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

The ethnic experts P40 Small shops speak P20 Formula One in Soho P8

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”. principles of category manage- offer. B“ efore we ‘go dark’, we’ve Unlike Singh, however, to checking and perhaps some potentially got the supermarkets date, he has found informa- ment still apply: having the sort of notification on mem- losing 20% – £1bn – in sales and tion about the ban from trade right brands, the amount of bership cards,” says Visick. we’re looking at the positive: or government to have been “a stock and the range, correctly “There’s a big admin job to be those sales are going to be fer- bit scarce”. laid out. They also need to be done there.” ried towards independent retail- He adds: “There’s been no vigilant in spotting trends, Visick adds that wholesalers ers and we need to be sharp. real direct advice given from when there’s an uplift in sales “If those customers come to us anybody on how we are going to will also have to ensure their over the next three years, they’re be complying with the law. And I in certain sectors or brands, staff and customers are aware going to stick to us when we go find hatt a bit worrying.” l for example.” that tobacco products cannot While Visick is confident be displayed elsewhere in the that wholesalers will be ready premises, even if in the pos- in hiring extra staff and retailers on how they can for the 6 April deadline, he ad- session of customers, so have constructing entrances for exploit the three-year window mits that such efforts are be- to be covered before reaching tobacco rooms before 6 April. of opportunity the regulations ing made despite widespread the point of purchase and dur- A spokesman called the leg- offer them. doubts on the regulations’ ing restocking. islation “another example of In January, it launched relevance to the sector. bureaucracy at an ongoing series of ‘D‑Day’ “Why on earth are we cover- Bestway its very worst”. in-store presentations, which ing up cigarettes in wholesale Group has Meanwhile, explain the regulations and premises when the point been particu- Booker is offer tips on maximising of the tobacco display ban larly critical advising sales after the supermarkets is to prevent young people of the new independent cover up, with the help of being encouraged to take up legislation, Imperial Tobacco. smoking?” he asks. “The point claiming The FWD’s Visick says he is, there is no correlation be- it will cost Jeremy Blackburn: expects most major tobacco tween those two actions.” the chain “the tobacco suppliers to concentrate their He adds wryly, “But we had “thousands display ban’s efforts on helping independ- that argument a year ago – of pounds” bad news” ent retailers – rather than and we lost it.” l

Betterwholesaling.com february 2012 05

p4-5 news.indd 5 26/01/2012 16:01 news analysis

launch

foodservice fight Booker is taking on the big names in the delivered market with Chef Direct. By tom Ferguson

ooker has an- is 15%, with 3663 at 11%. Nicola Mallard, analyst at from Booker’s acquisition of nounced plans to go Landmark Wholesale mem- Evolution Securities, says: Ritter Courivaud. Last year, head-to-head with bers DBC and JJ have shares “This is about taking on the Booker announced that it had theB biggest names in the of 4% and 2% respectively, Brakeses and 3663s, the main- created a Booker-Courivaud £6.4bn delivered foodserv- Reynolds Catering Supplies stream operators in this space, shop-within-a-shop in its ice market with the launch having a further 2%. and it’s national accounts they Brighton cash & carry depot. of Chef Direct. IGD senior business want. Booker predominantly The 3,750sq ft space has room Chef Direct, which begins analyst Patrick Mitchell-Fox, services retail customers. for 1,000 fine-food lines rang- trading in June, will combine says: “This is the announce- Although they’ve a lot of the ing from olives and cheeses the Booker Group’s scale with ment that we’ve been waiting cinema chains, part of the through to pâtisserie and oils. the logistics capability of its for, as Booker brings its scale prison service, and distribu- Booker Direct division and to a full-service offering for tion for the M&S branded In a statement, the the catering expertise of Rit- the sector. At present, Booker offer, they’ve only recently group said: “Ritter has fantas- ter Courivaud, a supplier to largely plays in a different got their first true restaurant tic food expertise and supplies upmarket restaurants, hotels segment to the market lead- chain, Angus Steak­houses.” many of the best restaurants and contract caterers that the ers – it mostly deals with She adds: “Booker’s mantra in the UK. We have taken some group acquired for £14.5m in independent cafés and pubs is price, choice and service, of the Ritter range into Booker October 2010. as opposed to the multi-site and they’ve carved out their and are in the process of Chef Direct will be run by and corporate players that space in terms of cash & carry extending the Ritter national Booker Direct managing di- make up a bigger proportion wholesale. Now they clearly coverage through using Booker rector Mark Alwyn, who says: of business for Brakes and think there’s an opportunity cash & carry business centre “For years, two players have 3663.” to do the same in delivered space. Ritter and Booker are dominated foodservice in foodservice.” starting to serve national the UK. Catering chains have Chef Direct will be based accounts with a choice, price been looking for more choice at a 250,000sq ft, state-of- and service they cannot obtain and Chef Direct will meet This is the the-art distribution centre in from other ­suppliers.” this need.” Didcot, Oxfordshire, that is The group has also inte- The IGD puts the value of announcement currently being kitted out. grated operations from Classic the delivered foodservice mar- that we’ve been The move into large-scale de- Drinks, an on-trade wholesaler ket at £6.4bn and estimates waiting for livered foodservice is the latest bought in October 2010, into market leader Brakes’s share development to derive benefit its depots. l

06 FEBRUARY 2012 Betterwholesaling.com

p6 news.indd 1 26/01/2012 17:55 Snack Tracks A4FINAL v3.indd 1

® Registered trade mark of United Biscuits (UK) Limited *Please see back of promotional packs for Terms & Conditions SOUND PROFITS STOCK UP AND DISPLAY THE RANGE checkouts, orclosetosandwiches, colddrinksornewspapers. Snacking isthemostimpulsivecategory, withideallocationsincludingfrontofstore, promotional packs ofhandy packs andgrabbagsontheabove sixbrands. The promotionisavailable in-store fromFeb2012foralimitedperiod. Available across Consumers candownloadpromopack atrackfromchoice ofover withevery 100,000tunes. United Biscuitshaslaunched amassivepromotionacrossitsleadingsnack brands. category advicetoboostyour sales category www.ubperfectstore.com Independent BiscuitsandSnacks 23/01/2012 10:19 wholesaler spotlight

cash & carry

the soho scene Soho Cash & Carry is rapidly changing to attract new customers, writes Guy Campos

n September last year, helped to raise our profile and and added a 40,0000sq ft competition and that helps,” a Formula One car was get people down to the depot. depot in Wolverhampton in Kalia adds. the centrepiece of a It was something different – 2008, before replacing the promotionI at the newly a conversation piece.” Handsworth site last year with The site is state of the opened Soho Cash & Carry The car was so powerful that the larger Smethwick depot. art, with lots of small touches depot in Smethwick in the its engine had to be switched “This is nearly three times that add to the whole. Rather West Midlands. off because there was so much the size of the Handsworth than artificial light, the depot The car was provided for glass in the cash & carry. Ca- depot, four times if you in- has full-spectrum lighting, the occasion by Scotch whisky pable of 18,000 revs a minute clude the car park,” says Kalia. which mimics natural day- supplier Whyte & Mackay, and 200 miles an hour, it was Soho had decided it needed light – this makes the stock which sponsors the Force light to push and an objection more space to accommodate a look better and is less tiring. India team. of fascination to customers. bigger range, more car parking The flooring is grey so that Soho’s business develop- The opening of the new and it also needed a bet- supplier promotions stand ment manager Ashok Kalia 45,000sq ft depot is the lat- ter ­location. out. Car parking bays are says: “We put it on our posters est stage in the company’s “This site affords us great at an angle, to allow transit and our newspaper adverts, expansion. It began with one transport links – junction vans to reverse easily and be promoted the car’s and the 18,000sq ft depot in Hands- one of the M5 is very close square on to the depot. There team’s presence, and that worth, Birmingham, in 2000, by. We are also close to the is also a one-way system so

