (separated)

> Licensed and well established

> Convenience store & post office

> Excellent trading position

> Expansion of business possible

> Excellent location

> Excellent, stunning location

> Stock room/ kitchen/ office

> Established for 50 years

> Fully equipped

> T/O in excess of £135,000

> Licensed

> Enviable location

> Paypoint and lottery

> Off sales license

> Great opportunity to expand

> Excellent opportunity

> Opportunity to grow & expand

£90,000

Ref: 43034

Public House, Paisley

F/H

Ref: 43051

£59,950

Garage, Edinburgh

L/H

Ref: 43070

£165,000

Post Office, North Shields

L/H

> 3 bed owners accommodation

Ref: 36807

£180,000

Funeral Services, Turriff

F/H

> Spacious bar & lounge

> Long Established

> Well established in prime location

> Long established- over 25 Years

> Popular for sporting events

> Popular & convenient location

> Annual salary £48,000

> Ideal location

> Long established

> Low overheads

> Card & gift shop

> Excellent facilities

> Well presented & traditional

> Heavily relied upon

> Well fitted shop floor

> Fantastic reputation

> Popular amongst locals

> Huge potential for growth

> Opportunity to expand

> Potential to increase turnover

Ref: 40905

£140,000

Ref: 43088

£129,995

Ref: 43085

£45,000

Ref: 43083

£499,995

Call 0844 2488 285 for more information or view full details at www.bruceandco.co.uk For a Free Market Appraisal of your business or to discuss your selling options, call 0844 2488 286. Confidentiality Assured.

business, property and legal

Money isn’t just for new store projects S

ECURING ﬁnance in the retail sector has been perceived to be challenging over the last few years, but we have certainly seen that situation change over the course of 2014. All leading lenders are much more willing than before to consider supporting good existing operators, as well as new entrants into the sector. But you don’t have to be considering a new project to be interested in new funding. With the Bank of England

by Adrian Foster Adrian Foster is a associate director - finance consultant with Christie Finance. Here he looks at the different reasons that lead many retailers to review their financial arrangements. adrian.foster@christiefinance.com

base rate at a historic low, existing operators are also recognising that it’s a great time to review existing ﬁnance facilities

_ y¿ Ú¿ > Ug¿ t µ¿ µgÁ> gµ¸¿ >¸¿ Lgg ¿ Á Éy ¿ Ðgµ¿Á g¿ >¸Á¿tgÑ¿Óg>µ¸\¿L Á ¿t µ¿Ú¿µ¸Á¿ Á g¿ >µ gÁ¿ g Áµ> Á¸¿ > _¿ gÒ¡gµ g Ug_¿ ¡gµ>Á µ¸¿ > g¦¿ µÁÉ >Ág Ó\¿ Christie Finance¿ U g Á¸¿ >Ðg¿ U Á Ég_¿ Á ¿ g Ó¿ t>¸Á¿gttgUÁ Ðg¿>UUg¸¸¿Á ¿tÉ _ y¿¸¡gU Ú¿U> Ó¿ Á> µg_¿ Á ¿ Á g¿ gg_¸¿ t¿ Á g ¿ > _¿ Á g µ¿ LÉ¸ g¸¸¦¿ "Éµ¿ U Á>UÁ¸¿ Ñ Á ¿ g _gµ¸¿ >Uµ ¸¸¿ Á g¿ >µ gÁ¿ > _¿ tµ ¿ y ¿ ¸ÁµggÁ¿ g _gµ¸¿ Á ¿ Á g¿ ¸ U> g_¿±U > g ygµ²¿L> ¸\¿ >¸¿g ¸Éµg_¿ Éµ¿U g Á¸¿¡ > ¸¿Á ¿LÉÓ\¿ gÒ¡> _¿ µ¿¸ ¡ Ó¿µgÚ¿ > Ug\¿ >Ðg¿Lgg ¿É _gµg_¿LÓ¿Á g¿Ñg ¿ _ UÉ g Ág_¿ _ Ñ ÁÉµ ¦¿7 Á ¿Á g¿ gU Ó¿ Lgy y¿Á ¿ÁÉµ ¿ > _¿Á g¿U ¸Á¸¿ t¿tÉ _¸¿>Á¿>¿ ¸Á µ U¿ Ñ\¿Á gµg²¸¿ gÐgµ¿Lgg ¿>¿ LgÁÁgµ¿ µ¿ µg¿>¡¡µ ¡µ >Ág¿Á g¿Á ¿¸¡g> ¿Á ¿>¿ >µ gÁ¿ g>_gµ¿ ¿ µgÁ> ¿> _¿U Ðg g Ug¿¸Á µg¿Ú¿ > Ug¦

Some recent successful retail funding in Scotland

*³g g³½ Î ³g¶¶½ ³_³ g o¿ É _ y¿¸gUÉµg_¿t µ¿Ú¿µ¸Á Á g¿LÉÓgµ¸

- >³½*g³¿ ¶ ³g o¿ É _ y¿¸gUÉµg_¿t µ¿Ú¿µ¸Á Á g¿LÉÓgµ¸

³ ¶¿ g½ > Ug\½u½ y g½ \½ g>Ìg³L> ½"tÖ½Ug½*>³ y g½ ³gg ½, >_\½ _ LÅ³y ½ º½w ¤½Contact: Adrian Foster T: 0131 557 6666 E: >_³ > ¤t ¶¿g³JU ³ ¶¿ gÖ½ > Ug¤U M: 07764 241356 E: J _³ > ¶¿g³

U ³ ¶¿ gÖ½ > Ug¤U 40 l

l December 2014

and to look into refinancing existing debt. Over the last few months we have received an increasing number of calls from operators who are looking for help in reviewing their existing finances, recognising the benefit of using an intermediary who will approach a wide range of lenders to secure a funding package to meet their requirements. The main reasons to refinance include: • Breakdowns in clients’ relationships with current banks Traditionally operators remained with their bank as they felt this would provide a degree of loyalty. However over the last few years some have felt that they haven’t received the support they deserve and have decided that now may be the time to move their business.

• Client support A number of operators have realised that, as the market improves, now may be a great time to undertake to refurbish or expand their current business. When these operators have approached their current banks to discuss their plans they haven’t necessarily been provided with the support that they require. • Pricing Rates have never been so low and with the introduction of various Government schemes and initiatives some operators have realised that it could be prudent to negotiate better terms. As well as helping many people to purchase businesses we have also assisted numerous clients who ﬁnd themselves in one of the situations above, by securing funding for them on competitive terms.

Probe welcomed NEWSAGENT representative group NFRN has welcomed the Competition and Market Authority’s probe into small business lending. Chief executive Paul Baxter

said: “Independent retailers can only thrive, develop and diversify if they have access to lending and that is something that has been sadly lacking to date.”

The Specialist Property Adviser LAIRG

SCOTTISH HIGHLANDS

EDINBURGH

SPAR SHOP

COSTCUTTER

£52,500 Leasehold

Fixed Price £29,995 + SAV Leasehold

• Post Office remuneration c. £4,000 pa • Net sales approximately £9,000 pw • Coastal village location • National Lottery ticket agent

• Net sales approximately £12,000 pw • National Lottery ticket agent • High quality catchment area • Visible corner trading position

Energy Rating G 0131 341 2569

Energy Rating E 0131 341 2569

52/18482 S/P

KEITH

INVERNESS

NEWSAGENT & POST OFFICE

DRUMMOND STORES

£120,000 + SAV Freehold

£215,000 + SAV Freehold

• Net sales c. £6,500 pw excluding services • Post Office 'Local' c. £8,500 pa • Lottery sales c. £3,000 pw • Located in a tourist village location

• Weekly net sales c. £9,500 • 21% gross profit margin • National Lottery ticket agent • Off road customer parking facility

Energy Rating G 0131 341 2569

Energy Rating E 0131 341 2569

52/18484 C1

VILLAGE CONVENIENCE STORE £200,000 + SAV Freehold • Annual net sales c. £457,455 • Scenic coastal village location • Adjusted net profit c. £58,000 • Good lifestyle opportunity. Premises licence Energy Rating G 0131 341 2569

52/18327 C1/F

COLDSTREAM

AYRSHIRE

NEWSAGENTS

HAYLIE STORES

£299,000 + SAV Freehold

OIEO £295,000 Freehold

• Annual sales c. £413,522 • Lottery sales c. £3,500 • 3-bedroom house with large garden • Good profits. Modern, well equipped trading area

• Centrally positioned store • Substantial owner’s house with sea views • CTN business with adjoining garden centre • Net T/O £182,896 year end 31.07.13

Energy Rating E 0131 341 2569

Energy Rating E 0141 413 4652 68/10776 C1/F

52/18492 S

52/18491 S

MENSTRIE

0844 4124944 christiefinance.com 020 7448 8820 christieinsurance.com RCC Insurance Brokers plc trading as Christie Insurance is authorised and regulated by the Financial Services Authority. Calls may be recorded for quality or training purposes

52/18346 S/F

GLASGOW

EAST AYRSHIRE

LIFESTYLE EXPRESS £49,500 Leasehold

christie.com

D&A YUILL NEWSAGENT

PREMIER LICENSED GROCER

£150,000 + SAV Freehold

POA F/hold-£50,000 + SAV L/hold

• Traditional newsagency business • Net sales c. £8,500 pw • Short trading hours • Prominent roadside location

• Recently refurbished to high standard • Main street location with parking • PP for coffee shop/flat above • Gross weekly sales c. £7,500

Energy Rating G 0141 413 4652

68/10903 N1

Energy Rating D 0141 413 4652 68/10893 C1/F

• Well fitted convenience store • Sales c. £7,000 pw • Prominent roadside location • Quality fixtures and fittings throughout Energy Rating F 0141 413 4652 68/10901 C1

Valuation Services | Agency | Investment | Consultancy

christmas drinks

A touch of glitter makes a very berry Christmas BRITVIC Soft Drinks is aiming to bring a bit of seasonal sparkle to the adult soft drinks aisle with the return of its limitededition J2O Glitter Berry variant. Available now in a fourpack, J2O Glitter Berry blends the ﬂavours of grape and cherry with a hint of spice and is intended to provide a sophisticated soft drink for people to drink at festive get-togethers. The multipack has a new design of purple and gold, which Britvic says should help catch the attention of shoppers on autopilot. The aim, it says, is to increase J2O sales over the festive season by adding a touch of glamour. The launch coincides with the brand’s latest digital and TV marketing campaign. Britvic will also be promoting J2O’s use in cocktails on the brand’s website and showing consumers how to make drinks using J2O and alcohol in the home through the Christmas party season.

42 l

l December 2014

And a happy new beer... EER, wine and spirits sales in the run-up to Christmas have over the years been seen as vital to food and drink retailers of all styles and sizes. And according to long drinks giant Heineken that remains very true today. Quoting Nielsen Scantrack and Homescan figures, the beers and cider specialist said alcohol proved the numbertwo performing category in the 12 weeks leading up to and including the Christmas and New Year holiday period last year, when it registered growth of £148m. Some 75% of growth of beer and cider sales over the period is said to have come from world lagers, a segment that includes Peroni and Heineken, and from flavoured ciders. Of course GB figures are likely to be different from those in Scotland where Tennent’s is the biggest beer brand and there are also significant Scottish ale brands. And ahead of Christmas, when shoppers might be on the lookout for something a bit special, Tennent’s launched a new 4.7% ABV premium lager - Black T. “We think people are going to be very pleasantly surprised when they try it,” said Paul Condron, Tennent’s marketing director. “It looks great, it tastes great and it’s Scottish through-and-through.” Consumers are increasingly looking to support homegrown brews, according to Nigel McNally, managing director of Kestrel brand owner Brookfield Drinks.

Paul Condron, marketing director for Tennent’s launches the new 4.7% Black T lager on the day before Halloween. Now like Kopparberg and Sheppy’s winter ciders it’s ready for its ﬁrst Christmas. Rekorderlig winter cider makes a return.

“Now is the time for British craft lager,” he said. “Retailers should look hard at British lagers such as Kestrel Premium Lager to help stimulate sales to capitalise on people’s desire for British craft lager this Christmas. “Britain has the ability to brew great lager. We just need retailers to acknowledge the need for a dedicated ﬁxture on their shelves championing British lager.” One must-stock premium lager is Budweiser, according

to the brand owner AmBev’s Budweiser head of trade marketing Sunny Bhurji, who also recommended stocking rumflavoured beer mix growth in alcohol in 12 weeks to Christmas 2013

£148m

75% beer growth due to world beer and ﬂavoured cider

O R W LD’S E H T RITE TEQ

U FAVO

UILA

WITH £2M ANNUAL MARKETING SUPPORT IN THE UK YOU TOO CAN BE A PART OF THE GLOBAL FIESTA!

Please drink responsibly. Proximo Spirits UK 2014 © info@proximospirits.co.uk

christmas drinks

Free to mull it over

Reindeer names C

OCA-Cola has put a festive twist on its Share a Coke campaign. Instead of searching for their own name or the names of friends on the labels of personalised bottles, shoppers can choose from nine specialedition packs encouraging them to ‘Share a Coke’ with either Rudolph, Blitzen, Comet, Cupid, Dancer, Dasher, Donner, Prancer or Vixen. The names of Santa’s reindeer will appear on Christmas-themed 500ml bottles

More shoppers buy from the Coca-Cola range than any other soft drinks brand at Christmas - Nick Canney of Coca-Cola, Diet Coke and Coca-Cola Zero, while festive graphics will also feature on other pack sizes. “Coca-Cola has become synonymous with Christmas and the festive period represents a big opportunity for retailers to drive in-store sales,” said Nick Canney, vice-president of sales and marketing at

Coca-Cola Enterprises. “More shoppers buy from the CocaCola range than any other soft drinks brand at Christmas and spend more on it, leading to a higher basket spend. “We recommend retailers stay stocked up on seasonal packs of the Coca-Cola range in the lead up to and over Christmas and New Year.”

THE demand for nonalcoholic mulled wine at Christmas has led to a significant increase in the sales of alcohol-free Cabernet Sauvignon, according to Eisberg. “Over the winter season we see a natural uplift in the sales of Eisberg Alcohol-Free Cabernet Sauvignon,” said brand manager Fran Draper. “One of our social media drivers is to position this as the base for a perfect alcohol-free mulled wine, and this has been so successful that we have seen significant yearon-year increases.” Quoting Nielsen figures that show sales of Eisberg up 30%, she added: “Shoppers are more conscious that they need to cater for the non-drinking guest, so picking up an alcohol-free alternative is the perfect option.”

And a happy new beer...

Kestrel is taking off in a big way in Scotland, says Brookﬁeld Drinks. 44 l

l December 2014

Cubanisto and new cider Stella Artois Cidre Raspberry. “Both of them perform significantly ahead of key competitive products,” he said. “Cidre Raspberry is by far the best performing NPD this year within the cider category.” It will have to compete for attention against a number of ciders created especially for the colder months, like the returning Rekorderlig Winter Cider, a spiced apple cider infused with cinnamon and vanilla. Rekorderlig claims to have

added £104m worth of sales to the category in the past year with Rekorderlig Winter Cider playing an important part in that growth. Swedish cider brand Kopparberg has also launched a winter cider in the form of Kopparberg Spiced Apple. Like Rekorderlig Winter Cider, it’s designed to be served hot or cold. And Somerset-based cider maker Sheppy’s has produced a premium mediumsweet Mulled Cider, described as an ideal celebratory Christmas drink.

Sales of Eisberg AlcoholFree Cabernet Sauvignon are expected to rise in winter.

christmas drinks

Drinks with a difference The personal touch PERSONALISED bottles of The Famous Grouse are being promoted as the perfect gift for Christmas in the latest advertising campaign from brand owner Maxxium UK. In a deal worth over £1.1m, the whisky brand will sponsor Channel 4 and UKTV’s festive programming, highlighting makesomeonefamous.com, where consumers can put a personal message on the label on a bottle – and now add a photo. The offer is available on all 1L and 70cl bottles of The Famous Grouse. The brand will also launch a Christmas gift carton promoting personalisation. 172,200 gift cartons will become available in several retailers including Spar.

