BETTER COMMUNICATION BETTER SALES BETTER PROFITS EXCLUSIVE CATEGORY GUIDANCE SEPTEMBER 2012 betterwholesaling.com How to negotiate with suppliers P28 THE RISE OF OWN BRAND THE HIGH-VALUE HEROES LIFTING YOUR SALES The A To Z of catering P08 Blakemore on teamwork P10 Store Wars: how retailers took over from suppliers P06 p1_cover Sept V2 final_2.indd 1 30/08/2012 16:54 WELCOME SEPTEMBER/2012 Contents Leader Analysis Cover story Category guide Can you 16/20 30/32 quantify that? 4 IN A LEAGUE OF SWEET TREATS I’m often asked by suppliers whether we can quantify the SWEET SUCCESS ITS Own Bite-size and effect of category management on sales. Good news – we Sugro urges retailers Own brand is a sharing bags can. Back in June, we spent the day with Dhamecha in to up their game success story but continue to be a hit Hayes to see how category advice helped chief executive where can it go with retailers Pradip Dhamecha to grow sales of selected confectionery 06/07 from here? lines by up to 50%. We rolled the advice out in a step-by- THE BATTLE- 34/36 step guide that you could apply to your own business. GROUND Features ThE PERFECT This issue, we’ve moved our focus to the tobacco room and Greg Thain says be BLEND spent the day with Junaid Arif, general manager of Bestway in unique to compete How retailers and Gateshead, Newcastle to see how together with his supplier, 24/25 foodservice needs he bumped up sales of a particular line by 164% and grew the WAYS TO RAISE differ in the hot total tobacco category by 10% (p14). This time, category advice Spotlight beverages YOUR MARGIns was about tailoring a localised solution – is this something your David Harris looks 08/09 at the key strategies 38/39 business could benefit from? to succeed We look forward to covering more category-driving success TURKISH STAYIng POWER stories in the future. If you’re doing something innovative you DELIGHTS Battery suppliers 26/27 discuss boosting would like to share, please get in touch. Alternatively, if you A To Z learns how to need help to boost a part of your business, there may be profit from potential THE RULES OF battery sales sources of waste NEGOTIATION something we can do to help. Robert Taylor 40/41 Other highlights this issue include a guide to 10/ reveals his top tips LATEST negotiating with major suppliers (p28), advice on how to grow your business TACKLE FUTURE to win you great PRODUCTS CHALLEngES deals with suppliers The latest launches (p26) and exclusive insight on what your Sam Wilcox says and promotions retail and foodservice customers love people are a key 28/29 about own-brand products (p16). resource to invest in PASTURES Hope you enjoy the issue. BREW Breweries need 42/ 12/ BACK PAGE GET INTO more focused ways to market 15 minutes with THE SPIRIT Mike Wilmore from Diageo’s Roz Nash Palmer and Harvey on making profits Direct Van Sales. editor from alcoholic drinks GET IN TOUCH [email protected] OUR CONTRIBUTORS ROBERT STEFAN TAYLOR is the SAM WILCOX APPLEBY is managing director is the managing editor-in-chief of and founder of SNS director of Better Wholesaling and has conducted A F Blakemore and editor of leading negotiations with Wholesale, where trade title Retail Asda, Tesco, J P he is responsible Express. In this issue Morgan, UBS, for its cash & carry, he profiles A To Z Sony, BMG and foodservice and Catering Supplies. Elvis Costello. He fresh foods divisions. In his spare time has an economics degree, is a Fellow of the He has been employed at the company for Stefan enjoys playing cricket and darts, and Association of Corporate Treasurers and 25 years. He is also the vice chairman of watching his beloved non-league football also a chartered accountant. Landmark Wholesale. team Gresley FC. Betterwholesaling.com SEPTEMBER 2012 03 p3_contentsCS5.indd 3 30/08/2012 17:45 NEWS ANALYSIS SUGRO Snack attack: It’s been a good year for chocolate, confectionery and crisps SWEET SUCCESS Sugro is taking major strides to help retailers survive the ‘value’ market, writes ELIT ROWLAND he future of retail is One of the ways One of the group’s biggest looking uncertain, the group is confronting the recent announcements was according to Phillip challenge is by to encourag- the official launch of its retail TJenkins, MD of Sugro who Sugro is developing fascia Nearbuy, which will ing the use of retailer-focused says that despite positive resources – including best- a more competitive be rolled out using a ‘cluster’ growth during the first half seller lists and planograms on retail base strategy to populate some of of 2012, liquidity issues the Sugro website. “Wholesal- the UK’s busiest cities. around retailers are caus- ers need to give their retailers “For me, the idea of cluster ing an element of concern. more accurate information on basics to make it through these marketing is important – why “We are seeing payments ranging and getting their prod- challenging times” says Jen- have a fascia in the middle of around retailers getting more ucts right”, says Ian Irvine, kins. “Look at what sells best, nowhere when you can have ten difficult to obtain – their costs head of retail and business de- focus on good merchandising in more highly populated areas are increasing and because velopment. “Wholesalers must and take advantage of PoS.” – and support your marketing we’ve moved into a value mar- direct them to our website At Sugro, It’s been a particu- campaign with advertising in ket where margins are less, the – we’ve already provided the larly good year for chocolate local media.” second half of the year will be a information they need.” confectionery, crisps and One of the initial drivers will challenge.” Sugro is also tightening up snacks. In particular, larger be the south-west. “We are also Contributing to the problem its compliance procedure to format packs and sharing interested in Cardiff, Swansea, is the rise of price-marking, develop a stronger, more com- packs. “Six-pack Walkers are Bristol, Manchester and when says Jenkins, which is creat- petitive retail membership. becoming an integral part of we are really confident, maybe ing a “ceiling of margin” that This has meant saying goodbye our business and we may soon London.” restricts the retailer. “Retailers to 200 retailers, but taking recommend as a ‘must-stock’ The group began a develop- have a fixed amount of money on 50 more who are willing to item”, says Jenkins. And while mental trial of the Nearbuy to spend when they walk into implement Sweet Break – a some may believe that ‘sea- fascia in the North West of a depot”, he explains. “This promotional scheme designed sonal’ in retail is gone, Sugro England in 2009 and has been doesn’t increase when you to allow the independent re- is also performing well here. “progressively learning and introduce PMP – it just means tailers to compete in a ‘highly “We adapt a more commercial experimenting since”. their purchasing will change.” challenging’ market. “We are approach – we look at different “We are now in a position to So how can independent recommending our retailers in propositions to the multiples” truly launch the fascia,” says retailers truly develop? recent months to go back to says Jenkins. Jenkins. l 04 SEPTEMBER 2012 Betterwholesaling.com p4 newsaCS51.indd 4 30/08/2012 15:07 NEWS ANALYSIS SUPPLIERS THE BAttLEGROUND Developing a unique offering is key to competing with the multiples, says GREG THAIN n the past 10 years, Greg Thain(pictured) manufacturers in terms of who who supply the independent the world of fast mov- talks to Better Wholesaling owns the sale. What are the channel? ing consumer goods about the implications for implications for distributors Greg: The implications for Ihas been dominated wholesalers who supply distributors are positive. by manufacturers like the independent market Major retailers have made Unilever and Coca-Cola. in the UK - there is good themselves progressively more Today, big retailers have news. expensive for manufacturers the upper hand, says a 2,500 to deal with. A good strategy new edition of Store Wars, BW: Over the past 15 years, independent for manufacturers to counter which provides expert the major retail chains have shops backed the retailers’ growing power is analysis of the strategic gained the upper hand from by wholesalers to cultivate other channels of battleground. Co-author the major packaged goods distribution for their brands. 06 SEPTEMBER 2012 Betterwholesaling.com p6-7 NEWSANALYSIS CS5.indd 6 30/08/2012 13:31 can match the multiples on counter model as an example shopper knowledge, they can where you says that 400 SKUs then win on individualised are at break even or loss lead- The big strength of the independent service. ers and the other 600 have to used to be in having a much greater deliver the profit, is this what level of customer knowledge and BW: How much scale do you the multiples will do. Most think symbol groups need to independent retailers don’t individual service than the multiple have in order to provide an ef- measure their shelf space and fective alternative to the major try to make a profit on most BW: You say that stocking those can be delivered in the grocers. There are some group- things they sell. What should products is the retailers’ busi- more flexible environment of ings of 2,500 independent wholesalers advise independ- ness and that threatening to the independent store.