08 february 2012 Betterwholesaling.com that drivers can get in and out quickly. “Even when we had our grand Retailers are consumers opening when and they need to be treated as we had masses such. Products and brands of vehicles coming in need to talk to them and out, there were no traffic which began ranked member, it receives jams,” Kalia operating last more support and the group says. year. The web- is very helpful with PR and Retailers site operates on marketing. It also gets better also get help a five-click prin- pricing, which it can pass on loading their ciple, meaning to customers. vans. “It’s a free no activity should “That maintains our image service and it’s take more than five as an everyday low-price cash done out of respect clicks. Customers & carry,” Kalia says. “We main- for the customer. It’s a don’t want to go through tain a good level of price com- small thing but it puts a reams of information about petitiveness throughout the smile on people’s faces.” the cash & carry on their first year, rather than having peaks “Cash & carries and whole- visit – they normally want to and troughs as some cash & Force India’s Formula One see the special deals and the carries do.” salers should be like a big racing car was the centrepiece supermarket,” Kalia says. “The of a promotion to launch the website helps with this by Looking to the future, Soho only difference is that rather new 45,000sq ft Soho Cash & placing them in boxes. All will be involved in a roadshow than products being bought Carry depot in Smethwick in products are also categorised tour being organised by the in individual packs, they are the West Midlands so they are easy to search. Today’s Group to celebrate its being bought on a flat-bed The website, which was 25th anniversary, with events trolley and in cases of 24. wouldn’t necessarily come to nominated for a trade award, is in May in Smethwick and in “Retailers are consumers Soho because we only special- also smartphone-friendly. “We September in Wolverhamp- and they need to be treated ised in certain areas. Now they do a lot of analytics on data, ton. There will be a marquee, a as such. Products and brands are more likely to buy from and we’ve realised that some- silver Mini, a range of prizes, need to talk to them. Pric- us,” Kalia adds. thing like a third of the traffic seated computer games and ing needs to be clear. Tickets Being proactive might mean comes from smartphones,” a big flat-screen television. need to have information, and sending the field salesforce Kalia says. Retailers will have the chance should talk about profitability out to areas such as Derby to enter a raffle and win an and the investment being where the company has no The nationaldelivery iPad, laptop or iPhone as well made in the product. Products customers either ordering service offers delivery on a as the Mini. should be easy to find.” online or making enquiries. Sunday and is aimed at people There are also plans to The product range has now who are too busy to come out develop the cash & carry’s Kalia is part of a team of expanded beyond the licensed to the cash & carry, or retail club which currently has people recruited by manag- alcohol, confectionery and those for whom location 56 members. ing director Bally Bahra to soft drinks in which the or parking is an issue. Asked how he wants the the family-owned business in cash & carry specialised for As a result of its expan- company to be seen, Kalia 2010 in preparation for the many years. sion, Soho has gone from says: “Soho has dramatically expansion. Other members One area of excitement is being a tier three member of changed. It’s a rapidly growing include an ex-Boots global the company’s website and na- the Today’s Group to a tier business with the capabili- finance manager who sits on tional delivery service, both of one member. As a higher- ties and plans to succeed in the board, and a buyer and the short and the long term. a finance manager who have It’s driven to deliver service joined from the wholesale with integrity not only to cus- sector. tomers but to suppliers. Figures posted on the “Suppliers want to see their company’s website advertise brands protected, and volumes a growth of 30% in customer and sales grow. Retailers want numbers year on year and a to be supported, and helped to 28% growth in turnover from increase their sales and profit. 2009 to 2010 with similar And we want to increase our growth expected this year. sales and profits.” Kalia says this is coming from “What we want to do as a a combination of activities. wholesaler is work more col- “We have been more proac- laboratively with our suppliers tive in finding customers and 28% and our customers. We are an also offering products that Soho’s growth innovative business and we they want. Some customers in turnover want to be seen as a bench- who have businesses that year on year mark of how a proper whole- supply a range of products saler should operate.” l

Betterwholesaling.com february 2012 09 have your say [email protected] Opinion

Suppliers and wholesalers need to start talking the same language about data if they are to identify new opportunities, says Mike McGee

or multiple retailers, correct However, just as important are the framework of logistics based on a com- SKU data is the foundation of hidden elements of inefficiency and inac- mon view of stock, insight surrounding their whole business, driving curacy. Multiple phone calls and emails product demand, marketing and promo- everythingF from placing the order, are needed to verify or complete informa- tional information. through to accepting delivery, scan- tion; the reporting that is used to guide The foundation of this is a common ning it, understanding customer the business cannot be trusted; and new language in which there are shared purchases with data mining and then products and promotions are hard to descriptions and understanding of what paying for it. If the supplier gets any assess – an area of increasing importance things like pack size mean. element wrong – by using incorrect as every organisation looks to answer Of course, each wholesaler has its codes, for example – there are severe the question, “Where are my resources own requirements for data to meet its consequences that endanger profit- best deployed?” specific business needs. For instance, ability and the relationship. In an ideal world, the supplier and foodservice and contract businesses Some in the wholesale industry take wholesaler should share product descrip- have their own data requirements. a totally different position. For them, tions and codings so that these drive However, that does not preclude the data is the last item in a relationship and the whole interaction between the two elements of the data being consistent business transaction with a supplier. As a parties, from ordering, delivery, identi- between all parties. result, any issues of poor data quality fying promotions and introducing new In the future, we will see more should not come as a surprise. products through to developing custom- sharing of inventory and replenishment, The following scenarios are not ers, managing e-commerce sites and pay- more automatic reconciliation of pur- unusual: wholesalers that end up with ing for goods, irrespective of how many chase orders and goods-received notes, multiple iterations of a supplier name, systems are involved. and more automatic payments. Promo- with sales against each version; multiple To make this happen, the wholesale tional analysis and the performance systems in the same organisation that use industry must start to talk the same of new products will become ever more different codes and descriptions, mak- ‘language’ of information – of ‘master important – identifying opportunity will ing it impossible to see the business as a data management’ – to create a direct, be vital as always. None of this will be whole; suppliers that use systems that au- transparent and measurable route to possible without consistent data tomatically complete new line forms, yet market. This is not inconceivable. The across the sector, involving supplier put codes in wrong fields; limitations on data is there to assist in creating an open and wholesaler alike. l fields that mean products are indecipher- able to all but the originator; and new line forms that are completed by national account managers who do not have all the 2 +2 information required or understanding of the ­requirements. = Consequently, wasted time and re- 5 source are considered largely ‘par for the course’ when new lines have not been loaded into the point-of-sale system be- fore the product arrives at the back door, or when product details are inaccurately or incompletely described. For wholesalers and convenience retail- ers, this can make stock management and sales reporting extremely challenging; for suppliers that buy EPOS sales-out data, it can be extremely difficult to iden- tify the correct packs so they can track sales ­performance. Wasted time and resource are considered ‘par for the course’ when new lines have not been loaded into the point-of-sale system before the product arrives at the back door

10 FEBRUARY 2012 Betterwholesaling.com industry profile

levi boorer customer development director, Ferrero the facts

company Ferrero key brands Nutella, Ferrero Rocher, Tic Tac, Kinder Surprise, Bueno profile The biggest confec- tionery company in Europe, with a 23.5% market share, it has just 3% of the UK market, with plans to double in size in five years. latest news Kinder Bueno returns to TV in an ‘Indulgence Lightly Done’ campaign. you’re spoiling us Guy Campos talks to Levi Boorer about sales growth and Ferrero’s plans for the next six months BW: How have you worked of Kinder Surprise’s new toys ing brands like Kinder Bueno BW: What are the biggest with wholesalers to grow and a TV advertising cam- and Surprise with high-impact market trends? sales in the last year? paign. It’s been double-digit advertising campaigns and LB: Firstly, brands are becom- LB: Wholesale is critical to us growth since February and we’re working with customers ing more important. Over the because it allows us to show- our gifting range was also to maximise key occasions, last few years, retailers have case our brands when they’re really strong from Septem- such as spring, Valentine’s stepped away from continuous delivering strong campaigns. ber onwards. Day, Mother’s Day and Easter, NPD and private label. Part of my responsibility is driving confectionery sales Secondly, hazelnut imprint- to invest in point of sale and BW: What has been the and looking at specific whole- ing. Nutella had been seen some of the PoS on Tic Tac major challenge? sale promotions. as a treat but in Europe it’s a and Bueno during the X-Fac- LB: As with the rest of the With Bueno, we are back on breakfast spread. We repo- tor campaign was ­stunning. confectionery industry, the in- TV as well with a brand new sitioned it in 2007 and have Every year, we do heavy- creasing cost of raw materials, ­multi-million pound advertis- been educating UK consum- weight sampling campaigns such as cocoa and hazelnuts. ing campaign called ‘Indul- ers. As a result, the brand has for Ferrero Rocher, not just Some competitors reduce gence Lightly Done’, which doubled in size. A lot of our during Christmas but during weights and play around we’re supporting in cash & breakfast competitors are now Diwali. We always overinvest with sizes and SKU counts carries. We’re also doing an on- creating hazelnut products. in POS. Our market share is in boxes; we always sell the pack offer called ‘Try Me Free’. Thirdly, on the high street, around 3% but you can walk same range but address the Our research told us that 40% fewer people are going into into a depot during Christ- key price points. A Kinder Egg of people who reject Bueno specialist chocolate stores, mas and the X-Factor pro- is just 72p, our new Ferrero have never tried it, so consum- which are now having to close. motion and you’ll see really eggs £1.99 and Ferrero Rocher ers will have an opportunity to ‘Core means more’ is another strong PoS. sharing 16-packs are £4.19. claim any purchase price back trend. NPD accounts for less on the brand up to RSP. of a percentage share of value BW: What were your main BW: What are you sales than it did. We’re seeing achievements last year? planning to do in the product churn and very little in LB: Nutella 400g is now the next six months? the NPD environment lasts. number one spread, overtak- LB: We are committed to We are committed Consumers are also actively ing Marmite for the first time. stand-out new product seeking premium chocolate We’ve had significant growth development. You’ve seen to stand-out brands, not because they have in Tic Tac and Bueno through new products, such as Ferrero new product more money but because the X-Factor partnership but eggs, and Kinder Surprise has development they value the time they the big news was the launch 100 new toys. We’re support- share ­together. l

Betterwholesaling.com FEBRUARY 2012 11 cover story protect and save feature

Consumers are looking for bargains – but the right kinds of bargains. LISA MOORE looks at what you can do to help retailers help their customers t’s hardly a secret that price-con- have always tailored their offers to their scious consumers are searching customer bases. out bargains. But Tesco’s spec- Patrick Mitchell-Fox of IGD explains: Itacular fall from grace with its dire “Price competition is intensifying – Christmas trading results prove that Booker’s Charles Wilson started it with one size, even a cheap one, doesn’t his ‘prices down’ mantra and a lot of his necessarily fit all. actions since have been devoted to The retailer’s much criticised ‘Big Price building value.” Drop’ campaign, launched last autumn, He adds that since the economy has tak- protect appeared to fail at both ends of the shop- en a turn for the worse, Booker’s strategy per spectrum – not attracting enough has really chimed with customers, mean- shoppers from the clutches of Aldi and ing other wholesalers have followed suit.” Lidl, while at the same time letting more But, he also points to the other side of affluent consumers pass through the doors the value equation that wholesalers are of Sainsbury’s and Waitrose. increasingly offering to customers – in- To its credit, Tesco has been quick to rec- formation, efficiency and convenience. He ognise the problem and is already looking says retailers want to feel they can spend at a more tailored strategy in which stores their time efficiently and effectively and and save in economically squeezed areas will see wholesalers can offer this by creating cap- sharper price points and promotions to sule ranges of products that allow retailers prevent the exodus to the deep discount- to make a ‘one-stop shop’ for store basics.