CHRISTMAS, when consumers become more experimental with flavour, is the perfect opportunity for retailers to look at their liqueurs and consider adding something different, reckons specialist wine and spirits firm CWF. Amy Ledger, for CWF marketing, said stores refreshing their range with some exciting new choices for the festive period can reap real benefits. The firm’s own range includes Disaronno Amaretto and Opera White Amaretto as well as other Italian liqueurs which it says are enjoying a resurgence, such as Bortolomiol Banda Rossa Grappa di Prosecco, Lazzaroni Sambuca and Di Capri Limoncello. • The big news from Drambuie for Christmas is the launch of its Hot Apple Toddy, a mix of Drambuie and apple juice, served warm. It is available to retailers in a 70cl bottle with an RRP of £9.99. • Cointreau Noir, a blend of Cointreau orange liqueur and cognac Rémy Martin flavoured with walnuts and almonds had its unveiling in October. A 70cl bottle has an RRP of £40.

Drambuie Hot Apple Toddy, above left, Cointreau Noir, centre and Disaronno in its new bottle from Versace and mixed with Vermouth, Prosecco and Blue Curacao to make a Disaronno Versace Sour, right.

• Disaronno will be dressing differently for Christmas with a new bottle designed by the Italian fashion house, Versace. Part of the proceeds from sales (suggested retail price £15) will go to Fashion 4 Development project. • Warninks White (RRP £12.99), a vodka liqueur ﬂavoured with white chocolate and mint is a new release from William Grant & Sons UK. • Chambord, the premium French black raspberry liqueur from Bacardi Brown-Forman Brands, returns to TV this month with its ‘Because No Reason’ campaign.

Warninks White is a new vodka liqueur with white chocolate and mint.

Sparkling spike in the season WHILE alcohol sales are a key source of revenue over the festive period, sparkling water sees a spike in sales, according to Highland Spring. “Sparkling water is a popular alternative to alcohol with consumers regarding it as something a little bit special when socialising or entertaining at home over Christmas,” said Scott Dickson, senior brand manager at Highland Spring Group. “Retailers should be capitalising on the health trend this Christmas by marketing still and sparkling water 46 l

l December 2014

alongside the alcohol fixture.” The company has been focusing on sparkling water with new serving suggestions such as the ‘Highland Hugo’ and seasonal sparkling mocktail recipes available at www.highland-spring.com. Sales of S.Pellegrino sparkling water increase around the Christmas period, according to IRI figures quoted by owner Nestlé Waters, which recommends retailers ensure they have sufficient stock of S.Pellegrino to take advantage.

Warm up your winter sales

Great tasting coffee & hot chocolate to go! FREE

• 8 Tropikana hot drinks available. • Can work without plumbing. • 25 cups a day makes you a minimum of £127 PROFIT PER WEEK.

ΎdĞƌŵƐ Θ ŽŶĚŝƟ ŽŶƐ ƉƉůǇ͘

IT’S THE TASTE & SERVICE THAT SETS US APART!

ON LOA N

• Our small hot chocolate machine is the perfect solution for small spaces. • Delicious hot chocolate taste to go. • 25 cups per day makes you a minimum of £100 PROFIT PER WEEK.

FONRLEOAEN

Our Tropikana drinks never stop selling

A range of Tropical Slush and Ice Cream Machines available BABY

Ice Cream Machine T PERFEC FOR ER SMALL SPACES

• Affordable machine to suit smaller spaces • Comes with £1500 of free stock • Unbeatable price from only £2,900

• BRAND NEW MACHINE, INCLUDES SET-UP AND TRAINING

TROPICAL

We also repair and service your machines - Contact us

Ice Slush Machine

BIG

FITS PRO

s &REE ON LOAN s .O CAPITAL OUTLAY s 3IT BACK ENJOY THE PROl TS s &REE SERVICING

When the market is crowded with cheap syrups and Chinese machines, choose a trusted No.1 brand to increase your footfall and repeat sales – with Tropical Ice fruity high-quality ingredients syrup, in our Italian machines.

To make more proﬁt & enjoy many repeat sales... Call on 0141 876 1901 or 0781 520 7976 4 MURIEL STREET, BARRHEAD, GLASGOW G78 1QB

FREE ON LO AN

ΎdĞƌŵƐ Θ ŽŶĚŝƟ ŽŶƐ ƉƉůǇ͘

Wishing our customers a prosperous festive season.

christmas drinks

Malts out of the mults Rhubarb, ginger and gin WINTER is a time for rich, warming flavours and Edinburgh Gin reckons it has come up with a new variety that perfectly complements the season. The new Rhubarb and Ginger Gin Liqueur is the latest addition to the Edinburgh Gin Liqueur range and can be served on its own or as a long drink. It is also recommended as an ingredient to give a kick to crumbles, trifles or jams. It will be available in selected retailers. Alex Nicol, managing director of Spencerfield Spirit which owns Edinburgh Gin, said: “Rhubarb and Ginger is a great addition to the Edinburgh Gin range and we’re sure it is going to prove very popular alongside the other flavours.” EagfZWd` 5a_Xadf has launched a gift set, containing everything to make a Louisiana Jam cocktail. The Southern 5a_Xadf >ag[e[S`S <S_ Gift Set, RRP £25, includes a 35cl bottle of Southern 5a_Xadf Ad[Y[`S^ Sbd[Uaf jam, a stirrer and a jam jar glass. 48 l

l December 2014

A bottle of good single malt Scotch whisky will be on whisky fans’ wish lists this Christmas, and with consumers beginning to venture beyond the big supermarkets in search of something special, there is a chance for indies and c-stores to shine. Brand owners are providing specials and gift-packs intended to please discerning whisky aficionados. Spirits firm Whyte and Mackay is introducing two new limited-edition gift cartons for Jura single malt whisky, including a Jura Origin 70cl pack with two branded glasses, intended as a premium gift to be sold in the convenience channel. There is also a 20cl twin tasting pack of Jura Origin and Jura Superstition which Whyte & Mackay’s off-trade sales director Stephen Watt called “an ideal starter gift for consumers who are making their first foray into whisky.” • Having recently gone through a redesign, Isle of Arran Distillers’ limited-edition range is said to include a number of rare and exclusive

The Jura Origin pack released by brand owner Whyte & Mackay especially for convenience stores. This month the brand is advertised on TV for the ﬁrst time.

spirits ideal for a Christmas treat, such as its 10 Year Old Malt (£34.99) and the Arran Malt Machrie Moor (£42.99). There is also the full-bodied 12 Year Old Cask Strength (£47.99) and the lighter Robert Burns Single Malt (£29.99). • Inver House Distillers has announced the release of anCnoc 18 Years Old. An initial 6,000 70cl bottles of the single malt will be available

worldwide with an RRP of £70 and an ABV of 46%. • Balblair Highland single malt Scotch whisky launched the second release of its 1999 Vintage earlier this year, replacing the 1997 Vintage in the core consumer range. Balblair will be offering a complementary branded bauble with any purchase of a core Vintage throughout the festive season.

We three ales 3DD3@ 4dWiWdk ZSe ^Sg`UZWV fZdWW `Wi TdS`Ve SZWSV aX 5Zd[ef_Se Arran ID is an Indian dark ale, while Arran Sleeping Warrior is S TSd^Wk i[`W S`V 3ddS` 5^kVW BgXXWd EbWU[S^ DWeWdhW [e S efagf matured in an Arran whisky cask. Managing Director Gerald Michaluk said: “These are three exciting new brands. Although designed for the export market, they have been released in the UK after quite spectacular market testing in which they scored particularly highly.”

frozen food

In post-recession UK, will sales of frozen food still be strong?

Frost of living Cool yule A twist on the traditional Yule log is the latest product from Unilever to be aimed at festive dessert buyers. The Carte D’Or Logs, available in Vanilla Pecan 5SdS_W^ Ð Shagd Se iW^^ Se DSebTWddk HS`[^^S Ð Shagd combine ice cream on a biscuit base, coated in chocolate. “This is the ﬁrst time Carte D’Or logs are launching in the UK and after achieving great success in France,” said Jenny King, brand manager for Carte D’Or at Unilever UK. “Christmas is a time where consumers are looking to treat themselves and our new variants offer shoppers the opportunity to trade up to a luxury dessert.” D D ;UW 5dWS_ ZSe launched its own festive dessert – Cadbury Winter Wonderland Minis. Charlotte Hambling, UK head of marketing, at R&R Ice Cream said: “The popular festive ice cream dessert market provides an incremental opportunity for R&R in the weeks leading up to Christmas. “We recognised this as an opportunity to tap into both the festive and novelty ice cream areas.”

ROZEN food has shown consistent growth recently, with cashstrapped families seeking inexpensive meals. But as the economy gradually improves, does that mean shoppers will turn away from the freezer? Brian Young, director general of the British Frozen Food Federation, thinks not. “During previous recessions, the value of frozen food has risen, only for the value to fall once economic recovery was realised,” he said. “However, attitudes and perceptions of frozen food have changed markedly since emerging from recession in 1991. “Similarly, the rise in premium NPD and availability of frozen ingredient products, such as herbs, chillies and garlic, has encouraged more foodies to turn to frozen. And with issues of food waste and food security prominent in the me-

Figures show that frozen food continues to outperform overall food sales.

dia, frozen food’s environmental attributes have the opportunity to play an important role in purchasing decisions.” Andrew Ely, managing director of gluten-free frozen dessert brand Almondy, said: “We don’t expect consumers to move away from frozen food. During the recession people really had to be clever with

their budgets and it would be wrong to assume that just because the economic situation is brighter that those purchasing drivers will change. “We’re a conﬁdent nation but the recession has had a lasting impact and people who previously didn’t buy frozen have discovered the beneﬁts of stocking up the freezer.”

Meat free debuts QUORN has launched six new products in its frozen Chef’s Selection range. The new lines include Meat Free Steak and Gravy Pudding and Meat Free Roast Beef, as well as four new frozen meal bags Thai Red Curry, Thai Green Curry, Oriental Stir Fry and sizzling Mexican Fajita Mix. “We found there was a gap in the market for a premium range of meat-free products that were more indulgent and would drive consumption over the weekend,” said Julian Cooke, head of category management at brand owner Quorn Foods. “Meat-free is continuing to grow and we are hugely excited to be leading innovation in the category.” The company has also launched a limited-edition range of meat-free frozen food for Christmas, including two new products – Perfect for Parties Mini Sausage Rolls, and Mini Pasties. 4[dVe 7kW ZSe SVVWV S `Wi Ð Shagd fa [fe 8[eZ 5ZSdYd[^^e range - Sweet Jalapeño, Red Pepper & Honey. Fish Chargrills was launched in March and has already SUZ[WhWV eS^We iadfZ )_ ea XSd eSke 4[dVe 7kW

December 2014 l

l 49

Scottish brands review 2014

Scots favourites soar in c-stores S

COTLAND won’t forget 2014 in a hurry, reckons Kantar Worldpanel business unit director Mark Thomson. The eyes of the world were on us for political reasons, sporting passions, and more. “It has also been a truly signiﬁcant year within the grocery trade, in more ways than one,” he said. “For shoppers across Scotland, the economy is showing more positive signs of recovery with unemployment falling to 5.5% and overall growth in the economy of 2.6% over the latest year. “Against this, the big four grocers (Tesco, Asda, Sainsbury’s and Morrisons) have seen sales fall over the latest quarter in Scotland by 3.7%, whereas the discounters Aldi and Lidl have a combined growth of 18.7%, so the smaller channels within GB and Scotland are experiencing the biggest success. “This is also evident on the high street as convenience stores (Co-op and small independents) are collectively growing at 1.7% and now represent 13% of all grocery spend in Scotland (versus 8.5% of GB spend). “Shoppers are generally behaving the same way, yet what is changing is where they do their shopping. The discounters had six in 10 Scottish shoppers shopping in their stores over the latest quarter. Average big-four-supermarkets shoppers in Scotland

50 l

l December 2014

What a year! ONCE again the December issue of Scottish Grocer brings you exclusive coverage of Kantar Worldpanel research on Scottish consumers’ takehome purchasing of brands of Scottish origin. And this year it’s bigger, better and more useful than ever. As in the last two years we have separated alcohol from other products as the sales value of alcohol products is inﬂuenced by the high rates of tax charged on those lines. This year you can check out a larger top 50 nonalcohol brands list as well as the top 25 drinks brands of Scottish origin in Scottish homes. In this opening article Scottish Grocer hears from

spent £34 less on their shopping in those big retailers over the latest quarter, whereas Scottish shoppers spent on average £8 more in discounters and £23 more in premium retailers (Waitrose and M&S). “Shoppers are also beneﬁtting from falling grocery inﬂation, which now stands at -0.2%, as the big supermarkets have cut prices around everyday items such as fruit, vegetables and milk.

Mark Thompson, business unit director Kantar Worldpanel

Mark Thomson of Kantar Worldpanel about how Scottish brands more than held their own in Scotland and grew signiﬁcantly south of the border, not least in the impressively performing independent convenience channel – all at a time when the wider market, especially the supermarket giants, struggled. An exciting year for Scotland ... and for Scottish brands.

“Overall, Scottish brands have performed strongly across Great Britain up 4.3% in 2014 versus last year, in contrast with all branded products (excluding retailer private label) which grew by 1.7%.” England and Wales are vitally important for the success of Scottish-based brands, he said. Compared to the GB overall growth of 4.3%, sales of Scottish brands in Scotland

were up by a lower but still very healthy 1.8%. In fact Scottish brands have proved vital to several retail channels. While overall sales in the big four multiple retailers were up only 0.6%, sales of Scottish brands in those stores increased by almost ﬁve times that rate at 2.8%. Within high street convenience, Scottish brands had their biggest success – up 9.75% in GB overall, including a huge 10.3% sales increase in Scottish c-stores. So who have been the main movers in 2014? “Malcolm Allan has remained the number-one food brand this year by increasing its presence on shelf across its core categories,” Mark Thomson noted. “Bells Pies has also climbed a place to establish its presence as a top-ﬁve Scottish grocery brand in Scotland. Tunnocks and Graham’s Dairies continue to climb the rankings, this was before teacakes hit our screen at the opening ceremony of the Commonwealth Games. Graham’s has taken its brand into wider categories such as cheese as well as having a growing presence within spreads,” he said. New product development and widening distribution have been very important to those brands that have climbed places in the list from last year because there has been very little sales growth as a result of price increases, he added.

Top 50 Scottish take-home food and drink brands in Scotland – excluding alcohol Brand

Rank 2014

Rank 2013

Moving up

Brand

Rank 2014

Rank 2013

Moving up

Irn-Bru

Marshalls

Malcolm Allan

Paterson’s

Baxters

Brownings

Wiseman

Mackays

Bells Pies and Pastry

Tarbert Fine

Tunnock’s

Buchanan’s

Graham’s The Family Dairy

Hall’s

Albert Bartlett

Lees Cakes

McLelland Seriously

Big and Scottish

McIntosh

Glenrath

Simon Howie

Highland Game

Mackie’s of Scotland

McLelland Orkney

Rowan Glen

Stockan’s

Barr

We Hae Meat

Freshnlo

Swankies

Mothers Pride

Dean’s

Scottish Blend

Macsween of Edinburgh

Highland Spring

Brown Brothers Fmly Fvrt

Nairn’s

Hamlyns of Scotland

Border Biscuits

Mortons (Rolls)

McLelland Galloway

Belchers of Ayrshire

Scotty Brand

Kitty Campbells

Scott’s

McKechnie Jess

Macb

Mull of Kintyre

Great Scot

Grant’s Haggis

Source: Kantar Worldpanel take-home sales in Scotland 52 weeks to 25 May 2014 v 52 weeks to 26 May 2013. NE = New entry. December 2014 l

l 51

Scottish brands review 2014

Irn-Bru

OME years ago AG Barr-owned soft drinks brand Irn-Bru developed an advertising and promotional campaign around the term “phenomenal”. By the time 2014 has run its course it will have turned out to have been a phenomenal year for Irn-Bru, which is once again Scotland’s number-one Scottish brand. In its normal everyday performance the numbers have been good, helped along by some welcome decent summer weather, certainly, but ahead of the market too. And then there was the brand’s and the parent company’s involvement in Glasgow’s hugely successful running of the 2014 Commonwealth Games. AG Barr director Jonathan Kemp told the recent SGF Conference that the decision to become a major sponsor

Consumers are heavily inclined to buy Irn-Bru on the go, making it the biggest drink-now brand in Scottish impulse. had probably been the biggest risk the ﬁrm has taken. But it was a risk he wouldn’t hesitate to repeat, he said. It hadn’t all been about IrnBru – other AG Barr brands like Strathmore water, the Barr range and Rubicon juices had also been heavily involved. But the activity had been extremely successful by several measures. “During the games we had 36m special packs of Irn-Bru in the market, and they all sold,” he said “If we look at Nielsen ﬁgures, in volume Scotland was up 2.3%, the rest of the UK was up 0.7%, so the Scottish soft drinks market through the Commonwealth Games grew

The Irn-Bru Christmas TV ad campaign featuring the Snowman characters developed by Raymond Briggs is back again for 2014, a year that turned out to be fairly magical for Scotland’s most valuable Scottish food and drink brand. 52 l

l December 2014

at three times the pace of the rest of the market. “And that for me is the most encouraging fact that came out of the whole thing. “We sold more as a business, but also the market grew and it grew quicker than the benchmark.” He said he’d also been pleased that the Irn-Bru activity, speciﬁcally, had carried the personality of the brand. The company had wanted the Games to leave an impression of Scots as the world’s best supporters. Glasgow 2014 did that, he said. Early Irn-Bru promotions including Cheer We Go proved very successful and the 15,000 pairs of Irn-Bru lucky socks, including a pair for each member of Team Scotland, had become almost like currency. Similarly the ‘buy 24 cans and get an Irn-Bru kilt’ promo had been hugely popular and he’d recently seen the kilts being proudly worn by visitors to the Ryder Cup. His enthusiasm for the brand’s 2014 experience is shared by his colleague Adrian Troy, AG Barr’s head of marketing. “Glasgow 2014 focused worldwide attention on Scotland and its most popular products, providing a really strong platform for stockists of leading Scottish brands such as Irn-Bru and the Barr range,” said Troy. Quoting ad-tracking research he said Irn-Bru is the brand one in every two Scots drinks most often, with the

Irn-Bru Sugar-Free: sales of the IrnBru family’s low-calorie drink are worth more than £1m a week.

number of people aged between 22 and 29 who regularly buy the brand increasing from 55% to 73%. Some 89% of Scots 13-21 year-olds say it makes them feel proud to be Scottish. Quoting Nielsen research the firm says Irn-Bru Sugar-Free is Scotland’s leading low-calorie flavoured carbonate, delivering retailer sales of more than £1 million a week. “Consumers are heavily inclined to buy Irn-Bru on the go, making it the biggest drink-now brand in Scottish impulse,” said Troy. “Retailers should use IrnBru’s strongly-performing 250ml, 330ml, 500ml and 750ml formats to attract consumers to the fixture. “Our sustained investment in Irn-Bru has created a unique brand which is loved and trusted by Scottish consumers more than any other soft drinks brand.”

