Why Pricing Matters More Than Ever
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BETTER COMMUNICATION BETTER SALES BETTER PROFITS ExclusivE caTEgoRy guidancE february 2012 betterwholesaling.com Making tobacco rooms meal deals Has tHe ban left you in tHe dark? appeal P4 P18 The rise WHy Pricing matters more of value tHan ever P40 P20 P8 the ethnic experts small shops speak formula one in soho p1 cover final.indd 1 26/01/2012 18:17 welcome Feb/2012 Contents Leader Analysis Cover story 26/27 Bad news for wholesale? helping you help 12/16 News wholesalers 4/5 the price make big profits – depots left of success but for how long? your customers in the dark Is value becoming Guidance comes more important welcome to the second issue of Better wholesaling. late for tobacco than ever? Category guide we launched in october with a mission to help wholesalers rooms hit by ban grow sales and better support their customers. now we’re Features 30/34 back, with more advice that is action-oriented, authorita- 06/ roll-your-own tive and easy to read. chef direct 18/19 toBacco Senior figures in the wholesale industry have told us we have is launched The RYO category made a good start and have hit the right tone. but our maga- New service from the appeal of is rolling it in as Booker takes on meal deals demand heats up zine is unashamedly aimed at people working at depot level. Brakes and 3663 Why they’re We want to help you make sense of the industry you work popular and what 36/38 in and see where the opportunities lie. For that reason, we are to do about it special days, talking to retailers, caterers, other wholesalers and suppliers to Spotlight special treats bring you a wider picture than you will see in your depot alone. 20/21 See our calendar of after our first issue, one wholesale manager told us that she 08/09 symBols for spring confectionery had read more of the features in this magazine than in any no red light smaller sizes sales opportunities Newsagents and other. Others told us that they were definitely planning to use for soho 40/41 the tips in our how-to articles. readers asked Soho has a new the wholesalers who love them international us to keep a balance between cash & depot, website and culinary arts national delivery carries and foodservice, to profile a 22/23 Four wholesalers standalone depot and to write about 10/ serve up their recipe smaller shops. one-minute for a broader range let’s talk in depot We have aimed to do all of the above. one language manager 42/ If you have views you would like to Incompatible data Your guide to products share with us, please let us know. labels are holding better sales of The latest launches back your business energy drinks and promotions 11/ 24/25 investing in iphone apps 43/ point of sale for foodies Back page editor-in-chief Ferrero’s Levi Why 3663 has 15 minutes with Kish Boorer outlines taken up the Ramasamy of Confex its depot plans mobile challenge Central Distribution get in touch [email protected] our contributors lisa moore, who writes about value in this issue, is a nigel huddleston, who t om gockelen-kozlowski, former editor of Mul- writes about meal who interviews big hitters tiple Buyer & Retailer deals and mobile in ethnic foods for this issue, and a former editorial apps in this issue, is deputy features editor of director of business-to- is a former editor of Retail Newsagent magazine. business and consumer business-to-business Tom, who studied at Reed PR agency Cirkle. Her magazines Off Licence College in Portland, Oregon most recent project is News and Freehouse in the USA, has previously a book commemorating and has more than written for The Guardian, the 125th anniversary of the Provision twenty years’ experi- the Daily Telegraph and Trade Federation. ence covering food, The Lady. His musical tastes range from drink and hospitality. A quick-turnaround Leonard Cohen to Kanye West, Dane book he wrote about Billy Connolly has a Bowers and Steps. five-star Amazon rating which he humbly describes as inexplicable. Betterwholesaling.com February 2012 03 p3_contents RB.indd 1 26/01/2012 18:36 news analysis tobaccodemerger display ban UNDER THE COVERS England’s tobacco ban presents both a problem and an opportunity, says tom fErguson ith stage one of 6 April 2015 to comply has is that nobody has been get- tributors (FWD) also recently the government’s opened a window of oppor- ting information about it.” issued its own guidance. controversial to- tunity for the independent One problem contributing Wbacco display ban just weeks sector and the wholesalers to the lack of information is The devolved govern- away, England’s wholesal- that supplies it. the government’s timetable. ments in Northern Ireland, ers have a challenge: how Overall, “the display ban’s Final regulations for England Wales and Scotland are com- to comply with the regula- bad news for retailers and are to be presented to Parlia- mitted to introducing the ban, tions while exploiting the wholesalers,” says JTI head ment at least 21 days before but have not yet published chance presented by their of communications Jeremy 6 April, following an EU tech- final regulations or dates. two-tier introduction to Blackburn. “There’s no need nical standards consultation In Scotland, dates of 1 April grow business. for it and there were alterna- period ending 29 February. 