It has never been a better time for wholesalers and suppliers to help their customers get the balance right. After all good, independent businesses have always tailored their offers to their customer bases

ers, while outlets in better-off locations “A wholesaler does not have to be the will see a sharper focus on quality cheapest line-by-line – the service area has and service. certainly opened up as well. Increasingly, wholesalers are also offering insight, infor- The valueequation, as Tesco has mation and ready-made solutions around learned to its cost, is a complicated one core ranges and ­recommendations.” that can be as much about quality, range, Delivered wholesaler Palmer and Harvey service and convenience as it is about is one of those operators that has realised price, depending on the customer base. that value isn’t just about the prices of the This means it has never been a better products it sells. In December, it launched time for wholesalers and suppliers to help a price-match initiative across 600 of their customers get the balance right. its biggest brands that it benchmarked After all good, independent businesses against competitor cash & carries – some- thing it says covers nearly 60% of its non- tobacco convenience sales. However, at the same time it has also calculated how many hours – and pounds – a retailer spends restocking in a cash & carry. It claims 5 retailers spend nearly five working weeks Weeks spent by a year in cash & carries, which could be costing them nearly £5,000 if lost in-store retailers in cash & management time, van running costs, ex- carries each year tra staff cover and lack of 14-day interest- free credit are taken into account.

Betterwholesaling.com february 2012 13 cover story

But there will always be retailers who prefer to visit a cash & carry, and the best operators are ensuring their promotions LANDMARK view: the value of value are innovative and cost effective. The IGD’s Patrick Mitchell-Fox says Bestway perfect- Martin Williams, manag- ed one of the most successful promotions ing director at Landmark Wholesale group says of last year. As part of its 35th birthday promotional offers are celebrations, it launched ‘Team 35 Drive’, definitely more aggressive a promotion based on key supplier SKUs now, with a bigger focus sold by everyone from reception through on products priced at the to shop-floor and checkout staff. Retail- value end of the market. ers buying the promotional SKUs were “We are all keeping a given cash rebates of up to 4%. “That’s a very close eye on each great way to reward customers and they other’s prices and on responded by buying into the offer and in- the on-going price war creasing their spend,” added Mitchell-Fox. between the multiples,” For retailers that need to compete with he says, but stresses that price-slashing supermarkets, wholesal- Landmark’s approach is to ers are rising to the challenge. All the keep pace with the market major groups have invested in new or by offering customers a existing own-label and value lines – for category choice of value instance, Spar revamped its own-label own brand, own brand and competitively priced branded products. “Landmark Wholesale’s own-brand sales are Price-marked packs have growing nearly twice as become much more fast as last year. Every- one is increasing their acceptable and the need own-brand ranges – in Martin Williams (right): for consistent retail particular, value own price-marked packs are brands – which is in important ways for pricing will grow turn affecting promotion- retailers to stay al activities by pushing competitive all wholesalers to offer range and Makro has launched cut-price deeper price promotions retailer to enjoy energy drinks. and a higher percentage enough margin to Wholesale group Sugro’s aisle-end of products are sold make the pack work. QuidzIn offer is a range of £1 promo- on deal.” “As an industry we tional packs of confectionery and snacks He agrees that price- need to compete with the designed specifically to help retail cus- marked packs are impor- multiples’ RSPs without tomers compete with the supermarkets. tant ways for retailers to destroying independent Sugro’s product controller David Milligan stay competitive, saying retailer margins. If we can business customers the says: “Value for money is the overwhelm- it inspires consumer with match a supermarket’s confidence to shop with ing requirement right now. Price-marked the confidence that they volume then suppliers them by using mecha- packs have become much more acceptable are paying the right pric- should match the strength nisms such as price-prom- and the need for defendable and consistent es for the goods, encour- of the offer in the whole- ise schemes. ages trial of new products retail pricing will continue to grow. sale channel as well.” “More importantly,” he and help lift sales in And coming back to the concludes, “local stores can “Brands are working with us more convenience stores. price/value equation, Wil- offer far better service to closely than ever before on getting the “The big challenge,” liams stresses that while customers than the mul- cash-profit equation right. It’s important he says, “is the shared independent retailers give tiples and must build on for our retailers to manage their mar- margin the supplier puts customers the confidence their local status and their gin mix sufficiently well to sustain deep on the goods. Too many to shop with them by community role. This is discount promotions and events, using times suppliers do not offering ways to compare something where we have all the bonuses passed on to them by the allow enough margin for prices, wholesalers should a huge advantage that we brands and wholesalers, while maintain- the wholesaler and the do the same to give their must maximise.” l ing a financially viable business – it’s not easy but that’s what we can help them to do.” factor for the time being, but adds that are now leaning on them more heavily In fact, as well as taking a price-fighting transparency and simplicity of communica- as ways to communicate value to cus- stance, Sugro is also helping retailers with tions will increasingly become key factors tomers. Patrick Mitchell-Fox points to a a newly launched website that contains as retailers look to wholesalers to help growing trend to price-mark own-label advice including lists of best-sellers across them through the economic storm. packs. “Price-marking is a good external categories, trends information, and mer- benchmark and a visual cue for the con- chandising and range advice. Milligan says Price-marked packs and value lines sumer about the level of saving they are value for money will remain the overriding are not new, but suppliers and retailers making,” he says.

14 february 2012 Betterwholesaling.com Untitled-1 1 1/26/2012 3:50:42 PM cover story

Graham Walker, trade communica- tions manager at Nestlé Confectionery, top tips: what to tell business customers says: “Research has shown that price- marked packs drive value perception in Ensuring all customers receive range and merchandising advice is as important store, with 44% of shoppers believing to retailers as the ability to buy into promotions. Here, Landmark details what it them to be cheaper than the normal stock believes its wholesale members should be telling business customers to help price. Over half of shoppers, if given the them balance the value equation. choice, would choose a price-marked pack l show you’re better than supermarkets: Stock the core range at the over a non price-marked pack.” manufacturers’ recommended selling prices on branded goods, as well as stocking value Tobacco group JTI kicked off 2012 own-brand and own-brand ranges from your wholesaler. Clearly display with the launch of a new value product – the three tiers of pricing to rival the supermarkets (good, better and Sterling Rolling. Jeremy Blackburn, head best on key categories) of communications at JTI says sales of l both value cigarettes and roll your own price-mark where possible: Stock price-marked packs (RYO) products have continued to rise. and, where products are not price-marked, clearly show the “Value cigarettes is the UK’s fastest- RSPs of all the products in the core ranges using price tickets growing tobacco segment, representing on shelf edges almost one in three cigarettes now sold l display prices clearly: There is a massive opportunity in the UK and showing growth across all for independent retailers, simply through displaying clear regions.” The RYO category is the second prices on shelf tickets on all products stocked. This will increase fastest growing tobacco segment, with sales by giving consumers the confidence to make purchases JTI predicting it will continue to rise for while showing prices are not expensive when compared with another three years as smokers look to supermarkets’ cut the cost of lighting up (see page 30). l suggest food savings: Foodservice should focus on bundles and meal deals, Palmer and Harvey has also recognised and entice consumers into outlets with value-for-money suggestions the need to offer retailers better deals l have a promotional area: Always have a promotional end at the depot with across tobacco products. Last summer, it something on offer every week to give consumers a perception of value when they visit. rolled out a new strategy: rather than sim- ply discounting tobacco, it offered deals linked to the value of non-tobacco items difficult times and build trade when the IGD’s Patrick Mitchell-Fox sums up bought. The more non-tobacco products economy begins to pick up. the new breed of wholesaler offer when on the retailer’s shopping list, the better he says that the old-fashioned ‘fire and tobacco deal P&H offers to customers. forget’ style of wholesaling, where For years, the best retail operators have depots simply sold products to retailers fashioned their ranges and offers based with little or no business back-up, on their shopper knowledge. Now it’s the 44% is largely a thing of the past. “There’s turn of the wholesalers and cash & carries of shoppers believe certainly been a great deal of traction to ensure they also understand their busi- gained through independent retailers ness customers, offering promotions and price-marked recently and wholesalers are a key ele- information that will help them through packs are cheaper ment of that.” l