B E S T I N-S E A S O E N TH

ONE OF THE BEST IN OUR FIELD

That’s not just our view, Kantar World Panel 2014 showed we’d jumped an incredible eight places to number 22 in its table of Scottish take-home brands. Whether it’s our commitment to a growing range of in-season Scottish produce and foods, or all of Scotty’s hard work in the ﬁelds and his canine charm in our TV campaign, it’s a result that’s not to be sniffed at.

Te l 0 1 2 3 6 7 7 1 74 0

L i ke u s a t f a c e b o o k . c o m /s c o t t y b r a n d l t d

• GOOD FOOD’S BEST FRIEND •

Discover more at scottybrand.com

THEY DO MORE

We’re delighted to be number 8 in the Kantar World Panel table of Scottish take-home brands for 2014. As a family-run business for more than 60 years, we supply over a ﬁfth of the UK’s fresh potatoes - and we couldn’t be prouder. Alongside our popular branded variety, Rooster, we have the unique and nutty, Apache, and perfect for boiling, Supreme Salad.

albertbartlett.co.uk

Scottish brands review 2014

Malcolm Allan

OW do you become the most valuable Scottish food brand in Scottish retail? Well, Gordon Allan, director at family-owned Malcolm Allan – a company launched by his father 60 years ago this month and which last year moved into second spot in our top 50 behind Irn-Bru, a position it retains this year – isn’t entirely sure. “Last year nobody was more surprised than us,” he said. “We know we shift a lot of stuff, but everybody tells me we’re rubbish at marketing. “So at the end of the day it must be about the product.” There’s a touch of self-deprecatory humour in his comments but there’s a fairly hefty dose of reality too. The company has very successfully developed its supermarkets business in recent years – concentrating on making products that sell well in those outlets, and choosing, said Gordon, to produce the best quality possible at a variety of price points. More recently it has been doing good business in convenience outlets through Nisa, P&H and Spar and has seen success, to a degree that slightly surprised but delighted the manage-

Malcolm Allan has been busy making New Year steak pies since the late summer. 54 l

l December 2014

Scottish food and drink retail’s biggest Scottish food brand Malcolm Allan is known for its Lorne Sausage but the ﬁrm has been extending its product range, ensuring it has lines at a variety of prices and has been growing sales in c-stores.

ment team, with better-foryou, lower-calorie burgers and sausages in conjunction with Scottish Slimmers. Its product range now spans everything from those low-cal lines to value sausages, to premium burgers and top-notch steak pies. And underlying all its success is the fact that Falkirk-based Malcolm Allan has become the undisputed champion of the Scottish delicacy, the Lorne sausage. “A lot of ﬁrms spend a lot of money on TV ads, our marketing budget is just about nil, really. As we’ve been fairly busy we’ve had to invest in

equipment. “It sounds arrogant but we’ve not really looked at marketing because we’ve been that busy making product, it’s become secondary.” That being said he knows there are things that the company wants to do better – online business for example. And he recognises that the ﬁrm, which is so far doing very nicely thank you by trading on quality and tradition, will have to embrace the world of mar-

keting and communication as new generations of consumers become key purchasers. “That’s the challenge for us. There’s a feeling that everybody knows the way that Malcolm Allan makes it. But that’s rubbish. We really need to get that over on our packaging for the next generation.” This month Gordon’s dad, now 95, and the rest of the family will celebrate 60 years since the launch of the company and a year since it moved a short distance to its new headquarters on the outskirts of Falkirk. The early days were affected by a power supply problem at just about the worst time of the year to face such a difficulty. But it was overcome and the firm has since invested in a generator to ensure any similar issue in the future won’t threaten production. That problem aside the move has brought nothing but good. “It’s been night and day for us, it’s worked well,” he said. Sales are up around 10% and that’s mostly a result of volume increases as there’s been little or no scope for price increases, he explained. Some of the volume growth is down to successful new product development. But there’s also been significant sales growth in sales in cstores. “We’re seeing an increase in convenience,” he said. “For a while we were just dodging along but Spar is up, Nisa’s up. If anything they are up while the bigger guys are standing still a wee bit.”

Everybody tells me we’re rubbish at marketing. So at the end of the day it must be about the product.

Scottish brands review 2014

Baxters

AMOUS family firm Baxters has been taking a taste of Scotland, and indeed the Highlands, to markets in Scotland, the rest of the UK and across the world for generations. Products under the Baxters brand have included soups, preserves, condiments and chutneys. More recently the firm has been involved in significant new product development that included, earlier this year, the launch of new instant hot meal lines. Scotland has been crucial to the Baxters sales perfor-

56 l

mance, especially on its soups where in recent years Scottish sales have been measured at more than 20% of the total. Its soups portfolio includes several ranges such as Favourites, Stay Full and Luxury. This year’s new product development included the launch in June of Baxters meal pots and, under another of the ﬁrm’s brand names, Fray Bentos Hunger Bursters into the instant hot meals market, which the ﬁrm said was worth £230m and growing 12% year on year. The group said the new lines

were intended to fill a demand it had identified for “a better tasting, more premium offering”. Microwaveable, and ready to eat in two to three minutes, the Baxters Meal Pots range features four flavours includ-

ing: Vegetarian Three Bean & Chipotle Pepper; Malaysian Inspired Chicken Laksa; Smokey Mixed Bean, Chicken & Quinoa; and Italian Style Sausage & Mixed Bean. Each 250g meal pot has an RRP of £2.49.

Müller Wiseman

üller Wiseman Dairies, established in 1947 and once a small fam-

l December 2014

ily farm in East Kilbride, now provides around 30% of the fresh milk consumed in Britain – from six dairies, including Scottish facilities at Aberdeen, East Kilbride and Bellshill. Included under the Wiseman brand is ‘the One’ - low-fat milk with 1% fat. But described by the company as the star of its show is

Müller Wiseman Black and White brand milk. Now worth more that £112m a year the Black and White brand is celebrating its 25th Anniversary in 2014. Müller Wiseman Dairies also says that its regional labels, including Grampian Milk and Milk from Scotland, have been successfully serving what it sees as signiﬁcant demand for “produce with provenance”. Sandy Wilkie, Müller Wiseman Dairies business and relationship development director said: “Consumers increasingly demand traceability within fresh produce and by offering milk with a clear

link to the area where it is produced, without adding cost to the retailer, we can add value to our milk which can be passed on to consumers in the form of conﬁdence, peace of mind and pride in quality regional milk and products.” “We are proud that we can source and trace all our milk,” a company spokesperson said. “Produce with provenance will remain a key focus for us going forward and we have a number of exciting developments planned, involving a continued focus on regionality and traceability within our Black and White brand.”

Scottish brands review 2014

Bells

COTCH pie and pastry producer Bells is once again confirmed as one of the top five food and drink brands in Scotland. It’s been a traditional Scotch pie producer for some 50 years, and its traditional product continues to do very well indeed. The company produces more than 400,000 a week. But recent decades have seen innovations designed to widen appeal and meet modern demand for a variety of flavours and styles of cuisine. So, as well as Scotch pies, Bells now also produces mac-

aroni pies, steak and gravy pies and curry pies. This year, as the spotlight fell on Scotland for the Commonwealth Games, Bells released a brand new pie that combined two traditional Scots flavours – steak and haggis. So successful was the launch that, due to popular demand, the firm will re-release the pie in April next year. And as Christmas 2014 approaches Bells is marking the event by launching a venison pie. “Our luxurious venison and red wine filling is complimented with a top crust pas-

try, which makes it perfect for those momentous occasions such as New Year’s Eve and Christmas, yet it is still an affordable indulgence for a lovely meal with loved ones,” a company spokesperson said. Bells Puff Pastry holds a prominent place in its product range and the ﬁrm says it’s proud of its natural ingredients, tried and tested production method and popularity.

Its Kirriemuir Signature Gingerbread range, launched this year, is already doing good business at home and has also taken the company into export markets. Signiﬁcant investment continues and the coming year will see the installation of a second pastry laminator and a signiﬁcant increase to the company’s blast freezer capacity.

Tunnock’s S

COTLAND’S favourite Scottish biscuit brand is, once again, Tunnock’s. But Tunnock’s sales director Fergus Loudon says the market in Scotland is competitive and challenging and while the ﬁrm is pleased that it has brand loyalty across the country it never takes things for granted.

58 l

l December 2014

“We still have a high street shop of our own, right in the centre of Uddingston, and we really do understand the issues many of our retailers are facing,” he said. “Our main lines are very well established and we rarely tink-

er with them. The decision to make a dark chocolate version of Caramel Wafers and Tea Cakes was one we thought about very carefully and it has proven to be the right move at the right time. “Similarly the introduction of Mini Caramel Wafers in their distinctive tubs was very carefully tried and tested before we brought them into full production. “This has been a very busy year for us with the factory quite frequently stretched to do everything asked and we are quietly thankful for the considerable investment we have made in robot technol-

ogy over recent years. “The Commonwealth Games in Glasgow was a very successful event. The opening ceremony was more of an eye opening ceremony and the sight of lots of good-looking young people dancing in large tea-cake costumes was delightful and even if they didn’t actually have our name on them many people seemed to think that they did,” he said. “If it brought the brand to the attention of an even wider audience and helps to keep 500 people in Scotland fully employed then that will be a most valuable part of the games legacy.”

DS AN

N O

TO S SC OTLANDâ&#x20AC;&#x2122;

Everyone loxes a traditional Christmas

Make sure youâ&#x20AC;&#x2122;re well stocked up with the all time traditional favourites from

Fort Matilda Industrial Estate Greenock, PA16 7QF Tel: 01475 721099 Fax: +44 (0)1475 784644 enquiries@goldencasket.co.uk www.goldencasket.co.uk

A big thank you to all our customers for making us the No.1 Scottish Food Brand for a second year running. www.malcolmallan.co.uk

Scottish brands review 2014

Graham’s

T’S been another busy year for Stirlingshire-based family ﬁrm Graham’s the Family Dairy, now the country’s biggest independent dairy company, the second-biggest Scottish brand in the Scottish milk market and a growing force in butter and cheese. Earlier this year the company

announced Kantar research had shown its butter had become the number one brand for block butter in Scotland. In July Inverurie-based, Mitchells Dairy transferred its milk distribution business to Graham’s The Family Dairy. The move saw Graham’s take over Mitchells distribution

The Graham’s the Family Dairy range now includes milk, butter and cheese.

to households, shops, restaurants, hotels and ofﬁces across Aberdeenshire. And recently the ﬁrm agreed

a deal with Scotmid which sees it supply milk, butter and spreadable butter to stores across Scotland.

Bartlett Michel Roux Jr, Michelin star chef, starring in a current Albert Bartlett ad.

OW do you make the potato sexy? It’s a challenge Scottish-origin ﬁrm Albert Bartlett, which now has facilities in several parts of

the UK and Channel Islands, rose to when it saw the challenge for carbohydrate sales being mounted by pasta, rice and other products.

Three 30-second ads entitled ‘Fairlie & Farms’, ‘Pastures New’ and ‘Voilà’ that explain Fairlie and Roux’s use of Albert Bartlett potatoes and their long relationship with the Scottish family-owned ﬁrm, began in October and run until just before Christmas. The company stresses its commitment to responsible production and the ads include waste-avoiding recipes.

Seriously Strong

ERIOUSLY Strong Cheddar from Lactalis McLelland retains a top 10 position and its place as the best-selling Scottish cheese brand in Scotland in Kantar Worldpanel’s top 50 this year. The brand began with, and continues to take its cues from, the award-winning Stranraer-produced Seriously Strong Cheddar. But as a brand it has, in recent years, grown to cover a much wider collection of

62 l

Albert Bartlett Rooster Potatoes were backed by television commercials featuring Desperate Housewives stars Marcia Cross and Jesse Metcalfe. More recently the ﬁrm has turned to Michelin-starred chefs Michel Roux Jr of La Gavroche restaurant and Scotland’s own Andrew Fairlie of the two-Michelin star Andrew Fairlie at Gleneagles.

l December 2014

of modern products, including Seriously Strong Spreadable. Earlier this year the ﬁrm announced that Nielsen research has shown Seriously Strong to be the UK’s number-one spreadable cheddar. The Seriously Strong range has also seen the development of a series of easy-open and resealable packs and a ready-grated product. The Seriously Strong portfolio also features a cheese sauce.

By Appointment to Her Majesty The Queen Oatcake Manufacturer Walkers Shortbread Ltd Aberlour

Walkers Shortbread Limited Aberlour House Aberlour-on-Spey Scotland AB38 9LD Tel +44 (0)1340 871555 enquiries@walkers-shortbread.co.uk www.walkersshortbread.com

Lees newly designed range of eye candy.

Introducing our re-designed confectionery bar range. Available now. T: 01236 441600 E: sales @ leesofscotland.co.uk www.leesfoods.co.uk

Scottish brands review 2014

McIntosh

AST year’s Kantar chart covered a slightly earlier period than this year’s table and our article last year showed McIntosh in 13th position. But within a short time the brand had powered into the top 10 position it now holds. It’s another illustration of a strong year for McIntosh in which it also won the Best Chilled Food Manufacturer award in The Food Awards Scotland

and ran an integrated marketing campaign between September and October that highlighted the brand on TV, radio, press and other media and saw activity on its social media sites reach an all time high. This year also saw two new products join the McIntosh range – McIntosh Macaroni with Smoky Sausage, described by the ﬁrm as a modern take on its original best-selling macaroni

meal, and Haggis & Mince Pies, which it reckons will make an exceptional addition to the current Burns Night range in January. Next year it plans major marketing activity including a website revamp and further new product development.