2012 and 1 April 2015 had The legislation’s bracketing tives. But the biggest problem The intention of a recent been set, but implementation of wholesalers with super- flurry of guidance was to was recently deferred, pending markets and other large retail clarify the situation as much the outcome of a legal chal- outlets baffled many as possible. lenge from Imperial Tobacco. in the trade, but its effect Department of Health One key element of the was that English operators We’ve potentially (DoH) guidelines for busi- English regulations for were given a deadline of 6 got the nesses and trading standards wholesalers is that depots April to fall into line with supermarkets are now available on the that are open to non-tobacco its regulations. Businesslink website and, fol- trade customers can only However, the decision to losing 20% in sales lowing DoH consultation, the sell tobacco products from a give smaller retailers until Federation of Wholesale Dis- designated windowless room, 04 FEBRUARY 2012 Betterwholesaling.com p4-5 news.indd 4 26/01/2012 16:01 with an entrance designed wholesalers – to exploit and to prevent accidental display The retailer’s view cope with the effects of the from outside the room. ban. fWD director of commu- blackburn, however, says nications David Visick notes JTI is attempting to advise that “most depots already wholesalers of their regula- have a tobacco room, but tory obligations. “We’ve put there’s a cost consideration in together a guidance leaflet, sealing it in some way so that published online [at www. no-one can see into it.” tobaccoretailing.com] on Visick notes that responsi- 27 January, covering moving bility for enforcing the new stock around the cash & carry, regulations has been given what and when you have to to local Trading Standards cover up, preparing the to- officers across the country, bacco room, monitoring access opening up the prospect of and so on.” different interpretations in Mandeep and Imperial Tobacco, says different regions. Singh its head of distributive chan- although local authority co- and nel Patrick Toms, is “currently ordinating body LaCOrS has Shaid communicating with all of Hussain issued guidance on compliance (inset) [its] wholesale partners that to Trading Standards across are affected by the display england, Visick says, “before ban, in order to help them making any structural changes, Sheffield-baSed Mandeep dark, because prepare for the legisla- the first thing [wholesalers] Singh, who operates three they’ll be tion”. He says Imperial’s need to do is check how their Premier stores, says he’s already used to us.” focus is on using account own local authority is going to received guidance on the ban Retailer managers to help whole- apply the legislation.” from suppliers JTi, imperial and Shaid hussain, salers understand how the Insiders agree that ensuring BAT, as well as booker’s Premier owner of Good legislation will affect their development Group. News in burton-on- that only ‘legitimate tobacco he’s particularly keen on Trent, also welcomes booker’s businesses. traders’ enter the tobacco booker’s ‘d-day’ initiative. d-day initiative, but adds, “i He adds: “We have put a room is a major challenge. “They’re doing it on the shop would really have expected other huge emphasis on highlight- That definition covers anyone floor and they’re telling people wholesalers to have got on board ing to retailers the true value owning or working in a shop that we need to have the right as well. i think they’ve been a of sticking to sound business selling cigarettes or tobacco, range in and the right amount bit slow.” practices that make shoppers of stock. We cannot, in the next hussain wants suppliers but wholesalers will have to de- three years, be saying, ‘Oh, we’ve to recognise independents’ realise the points of difference velop identification procedures run out of “x” product, go buy the strategic importance over the that they can offer.” to prevent other customers other one.’ Our selling point has next three years, particularly by JTI’s blackburn agrees, entering the sealed area. got to be sharper than ever.” offering them information about saying: “My advice to retailers “That will probably involve Singh is optimistic about the “what products they are going to and wholesalers is that the having someone on the door opportunity the next three years be pushing before 2015”.