CUSTOMER views: the value of own label

Chris Pollard, Barlby Graham Walker, Walker’s since they are offering what is value products and I mention Village Stores, Selby, News, King’s Lynn, Norfolk: basically a weekly, delivered, them all the time. North Yorkshire: My principal wholesaler is P&H, cash & carry service. Being able to offer own label by which aims to price-match cash Pon Rudran, Spar, stocking Nisa-Today’s Heritage & carries. It offers a fantastic Chan Singh Aujla, Hinchley Wood, Esher: brand really helps. I believe service but the problem for a Premier, Kings Norton, Customers are keener than ever own-label success is down to the small store is that to benefit Birmingham: to find value for money, so an fact that customers have realised from these discounts, you have I shop around using local cash aggressive pricing strategy from that its quality rivals even the to buy a lot of cases – we just & carries to offer the best value my wholesaler, Capper & Co, big-name brands. Biscuits and don’t have the cashflow. They to my customers. I also offer has really helped. Recently, Spar soft drinks do really well. A lot need to offer discounts in smaller all the promotions provided by launched its value own-label more customers have been quantities. I pop to Booker Booker and its Happy Shopper range S Budget, and I leapt at trying them to save money and instead from time to time for label is doing particularly well, the chance to work with Capper have realised that they taste just products like chocolate, wine especially on items like baked to stock a full range. Results as good as their usual brands. and spirits that I don’t want a beans, spaghetti, basmati rice have been very positive, with There may have been a stigma 12-pack of, even though it’s and corn flakes. People were customers often buying five attached to them in the past, but more convenient to have goods initially sceptical, but once they own-label energy drinks in one now consumers know how high- delivered. This is why companies tried them, they continued to transaction as they see it’s quality they can be. like Blakemore’s are doing well, buy them. I always upsell these such a money-saver. l

16 february 2012 Betterwholesaling.com

meal deals there’s no such thing as a free lunch – YET Meal deals and promotions are the biggest driving force in the foodservice sector, says Nigel Huddleston

he boom in quick-service res- thousands of people turning up to cash in taurants and informal dining their ­vouchers.” has seen meal deal and voucher Doyle thinks the boom in vouchers and promotionsT become a major business meal deals is “very much consumer-led” driver in foodservice. and adds: “There’s a macro-economic influ- Recession-hit consumers are open to ence because people still want to dine out deals, and the internet and e-marketing but want to save a little bit here and there. have made it easier for venues to recruit “The technology is just an enabler but customers to these deals. it’s driven by the consumer and busi- It’s a fragmented promotional land- nesses all down the line need to start scape. The fast food and takeaway sector recognising that.” is dominated by the traditional vouch- ers that the consumer can tear or print Research by the NPD Group found off to pay, while the meal deal offer has that meal deals and promotions ac- grown in the mainstream pub market. counted for 27% of spend at commercial Meanwhile, independent gastropubs and restaurants in London the year to Sep- full-service restaurants have found value tember 2011, with 100% of the growth in the deep-cut, daily deal promotion in business for quick-service restaurants through companies like Groupon and being driven by such promotions. Living Social. People like meal deals and Guy Fielding, NPD’s director of food- Meal deals are even set to find their vouchers because it gives service for Europe, says: “We’ve also seen way into school dinners, with the govern- them control over what a growth in restaurant loyalty cards on ment outlining new rules to allow price the back of their success in major coffee promotions to encourage more children they’re spending chains like Costa. to have healthy lunchtime meals. “People like meal deals and vouchers Lynda Mitchell, chair of school food in- ing problems such as over-subscription, because it gives them control over what dustry body LACA, says the move “gives or insufficient or surplus stock. they’re spending. Clearly, those sorts of schools and caterers greater flexibility on “The promotion can be very closely deals aren’t right for all types of restau- pricing and greater opportunity to drive targeted,” says Doyle. “If you’re a pub in rant and obviously outlets have to be young people back from the cut-price lo- Putney and want to offer a meal deal, careful not to promote too much. Subway cal takeaways”. we can make sure it only goes to 50,000 got into some trouble with its Sub of the Gerard Doyle, chief executive of the people within your post-code area; you Day because consumer became so familiar online consumer promotions operation can set a limit on how many transac- with it that they weren’t buying other Discount Vouchers, says the market has tions you want us to carry out on your products. It’s a fine balance. become much more sophisticated, with behalf, so you don’t suddenly have “The deals that work best in pubs are retailers, pubs and restaurants able to ones where they’re built on absolute price target the sort of deal that best suit for a package of items or on timing, such their business. as Wetherspoon’s breakfast deals or early- bird dining offers.” Smaller operators can use a compa- Price and value with food are more ny such as Discount Vouchers to carry out important marketing tools than ever for the transaction online, with consumers Spend27% in London pubs at a time when the market has been then taking the vouchers to the operators in sharp decline and political pressure has to exchange for the appropriate deals. restaurants from made it harder to promote through alco- Doyle says this approach gives venues promotions hol prices. HIM’s On Track programme’s more control over the promotion, avoid- research has shown that 29% of consum-

18 february 2012 Betterwholesaling.com

p18-19 foodservice RB.indd 24 26/01/2012 16:02 foodservice

top tips: how to help your customers plan promotions l discuss customers’ needs: Talk to customers and try to understand and/or advise them on what sort of meal promotion will work for them. l promote your own ranges: Seek involvement or ‘ownership’ of promotions by putting together attractive, flexible solutions containing relevant food and drink items from your own ranges. l use customisable pos: Support outlets with POS, including menus and posters that have space for outlets to customise them with their own deals. l pass down savings: Liaise with suppliers over any meal deal or voucher promotions they are supporting and make sure they are passed effectively down the supply chain. l keep up to date with deals: Subscribe to a range of online daily deal services to be aware of how different food outlets are using these promotions.

ers see money off food as a prime focus offer this as an everyday deal, rather than often have more direct day-to-day of pub loyalty schemes, and one in five a time-limited promotion, they can dine customer contact. wanted meal deals. A third said money-off with us more frequently.” There’s also an opportunity for whole- vouchers would persuade them to visit the Meal deals and vouchers are clearly salers to take ownership of meal deals by pub more often. a leisure-retail marketing win, but for putting together their own packages of wholesalers there’s a need to recognise ingredients, drinks and other foodservice Kathryn Mitchell, cross brand mar- the opportunity. items that can provide customers with a keting manager for Whitbread Restau- Suppliers such as Coca-Cola Enterprises ready-made promotion. rants, which owns retail brands Beefeater are putting together meal-deal promo- NPD’s Guy Fielding says: “Mainstream Grill, Brewers Fayre and Table Table, said: tions for customers. Coca-Cola says that dining outlets and their suppliers have to “We offer meal deals across all of our res- wholesalers play a key role in helping pass recognise that consumers are looking for taurant brands. In the current economic such offers through to retailers. Its sales some sort of perception of value. Food- climate, customers are increasingly look- teams can’t reach every customer and service wholesalers need to be aware of ing for great deals and value. Since we wholesalers’ telesales networks what’s happening out there.” l

fine and full-service dining discounts

Daily deal voucher promotions That restaurant declined to tional choose to pay as are starting to appear in fine comment for this article but mechanic, is, pay more, or and full-service dining. Mark Greenaway, head chef offering a pay less. A recent Groupon deal of- of the Edinburgh fine dining ‘pay what “It’s been a fered three courses at a well restaurant Mark Greenaway, you want’ great footfall known French restaurant in questions how such deals can deal in driver and we’ve central London for £18 instead stack up commercially. January. only had two ta- of £45.50. “They either impact on gross “We present bles opt to pay less But with the voucher pro- profit or you have to cut corners two bills, one for than the full price. vider taking a cut, there are on your buying, which I would the drinks which “Customers don’t clearly question marks over never want to do,” he says. they have to pay, Groupon is now have a problem paying how such deals stack up com- Greenaway adopted his own and one for the offering vouchers full price if they get mercially. alternative novelty promo- food. They can for fine dining great food.” l

Betterwholesaling.com february 2012 19

p18-19 foodservice RB.indd 25 26/01/2012 16:02 SYMBOL GROUPS the beauty in small things Symbol groups are paying special attention to the needs of their smallest stores, says chris rolfe

hat springs to mind when It now offers flexibility with the time and you picture a symbol group frequency of deliveries for stores with store? A good-sized outlet restricted space. Wwith a comprehensive alcohol range, a One year later, it And regional chains such as Norfolk- food-to-go section and a wide variety attributed strong growth based Ideal also focus on the CTN market. of convenience products? in overall store numbers Ideal runs around 20 stores and recently This type of store receives the most updated its fascia to place greater empha- attention when fascia operators promote to this format sis on news retailing. their shops and latest developments, and The investment and support from UK when the UK’s ever-growing symbol group Some of the bigger chains, while hav- wholesalers demonstrates a belief in the market is discussed in trade media. ing no specific small-store offering, also importance and strong potential of newsa- But another, more compact area of this stress their commitment here. Bestway, gents and small convenience stores. Their market is also blossoming. Symbol group for example, believes that small stores can commitment, twinned with that of store operators are investing heavily at the generate large turnover. Two years ago, owners, will ensure that the best things smaller end of the scale, developing pack- it pledged to improve its delivery service. continue to come from small packages. l ages for retailers with stores falling well below the 1,000sq ft mark. Three years ago, Booker made headlines with the redevelopment of its Premier case studies: how symbols are helping fascia, reclassifying its stores as small, medium and large, and naming all stores Alistair woodroffe under 800sq ft ‘Premier Express’. The aim, Woody’s, Littlehampton, said retail sales director Steve Fox, was West Sussex to “offer small stores all the advantages Store size: 625sq ft of a symbol group while recognising the Symbol group: Supershop restrictions on space of stores less than 800sq ft”. We’ve been with Supershop since Octo- One year later, it attributed strong ber. We’d used Palmer and Harvey for a growth in overall store numbers to this long time but were struggling to keep up format, to which 136 retailers had signed with the promotions of the nearby Co-op up. Today that number stands at 549. because of our size and because we weren’t Palmer and Harvey is the latest whole- buying enough outers to access deals. saler to announce significant investment P&H came to us with a package aimed in smaller stores. In December, it unveiled at our customers, specifically children the relaunch of its CTN symbol fascia, and those needing quick convenience. Supershop, with the aim of winning more It has really helped. Our most successful business from newsagents. promotions are on chocolate and we’re cur- “While everyone was chasing large rently offering Galaxy bars at two for 90p. independents to add to their c-store num- P&H reps visit us every three months to bers, it became obvious to us that great refresh our displays and give merchandising newsagents were being overlooked,” said advice. The only concern we had was that marketing director Richard Hayhoe when we were getting new display materials in the news was announced. dribs and drabs when we transferred, and At this time, there were 88 Supershop are still waiting on a couple of things. members and P&H says it hopes to grow Overall, P&H is doing a really good job. this to 300 by the end of this year by of- fering a package that includes help with refits, merchandising and access to promo- Overall, P&H is doing tions. The symbol operator also offers cate- a really good job gory management for news and magazines through its Plus News service.