Simon Howie 11 P

ERTHSHIRE-based butcher Simon Howie has its own two traditional retail outlets and a significant online presence but the bulk of its sales are achieved through multiple grocery outlets in Scotland. It has seen growth in the last year. In a period when it’s difficult to raise prices that’s largely been down to volume increases. And that, thinks MD Simon Howie, has in turn reflected the firm’s work to develop new lines and to work with its multiple grocer clients on new pack sizes

Mackie’s

ACKIE’S of Scotland, known ﬁrst for its luxury dairy ice cream, is a brand that now covers three categories – ice cream, chocolate and crisps. The ﬁrm says Mackie’s is now the best-selling premium ice cream in Scotland and saw sales increases this year thanks to good weather and a return to TV advertising. The

64 l

and SKUs to suit those ﬁrms’ new small format supermarkets and c-store sized outlets. 2013 saw the development of many new lines such as the Simon Howie Wee Haggis and Wee Black Pudding. Recent months have seen the launch of a new sub-brand, the Perthshire range, a collection of sausages and puddings designed to sit alongside Simon Howie products but offer different styles and ﬂavours. Early results from Tesco have been good, said Howie.

l December 2014

range has also widened. Mackie’s Chocolate, made by Mackie’s from cocoa liquor to bar, and to a unique recipe, is set to see signiﬁcant manufacturing and marketing investment in the coming year. Mackie’s potato crisps, made in the joint venture company Mackie’s at Taypack, saw the addition of a ridgecut variety in November last

year. And Mackie’s has also brought out some particularly Scottish varieties. Two new ﬂavours recently added to the

range – Whisky & Haggis and Venison & Cranberry – are said to be proving popular in Scotland and in export markets.

Weâ&#x20AC;&#x2122;re delighted to step up to the No.7 position for Scottish Take Home Brands. grahamsfamilydairy.com

Scottish brands review 2014

Rowan Glen

N what looks to have been a very good year, yogurt and dairy brand Rowan Glen jumped three places in the Kantar chart to reach number 13. The dairy itself sits in the heart of the Galloway countryside at Newtown Stewart and the brand uses fresh milk from local farmers to make Scottish yogurt. The brand underwent a makeover earlier

this year with new looks across the range designed to emphasise its Scottishness. The rebranding was supported by signiﬁcant advertising including outdoor media and national press advertising. Sales performance in recent times is said to have been ahead of the market, with strengths in a number of areas including Greek-style yogurt.

RN-BRU may take the limelight as Scotland’s biggest-selling non-alcohol Scottish brand but its sister brand Barr has actually been around longer. It moves up one place this year and that’s on ﬁgures that don’t include the fairly hot summer and the Commonwealth Games sponsorship effect. AG Barr head of marketing Adrian Troy said the Barr brand currently accounts for 10% of ‘other ﬂavoured carbonate’ sales and is growing twice as fast as Scotland’s total soft

Barr

drinks category. “The Barr brand is one of the star performers of Scotland’s soft drinks market, enjoying a huge following among shoppers looking for great taste at fantastic value, as well as fun, exciting ﬂavours,” he said.

Freshnlo

pioneer of ‘better for you’ milk Freshnlo semi skimmed, launched in the early 1980s, is part of the Müller Wiseman Dairies portfolio. The company says it sees health and wellbeing as likely to be a strong continuing trend. And it’s one that it’s conﬁdent it can continue to respond to. Sandy Wilkie, Müller Wiseman Dairies’ sales and marketing director, said: “As the UK’s ﬁrst semi-skimmed milk, Freshnlo has always been associated with health

and nutrition, and has been a family favourite in fridges since its launch in 1981. “We were thrilled to support freshnlo Pedal for Scotland once again for its sixteenth year, which saw almost 10,000 riders take part in the iconic ride from Glasgow to Edinburgh in September. “Our involvement continues to make perfect sense as Freshnlo is not only delicious but nutritious too,” he added.

Mothers Pride 16 M

OTHERS Pride retains its place as Scotland’s best-selling Scottish bread brand and comfortably maintains a top-20 position by listing as number 16 in our take-home chart. Scottish Plain bread is different from most other breads produced in Britain and is produced by a process that is markedly different from other mass

66 l

l December 2014

market wrapped breads. It’s a style that’s especially popular in Scotland. The great majority of Mothers Pride Scottish Plain – which is available in medium sliced and thick sliced versions, each with its own Mothers Pride tartan wrapper – is sold north of the border. It’s especially popular in cold weather when it’s thought to be bought to accompany soup.

Scottish brands review 2014

Scottish Blend

ART of the extended Unilever tea family, which also includes the major UK brand PG Tips and the internationally successful brand Lipton, Scottish Blend was developed and launched specifically with Scotland and Scottish water in mind. This year it retains the number 17 spot after rising to that position in 2013 from its previous number 19 place. It was arguably the first brand, and certainly the first

brand from a large brand owner, to lead on its suitability for Scottish water. Since then we have seen other brands and some supermarket own-label products do similar things. Scottish Blend is, however, still clear number one among tea brands specially made for Scotland and has in recent years claimed number two position in Scotland overall, behind Tetley Tea.

Highland Spring 18 P

ERTHSHIRE-based Highland Spring isn’t just the biggest-selling Scottish bottled water in Scotland. It’s number-one bottled plain water in Scotland and throughout the UK. “Supplying almost 434m litres annually, we have a 20.2% volume share of the UK unﬂavoured bottled water market and produce one in every ﬁve litres sold,” said Scott Dickson, senior brand manager with Highland

Nairn’s

AIRN’S, a brand historically linked with oatcakes but more recently involved in signiﬁcant developments in other biscuits and snacks, retains its top 20 position in this year’s chart in

19th place. Among recent activity the company has launched updated packaging for its Oat Biscuit range, highlighting the relatively low sugar content of the biscuits. The biscuit recipe hasn’t

Spring Group. The ﬁrm reckons health-consciousness is contributing to growth. Highland Spring was a sponsor of the 2014 Ryder Cup at Gleneagles this year and the ﬁrm said the world’s biggest team golf tournament had provided the brand with “the perfect platform to further promote our commitment to healthy active lifestyles.”

changed but Lucy White, marketing director at Nairn’s said: “We want people to know that they can lower their sugar intake without needing to cut out their favourite foods – biscuits included.” Nairn’s has also launched a range of low-sugar children’s biscuits, Astro Bites. “As with the Oat Biscuits, Astro Bites contain 40% less sugar than competitors,” said White.

The tables THE information for the top Scottish brands in Scotland index is provided by Kantar Worldpanel – part of the Kantar Group, one of the world’s largest research, insight and consultancy networks. Kantar Worldpanel monitors the household grocery purchasing habits of demographically representative households in 68 l

l December 2014

Great Britain. Participating consumers scan the goods they have bought with special recording equipment and also ﬁll in diaries that detail the use they make of products. The top 50 Scottish non-alcohol Scottish take-home brands in Scotland index and the top 25 Scottish take-home alcohol brands in Scotland index each

measure the sales value of Scottish brands that are taken home by shoppers in Scotland. Some brands may also have further sales where the goods are not taken home and scanned – goods bought at lunchtime, for instance. For further information please contact Mark Thomson - mark.thomson@kantarworldpanel.com 07943 811715.

A whole new light. Here at Müller Wiseman Dairies we are shining a whole new light on the milk category; bringing fresh insight, tailored innovation and long-term investment to create value for all our stakeholders. By taking our commitment to quality, service and innovation to a new level, we’re determined to be the best fresh milk business in Britain. Here’s to fresh thinking.

www.muller-wiseman.co.uk

Scottish brands review 2014

Border Biscuits

ANARK-based Border Biscuits made a dramatic entrance into the top 20 this year, after jumping seven places from 2013. New supermarket listings, new product development, and investment in marketing activities have all contributed to a successful year for the brand, but even with all of that, sales and marketing manager Louse Creevy said the ﬁrm had been pleasantly surprised by its progress in the Kantar Worldpanel list. “We weren’t expecting to jump that far,” said Creevy, who admitted to motivating herself by keeping a copy of last year’s Scottish brands list on her desk at work. “It was our goal to get into the top 20 in the next two to three years. Most brands only really move up one or two spaces each year. So it surprised us.” This year, the company has celebrated its 30th anniversary with a major marketing push that has included TV, print and online advertising. Specially-designed POS materials, including shelfedge strips and wobblers, were sent to independents and c-stores through the

Major mover Border Biscuits moves up seven places from 2013

Border Biscuits has this year celebrated its 30th anniversary with a major marketing push that has included TV, print and online advertising.

wholesale network, and retailers were invited to submit pictures of their displays to win an iPad Mini, through a competition in Scottish Grocer magazine. Additions to the Border Biscuits portfolio have included new varieties in the

Deliciously Different range like Danishly Caramel Apple and Chocolate Fudgy Wudgies, new “naughty but nice” Oatrageously Tasty varieties and an expanded range of Christmas gift tins. “We’re always working on the development of new

products,” said Creevy. “We want to try and think of things that aren’t already out there in the market. It’s not just a development for the sake of it. “The feedback we get is that people buy them either as a treat that they keep for themselves – and that they don’t share with their family – or they’re buying it as a gift or to take into the ofﬁce to show off. “We like to call it an ‘everyday treat’. It’s not so expensive that it puts people off, but it is still classed as a bit special. “Special treats have been in decline with most retailers over the past year or so, but we seem to be bucking the trend and that’s a real focus for us.”

Galloway T Galloway Cheddar’s website highlights the Scottish cheese brand’s connections to family activity and shows its new 500g pack. 70 l

l December 2014

OP 10 brand Seriously Strong has its origins in Scotland and has been the biggest-selling Scottish cheese brand in Scotland for some time. But its Lactalis McLelland stablemate Galloway Cheddar is Scotland’s highest-selling Scottish cheddar that states its origin and provenance in its brand name. The company has for some time stressed

the cheese’s uses as an ideal base or ingredient for family meals and snacks. And much of its recent marketing activity, including substantial online and social media work, stresses those family ties. On-pack promotions and online activity have included everything from family recipe ideas and suggestions for days out to money off family meals.

We’re still hungry. With The Lane’s reputation for marketing creativity and effectiveness, it’s really no surprise that we work closely with growing FMCG brands such as Graham’s The Family Dairy, Border Biscuits and Brodies. So if you’re looking to find your brand’s voice on and offline, we’d be delighted to break bread over an informal chat. Just drop us a line at create@thelaneagency.com

ADVERTISING * BRAND BUILDING * DESIGN * DIGITAL * MEDIA BUYING * SOCIAL MEDIA * STRATEGIC THINKING

thelaneagency.com

Scottish brands review 2014

Scotty Brand

AST-developing Scottish food collection Scotty Brand is another of our major movers jumping eight places from last year to the point where it is knocking on the door of the top 20 Scottish brands in Scotland. It seems like a relatively new phenomenon and developments have been many in the last couple of years. But in fact Scotty brand was first launched in 1948 by Albert Bartlett. Currently the Scotty Brand product portfolio includes tomatoes, potatoes, carrots, lettuce, prepared vegetables, Ayrshire new potatoes, seasonal berries, bacon, burgers and fresh soups. Many of the lines are seasonal and the company has developed a schedule of product launches that runs through a typical year. For example in April Scotty Brand launched its 230g packs of Scotty Brand tomatoes for 2014. It described the Annamay variety tomatoes as firm, with juicy texture and an intense aroma, and packed full of flavour.

Major mover Scotty Brand moves up eight places from 2013 Scottish, seasonal and high quality were among the original remits of Scotty Brand, an umbrella brand that covers Scottish food products in a number of categories. From its original base in fresh fruit and veg it has widened to include meat, chilled soups and more. Two of its recent launches included Scotty Brand Burgers, in the summer, and Highland Baby Potatoes, in September.

Scotty Brand tomatoes are grown by Clyde Valley Tomatoes, based near Carluke. At one time the Clyde area provided virtually all of the UK’s tomato crop, but the industry declined in the face of cheaper imports. Clyde Valley Tomatoes and Scotty Brand say they aim to revive the industry.

In June the brand launched Scotty Brand burgers, sourced from award-winning Ayrshire butcher We Hae Meat using certiﬁed Scotch beef with protected geographical indication (PGI) status. And in one of its most recent launches Scotty Brand added Highland Baby potatoes to its product portfolio.

The baby potatoes are Isle of Jura variety and are grown and packed on the Brunton family’s farm in Easter Ross, in the far north of Scotland. The Brunton family has farms in Easter Ross – where Highland baby potatoes are grown - and in the Angus area of Scotland. All of the potatoes are grown within one mile of the sea in light soil and are carefully stored within one hour of being harvested. The potatoes are planted in late March and April and harvested in August and September. The grower has on-site cold storage which allows the newly harvested crop to be cooled immediately.

Scott’s 23 S

COTLAND has a national drink or two. Is there a national food? Thanks to Robert Burns haggis has a strong claim. But as an everyday item porridge might be the food that many associate most readily with Scotland. Scott’s at position 23 in the Kantar chart is the biggest selling Scottish brand of oats in Scotland and, as a result, the brand’s interestingly spelled Scott’s Porage Oats could

72 l

l December 2014

be seen as the country’s favourite Scottish produced breakfast item. Recent times have been good for breakfasts, and hot breakfast cereals especially, and Scott’s, now owned by Quaker and ultimately by Pepsico, appears to have been taking full advantage. Innovation in recent years has included the development on Scott’s So Easy products including Scott’s So Easy Pots.

BUILDING BRANDS IN SCOTLAND

THE POWER OF PARTNERSHIP 8IP *E\ ) QEMP WEPIW$NJOTEVXRIVWLMT GSQ [[[ NJOTEVXRIVWLMT GSQ

Scottish brands review 2014

Macb

HE Scottish food and drink manufacturing industry has a number of strong categories and soft drinks is one of them. And to add to the giants of Irn-Bru, Barr, and Highland Spring there is Macb, the ﬂavoured water range that earlier this year, quoting IRI ﬁgures for all snack outlets in Scotland for the year to February 14, could say that it wasn’t just best-selling Scottish

ﬂavoured water but best-seller overall in terms of unit sales. Macb is available in Pure and a variety of fruit ﬂavours, in still and sparkling, in a number of packs and sizes. Macb marketing activity includes sports sponsorships of Scottish Premiership football club Partick Thistle and Scottish athlete Eilish McColgan.

Great Scot 25

COTLAND, in winter at least, has a reputation as a soup-loving nation. It’s an enthusiasm and a demand that has been met for many years by the Great Scot range of pulses, grains and soup ingredients – aimed especially at the Scottish market, but now also available south of the border. A competitively priced range, it looks to have been well-placed in recent years when economic conditions have encouraged both careful shopping and a new

Telling the Scottish story of Macb ﬂavoured water at www.macb.co.uk

attitude to meals that encouraged a trend towards cooking from scratch that helped sales of store cupboard goods. Great Scot’s main lines include 500g packs of Red Split Lentils, Scotch Broth Mix, and Vegetable Broth Mix as well as other traditional lines such as Yellow Split Peas, Marrowfat Peas, and Pearl Barley. But in recent years it has introduced other products including items like Cous Cous in a range of ﬂavours.

Marshalls

COTTISH pasta brand Marshalls retains a comfortable top-30 place in the Kantar Worldpanel best-selling Scottish food and non-alcoholic drink brands in Scotland in 2014, achieving 26th position. The Marshalls brand, distributed across Scotland, is available in independents and the cash & carry and wholesale channels as well as in many supermarkets.

The Scottish firm might be best-known for its short-cut macaroni, which was launched in 1935 and became a Scottish staple. On the other hand younger generations of Scots might think first of some of the firm’s Cheesy Macaroni convenience products. The Marshalls brand has been official panda partner to the Royal Zoological Society of Scotland.

Paterson’s 27 A

LONG with meat products, dairy and soft drinks, biscuits is a particular area of strength for Scottish brands. And Paterson’s is a particularly strong brand. Quoting Kantar Worldpanel ﬁgures for the year to 14 September 2014 it says it’s Scotland’s number-one shortbread. The motto on its packs says “Tradition with a twist”. And recent years have shown it’s a brand that’s willing to try new things in terms of 74 l

l December 2014

product development, and promotion. in 2013 it became the sponsor to the TV discussion programme Loose Women, on STV. Its shortbread range features a collection of ﬂavours including Chocolate Chip Shortbreak, Doubly Chocolate Shortbreak, and Clotted Cream Shortbread Fingers as well as noadded-sugar shortbread. And it has also produced a series of shortbread ﬁngers and assortment lines in PMPs.

SCOTS MAKE GOOD GROCERS

TUNNOCKâ&#x20AC;&#x2122;S MAKE GREAT BISCUITS Thomas Tunnock Ltd.,

EST.