20 february 2012 Betterwholesaling.com

p20-21 insight.indd 20 26/01/2012 17:57 retailer insight

AmaN mehan My shop is 500sq ft in size and contains a Wood Green Stores, range of staple and pet foods, a large chiller, Walsall, West Midlands an ATM machine, a microwave, a Lottery Store size: 500sq ft terminal, and a hot-food counter. Symbol group: Lifestyle Express My one concern with Lifestyle Express is that all too often, alcohol is not consid- Lifestyle Express offers a rich vari- ered the focal point of ranges and I think ety of promotions, which adds variety it should be. The challenge is that many to the shop, which leads us to regularly retailers do not have adequate floor space to rotate our special offers, which makes the stock a wide range of wine and beer. store more appealing. Display is also very Pricing is always an issue with symbol important and getting advice in this group members because of the need to be area is helping to increase trade. more competitive with supermarkets.

My shop houses a large mark stubbs premises 22 months ago, Ideal helped us number of magazines, Dereham News, with planning the new layout and organising newspapers and soft drinks, Dereham, Norfolk internal signage and graphics. We’ve found and trade has been par- Store size: 500sq ft that people who know the Ideal name gener- ticularly good since a local Symbol group: Ideal ally associate it with good quality service and competitor closed down a year affordable prices. ago – we now have a £1.5m annual turnover. ment charge, but I’m only We were already part of the Ideal paying in one cheque for goods, People who know the Ideal Group before it had a symbol group rather than several cheques to 10 or name generally associate offering, so we naturally joined up when 20 suppliers, and I enjoy between three and it with good quality service the fascia was launched more than 20 years five weeks of credit. We also receive exclu- ago. The best thing about Ideal is its central sive promotions and deals, along with free and affordable prices invoicing system. There is a small manage- promotional materials. When we moved case studies: how symbols are helping

r icky patel city customers’ needs. Best-one always Best-one, Islington, North London delivers to us on Fridays, promptly at 7am. Store size: 500sq ft Palmer and Harvey wanted to deliver Symbol group: Best-one frozen food to us but would only do it on Mondays. The difference here is that Best- We’ve had this shop for six one makes its business suit us. It also gives years but I believe it’s been with us access to really good deals, which helps Best-one since it was built 30 years ago. us to stay competitive. Throughout the time we’ve had the store, Best-one has helped us keep signage up to date and regularly sends us dis- Best-one gives us access to play ­materials. really good deals, which It is very good at providing value-for- money alcohol and its groceries are mostly helps us stay competitive price-marked, which suits our inner-

geoff turner are always on time, and we avoid wasting Londis, Hemingborough, time driving to the nearest cash & carry, North Yorkshire which is 25 miles away. Store size: 650sq ft Symbol group: Londis I believe it is up to the supplier to negoti- ate competitive prices for us and Londis has vastly improved in this area. We now I joined Londis 13 years ago have better margins and over-riders too. because I passionately believed that Promotions are weekly, which encourages a people would resonate with a store with a certain amount of excitement in-store. As a name above the door. As soon as we got the member of Londis, I’m informed about new fascia, our sales went up by £1,000 a week. products, which are delivered rapidly. The Londis’s EPOS system is easy to order only concern I have is that sometimes stock from. We have two deliveries a week, which availability can be an issue. l

Betterwholesaling.com february 2012 21

p20-21 insight.indd 21 26/01/2012 18:06 O EN IMN U T E depot manager Energy drinks

69% 18% value sales retailers’ of top four basket brands spend how to stock it equipment needed Many depots haven’t re-layed fixtures for a In addition to using your fixed aisles effective- number of years, which could mean they’re ly by ensuring messaging is clear and making missing out on sales by not giving enough profit-driving SKUs stand out, try using space space to the best performing categories such in other high-footfall areas to generate interest as sports and energy. Re-laying should ensure in sports and energy. there is enough space for future growth. Top tips Top tips 1/ Create secondary displays and 1/ Section your fixtures to replicate added theatre to give key lines the three sub-segments of sports where to stock it maximum stand-out and drive and energy: functional energy, As the biggest soft drink category, sports impulse purchases such as Red Bull; refreshment and energy should have the largest amount 2/ Have a fixed area where you energy, such as Lucozade; and of space and be in a high-footfall area of the depot to drive sales. can showcase NPD or innovative sport, such as Lucozade Sport extensions to drive awareness 2/ Lead with the most recognised Top tips 3/ Work with sales reps to create brands. Within sports and energy, 1/ Support the brands that drive excitement the top four brands – Red Bull, good cash-margin and profit and in-depot, Lucozade, Lucozade Sport and do not trade customers down to improving Private Label – deliver a massive cheaper alternatives the shopping 69% of value sales 2/ Ensure category signposts, such experience 3/ Consider the value each SKU as Red Bull and Lucozade, are first of the is delivering to retailers’ business in flow to highlight the category retailer. and help them understand which 3/ Ensure the space given to are must-stocks by making core brands reflects market share range recommendations. and profit opportunity.

22 FEBRUARY 2012 Betterwholesaling.com ww

WHAT to stock Sports and energy is the largest and fastest growing soft-drink category. It is worth more than £378m in the facts impulse sales and growing at 10.7% each year. Despite 1/ Soft drinks is the influx of new products, 72% of value sales come the category most from the top 20 SKUs. frequently purchased by retailers in Top 20 depots and makes SKUs up 18% of their give 72% basket spend of value 2/ 60% of shoppers sales who buy soft drinks also buy confectionery, so consider siting them close together.

3&4/ Lucozade 2/ Private Label Energy Orange 5/ Boost Energy Original 250ml 380ml/500ml Original 250ml

6/ Emerge Stimulation Mixed Fruit 250ml 7/ Private Label Original 500ml 8/ Red Bull Original 355ml 1/ red bull 9/ Red Bull Original 473ml – original 10/ Monster Energy 500ml 11/ Private Label Orange 500ml 12/ Lucozade Sport Body Fuel Orange 500ml 13/ Lucozade Energy Original 380ml 14/ Private Label Original 1000ml 15/ Relentless Origin Original 500ml 16/ Lucozade Energy Original 500ml 17/ No Fear Energy 485ml now shout about it 18/ Red Bull Original 330ml 19/ Boost Energy Mixed Fruit 1000ml Communication plays a big role 20/ Red Bull Sugar Free Original 250ml in driving sales. Making some noise around key categories and brands can really help to deliver added sales. Top tips 1/ Use bay branding, 10.7% especially for impulse signpost brands, sales yearly to provide your growth in association shoppers with easy navigation with 2/ Point-of-sale and clear pricing, both wholesale and recommended retail price, should be communicated at all times 3/ Communicate cash margins – and not just unit price – to ensure shoppers are aware of the potential profit.

Betterwholesaling.com FEBRUARY 2012 23 MOBILE ordering

weber’s web wins Nicholas Weber explains to Nigel Huddlestone how 3663 and its customers are benefitting from mobile ordering

ast month, 3663 launched what ice industry: previously, people information for balanced menus, it claims is the first delivered were uncomfortable with com- recipes and inspirational ideas. foodservice ordering app for the puters, websites were clunky It also had the ability to change iPhoneL and iPad. The app is a response and technology was hard to product lines quickly, unlike a to customer demand for on-the- fit into a kitchen. Now, pubs printed catalogue. go ­orders. and cafés have WiFi, which Following the launch of the The design of the app is sleek and enables online ordering, and 3663 app, Better Wholesaling intuitive. Customers can browse the full there is also demand from posed the following questions to product range and order at a time and a national accounts, undisciplined Mr Weber (pictured left): place that are convenient to them. They multiples and buying groups. can also store shopping lists for so they Online ordering is quick, easy and Better Wholesaling: What do your can quickly make repeat purchases and convenient, Mr Weber said. 3663’s website customers say they want you to the app can display real-time stock-avail- already had extensive product informa- do ­online? ability levels. tion, cooking instructions, nutritional Nicholas Weber: We are seeing a growing The launch follows a speech by 3663’s demand from national account customers head of e-commerce Nicholas Weber at that wish to order online for a variety of last October’s Catersummit, organised by reasons, the main one being convenience. the Federation of Wholesale Distributors. Customers enjoy the As more customers have to deal with In the speech, he questioned whether the increasing time-pressures at work, they’re industry needed to rely on the relation- convenience of ordering looking in turn for ways to use their ship between telesales rep and customer when they want and time as efficiently as possible, such as by to generate profits. He said there had how they want focusing more on serving customers. So been a generational shift in the foodserv- being able to free up some of our custom-

24 february 2012 Betterwholesaling.com delivered wholesale

there’s an app for that

The next wave of development salers need to see what mobile ordering, If business in wholesaler interaction with devices can do as market- such as being does follow customers will be in the use ing tools and evaluate their able to save the consumer of apps for mobile phones and potential for business savings. lots of time market, then tablets such as the iPad, ac- 3663 could see that a mobile on reorders wholesal- cording to IT analyst Forrester. app could allow customers to by making ers need to Its research suggests the order online and free up time and storing be preparing number of tablet users in the for the rep to go out and bring lists of regular themselves now UK will increase by 750% over in new ­customers.” products. There – the use of mobile the next five years to around Bidder adds: “There are will always be people devices to search for one in three of the population. going to be customers who who like face-to-face contact products in retail rose 169% Paul Bidder, managing direc- think it’s easier to speak to but there’s been a big at Christmas 2011 tor of Colony Commerce, which someone with the phone under shift as people have 3663’s mobile app to 26% of all retail frees up reps from developed a mobile ordering their chin and be cooking at become used to this taking orders so they searches, according app for iPhone, iPod touch and the same time. But there are sort of technology in can focus on bringing to the British Retail iPad for 3663, says: “Whole- plenty of benefits with mobile other areas of life.” in new customers Consortium. l ers’ time usually spent placing orders is, the iPod touch as well) gives them even BW: What advice and market understandably, a very appealing prospect greater flexibility. However, we still have information should wholesalers to them. In line with this increasing de- a large number of customers who enjoy supply online? mand for online ordering, we are currently the personal interaction with a teleseller NW: In line with customer feedback, producing a compelling offer for independ- but use our website as a point of refer- we’re providing more than just product ents, based on functionality that mirrors a ence, with some customers researching information. This is essentially our on- B2C experience. 3663’s products or services online and line shop window and customers expect then placing their orders with telesellers. to use our website as the first point of BW: What do your customers say they This really highlights just how important call for all things related to 3663. So it’s would like? it is to have a variety of ordering channels important for us to ensure we’re provid- NW: Our customer insights tell us they available that meet the varying needs of all ing everything they could need, includ- want to find information about our range our ­customers. ing advice, ideas and inspiration. and services, as well as detailed informa- tion about individual products. In line BW: What demand is there for mobile BW: How do you use social media with this feedback, we now include on our and tablet access to information and blogs, if at all? Are customers website further details of the nutritional and ordering? interested in these? content of our ingredients. We’ve also NW: We launched the iPhone app in NW: We don’t have any presence in developed the 3663 Rapid Ingredients January to ‘dip our toe in the water’. the social media world but we’re keeping Checker (RIC), which is now featured in We don’t know how important mobile a watch on this area to see how it devel- some of our brochures and allows custom- commerce will be in our market moving ops and will respond as necessary when ers to instantly gain information about the forwards, so this is our opportunity to we feel the time is right. As for blogs, we nutritional content of a product using a find out. have these on 3663.co.uk already. QR (quick response) code. BW: How well does the wholesale BW: What steps are you taking to industry use the web as a improve your online relationship business tool? with customers? NW: The web as a business tool that NW: We have been receiving a lot of im- has a B2C experience that’s more than mediate feedback from customers who are just online ordering has been late coming using our ‘contact us’ forms on our web- to the foodservice industry. At 3663, site. This allows us to answer their queries we’ve been taking orders electronically and take account of their suggestions for since 2001, but it was mostly large improvements to the website. Using this national account customers using this customer insight, we’ve improved the platform. The system was very B2B and site’s shopping list functionality and its not intuitive as it required user training. search facility. We’re now offering an experience for all customers that mirrors an individual’s BW: How do customers view online experience of food-ordering sites that ordering versus face-to-face or they might have used at home. We’re telesales? 26% confident that our industry will continue NW: Customers enjoy the convenience of Retail searches to adapt to changing customer needs ordering when they want and how they performed from relating to the convenience and ease want. The launch of the iPhone app (which mobile devices of doing business that an online can also be used on both the iPad and experience provides. l

Betterwholesaling.com february 2012 25 news wholesalers a tale of two wholesalers It’s the best of times and the worst of times for the current news wholesaler duopoly, writes Neville rhodes

he old joke told by retailers Assured as these arrangements may it wanted to see more competition for that the best news wholesaler seem, they are under threat from several the supply of magazines and is currently is the one that doesn’t supply directions. First, the profits are not as deciding what to do in response to the youT may not be fair, but it does sum robust as they look. Combined revenues industry’s failure to do anything about it. up the frustration and resentment for the two wholesalers of around £2.9bn The nightmare scenario is that one of many news retailers feel about not have been falling, with price rises failing the major retailers will break away from having a choice of suppliers for their to offset volume losses, particularly on the system, removing a big chunk of newspapers and magazines. magazines, and the wholesale sector’s revenue from the wholesale sector and The news wholesaling sector has been profitability is now wholly dependent seriously damaging wholesalers’ ability to steadily consolidating for 30 years or on the carriage charges paid by all maintain service levels to the rest of the more, and since 2009 it has been a du- news retailers, which range from retail trade. opoly, with the whole of mainland Britain around £4.50 to £7 a day, and total now supplied by either Smiths News or more than £100m a year. Is this likely? It almost happened over Menzies Distribution. The wholesalers are therefore vulnerable a decade ago and the drive to ‘take costs The country is divided into territories, to any decline in the number of news out- out of the supply chain’ is as strong as defined individually by each of the news- lets, even if it does not result in lost sales. ever. Do the major magazine retailers paper publishers and magazine distribu- A more immediate threat to the status really need two, or in some cases three, tors but with near-identical boundaries in quo could come from the Office of Fair middlemen between the publishers most areas. Smiths, with a 55% share of Trading, which made it clear in 2009 that and themselves? the market and 30,000 retailer customers, covers parts of Wales, the north east and most of southern and central England, while Menzies, with a 43% share and 25,000 customers, has all of Scotland, north Wales, and the majority of territo- ries in the north and east of England. News International, publisher of The Sun, The Times and Sunday Times, distributes its titles direct to retail- ers in London, Birmingham and parts of the south east, and it uses an inde- pendent wholesaler, Dash News, in the West Country. News wholesalers enjoy protection from competition within their territo- ries – absolute in the case of newspa- The Office of Fair Trading wants more competition pers, and subject only to ‘passive selling’ in newspaper and magazine wholesaling competition for magazines where a re- tailer may approach a wholesaler outside its area. However, because the majority of retailers are a considerable distance from the only alternative supplier, pas- sive selling is rarely practical, even if the wholesaler would agree to it. This system of territorial monopolies, £67mthe combined reinforced in most cases by five-year con- tracts from publishers and distributors, operating profits of has worked well for both wholesalers. news wholesalers Their combined operating profits are run- ning at around £67m a year, and both see Smiths and Menzies scope for further significant cost savings.

26 february 2012 Betterwholesaling.com out of the box

Many small retailers could also benefit would have found the entry barriers to from changes to the supply chain. The Some publishers and news wholesaling extremely high – mainly systems of the two news wholesalers because the sale-or-return, supply-driven are similar, and are designed for range distributors could soon be form of wholesaling that the publishers retailers and specialist newsagents, giving looking for additional and distributors insist on is so different more or less immediate access to around routes to market from the sort of service they offer. 3,000 magazines and periodicals, along with a continuous stream of new and Whether the present news-wholesal- promoted titles. of other national and regional multiples ing duopoly is set to continue indefinitely Not all retailers need this sort of serv- have outsourced various aspects of their is an open question. With magazine ice. Many neighbourhood c-stores and newspaper and magazine buying and sup- sales falling sharply, some publishers forecourt shops want only a simple range ply management to the Fore Partnership and distributors could soon be looking of popular titles, with the occasional retail consultancy. for additional routes to market, such as blockbuster new releases and heavily pro- Retail consultancies are also used by traditional cash & carries and delivered moted issues to cater for impulse buyers the Spar Newsgroup, which outsources its wholesalers. and to complement the newspapers that range management functions to D-Cipher, If so, would it be practical for grocery help to drive their footfall. part of John Menzies, and by Palmer and wholesalers to offer magazines on sale or Above all, they do not want the elabo- Harvey, which appointed Lucid to roll out return, which is now deeply embedded in rate daily routines and complicated paper- a news category-management service for the culture of magazine retailing, or would work that the wholesalers’ systems impose independent retailers. The service, News their offer need to be firm sale and the upon them. Plus, is aimed at helping retailers boost range limited to bestsellers? And would their newspaper and magazine sales. The this sort of offer be sufficiently attractive Nor is it just small or inexperienced intention is that this will attract additional to retailers to persuade them to switch retailers who find the news categories customers for incremental purchases of their supply from their regular news difficult. Tesco, the leading retailer of other CTN and c-store products, such as wholesaler? newspapers and magazines, with annual confectionery and drinks. Opening up the magazine market would sales of over £400m, uses a retail consul- Generally, grocery wholesalers have kept give retailers the choice of supplier many tancy, Lucid Direct, to advise on ranging, away from the news categories, although are looking for, but it would also under- category management and promotional Booker did carry out some trials with the mine the viability of the news wholesalers’ planning – and even to represent the com- now-defunct Dawson News a few years ago. newspaper deliveries. Can the industry or pany within the industry. Had FMCG wholesalers wished to the OFT resolve this dilemma? The next Shell also uses Lucid, while a number tender for publishers’ contracts, they few months may provide an answer. l