1890

34 Old Mill Road, Uddingston G71 7HH Tel: 01698 813551 Fax: 01698 815691 Email: sales@tunnock.co.uk

www.tunnock.co.uk

Still a family business

Scottish brands review 2014

Brownings

HIS time last year we reported that an impressive performance from Kilmarnock-based ﬁrm Brownings had seen the craft baker jump from 36th position in 2012 to 31st place. And the success keeps on coming for the family ﬁrm that was founded in Ayrshire in 1945, which this year has moved up to 28. It has a developed bakery manufacturing

and wholesale business, serving a wide variety of retailers, including multiples, symbol groups, and discounters. Brownings also has eight of its own retail outlets. One of its best-known products is the Killie pie. But it produces a very wide range of bakery products including meat products, made with Scotch beef, rolls, scones, cakes, biscuits, mufﬁns and tray bakes

and loaf cakes and also offers clients bespoke product development.

Mackays D

UNDEE-BASED preserves manufacturer Mackays moved into the top 30 last year when its jams and marmalades brand moved from 32nd place to 29, a position it has held this year. In a city that was famous for jute, jam and journalism Mackays is a business

that has craft working at its heart. The company produces in small batches using traditional methods. All strawberries, raspberries and blackcurrants used in Mackays products come from eastern Scotland. The Mackays range features jams marmalades and curds, including its hand-stirred collection.

Tarbert Fine

ROWNS Food Group now includes a number of Scottish meat products brands including Hall’s, Belchers of Ayrshire and one of the country’s leading ranges of premium cold meats Tarbert Fine. The Tarbert Fine range uses meat that’s produced to stringent Quality Meat Scotland standards and quality, meeting the QMS accreditation marks of Scotch Beef, Specially

Selected Pork and Specially Selected Ham. Following research, the range and packaging was revised to provide what the ﬁrm sees as a better ﬁt with today’s consumers. The range includes: Finely Sliced Heather Honey Ham; Finely Sliced Black Pepper Pastrami; Peppered Topside of Beef; Roast Pork; Thick Cut Ayrshire Ham; Topside of Beef; Arran Mustard Ham, and more.

More info on Tarbert Fine at www. brownsfoodgroup.com/tarbert

The timetable KANTAR Worldpanel produces and analyses the top Scottish Brands information just ahead of summer each year. The charts are passed on to Scottish Grocer for use in our end of year edition, each year. This year the ﬁgures were analysed a little later than in 2013. That means that we are comparing the 12 months to 25 76 l

l December 2014

May with the equivalent period in the preceding year. In 2013 it was the 12 months to mid-May compared to the same period in 2012. So it’s important to note that when we write today about brands’ positions last year one or two might be a little different from the table we actually published in December 2013, because that index was

for a slightly earlier 12-month period. Brand positions reﬂect purchases from all types of store – supermarkets, symbols, discounters, independents and specialists. Brands include those produced in Scotland and those of Scottish origin with an established position in the Scottish market that might be produced in a number of sites.

Scottish brands review 2014

Buchanan’s

Signiﬁcant movers and key categories in positions 31 - 50

UMPING five places from last year to reach position 31 this time around, the traditional confectionery brand Buchanan’s, part of the Greenock-based Golden Casket company, is one of our major movers this year. The brand was established way back in 1856, Golden Casket has looked after it for 40 years and still keeps as much as possible to the original recipes. Traditional weigh-out jars are still a big part of the business but in the past 10 years or so the bag range has seen the greatest growth, the firm says. This year it has added five new lines – Raspberry Choco-

Big and Scottish

THE sale of eggs has been transformed in recent years, partly because of changes to production regulations and partly due to the development of egg brands. Glenrath-owned large free-range eggs brand Big and Scottish moved up four places to become Scotland’s best-selling Scottish brand of eggs, overtaking its stablemate Glenrath in the Kantar list. Another Glenrath eggsbrand, Kitty Campbells, is also in Kantar’s top 50, at number 47.

78 l

l December 2014

Key brands

Two of the ﬁve new lines recently added to the Buchanan’s bagged confectionery range. Sweets are meant to be savoured and enjoyed, the brand owner says.

late Delights, Coconut Chocolate Delights, Mini Macaroons, and Edinburgh Rocks – which take the range to 20.

Buchanan’s products are, the ﬁrm says, all about indulgence. “Sweets are meant to be a

HEESE brands showed something of an up and down performance in our top Scottish brands table for 2014. But undoubtedly one of the strongest performances was from the Lactalis McLelland-owned Orkney Cheddar which jumped three places to ﬁnd itself comfortably in Scotland’s top 40 Scottish food and drink brands. And the 2013-2014 period covered by the Kantar analysis proved an exciting year for Orkney Cheddar in other ways too. In November 2013 Orkney Cheddar was granted protected geographical status (PGI). Now UK consumers will know Orkney cheddar can only ever come from Orkney and the cheese has similar trade protection in the EU to Stornoway black pudding and Parma ham. Gaining the accredita-

treat, savoured and enjoyed – yes our range is full of the ﬁnest chocolate, fondant centres, whole Brazil nuts, cream, best butter but that is how it should be,” a company spokesperson said. The range is available in all the major multiples and in retail outlets throughout Scotland. The next stage for the brand will be to roll the range out across the UK.

Orkney

tion took four years from application to obtaining the PGI. Key elements that influenced the decision included the special dry stir technique used in production at the Orkney creamery and the fact that the milk used is locally sourced. When the news came through last year general manager at Orkney Tim Deakin said: “It was a long task liaising with the Scottish government, followed by a sixmonth consultation period for Scotland, then again for the UK and finally another six months with the EU. “We were working closely with DEFRA on any issues that came up and I must admit I was delighted when we finally got the accreditation,” he added.

Scottish brands review 2014

We Hae Meat

IGHEST new entry position in the 2014 Top 50 Scottish Brands in Scotland list was gained by Ayrshire family-run quality meat producer We Hae Meat which actually broke into the top 40 at number 39. The butchery business is based on the Paton family farm, Cairnhill, in Girvan Valley, where a purpose-built, climate-controlled, maturing and preparation site close to the farm was

42 Macsween THE long-established, family-owned, Edinburghbased haggis and black pudding maker Macsween moved up a place from 2013 to reach number 42. But it might well be developments since the tables were calculated that make 2014 a very important year for the company. After consumer research, the ﬁrm radically overhauled its packaging to produce a range of products to better suit consumer demand, demographic trends, and retailer needs for on-shelf display. Now Macsween provides an ‘In a hurry’ range of microwaveable lines, a ‘Delicious every day’ range of cylindrically packed haggis and black pudding designed to be similar in shape to salamis and to suit shelf display, and a traditional range for Burns Night. It is also producing limited-edition lines inﬂuenced by world cuisines. 80 l

l December 2014

opened in 2009. The term ‘We hae meat’ comes from Robert Burns’ poem of thanks to God before a meal known as the Selkirk Grace. The ﬁrm supplies retail grocery, hotels, restaurants and food businesses across the UK. Earlier this year it also supplied the burgers launched under Scotty Brand, our number 22 Scottish brand in Scotland in 2014.

The We Hae Meat website www.wehaemeat.com includes consumer education information about meat, including a cut selector and extensive cooking guidelines

Hamlyns of Scotland 44 T HE hot cereals category has been doing well in recent years and Hamlyns of Scotland has been steadily building market share in Scotland to the point that it now takes 44th place in our Scottish brands list. The firm sees healthy eating trends as contributing substantially to porridge’s success. But Hamlyns and others have also been busy developing new ways of retailing and consuming oats, designed to fit in with busy lives. Annual sales of hot cereals in the UK topped £220 million last year, with sales of pots and sachets accounting for a substantial and ever-increasing share, said Hamlyns. The firm entered the convenient porridge sub-category earlier this year, with pots and sachets in three varieties – Original, Golden Syrup, and Mixed Berry. The new lines join a range that includes Hamlyns Scottish Oatmeal, which the company says is firmly established as

Hamlyns of Scotland launched a series of convenient porridge packs in 2014 offering sachets and pots in a range of ﬂavours.

the number-one oatmeal brand in Scotland. The range also includes Hamlyns Scottish Porridge Oats, and Scottish Porridge Oats & Bran, now available in block bottom packaging. Hamlyns Pinhead Oatmeal is available in aluminium tins. The full Hamlyns range is now also available in cash & carry packs. From the New Year, and for the rest of the winter, Hamlyns will be offering ‘one third extra free’ on 1kg packs of Hamlyns Scot-

tish Oatmeal and 750g packs of Hamlyns Scottish Porridge Oats. Hamlyns of Scotland managing director, Alan Meikle said: “Weather forecasters are predicting a particularly cold winter, which, coupled with the general increase in demand for a healthy breakfast, and the fact that we now offer porridge both for traditional and convenient tastes, should mean that we are working ﬂat-out 24/7 over the months ahead to cope with demand.”

McKechnie Jess

GREENOCK-based, family-owned meat products supplier McKechnie Jess was the second new entrant in the top 50 Scottish food and drink brands in Scotland chart,

in 2014 entering at position number 48. The company produces a wide (from value to premium) range of sausages, burgers, puddings and haggis lines.

Scottish brands review 2014

Good times at teatime O

VER the years of the annual SG Scottish brands review a number of categories have shown themselves to be ones in which Scottish consumers, and Scottish retailers, have strong affinities to Scottish brands. Meat products is certainly one, soft drinks and waters is another, a number of Scottish dairy brands do very well in their home market, and porridge brands appear to have stood the test of time. But in and around the top 50 Scottish performers there are also very many biscuit brands. As we saw earlier Tunnock’s and Border Biscuits did very well indeed in the high sections of the top 50. Another teacakes producer that might well do well out of both the international teacake awareness promoted by the Commonwealth Games opening ceremony and the change in VAT status of teacakes is Lees. The firm’s sales director Bert Croll said the firm had seen “excellent growth in the last year with sales up 20%”. He put that down in part to the company’s products being seen as good value for money, in particular the 10-packs

Key brands When it comes to sweet treats, Scots brands take the biscuit

Lees says it has seen sales grow signiﬁcantly on its teacakes and snowball ranges, which it puts down to a consumer appreciation of the value offered by its multipacks and to improvements in packaging. Walkers recently unveiled its range of Walkers Gluten Free shortbread.

of teacakes and snowballs, and in part to new packaging, which he reckons ensures strong shelf standout for both products. Shortbread specialist Dean’s of Huntly produces a wide range of traditional and ‘traditional with a difference’ shortbread, biscuits, and savoury

biscuit lines under its own name and it markets the Maw Broon’s Kitchen range also. This year Dean’s picked up an important award at the Scotland Food and Drink Excellence Awards when it won the Investing in People Award. At the same awards Alan Hardie, managing director of

Paterson Arran was given the special award for an outstanding contribution to Scotland’s food and drink. Speyside-based shortbread producer Walkers played a major role in Scotland’s big year, launching its dedicated ‘Homecoming’ Range, to mark Visit Scotland’s ‘Year of Homecoming’ as well as releasing a commemorative pack noting the 700th Anniversary of the Battle of Bannockburn. 2014 also saw it partner with the RSPB, supporting the organisation’s ‘Give Nature a Home’ conservation campaign with an on-pack promotion. Walkers says it has an exciting NPD launch calendar in place for 2015 including the roll-out of its recently unveiled Gluten Free Range and seasonal novelty tins.

2015 set to be a year to savour AFTER a remarkable 2014 Scotland’s food and tourism bodies plan to maintain momentum with Year of Food and Drink Scotland 2015. At the programme’s launch cabinet secretary for rural affairs, food and the environment Richard Lochhead set out the aims as promoting 82 l

l December 2014

Scottish produce in tourism and enhancing Scotland’s global reputation as a land of food and drink. There will be a TV ad shown across the UK, a bespoke logo, an event fund, a dedicated Year of Food and Drink Growth Fund, social media activity, industry engagement

and international marketing, designed to connect ‘plate to place’. Scotland Food and Drink chief executive, James Withers said: “Food and drink is now one of the nation’s greatest success stories and the Year of Food and Drink couldn’t come at a better time.”

Scottish brands review 2014: alcoholic drinks

Spirits companies suggest the increase in home entertaining has seen consumers choose premium spirits and attempt to emulate the bar experience at home with sophisticated serves and cocktails. That being said, while Glen’s Vodka remains the most valuable Scottish alcohol brand in Scottish take-home many traditional brands of whisky take up positions in the top 25.

Vodka and lager lead whisky pack In a big year for Scotland the national drink dominates the top 25 Scottish drinks in Scotland chart but Glen’s and Tennent’s retain the top places

HIS year is the second in which Scottish Grocer and Kantar Worldpanel have separated alcohol and non-alcohol brands in our top Scottish brands review. With alcohol prices so heavily inﬂuenced by duty and VAT we think it’s likely to be more informative and useful for alcohol and non-alcohol alike. So, what does the 2014 chart say about Scottish alcohol brands in Scottish take-home? Well we know there’s a huge

84 l

l December 2014

amount of activity in a number of categories and sub-categories, with much of the most interesting product development coming from innovate Scottish ﬁrms. Scottish craft brewers have been doing very well in UK and international competition.

The malt whisky scene is full of activity, and that includes interesting marketing developments on large established brands as well as launches by smaller distilleries. And Scotland is ﬁnding an important niche in the fast-growing international spirits industry niche

of small-batch gin. But the top 25 brands feature some very well known brands in spirits and beer and cover a wide range of price points – from value lines to premium products that have won worldwide accaim. Today we take a close look at our top two brands, both of which are going through important developments. And we look at some of the wider developments in Scottish spirits and beer.

Top 25 Scottish take-home alcoholic drinks brands in Scotland Brand

Rank 2014

Rank 2013

Moving up?

Glen’s Vodka

Tennent’s

Famous Grouse

Bell’s Whisky

Whyte & Mackay

Grant’s Whisky

McEwan’s

High Commissioner

Aberlour

Highland Pride

Jura

Drambuie

Glenﬁddich

Glenlivet

Teacher’s

Glenmorangie

Highland Park

Belhaven

Clan MacGregor

Johnnie Walker

Glen Moray

Black Bottle

Glayva

Dalwhinnie

Talisker

Source: Kantar Worldpanel take-home sales in Scotland 52 weeks to 25 May 2014 v 52 weeks to 26 May 2013. NE = New entry. December 2014 l

l 85

Scottish brands review 2014: alcoholic drinks

Glen’s

LEN’S vodka has been the most valuable Scottish alcohol brand in Scottish take-home for some time and until recently had a very straightforward strategy. Consumers saw it a very credible brand and it was very competitively priced. Now, however, the brand is under new ownership. Loch Lomond Group is a company that bought the Loch Lomond Distillery and a series of brands that includes Glen’s as well as Scotland’s eighthmost valuable take home alcohol brand High Commissioner whisky and many more. As managing director Colin Matthews explained the new management moved immediately to identify key areas for investment and it decided it was important to realise the strength of Glen’s. First item on the agenda was to have a series of detailed conversations with consumers in Scotland and elsewhere in the UK. “We thought that on both the Glen’s and the High Commissioner brands, the liquids inside were fantastic. And they blind tasted very well,” he said. But he stressed the most important view was the consumer’s. “What consumers have said to us about Glen’s is that it’s a trusted friend. And it’s something they share with friends. “However, one of the things they did want was for us to

86 l

l December 2014

keep the spirit exactly the same but to make the package more attractive. “So we’ve done our best to do that and had that validated all around the United Kingdom. “A significant number of consumer groups have said ‘We absolutely love what you are doing’.” Perhaps one of the most interesting developments on the brand will be that in just a few weeks time there will be not one but two Glen’s that retailers will be able to offer. “Our consumers were also asking us for a premium version so we’ve done Glen’s Platinum.” he said. The new vodka will be made from different grain and will be bottled at a higher strength, 40% ABV. Bottles are in their final stages of development but as the special renders on this page show they will be designed to be complementary and will be quite different from the old style. And they will feature something else that the firm’s research found was on a lot of people’s wish list.

The old Glen’s vodka bottle is shown above, left. And the progress to the new is in the other two images – above, centre an artist’s render of how the new bottles of Glen’s Vodka will look and above, right how the new premium Glen’s Platinum is likely to appear. The new look Glen’s is scheduled to go into retail outlets in January 2015.

“One of the things that consumers all across the UK said to us was ‘It doesn’t say where this is made’,” Matthews explained. “So on the new bottle it says ‘Made in Scotland’. That was considered to be a positive thing by all the consumers.” The new look and the new premium Glen’s Platinum are

On the new bottle it says ‘Made in Scotland’. That was considered to be a positive thing by all the consumers.

scheduled to go into retail at the end of January 2015. “We’re very excited with what we’ve done. We’re very excited to have done it alongside consumers and consumers have said this is what we want to have,” Matthews said. “We listen very carefully to the consumer. We’re going to do a number of consumer promotions during the launch. There’ll be lots of great stuff to win. “And we have also built a digital platform by doing a glensvodka.com web site where consumers can interact with the brand and can interact with us.”