Betterwholesaling.com february 2012 27 spring confectionery CATEGORY GUIDE Time to say it with sweets Confectionery of all kinds is a best-selling gift at Valentine’s Day, Mother’s Day and Easter. By Nikki Allen

Who says romance This year, the company is tapping into is dead? When it top tips: confectionery the trend for all things retro with the 14 comes to buying for wholesalers launch of a limited edition vintage of Mini February confectionery, it’s Love Hearts. “We are making 100,000 Valentine’s still very much alive. l offer deals: Provide the best of these heart-shaped tins and we have Day There are huge im- possible value to help customers compete already had lots of enquiries about them,” pulse confectionery against the multiples says Ms Heslop. “There’s been a real resur- sales for both retail- l Back bIG NAMES: Include brands that gence in retro sweets and they’ve become ers and wholesalers to appear on TV or supported by marketing an increasingly popular alternative to make from Valentine’s Day – in fact, £1 in campaigns during this key period chocolate at Valentine’s.” every £6 spent on Valentine’s presents is l HAVE Variety: Stock products at on boxed chocolates, making it a must for different price points and a range of sizes convenience retailers. l CREATE Theatre: Create a seasonal The Valentine’s confectionery mar- area in the depot to add theatre, no matter 1/6 ket largely divides into two, according how small this area is Valentine’s to suppliers – products for adults, and l holiday choices: Boxed chocolates spending on those for children and teenagers. Mars are perfect for Valentine’s Day and Mother’s has a comprehensive selection of boxed Day and must be on shelves. But focus on boxed chocolate chocolates including Celebra- offering multi-buys of filled and smaller eggs tions. And new this year for Easter so retailers have a wide choice for grown-ups, Kraft As with Valen- l size IS IMPORTANT: Depots with space Foods has introduced tine’s Day, boxed restrictions should focus on stocking larger- 18 two Valentine’s Day March chocolates are a limited edition, sized eggs and boxed chocolates, which big seller for drive a greater return from the amount of Mother’s heart-shaped choco- Day Mother’s Day. late boxes under the space they take up “Wholesalers Cadbury Milk Tray l best sellers, best locations: should stock a range banner, in 150g and As with standard confectionery, biggest- of gifts to cater to all 50g sizes. Also avail- selling brands should be located in the best price-points using the best-selling brands able are limited edition spots, usually at eye level, and the fastest to drive sales,” says Bep Dhaliwal, Mars Terry’s Chocolate Orange selling, impulse lines should be multi-sited. trade communication manager. “Our and Toblerone Valentine’s boxed chocolates, including Celebrations, Day sleeves. are available in a range of sizes, so there’s Meanwhile, sugar confectionery from something for everyone.” Haribo and Swizzels Matlow is expected Kraft Foods also has a range of boxed chocolates suited to the occasion, includ- ing Cadbury Roses, Cadbury Milk Tray, Terry’s All Gold and KOKO by Cadbury. Wholesalers should Understanding shoppers’ habits is key to helping retailers get the right range in make retailers aware stock ahead of Mother’s Day. “Purchases that purchases are likely are often last minute and are made en to be made at the route to the shopper’s destination,” says Ferrero UK’s sales director Jason Suther- 11th hour land. “This means there is a real oppor- tunity to drive sales by helping retailers to be popular on impulse for the younger prompt shoppers earlier in the season to Valentine’s shopper. “Wholesalers should make a planned purchase.” make retailers aware that purchases are To capitalise on those last minute likely to be made at the 11th hour,” says sprees, he suggests, wholesalers could urge Sarah-Louise Heslop, marketing manager retailers to offer a cross-promotion on at Swizzels Matlow. boxed chocolates and Mother’s Day cards.

36 february 2012 Betterwholesaling.com Galaxy_WAMM_Ad_210mmX297mm_SC.indd 1 19/12/2011 10:13 spring confectionery

product launches and activity

Mars is launching Galaxy Bubbles, which is a filled egg with a chocolate shell around a bubbly centre, and a pack of Galaxy Caramel filled mini-eggs designed for sharing. The company is also introducingNew Galaxy Ripple Medium 1/ egg and M&M’s Medium egg this Easter, backing them with a £2m media investment.

Kraft Foods has introduced Cadbury Creme Egg Ferrero’s Kinder Surprise Easter Edition – Splats – small chocolate shapes filled with Creme Egg a 100g boxed egg with a giant Kinder Surprise toy goo. Cadbury Mini Eggs will also benefit from a new inside – is to be made available to wholesalers and 2/advertising campaign and the company is also introducing a new 3/convenience retailers for the first time this year.Kinder Sur- 195g bag. prise will also be back on TV for the four weeks before Easter.

Nestlé is launching the Aero Mint Lamb, Smarties Choc Chick, Yorkie Digger Retro Egg, Kit Kat Chunky Egg, Smarties Hen House, 4/ Smarties Chicken and Egg and Quality Street Insider Egg for Easter.

The big confection- key role at Easter in providing retailers Also key are the hands-down winners of ery suppliers will with a one-stop-shop for all their seasonal Easter 2011 in the convenience channel: 8 be hoping for poor confectionery needs,” points out Mars’ products for immediate consumption, April weather this Easter: Bep Dhaliwal. “We are really excited about primarily mini-eggs and novelty products. Easter last year’s April our new products and returning favourites “The convenience channel excelled in this Sunday heatwave hit choco- this Easter, which will help wholesalers area last year, growing by 7% and making late sales hard, with create excitement in-depot.” up 75% of total Easter sales in the sector,” impulse purchases Meanwhile, stocking up on the best- says Mr Walker. dropping 21% in the selling brands early is a key tactic for After last year’s sales slump, innova- 18 weeks to April 2011 (Nielsen). For con- wholesalers – especially as Easter Sunday tion has been a major area of focus for venience retailers especially, this is a tough is a full two weeks earlier than in 2011. the big suppliers. For Nestlé, a whopping season, as the multiples are set to heavily “It will help retailers signpost their store 40% of its Easter 2012 range is either new promote shell eggs. as a place to buy confectionery from the or revamped, and Mars, Kraft Foods and But there’s much you can do to help outset,” says Graham Walker, Nestlé trade Ferrero have all introduced a raft of new retailers boost sales. “Wholesalers play a communications manager. products (see above). l

38 february 2012 Betterwholesaling.com n ilk mpaig iry M ch ca Da laun ury £6m Cadb y a e of ed b tast port A great Sup new ith the * bubble- bursting w rand Inn shaped bar, late b cks ovat choco sto ive tab the No.1 e big let size – only from u h av It’ u re yo s the s make s Fo ha pe o f sales to c ome - so k r m y.co.u ore i displa nformation visit delicious

* Nielsen Total Chocolate Value to w/e 10.12.11

CAD0337_BubblyAd_A4_BW_AW1.indd 1 25/01/2012 15:09 ethnic foods TRY international food for the taste of success Better Wholesaling talks to key figures in the international food sector to find out why it’s full of good news in such difficult times. By Tom Gockelen-kozlowski Q&A

World Adapting to change It’s all becoming mainstream because most consumers have eaten Asian foods and other world cuisines

How do you ensure the business is keeping up with changing trends? “We have to The Abbey continually refresh the range Road branch and ensure that what we offer of Bestway is relevant. We’re lucky because Wholesale DAVID GILROY we have a subsidiary called Controller,Director, Wing Foodservice, Yip Plc MAP Trading that brings in Bestway Group businesses going in the current profile different restaurant spices and rices from south climate and international foods types and the foods they offer. east Asia, Pakistan and India. play a big part in this. Once We include recipes and it’s We mill our own rice in the UK pubs embrace the fact the most popular section of after bringing it through from that they have to offer the magazine.” Asia, which means we can be a different and interesting little ahead of the game.” menus then if they’ve What innovations are got the facilities back- occurring in the market How important are staff in this of-house, they can at the moment? “There’s process? “Vital. We’re training do anything.” a new range of cooking our staff all the time and we sauces from Unilever Best have dedicated people for How are you helping Foods. It’s a Thai range: different departments. We have your customers to Laska Curry and Thai Green to make sure that staff on the broaden their ranges? Curry. These are the kind shop floor who are servicing “A beer and a curry works of things that are entering caterers know what they’re perfectly but Thai or the market that you’d never talking about and can give them How important is international Indian food aren’t the only have seen years ago. It’s a bit of advice. We get fewer food to Bestway’s food combinations that work for all becoming mainstream customers than a shop would, service customers? “The pubs. We have a customer- because most consumers have but those who come in spend whole hospitality sector is focused magazine called eaten Asian foods and other a lot and expect a bit of added working really hard to keep its Essentially Catering where we world cuisines.” value and service.”

40 february 2012 Betterwholesaling.com CATEGORY GUIDE

Asian willing to try new foods than Digest every us, too. We have An established they were 40 years ago. You quarter and to go out to get TRY international market could go back 20 or 30 years do tastings. value on every and people just wanted their Our products product. I don’t meat and two veg. People are come by ocean think the VAT rise getting more adventurous and liner and have helped and, with Britain is a more cosmopolitan a lead time of six energy prices rising brian yip place as Britons are travelling to eight weeks from too, I think getting food for the Director, Wing Yip more and they’re used to order, so we have to make value has become a priority more authenticity.” sure there is a market for our customers. We showed How has the for products.” growth last year, but I wouldn’t market for How do you introduce new be surprised if foodservice as Chinese products to the food service How has the recession a whole and east sector? “A lot of our store affected the sector? declined.” taste of success Asian foods staff will know customers “Whenever restaurants are changed since personally and can offer busy, we’re busy and as they’re your business recommendations but we having a difficult started? “The public is more also print Oriental Food time, it affects

Caribbean shows on TV have some kind independent retailers in the cuisine. When they go down the A growing of Caribbean recipes. It’s Caribbean community. But Caribbean aisle, retailers should trend moving out of the Caribbean we might have to source some see recipes and different ways community and products from elsewhere: to consume the product.” consumers can sit the difference in soil can down and have change the taste and How are you working with Caribbean meals mean a recipe has to wholesalers going forward? Nyree chambers in restaurants. be different.” “The wholesale sector has grown Head of marketing, We know we now for us in terms of sales. The Enco Products have some kind of How can wholesalers space that we’re getting in the Why has presence in pretty ensure the Caribbean cash & carry has grown. We’re Caribbean food much every wholesaler and community and mainstream helping with displays, racking showed such cash & carry in the UK.” retailers want to stock your and points of sale at cash & growth in products? “The Caribbean carries to keep this going. My recent years? How important is the community know the products advice to wholesalers would be “There’s been authenticity of your products? from their families but it’s to get in touch because we do more focus on “Very. In addition to selling harder with mainstream have a team of reps who are all Caribbean cuisine over recent to supermarkets and cash customers. You have to remove ready to help wholesalers and years. A lot of the cooking & carries, we sell to many that mystique of Caribbean cash & carries.”

Polish we saw a niche in the market. the multiples have started to country so the sales were The new Garden Foods is now the come on board and are buying based around them. Now the arrival largest distributor of Polish around 35% of our stock. picture has changed because food and drink in the UK, and Still, independent retailers the quality and value that was listed at number 50 in the are able to offer a much bigger the manufacturers in Poland Sunday Times Fast Track 100 range. We’re now the first can offer means that they’re in 2009.” point of contact for Polish popular with British people Ibrahim yucesoy food for the multiples and and other ethnic communities. General manager, Garden How hard was it to get a major wholesalers and we even The juices, pickles and kabanos Foods/Dimark space in retailers’ shelves? started working with Amazon sausages are consumed by How did the “In the first two or three years, a few months ago.” everyone because the Poles business we really had to sweat to get have brought these flavours begin? “We into Tesco and Asda. Who makes up the market for into national tastes.” were initially The independents Polish foods? “When a wholesaler were the first to we started in 2004, What trends are you noticing and distributor get involved and the products were in Polish food at the moment? of Turkish and they still make up new and there “The big trend at the Greek products but around 50% of our were a lot of Poles moment is fresh, short-dated when Poland joined the EU business. But now coming into the products.” l

Betterwholesaling.com february 2012 41 latest products In with the new Glenn Munro looks at the launches and promotions set to make you money this month

New product New product Advertising

Capri-Sun has launched a Mango Pall Mall is pioneering a capsule technolo- Consumers can vote on Facebook for their flavour, with a single pack costing49p at gy that gives smokers the option of turning favourite limited edition flavour ofKit Kat independents. The brand will also increase their cigarette menthol on or off by clicking Chunky. Orange, White Choc, Double awareness of 330ml Capri-Sun with an the cigarette’s filter.Pall Mall Click On Choc and Peanut Butter will be promoted on-pack promotion in April. Brand activa- will have a launch price of £5.33, before by comedians Miles Jupp, Tony Gardner, tion will take place on 4Music Radio and increasing to £5.47. Miranda Hennessey and Jason Lewis. The 4Music’s microsite. new flavours have a RRP of60p . 0845 722 7222 0800 444 236 01904 604604

Pricemarking Cross-promotion PromotionAdvertising Wrigley has unveiled 5 Evolution, a ‘sweet Britvic and PepsiCo UK have brought As part of Mars’ ‘Win A Million Moments’ to sour citrus pear’ sugar-free gum, and together their complete portfolio of leading on-pack promotion, Galaxy’s biggest ever a strawberry flavour ofExtra . New £1 drink brands for the first time to transform prize fund of £13m is being offered to its price-marked packs of Extra Peppermint the country’s outdoor spaces. Consumers customers. The promotion will be take place and Extra Spearmint will launch in April, can claim a 1sq cm piece of land with every this month, in conjunction with the launch as will 45p price-marked packs of Skittles purchase as part of regeneration projects of Galaxy’s first ever limited edition prod- and Starburst Fruit Stick. taking place across 11 UK regions. uct, Galaxy Bubbles Orange. 01752 752094 0845 7581781 01844 26251

42 FEBRUARY 2012 Betterwholesaling.com

p42 products.indd 48 26/01/2012 18:41 back page

15 minutes with...

My role model is Sir Alan Sugar and Jackie Chan would play me in the movie of my life tricky for parking and I was stunts, endangering his safety Kish given tickets all the time be- on occasions. Ramasamy cause I was always engrossed is the sales in deep conversations. If money were no object, development what would be the first manager at What’s the first thing you thing on your shopping list? Confex. The father do when you get into work I would take my kids and wife of two from Sri Lanka will be each day? It takes me two on a cruise around the Medi- implementing the strategic hours to drive into work terranean on a ship for development of the Confex at Chipping Norton, in a month. It is something I Central Distribution facility Oxfordshire. Once I arrive, have always dreamed about, and liaising between the main I relax for 15 minutes and but because of the expense office and its membership. have my breakfast in the car. I haven’t been able to Once I enter the office, I begin afford it yet. unravelling the queries of What did you want to be Confex members, which usu- What music is on your iPod? when you were growing up? ally involve the pricing and I like to listen to Michael I wanted to be a computer sourcing of products. Jackson (pictured) and my engineer, because I thought favourite albums are ‘Bad’ there would always be a How would your colleagues and ­‘Dangerous’. strong demand in this sector. describe you? It’s been said When I started working in that I have a polite, rather Who do you consider to be a the computer field, I realised than an aggressive approach good role model for the next how boring it was to sit in to work in sales. When I it was merchandised across generation and why? My front of a computer for hours was training at Nestlé, it the route. I used my initiative ideal role model is Sir Alan at a time. I eventually selected was noted that I frequently to place banners and parasols Sugar because he came from sales as my vocation because smile and it was said that a outside shops and ice-buckets a humble background and I thought it would be the joyful appearance contributes full of beer inside stores dur- is now a multi-millionaire. I ideal way to meet people. to winning more business ing the event. think he is an inspiration Most of my time is spent out with clients. to youngsters and can of the office, speaking Which actor would you want encourage them to make to my clients. What’s the moment in your to play you in the film of an honest living. career your proudest of? your life? One of my sport- What was your first job? Being told Sol beer had in- ing hobbies was karate and I How do you prefer to relax? My first job was as a sales creased sales by 18% between always imagined being a stunt I like to relax with a pint representative for Nestlé. I 2009 and 2010, compared to man in an action movie where of Grolsh in the evening, was selling products like Kit the previous year. During this I could display my martial while watching the news. Kat, Rolo and Polo from a van period, I managed the beer’s art abilities. I admire Jackie When I’m in Central London, in areas west and north of promotion during the Not- Chan because unlike many ac- I like to frequent Mexican London. The areas were ting Hill Carnival and ensured tors, he performs all his own ­restaurants. l

contacts 020 7689 0600 [email protected] 11 Angel Gate, City Road, London, EC1V 2SD editoriAL advertising Editor-in-chief Guy Campos Sales & Production Account Manager Alex James Face to Face ­Executive 020 7689 3360 / Coordinator Eszter Endredi 020 7689 3370 / Caroline Cronin [email protected] 020 7689 3380 / [email protected] 020 7689 3369 / [email protected] [email protected] CONTRIBUTORS Nikki Allen, Tom Ferguson, Account executive Chloe Cardon Tom Gockelen-Kozlowski, Mike McGee, Account Director Mike Baillie 020 7689 3372 / Marketing Executive Ceinwen Jarvis Glen Munro, Neville Rhodes 020 7689 3367 / [email protected] 020 7689 3352 / [email protected] [email protected] PRODUCTION Rob Buckley, Andrew Richards Head of Face to Face Kate Dickenson Account Manager Jeremy Fordrey 020 7689 3368 / Finance Manager Nicola Holmes 020 7689 3366 / [email protected] 020 7689 3356 / [email protected] [email protected]

Managing Director Nick Shanagher 020 7689 3382 / If you are experiencing distribution problems with this magazine, contact [email protected] [email protected] Printed by: Southernprint, Poole, on 80gsm Galerie Fine Gloss paper

Betterwholesaling.com february 2012 43 Get full details at: www.transformyourpatch.com. Voting closes: 31/10/12. Pack shots are representational of brands, varying sizes are participating.

R9207 Better Wholesaling Patch Ad_ARTWORK.indd 1 24/01/2012 14:14