SCOTLAND’S best selling spirit is looking better value than ever.

· Glen’s is launching a brand

new look in Q1 2015 · New label and bottle for increased consumer appeal · Also, Look out for our fabulous new on pack consumer promotions in 2015

Please enjoy responsibly

Scottish brands review 2014: alcoholic drinks

Tennent’s “We were trying to bring a bit more of that Tennent’s personality and Scottish wit to our packaging. So instead of going for a straightforward big bold piece of branding on the front of your pack we’ve actually gone for a range that brings Scottish phrases and colloquialisms onto the pack that somewhere along the line contain a red T,” he said. “And we used an area on top of the pack to do a translation from Scots dialect into English for anyone that doesn’t know what some of the terms mean. “We carried that over into the summer where we had an on-pack promotion that was around the summer of sport. We had packs out there that said things like ‘Armchair Athlete’ and ‘ArmWe’ve now got a couple chair Supporter’. Probably the faof new members of the vourite one, the Tennent’s family. one that went

ENNENT’S is once again not only the nation’s favourite Scottish beer brand but its favourite beer brand overall, ahead of homegrown alternatives and all the multinationals. And 2014 looks to have been a good time for the brand, commercially and creatively. “We’ve had a good year, the brand is pretty buoyant in an overall challenging sector. In particular our performance in multiple grocers has been strong,” Tennent Caledonian Breweries marketing director Paul Condron told Scottish Grocer. “We’ve made a concerted effort to raise our game in offtrade in general. “On the core Tennent’s brand we had a rebrand back in spring.

A new look for Scotland’s biggest-selling beer and an on-pack promo designed to catch the mood and wit of a no-nonsense, sports-mad nation.

down best, simply said ‘Nae Tickets’. “I think that’s something that a brand like Tennent’s can do to resonate with the Scottish consumer. A lot of the brands that we compete against in a very hotly contested segment

Any more for T? Lemon T, cloudy lemonade and light lager, was launched in spring. And Tennent’s released Black T just a few weeks ago, on the day before Halloween. 88 l

l December 2014

can’t do that,” he argued “Another angle we’ve taken this year is to look at range extension. We’ve now got a couple of new members of the Tennent’s family. “Back in spring time we brought Lemon T to market for the ﬁrst time, a 2.8% ABV cloudy lemonade mixed with light lager in a 300ml bottle served in a four-bottle basket pack. It was targeted primarily at the convenience and impulse shopper and it’s done very well to stretch the Tennent’s brand into emerging categories. “And latterly over the last couple of weeks we’ve brought our new premium range extension to market in the form of Black T. It’s still early days but the anecdotal feedback is positive. “That’s helping stretch what is a very strong and solid brand in Tennent’s Lager and taking it into new drinking occasions and also into the hands of some new consumers.”

WISE MEN STOCK TENNENT’S SCOTLAND’S NO.1 SELLING LAGER

Scottish brands review 2014: alcoholic drinks

Shelf awareness S

COTLAND’S most valuable single alcohol brand is a vodka. But after that our top 25 is heavily dominated by whisky and beer. And, while the top beer is a Scottish lager, ales of different types have been doing well recently. The McEwan’s brand moved up a place from eight to seven in the chart and Belhaven was up too from 19 to 18. Both brands sell signiﬁcant volumes of canned ale with McEwan’s Export and Belhaven Best but both have in recent years been introducing new premium bottled ales to the market. And premium bottled ale is currently one of the most buoyant parts of take-home long drinks in Scotland and elsewhere in the UK. One of the leading Scottish premium bottled ale providers is Caledonian Brewing Company, the ﬁrm behind Deuchars IPA, Caledonian 80/- and Flying Scotsman. Managing director Andy Maddock told Scottish Grocer he thinks it’s a time of real opportunity but that range and shelf management will be crucial to success.

The McEwan’s brand moved up one place in the top 25 this year. Most of its volume comes through the country’s biggest-selling take-home ale McEwan’s Export. But it has also extended its range of premium bottled ales.

“Total bottled ale is growing ahead of ale, which to be honest comes as no surprise,” he said. “The interesting thing is when you look at the numbers it’s still being driven by what we would call premium bottled ale and by what a lot of the grocers are starting to call ‘discovery’ ale.” The company will look to do more in ‘discovery’ or specialist ales in the future, he said. “When you delve in a bit further you see that the bottled

ale market is still 90% dominated by the grocers. We’re looking to develop good relationships with the grocers in Scotland but we’re also looking at the other 10% as an opportunity that’s untapped. So we’re developing a convenience strategy as well.” Part of that will about discussing the opportunities and logistic challenges of premium in general and ‘discovery’ beers. “If you look at total Scotland, and the mults in Scotland, val-

Caledonian Brewing Company chief Andy Maddock sees opportunities for c-stores in premium bottled ales.

ue is outgrowing volume. It’s seen as a premium category by shoppers and it’s a high value category for the retailer. “It is an opportunity to premiumise your offer as a convenience store so long as you get the right shelf space. It’s a very dynamic and progressive category. “But just by doubling your SKUs in premium bottled ale doesn’t meant you double your sales. There’s a danger that you get too much pick and mix,” he said.

The whisky shufﬂe T

HE Famous Grouse, Bell’s and Whyte & Mackay retained their positions as third, fourth and ﬁfth placed Scottish alcohol brands and as the top three take-home Scotch whiskies in Scotland in our 2014 chart. Whiskies make a big impression on the chart in general. Below the top three, however, there’s

90 l

l December 2014

more jostling for position. Grant’s whisky moved up a place to six in 2014 while value brand High Commissioner, imminently to be relaunched by Loch Lomond Group, moved down to eighth. Aberlour was top take-home malt in the Kantar list and several malts moved up in the chart, most notably HIghland Park which was up from 21 in 2013 to

17 this year. Interestingly, a number of what might be seen as robustly ﬂavoured island malts were down. The Skye malt Talisker dropped from 18 in 2013 to 25 this year. And powerfully peaty Islay malt Laphroaig, which was 24th last year, slipped out of the chart this time round. Blend Johnnie Walker and malt Dalwhinnie were new entries.

a proﬁtable 2015 – make next year work for you

A fresh start A

Be prepared for the darkness BY the time your customers pack up the last of the tinsel and make their way back to the office-hours life, just after the New Year, there will be around three months to go until small shops have to follow supermarkets into the tobacco dark market. The various tobacco display bans in the UK (Scotland’s is different because the area allowed to be revealed when making a sale or restocking a covered gantry is much smaller than that permitted south of the border) take effect on 6 April 2015. Tobacco certainly isn’t the single most profitable item on sale in c-stores. But tobacco companies and others argue that tobacco products are essential footfall drivers for small shops. Adult smokers are repeat visitors, remarkably loyal to their local shop and often buy other things as well as tobacco when they visit stores, it’s argued. And by that theory tobacco sales have a significantly positive if slightly 92 l

l December 2014

complicated effect on store profitability. So how should stores approach the coming display ban? 7ègdW efSXX SdW Xg^^k aware of stock and of each brand’s position on the gantry behind the screens. That should minimise any additional time taken to serve customers and limit the time taken away from potentially profitable activities like up-selling at the till. 7ègdW ShS[^ST[^[fk 6a`Æf run out of stock, especially of key brands. It’s vital not to lose the loyalty of your adult smoker customers because if you do you’re likely to lose more than just their cigarettes or RYO business. 4W ]ài^WVYWST^W Make sure your staff know of any new developments on brands, that they know the cheapest items in the various categories and are ready to answer customers’ questions. Watch your sales figures carefully and speak to company reps regularly about dark market trends.

S 2014 has drawn to an end some fascinating and encouraging ﬁndings from specialist convenience channel market analyst HIM Research & Consulting suggested that while

Increases in fresh produce sales in summer were likely to have been inﬂuenced by unusually good weather but were still impressive.

the economy remained tough things could very well be looking up for c-stores, especially c-stores in Scotland. In summary more customers appear willing to make signiﬁcant shopping visits to cstores and put bigger loads in their shopping baskets. Spring and summer trends suggested that consumers had increased their use of cstores for substantial top-up shopping. And from shopper answers to researchers’ questions it wasn’t just a case of replacing items that had run out. Consumers appear to be planning bigger c-store shopping trips to achieve a more structured top up as they attempt to limit the amounts they spend, and the goods they might eventually waste, on major supermarket shopping trips. North of the border, the HIM research (part of its compre-

Future shopping a` 7Sek EfdWWf WHAT do the expert crystal ball gazers and consumer insight gurus expect to be the big trends in 2015 and will they have an impact on local shops in Scotland? Well one of the most quoted likely changes in shopper behaviour could well spell opportunities for c-stores.

As we report in this issue, a substantial proportion of shoppers told research ﬁrm Shoppercentric they planned to use click and collect services over the Christmas period. And in one of its latest information releases the global research giant Mintel says it expects the share of inter-

HIM Research & Consulting’s Convenience Tracker Programme found that the percentage of convenience store shoppers in Scotland buying chilled foods in summer 2014 was 31% compared to just 12% in spring 2013. The percentage buying fresh fruit and veg was just 4% in spring 2013. That rose to 6% in spring 2014 and to 10% this summer.

hensive Convenience Tracking Programme) found the percentage of c-store shoppers who were on a top-up mission increased sharply from 29% in spring 2013 to 34% in spring 2014. Planned topup rose from 16% to 22%. In summer the percentage on top-up missions in Scotland was 45% this year and 33% of shoppers were on planned top-up visits. And importantly the HIM CTP research found that the growth in top-up visits in Scotland was driven by purchases of fresh and chilled foods. The percentage buying chilled foods in summer 2014 was 31% compared to just 12% in spring 2013. The percentage

net sales where consumers choose to collect the goods from a click and collect parcel point to reach 17% in 2015. That would be around 2.2% of all retail sales through all channels. “Over a third (35%) of UK consumers have used clickand-collect services in the past year and 64% say that they shop online more now because more retailers offer click-and-collect services,” Mintel’s senior trend consultant Richard Cope said.

Trends suggested that consumers had increased their use of c-stores for signiﬁcant top-up shopping. buying fresh fruit and veg was just 4% in spring 2013. That rose to 6% in spring this year and to 10% this summer. The ﬁgures suggest two things. One, that there might now be some considerable momentum behind increasing sales of fresh and chilled foods. And, two, that there is still plenty to be played for. While, in the past, some cstores certainly worried about controlling waste in fresh and chilled it’s beginning to look as if having a decent offer on

fresh produce will become increasingly necessary. As the public looks more and more for services that provide what they need, quickly and close to home, fresh and chilled foods are likely to be items that differentiate shops in consumers’ eyes. And those with good offerings on fresh and chilled foods are more likely to be considered shops to be visited regularly. So in 2015 retailers with an interest in building good lo-

cal consumer appreciation for the long-term might do well to consider boosting fresh and chilled. It could mean making investment in up-to-date chillers. But refrigeration specialists say that retailers are increasingly becoming aware that the quality and cost efficiency of the latest models means they begin paying for themselves very quickly. Retailers will have to work out their best sources for fresh and chilled foods but symbol operations and wholesalers have made significant improvements recently. For profit-seeking retailers, 2015 could be the year to make a fresh start.

Over half say click and collect encourages them to visit stores more frequently. “Over half (58%) say that click-and-collect encourages them to visit stores more frequently, while 64% say they are shopping online more because of click-and-collect,” he added. Enthusiasm for click and collect is one part of increasing

consumer interest in, and expectation of, services designed to make shopping easier and more convenient, which Mintel labels ‘Easy Street’. The researcher also predicts more demand for smart technological shopping apps, a greater propensity to pursue consumer rights and increasing expectation of ethical commerce.

Over a third (35%) of UK consumers have used click-and-collect services in the past year. December 2014 l

l 93

Power up ƼŅƚų ŞųŅĀ ƋŸ T

here is no doubt that the battery market is in a very ÚĜý åųåĹƋ ŞĬ±Ïå üųŅĵ ƵĘåųå ĜƋ Ƶ±Ÿ ± ÚåÏ±Úå ±čŅţ Ęå ĩĜĹÚŸ Ņü ÚåƴĜÏåŸ ƋĘ±Ƌ ųåŧƚĜųå Æ±ƋƋåųĜåŸ Ę±ƴå ÏĘ±ĹčåÚ ŸĜčĹĜĀ Ï±ĹƋĬƼ Ņƴåų ƋĘå Ĭ±ŸƋ

ÚåÏ±ÚåØ ƵĜƋĘ ĹåƵ ĜĹĹŅƴ±ƋĜŅĹŸ ĜĹ ƋŅƼŸ ±ĹÚ č±ĵĜĹčØ ŸƚÏĘ ±Ÿ č±ĵåŸ ÏŅĹƋųŅĬĬåųŸØ ųåŞĬ±ÏĜĹč ŞųŅÚƚÏƋŸ ŸƚÏĘ ±Ÿ ĵŅųå Ƌų±ÚĜƋĜŅĹ±Ĭ ŞŅųƋ±ÆĬå ±ƚÚĜŅ ŞųŅÚƚÏƋŸţ ŞåÏĜ±ĬĜƋƼ Æ±ƋƋåųƼ ƋƼŞåŸØ ŸƚÏĘ ±Ÿ ÏŅĜĹ ÏåĬĬŸ üŅų ĵåÚĜÏ±Ĭ ÚåƴĜÏåŸ ±ĹÚ Ɛ% čĬ±ŸŸåŸØ ±ųå ±ĬŸŅ ŸååĜĹč ŸƋųŅĹč čųŅƵƋĘţ

Menna Zaghloul, Duracell Brand Manager, P&G comments: “It has been a good year for Duracell and the batteries category as a whole, with both returning to solid growth after a turbulent few years. Our key focus has always been on the shopper in store and how we communicate the performance that %ƚų±ÏåĬĬ ŞųŅÚƚÏƋŸ Ņý åų ƋĘåĵţ ĘåĹ shopping, batteries can easily be forgotten if they aren’t on the list. Our strategy has been centred on getting people into the category and getting Duracell batteries in their hands. åűƴå ƵŅųĩåÚ Ę±ųÚ ƵĜƋĘ ųåƋ±ĜĬåųŸ on our in-store presence and where Duracell is located, with more checkout sites and other impulse locations. å Ę±ƴå ±ĬŸŅ ÆųŅƚčĘƋ ÆĜččåų Ş±ÏĩŸ to stores and this has played well to help get the category back into growth.” Ƥ “For Duracell, the key message to ŸĘŅŞŞåųŸ ĜŸ ŞåųüŅųĵ±ĹÏåţ åűƴå ±ĬƵ±ƼŸ Ƶ±ĹƋåÚ ƋŅ Ĭå±Ú ĜĹĹŅƴ±ƋĜŅĹ ĜĹ the category and we want people ƋŅ ƋųƼ %ƚų±ÏåĬĬţ åűųå ÏŅĹĀ ÚåĹƋ ƋĘ±Ƌ ŅĹÏå ƋĘåƼ Ę±ƴåØ ƋĘåƼ ƵŅĹűƋ ŸƵĜƋÏĘ ±Ƶ±Ƽţ åűƴå ŸååĹ ŸƚÏÏåŸŸ in communicating this performance

Use the P&G ShelfHelp category management planograms to ĘåĬŞ ĵ±ƻĜĵĜŸå ƼŅƚų Æ±ƋƋåųĜåŸ Ā ƻƋƚųåţ

Advertisement feature

Merchandising advice message both versus other battery forms and within our portfolio, as we trade people up to premium batteries such as Ultra.” Ƥ Ů åűƴå ±ĬŸŅ ĵ±Úå ± ÚåĬĜÆåų±Ƌå åý ŅųƋ to move Duracell and batteries in general away from just a seasonal uplift around Christmas. We want it to be an always-on proposition and we’ve launched innovative in-store programmes through a partnership with Microsoft Xbox and a raft of ųåƋ±ĜĬåųěŸŞåÏĜĀ ÏØ ÚĜý åųåĹƋĜ±ƋåÚ campaigns all designed to get more people buying batteries all year round.” P&G remains very optimistic about the future of the overall batteries market, believing that while there is still a need for batteries, there remains scope for growth. Approximately 40% of batteries are bought on impulse, prompted by

displays in store, and half of these are made from displays at the point of purchase. However, regardless of whether they are on the shopping list, or picked up on impulse, around 70% of households buy batteries in the UK – indicating that there is still a fundamental need for them. The familiar copper and black Duracell branding also signals trust to consumers, and it’s crucial that Duracell prioritises consumerfocused communication, as well as investing in the best-quality technology. Duracell is, for the most part, the only battery brand to speak to consumers above the line and P&G continually look to drive that engagement and top-of-mind awareness.

It is important for a retailer to develop a storewide strategy on batteries to realise the full potential of the category through both planned ±ĹÚ ĜĵŞƚĬŸĜƴå ŞƚųÏĘ±ŸåŸţ There are three key sites for merchandising batteries which Duracell remains committed to invest behind with key retail partners: % A clear and easy-to-shop ĵ±ĜĹ Ā ƻƋƚųå ƵĜƋĘ ŸĜčĹŞŅŸƋ Æų±ĹÚĜĹčţ % Secondary sites around ƋĘå ŸƋŅųå ĹåƻƋ ƋŅ ŞųŅÚƚÏƋŸ ƵĘĜÏĘ ƚŸå Æ±ƋƋåųĜåŸţ % Till units or checkout displays to grab the ±ƋƋåĹƋĜŅĹ Ņü ĜĵŞƚĬŸå ÆƚƼåųŸţ

To access these planograms and for further advice on merchandising and what to stock in your batteries Ā ƻƋƚųåØ ƴĜŸĜƋ ƵƵƵţŸĘåĬüĘåĬŞţÏŅţƚĩ

L&B Blue

INNOVATION and excellence Lambert & Butler currently accounts for over 10% of all cigarette sales in the UK*. In March L&B Blue was added to the range. Positioned within the Sub-Economy price sector L&B Blue has been designed to suit the preferences of adult smokers who require a lower priced cigarette offering but want reassurance from a big brand.

The new L&B Blue range has helped to reinvigorate the Economy price sector and offers big brand reassurance at a great value price.

JPS

L&B Blue appeals to adult smokers who in the past have switched from Lambert & Butler and those long time value smokers who previously haven’t been able to afford a product from the Lambert & Butler family. October saw a further

extension to the range with the introduction of L&B Blue Superkings. Available in Full Flavour, Smooth and Menthol variants L&B Blue Superkings providing great value to consumers whilst maintaining strong trade margins of 6.67%.**

Players

The JPS range now occupies almost a 10% share of the UK cigarette market* and boasts an extensive portfolio that suits the everyday smoking needs of many adult tobacco smokers. JPS continues to be one of the UK’s best selling economy cigarette brands.*

The Player’s range has seen some major innovations in the last few months. In August an exciting new addition was added to the Player’s range with the launch of Player’s Menthol in Superkings 19s. The introduction of Player’s Menthol reﬂects the growing popularity of adult smokers who seek a quality blend menthol cigarette, at a great value price point.

In line with the other SKUs in the Player’s range Player’s Menthol comes with a new modern pack design. The full Player’s range is available in Full Flavour - red, Smooth blue (previously yellow) and Menthol - green. Currently 91% of independent tobacco retailers already stock the Player’s range.***

For Tobacco Traders Only

Imperial Tobacco is the largest tobacco manufacturer in the UK with a distinguished portfolio of brands including L&B Blue, JPS, Player’s, Player’s Gold Leaf, GV Smooth and JPS RYO.

Player’s Gold Leaf is the UK’s fastest growing RYO brand* and currently has a market share of over 10%.*** Delivering a smooth taste at a low out of pocket spend Player’s Gold Leaf is a must stock for independent retailers.

GV Smooth

GV Smooth has been designed speciﬁcally with the modern RYO consumer in mind. GV Smooth’s modern portrait pack makes it easy for retailers to merchandise and provides a clear differentiation from other RYO brands. GV Smooth is available in 8g, 12.5g, 25g and 50g packs, with papers included in the 25g and 50g packs.

The 8g Handy Pack, which includes papers and tips, continues to offer consumers added convenience as well as a great low out-of-pocket price. Retailers should ensure they offer the complete range to cater for all their customers.

JPS RYO

JPS is a trusted and iconic British brand. Available in 9g, 25g and 50g packs JPS RYO reﬂects the requirements of tobacco shoppers looking for value for money whilst retaining a desire for the reassurance of quality and heritage offered by the JPS name.

With the number of shoppers who are seeking quality products with a low out of pocket spend on the rise; the introduction of JPS RYO 9g earlier this year is perfect for adult smokers who are shopping little and often.

*ITUK Estimates 2014. **Q5 rates & when sold at RRP. ***ITUK visit data June 2014. For the avoidance of doubt, customers are free at all times to determine the selling price of their products. Price Mark Packs available whilst stocks last.

www.imperial-trade.com

Discover a future for the tob Vend Data Media Solut o can Tobacc for t accoun

+ 30a% l store

of tot er turnov

FACTS

Problems Encountered

Display Ban + Plain Packaging

@ d ~ | ~ ~| @ q ~ @ t | | | ~

@ f ~ | ~ c @ c ~ ~ c @ q | |~ | ~ } t~ n q } ~ i | n ~ | n| ntq | ~ thg | q | q|~ | } t~ | ~ x

venddatams.com

For more details please visit the VDMS website at www.venddatams.com o

move store checkout to 21st century experience

bacco category

ions are future prooﬁng tobacco retailing

SOLUTIONS @ t | | @ q |} @ d | ¢ ~ @ d| ~ @ t ~ @ o | |

@ o | | ~ ~ v | ! 1) e | | 2) b ~ ~ | | 3) c } | 4) t ~| ~ ~ |

r email the following: tony@venddatams.com or vdms.ie@venddatams.com

retail resolutions

On the 2015 to do list SO, another year is coming to an end. Traditionally it’s a time for resolutions, promises a person or organisation can make to themselves – to do things for the ﬁrst time, to do things better, to do things more effectively. Today we look at some possible retail resolutions themes for the year ahead. O Resolve to think local and special! Many stores have been developing local stocking policies in recent years, often collaborating with local food producers and others. Next year kicks off with Scotland’s Speciality Food Show at Glasgow’s SECC, complete with artisan and specialist products from Scotland and beyond. We have a sneak preview today and there’s more next month. O Resolve to think energy! Help the environment, control your costs, improve your store and your chilled and frozen food service. We have interesting news and examples from a number of projects. Again there will be more next month in our design and reﬁt section. O Resolve to think green! The introduction of the carrier bag charge could make it wise to think about offering alternatives to single-use plastic carriers. We have a look at some possibilities.

100 l

l December 2014

Think local, think special STOCKING local products is one of the easiest ways for a c-store to give itself a point of difference. Whether it’s a shop in a tourist area, where visitors are keen to buy confectionery and drinks as gifts to take home, or a district that is particularly proud of its cakes or sausages, a shelf of interesting regional goodies can make a business look switched on and connected to its local area. It’s a trend that’s big in restaurants, where there’s now a tendency to name the diver who collected the scallops and the hen who laid the eggs!

But mainstream consumers are also keen to cut down on their food miles and support the local delicacies that make their dinner tables distinctive. Sourcing unusual niche products, however, can be a time-consuming and confusing business. That’s where Scotland’s Speciality Food Show comes in. To be held in 2015 at Glasgow’s SECC on 18-20 January, it’s a one-stop shop for the kind of special products that can give a shop the edge. “Having grown over 30% in the last two years this trade show attracts both artisan

producers and traditional Scottish companies who all produce delicious products,” a spokesperson explained. “With over 140 exhibitors attracting over 4,500 visitors, it is the only ﬁne food trade show north of the border so is a must visit event.” New faces will make up around one third of exhibitors, and half of all the exhibitors are from Scotland. It’s the ﬁrst time, for instance, that the Audrey Baxter Signature range of curds, jams and soups will be on show at the event. Other newbies include Eden Brewery

A local power base A West Lothian business is taking the ‘source local’ message to its logical conclusion. Hopetoun Farm Shop has installed a solar panel system which will generate more than 30% of its energy. The 96 panels, installed by Edinburgh-based Green Power Technology, are located in a nearby ﬁeld and will generate up to 2500 kWh of electricity. The panels are raised so the Hopetoun sheep (as sold in the shop) can continue to graze underneath. Shop manager Elaine Shirley said: “Sustainability is very important to us and, by generating our own energy, we can pass on the savings we make. “Why shouldn’t provenance extend to a farm shop’s energy supply?”

Hopetoun Farm Shop is locally sourcing 30% of its energy with 96 solar panels in a nearby ﬁeld. The panels are raised so that sheep can continue to graze underneath.

Scotland’s Speciality Food Show, to be held at Glasgow’s SECC next month, is packed with niche products such as Audrey Baxter’s Signature relishes and The Little Herb Farm’s fruit and herb vinegars.

from St Andrews, The Little Herb Farm, Hamlyns of Scotland with its oatmeal products, Mara Seaweed’s healthy sea condiments, Cocoa Chocolate and the Arran Butcher. Orkney has been building a

reputation as a foodie haven for many years and it has its own dedicated section at the show. Called the Orkney Aisles, the section will showcase Orkney Creamery, Jolly’s of Orkney, Barony Mills, Argo’s

Bakery and Orkney Islands Smokery. Summer Harvest’s awardwinning rapeseed oils and dressings come to the SECC show with a new look. Laura’s Chocolates, Walkers

shortbread, Mrs Bridges jams and chutneys, Brodies Chocolates, Puddledub Pork, Cairn O’Mhor drinks, Kwan’s Kitchens Chinese sauces and Gardiners of Scotland are also returning.

The environmental way to improve YOUR running costs and cash flow Zenith Digital Scroll Unit

Zenith Scroll Condensing Unit

Enhanced Capital Allowances (ECAs) are a straightforward way for a business to improve their cash flow through accelerated tax relief, by setting the capital cost of purchasing and installing your new Hubbard machinery against your taxable profits. Hubbard’s ECA accreditation now makes it one of the most cost-effective and environmentally friendly cooling solutions available. • Reduced running costs • Improved reliability • Extended component life • Suitable for Glass Door Chiller Cabinets and Multiple Cabinet runs • Suitable for refrigerants R404A, R407A & R407F

Choose from

Thirty Four

Zenith Twin Scroll Condensing Unit

ECA Units

NOW AVAILABLE

Direct from your Refrigeration Contractor

Ask your refrigeration engineer or facilities manager to specify the UK’s ORIGINAL, 100% ECA compliant condensing unit. Telephone: 01473 892289 E.mail: commercial@hubbard.co.uk

www.hubbard.co.uk

ECA Accredited

December 2014 l

l 101

retail resolutions

Ready to go green? SGF president Abdul Majid, left, signed a pledge with Keep Scotland Beautiful’s Derek Robertson, right, to clean up Scotland. The SGF has suggested members give funds from carrier bag charges to the charity.

Make the best of the bag charge IT’S too soon to gauge the impact of the Scottish Government’s carrier bag charge, introduced in October, but it is hoped that by the end of 2015 it will be revealed to have had positive community, environmental and åÏŅĹŅĵĜÏ ÆåĹåĀ ƋŸ üŅų ƋĘå whole country. The introduction of a minimum levy of 5p for each single-use carrier bag was brought in with the aim of reducing Scotland’s litter problem. Retailers are encouraged to pay the proceeds to good causes that will help improve the local environment and many have made arrangements with charities. However, for anyone yet to make up their mind, the Scottish Grocers Federation suggests they consider Keep Scotland Beautiful, which can channel the money into community clean-up activities. Another aim of the charge is to encourage shoppers to make using a bag for life a habit. Here, too, 102 l

l December 2014

independent and c-store retailers can make a ÚĜý åųåĹÏåţ Î ĵ±ųƋÆ±čŸØ ± ƵĘŅĬåŸ±Ĭå manufacturer and supplier of reusable bags, says both Wales and Northern Ireland have seen a huge drop in the use of single-use plastic bags since their own carrier bag charges were introduced. The drop has also contributed to a 70% rise in the use of bags for life in UK supermarkets. The company argues that ±ĬĬ ųåƋ±ĜĬåųŸ Ï±Ĺ ÆåĹåĀ Ƌ from stocking their own reusable bags for life. A spokesperson said: “They help to get your retail brand out there and each time your customers reuse the bag, they are promoting your brand and acting like a walking advert.” Î :ŅIƚƋå ĜŸ ± ŅųĹƵ±ĬĬě based supplier and manufacturer of jute and cotton bags for life that can be also personalised to promote your business. For more information visit the company’s website at www.gojute.co.uk

MUCH has been made of the environmental and ethical benefits of energy efficiency. However, ‘going green’ can be as much about business survival as reducing your store’s impact on the environment. According to the Carbon Trust, a 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in retail food sales. By improving efficiency, retailers can benefit from significant carbon and energy savings, reducing the impact of rising energy prices on the bottom line. In Moredun, Edinburgh, Scotmid Co-operative has unveiled a new energy saving store that it hopes will inspire and inform other retailers looking to cut their carbon footprint in 2015. Described as one of the first and most innovative major sustainability retrofits in the UK, the Moredun store was opened in October.

At its heart is a sophisticated building management system, which uses real-time data to make efficient use of its resources – such as lighting, heating and refrigeration. “From lighting that automatically turns off when it’s sunny outside, to drinks fridges that only switch on during licensing hours, we’ve worked closely with Resource Efficient Scotland and our contractors to introduce as many energy-saving measures as possible into the store,” said John Brodie, chief executive of Scotmid Co-operative. “We hope that Scotmid Moredun will be a model for what an energy efficiency retrofit can achieve for retailers.” Efficient heating and heat recovery are other key parts of the store’s refit. The heat generated by the fridges is recovered to help heat the building, while an air curtain blows out ambient air to stop heat from escaping when the Scotmid

Scotmid’s project was supported by Zero Waste Scotland through its Resource Efﬁcient Scotland initiative, Post Ofﬁce Limited, contractor CBES, Climate Electrical Services Ltd, Curve Energy Ltd, KB Refrigeration and Thermal Image UK.

Efﬁcient heating and heat recovery are key parts of Scotmid Moredun’s green credentials. The heat generated by the fridges is recovered to help heat the building, while an air curtain blows out ambient air to stop heat from escaping when the store doors open. All of the fridges have doors to improve their energy efﬁciency, and drinks chillers are programmed to switch off when alcohol is not for sale, to conserve energy. Customers can see the results for themselves through the system display.

Moredun store’s doors open. All of the fridges have doors to improve their energy efﬁciency, and drinks chillers are programmed to switch off when alcohol is not for sale, to conserve energy. Even

the store’s ATM has been ﬁtted with energy-efﬁcient LED lights. “The amount of energy saving initiatives delivered is a testimony to Scotmid’s green credentials and has created

a real benchmark for energy saving in retail,” said Stephen Russell, head of construction for CBES, Scotmid’s building contractor. Iain Gulland, director of Zero Waste Scotland, added: “Tak-

ing this approach with an existing store is a genuinely innovative move, as while retailers can easily specify new build stores to high-efﬁciency standards, it is considerably more challenging with an

December 2014 l

l 103

retail resolutions

Refrigeration represents a signiﬁcant proportion of energy consumption in convenience stores and so selection of highly energy efﬁcient systems can play an important role in reducing emissions and running costs. Given current trends around food to go and healthy eating, many retailers could be looking to expand their chilled sections in the year ahead. Companies such as The Jordon Group can provide a range of options to improve refrigeration while cutting energy consumption.

older building. “This project is a bold example of what can be done to embrace resource efficiency, and I hope that many other businesses are inspired by the store and will contact Resource Efficient Scotland for advice and support on how they can replicate these measures in their own buildings, old and new.” Of course, not every retailer can afford a refit on the scale of Moredun, but shopfitting, refrigeration and air conditioning company The Jordon Group suggests there are plenty of affordable options that can still yield remarkable results. In recent times there have been developments in refrigeration, both in cabinets (with the addition of very ef-

The installation of an integrated refrigeration and climate control system actually halved energy consumption. ficient doors, better management of airflow and significant improvement in LED lighting) and in remote compressors and motors that can make a real difference to a store’s energy bills. Improvements said to achieve the greatest energy savings include optimising settings on existing equipment, fitting transparent doors on display units, replacing condensing units and installing heat recovery solutions as part of system upgrades. A recent project involving the

company saw a local convenience store more than quadrupling in size from 480 sq ft to 2,800 sq ft and adding an extra 7.5m run of chiller cabinets. Under other circumstances, that would have meant much higher energy demands, but The Jordon Group said the installation of an integrated refrigeration and climate control system had actually halved energy consumption. Daikin Conveni-Pack (CVP) units have footprints up to 60% smaller than convention-

All the way down to zero SCOTTISH businesses can ﬁnd out more about how to cut waste and make themselves more energy-efﬁcient by accessing the range of support and advice offered from Zero Waste Scotland. The government-funded programme makes funding, tools and training available to businesses to assist with waste prevention, supply chain management and recycling. It works to support the delivery of Scottish

104 l

l December 2014

Government policy, including the Climate Change (Scotland) Act (2009), the Zero Waste Plan (2010), Low Carbon Scotland (2013), Safeguarding Scotland’s Resources (2013) and the national litter strategy. If you are interested in learning more about the support that is available, check out the website at www.zerowastescotland.org.uk, which includes a number of online tools, food waste apps and the Zero Waste Challenge.

al systems and are argued to be ideal for smaller stores. The units were installed on a ﬂat roof at the rear of the building, connected to four ceiling cassettes and to new and refurbished chillers. Paul Jordon, managing director of The Jordon Group, said: “The CVP system is recovering up to 100% of the heat generated by the refrigeration cases – about 25kW per unit – which is enough to heat the retail space via the ceiling cassettes, which is why the energy consumption has halved.” The message is that there are lots of ways that energy can be saved and it’s worth choosing appropriately. If you’re installing equipment check out the Carbon Trust website to compare efﬁciency.

crisps and snacks

Kantar Worldpanel: Scottish shoppers spend more on crisps

Empty nesters snack champs More to meat WHILE bags of crisps, nuts and similar products may still account for the largest share of the snacks market, Kerry Foods reckons there’s increasing demand for meat snacks. The firm has expanded its chilled meat ranges to include more snack lines, such as Mattessons Fridge Raiders and Mattessons Double Dippers. “Research demonstrates that 43% of consumers are interested in buying products that are higher in protein,” claimed Kerry Foods customer marketing controller Richard Tyler. “However, there is clearly great scope for further growth.” 3UUadV[`Y fa @[WêW` figures quoted by Unilever, meat snacks, or what Unilever calls “handheld” meat products are currently worth over £100m and have grown by 6.8% in the last year. Peperami is the UK’s biggest-selling meat snack brand, worth over £48m and taking 47% of category sales, it says. The firm suggests retailers should stock Peperami Minis as well as the new Peperami Double Crunch Peanuts.

106 l

l December 2014

Scottish households with children account for a greater proportion of sales of crisps than they do of nuts. But empty-nester households are responsible for a signiﬁcant share of sales of both crisps and nuts.

COTLAND is home to just under 9% of the population of Great Britain, but it accounts for 10% of take-home sales of snacks such as crisps and nuts. According to Kantar Worldpanel, total take-home crisps, nuts and snacks sales across GB are now worth £2.2bn. Sales value has grown by 2.85% in the past year. The market in Scotland is now worth £222m, but showing slower growth than GB – Scottish sales were up 1.9%. Potato crisps account for 46% of the value of sales of total crisps, snacks and nuts in Scotland. That’s 5% higher than GB and Kantar reckons that’s due in part to the fact that on average Scottish shoppers make three more trips a year to buy crisps and also spend £3.80 more a year on crisps than the GB norm. Cheese is the most popu-

lar flavour across all cheese, snacks and nuts lines, accounting for 7% of all products sold. Scottish shoppers take home more cheese and onion, ready salted or salt and vinegar flavoured snacks than the GB average. In Scotland, there are quite significant demographic influences on snacks spending. If you trade in an area with lots of families with children you should make sure you have a good range of crisps, because households with kids and dependents take a significantly greater share of crisps sales than they do of nuts sales. On the other hand households without children take a greater share of nuts sales than they do of crisps. ‘Empty nesters’, those whose kids have grown up and left home are especially important to the catego-

ry, they account for 25.2% of take-home crisps sales and 28.4% of nuts sales. • Amanda Heritage, category development manager for convenience at merchandising specialist eXPD8, reckons the big-night-in is behind many snacks purchases. “There are key categories that people buy for their Saturday night in front of the TV, snacks such as crisps,” she said. “It’s key not only that POS and promotions are clear, but also availability is high – we know that availability is one of the top three reasons that customers will or will not return to a store.”

1.9%

Growth of snack sales in Scotland in last year

Share of CSN sales taken by cheese ﬂavour

£222m Value of snacks across Scotland

Pulling power IT has been another busy year for some of the UK’s biggest names in snacks – and it’s not over yet. Through 2014, the brand team at Walkers launched several new products and organised major competitions and marketing campaigns. Its most high-profile was the return of the ‘Do Us a Flavour’ contest; its winning flavour - Pulled Pork in a Sticky BBQ sauce was recently announced. The flavour’s creator, Paul Rothwell, was awarded £1m after Pulled Pork beat other finalists such as Ranch Raccoon and Chip Shop Chicken Curry in a public vote. Walkers Pops – a new ‘air popped’ snack that is said to contain 50% less fat than standard crisps – was also launched this year. And, for retailers, the Walkers brand owner PepsiCo launched a new online rewards and category management website, www.countsformore.co.uk, which provides Walkers’ trade customers with incentives and category advice. • One of the UK’s biggest names in nuts, KP Snacks, has launched a selection of £1 price-marked packs across its best-selling flavours of peanuts.

Do us a Flavour winner Pulled Pork is now in the Walkers range.

KP’s Big Share Size bags are new for Christmas 2014.

Matt Collins, trading controller for convenience at KP Snacks, said: “Nuts for £1

are growing at an impressive 19% year-on-year in impulse and as the nuts market leader we’re offering our best-selling range at £1 to help drive continued growth. “We believe our new £1 PMP is a fantastic way to offer loyal consumers great value for their money. Retailers should stock up on KP Nuts PMPs all year round and especially over the next few months, as demand is expected to increase with the Christmas period fast approaching.” New for Christmas 2014 is the KP Big Bag Nuts range, available in four ﬂavours – Salted, Dry Roasted, Salt & Vinegar and Spicy Chilli. As well as the new sharingsized range, KP Nuts Caddies are back in Jumbo Salted, Dry Roasted and Honey Roast versions. Further £1 PMPs are available across eight impulse lines including Big Hoops, McCoy’s, Space Raiders, Phileas Fogg and Nik-Naks. “With the added competition from the high street, retailers must ensure they are stocked up with best-selling, seasonal SKUs that stand-out from the competition,” said Collins. “Offering festive lines earlier can generate consumption and drive a need for repeat purchase later on.”

Healthy look WHITWORTHS has redesigned its snacking range in a bid to appeal to health-conscious consumers. The new design of its snack packs of dried fruits highlights that each can be counted as one of a consumer’s ‘ﬁve a day’. Calorie content is listed on the front. Catherine Hicks, marketing manager, said: “Calorie conscious snackers are hugely important customers for convenience retailers, and by realigning our products with evolving customer preferences we hope to make our food-to-go offering attractive and exciting.”

Popcorn goes for freedom FREE-FROM snack producer Ten Acre has launched a new range of popcorn. Gluten, dairy and MSGfree, as well as suitable for vegans, Ten Acre popcorn ﬂavours include Cousin Maisie’s Fennel & Lemon, Cornelius Popperley’s Sour Cream & Chive, Ambrose Popperley’s Wasabi, Aunty Winifred’s Sweet & Salty and Captain Thoedore’s Lime & Sea Salt. “Free-from products are becoming an important trend in the food market in general, including snacks,” said Ten Acre’s CEO Tony Goodman. “The free-from sector is growing rapidly, led by increasing consumer awareness, and Ten Acre has responded by introducing a range of products that meet most dietary requirements and yet remain tasty and delicious. “This demand is spreading out from speciality stores into the c-store market and Ten Acre offers the best of all worlds with delicious premium free-from products and at very reasonable prices,” he said. December 2014 l

l 107

crisps and snacks

Premium pays RETAILERS are missing a trick if they’re not stocking high-quality, high-margin snacks, especially over Christmas, according to the founder of Pipers Crisps. “Consumers interested in quality, provenance and flavour are increasingly demanding premium snacks,” said the company’s Alex Albone. “The great benefit for retailers is that selling a premium product at a higher price gives a greater cash margin. And, because we’ve pledged never to price-mark our packs, retailers can set their own selling price. “We pride ourselves on not selling to major supermarkets so that independent, discerning operators can be certain that they have a genuine and unique selling point.” 4gdfe BafSfa 5Z[be S[_e fa _WWf what it reckons will be consumer demand for quality snacks to share with friends and family over the Christmas period with a new festive flavour. Roast Turkey & Chestnut Stuffing will be available until 31 December in 150g bags with an RRP of £1.99. BWbe[Ua ai`WV IS^]Wde ?Sd]Wf Deli is the snack giant’s range of pitta, tortilla and classic potato chips inspired by flavours from across 7gdabW ?Sd]Wf 6W^[ [e ShS[^ST^W [` eight flavours in 165g sharing bags with a RRP of £2.39 and in single-serve TSYe [` ?SfgdW 5ad`[eZ 5ZWVVSd 4SêS_[U H[`WYSd aX ?aVW`S S`V Flame Grilled Spanish Chorizo with Roasted Onion with a RRP of 83p.

Christmas crackers T

HE savoury biscuit category is showing growth of 2.8%, according to Nielsen figures quoted by Mondelez International. And it expects interest to build at Christmas. The company says its own Ritz brand is worth £16m in the UK and has shown growth of more than 16.9%. According to Burton’s Biscuit Company, savoury biscuits are behind growth in the wider biscuit market. “Innovations within savoury are definitely playing a vital role in driving category growth,” said David Costello, head of customer category management at Burton’s, whose two most recent product launches are Burton’s Fish ‘n’ Chips and Cathedral City Baked Bites. Cathedral City Baked Bites, which Burton’s says are the only savoury snack biscuits made using real grated Cathedral City Cheddar, are available in a five-pack

New product development, on all-year lines and festive specials, continues apace on snack biscuits.

For the love of popcorn THE founders of the Consett Popcorn Company have launched five new flavours under a new label. The new Love Popcorn flavours, from husband and wife team Catherine and Richard Furze, include Sea Salt and 5dSU]WV 4^SU] BWbbWd 8[Wdk ESêS 5aUaS 5d[eb ES^fk EiWWf S`V EiWWf HS`[^^S Love Popcorn is gluten-free, handmade and aimed at the gourmet market.

108 l

l December 2014

snack bag (RRP £1.69), a sharing bag (RRP £1.59) and a 35g bag (RRP £0.59p). Burton’s Fish ‘n’ Chips packs include a 40g grab bag, a 5 x 25g multi-pack and a 125g share bag. KP Snacks says its Christmas-exclusive Cheese Footballs are a must-stock for retailers. This year, the snack is joined by Cheese & Tomato Christmas Crackers. KP Snacks Snackers tubs include limited-edition Phileas Fogg Fire Roasted Chilli Taco Rolls and Penn State Sour Cream and Chive Christmas Tree Pretzels. United Biscuits lines Jacob’s Twiglets Antler, Mini Cheddars, Oddities and Treeselets Caddies are all being sold with Christmas makeovers. Oddities and Mini Cheddars have taken on new Christmas shapes, while Cheeselets have been renamed Treeselets, featuring Christmas tree shaped biscuits.

mints and gum

Fresh perspective Changes in the mints and gum market suggest people want new and fruity ﬂavours

EW ﬂavours of gum are tempting people away from buying mints and causing big changes in the market, according to recent market analysis. Confectionery 2014, a Market Update from Key Note, suggests UK sales for mints shrank by 1.7% in 2013; it was the only sub-category in confectionery to see a decline. Key Note found that UK

Extra White Bubblement is selling well in the impulse channel, says Wrigley.

consumers are increasingly choosing to purchase chewing and bubble gum over mints, and while there is still demand for mints it’s mostly among older people. Meanwhile, increasing interest in gum caused that sector to grow by 3.7% over the same period. Key Note attributed the shift in consumer habits to innovation and NPD in gum, including offering more flavours, while still retaining breathfreshening characteristics. It pointed to recent examples from Wrigley, which continues to dominate the UK market for chewing gum and has launched a number of new products during 2014. Among the brands highlighted by Key Note was Extra Ice, which added a citrus-flavour gum earlier this year. At the time of its launch, Extra Ice Citrus was said to have been designed to tap into growing consumer trends towards fruit-flavoured gum. Sue Cobbledick, Wrigley oral care marketing manager, said: “The fruity taste of Extra Ice Citrus caters to the

growing number of shoppers seeking new and exciting flavours from products they’ve become accustomed to. “You only have to look at Extra Strawberry and Extra White Bubblemint to see how the trend towards fruit and also sweet-flavoured gum has really taken off. 30% of Extra Strawberry chewers are incremental to the category and in just 10 months, Extra White Bubblemint has grown to be the third-fastest-selling gum SKU in the impulse channel.” Wrigley’s 5Gum portfolio has also been revamped with fresh packaging and the launch of a new variant – 5Gum Glare, which is flavoured with blueberry, acai and pomegranate. “5Gum has always offered a fruity alternative to mint gum and to ensure continued success in the UK market, the brand has undergone an ex-

Blueberry, acai and pomegranate are the ﬂavours found in 5Gum Glare, while the latest Extra Ice variant is citrus.

citing renovation,” said brand manager Katie Codd. Key Note says the gum market has also beneﬁtted from an inﬂux of “fun” products, like Chewie Gum, confectioner Leaf’s range of Chewitsbranded bubblegum. • Key Note’s 2014 Market Update, Confectionery, is available from Key Note on 0845 504 0452 or at www.keynote.co.uk, priced £575.

Game on for Halls MEDICATED confectionery brand Halls, owned by Mondelez International, has teamed up with EA Games for a new promotion this winter. By entering an on-pack code at www.hallsgameon.com, consumers can win a Samsung Galaxy S5 16GB smartphone – or one of 1m free EA Games Android downloads worth £5 from the Google Play Store. Sally Barton, senior brand manager for Halls, said: “This is part of our ongoing drive to keep Halls relevant all year round, which is great news for the brand, for the category and for retailers – there is huge potential for sales growth as consumers see the

The EA Games promotion will be featured on packs of Halls this winter.

benefits of Halls outside the traditional cough and flu season.” During 2015, Mondelez says the brand will be supported by a seven figure-marketing campaign. The TV and video-ondemand, outdoor, in-store, social media and PR activity will help retailers increase sales of Halls products through the year, says Mondelez.

December 2014 l

l 109

3 WPARTS Y R

0845 241 5513

ARR & L ANT ABO Y UR

Energy-saving offers from Scotia Cooling Solutions! ESP Range ESP Range

from

£3999!

Case Lengths Available: 900mm / 1250mm / 1800mm 2500mm / 3050mm / 3750mm

Available versions: 710mm (d) - 1950mm (h) / 815mm (d) - 2020mm (h) (also available with energy saving doors)

ECO Range

from

£4999!

Energy Saving Doors Save 30% running costs!

ECA

Case Lengths Available:

APPROVED

900mm / 1250mm / 1800mm / 2500mm / 3050mm / 3750mm Available versions: 710mm (d) - 1950mm (h) / 815mm (d) - 2020mm (h)

ROMA Low fronted Integral Multideck Case Lengths Available: 1m / 2m / 2.5m

from

LOWENERGY

£1195!

Scroll Condensing Units Contact us for more info!

Scotia Cooling Solutions Ltd. 3 Cochrane Square, Brucefield Industry Park, Livingston EH54 9DR f: 0845 241 5512 COMMERCIAL

RETAIL

PUBLIC SECTOR

sales@coolingsolutionsuk.com coolingsolutionsuk.com FOOD PRODUCTION

RESTAURANT & HOSPITALITY

PRODUCTION

MANUFACTURING

PHARMACEUTICAL

*Subject to Status and Subject to Menzies and Reposs Terms and Conditions

The only Trade Association working to ensure a sustainable and prosperous convenience store industry in Scotland.

Join Us Today. 2000 retailers canâ&#x20AC;&#x2122;t be wrong.

Call 0131 343 3300

DRINK IT. MIX IT. STOCK IT NOW! FABULOUS NEW PACKAGING OVER 7 MILLION SERVES PER YEAR NATIONAL CONSUMER CAMPAIGN

Radio, Promo Tours and much more

NEW P.O.S KIT AVAILABLE

0800 073 0901 INFO@VC-2.COM WWW.VC-2.COM

EX NE CIT W ING LIN ES