February 2007 FOREWORD

A big welcome to 2007 and our first issue for the year, as usual packed throughout with great information for you to use to improve your store.

I waited to write this column until well into the New Year even though the deadline was supposed to be before Christmas! I am very glad I did, though. The Ashes have been won in a truly fantastic style and the country has had some rain, but still not enough.

In sport, you often see great lessons for life and watching the Australian team going about with single-minded determination to win the Ashes back, England had no chance.

This type of focus is so important in business, I have seen and experienced so many plans and ideas that really had no chance of success, become a success through the single-mindedness of the people involved.

It’s a great lesson for us to take to our businesses in 2007 which is shaping up as a tougher year than 2006. But rest assured, we at UCB will be working very hard to deliver the right promotional plan that drives your sales and profitability. We led the industry in growth in 2006 – and we have our own single-minded determination to continue this in 2007! Reg Before I go any further, please note that we have set the date for our national Johnston conference. So, please mark off October 30 and 31 in your diary now – no excuses for not attending!

Again, we will be at Conrad Jupiters on the Gold Coast. This venue was very highly rated by everyone who attended last year’s conference, so please make a commitment to attend this year. After all, we put these on for you to benefit from!

We have still to finalise our speakers but you can expect the same high standard as last year, plus special entertainment at our gala dinner. Official invitations will be sent to you after Easter.

Speaking of Easter, now is the time to start planning for our second busiest trading period. Easter is in April this year and it is nearly upon us, so make sure you have a great display of Easter eggs.

Unfortunately, history shows that 80 per cent of our Easter eggs are sold on Good Friday, Saturday and Easter Sunday. Seeing all those eggs there leading into the Easter weekend can be very scary but they always sell, so make sure you have enough stock to enjoy a strong weekend of sales.

Other things to remember to carry extra stock of include bread, milk and the full range of BBQ needs. Good luck in planning for a great Easter.

Enjoy our first magazine for 2007 and let’s build this year into a great year by focusing on the customer. If we keep them happy, they’ll keep us happy!

Best Regards, Reg

2 4 19 26 41

NEW 350ML UP&GO SANITARIUM 4 the MAKE MORE DOUGH FROM YOUR BREAD SECTION GOODMAN FIELDER 5 A LITTLE HELP FROM OUR FRIENDS THE DISTRIBUTORS 6 SHOWROOM SHOWDOWN ON THE MOUNTAIN 8 NEW TASTE SENSATIONS KELLOGG’S 11

MAKING CENTS OUT OF SNACKS 12

HIM KICKS OFF SECOND SURVEY HIM AUSTRALIA 14 IN MOTHER COCA-COLA 15 COOPER’S CLUES 16 SUGAR & SPICE 18 BECOME A BIG BROTHER HOUSEMATE WITH STARBURST MASTERFOODS 19 former NEW SNICKERS MAXIMUS MASTERFOODS 20 TREATS OF THE TRADE 22 FEBRUARY JOKES 24 EXTRA REASONS TO SMILE 25 NEW EXTRA 14 PIECE PACK WRIGLEY’S 26 EVERYTHING OLD IS NEW AGAIN 28 A GRAND RE-OPENING 32 MAXIMISE THE UCB PROMOTIONAL POS AT YOUR SITE UCB 34 DIALTIME REFUND PROCESS DIALTIME 35 UCB EXCLUSIVE CONSUMER PROMOTION DIALTIME 36 COOL CHANGE 37 SUMMER’S HOTTEST DEAL NESTLE 38 MOST SHOPPERS WILL BUY ONCE THEY’RE AT THE FREEZER NESTLE 39 NEW PRODUCTS & SHARE UPDATES STREETS 40 WIN THIS SUMMER WITH CORNETTO STREETS 41 PREMIUM BRANDS ARE THE NEW TREND BATA 42 TALKING TOBACCO BATA 44 TRAINERS GET ‘BUY IN’ WITH THE ’WHY’ ATMP 46 60 SECONDS WITH SWANNO 48 2007 EASTER CHECKLIST UCB 49 YOUR DAILY DETOX. NOW IN SINGLE SERVE OCEAN SPRAY 52 3 MILK 4 BREAD 5 a little help from our friends

No-one associated with UCB could get by without The Distributors, so we thought you should get to know them better. This month we caught up with ’s Bruce Spiteri.

The old adage suggests that out of It’s not just Bruce though – JB has 86 “I needed a proper job, because my small acorns do giant oak trees grow staff working at the Moorebank first son was due to be born!” – and JB Metropolitan Distributors can warehouse, and the company is a boast a similar story. member of the 28-strong national Three years later, he went out on his group which is The Distributors. own. Bruce Spiteri’s business began as Bruce’s Confectionery in the garage Bruce and his team specialize in “I learned a lot during my time at Allen’s of his Sydney home in 1983. Within confectionery, snacks and drinks but I learned a lot when I first went 18 months, the sheer volume of distribution in the greater Sydney metro out on my own too. Plus, I did three business forced Bruce into a area stretching from Palm Beach, on years at tech, a business management warehouse – now he has 6500 square the northern Sydney beaches to diploma course at night school, and metres of space, jam-packed. Glenbrook, in the lower Blue that taught me pretty much everything Mountains west of the city, to Picton, else I needed to know to run my own “In October 1999 we amalgamated on the southern outskirts. business.” with M Woods and Sons, which was established in 1932. We called the Bruce’s personal history with the Bruce operated as an independent new business J & B Metropolitan confectionery business began when until 10 years ago when he signed up Distributors, but when I bought them he started work as a sales rep with with The Distributors. out in 2004 it became JB – that stands Allen’s Sweets. for just Bruce!” says Bruce. 6 There is still a bit of that going on anyway. Bruce is constantly on the look-out to build the business and improve an already high level of service.

“We need to consolidate where we are and offer a broader range of products to our customers. I think sometimes there’s a tendency to race around looking for new customers, when what we really need to do is “It made sense. The P&C business – children and if they do have them, they concentrate on the customers we or service station trade as it was in have them later in life, so that has have and try to do more for them and those days – was changing, the petrol slowed things down a bit. sell more to them. companies were structuring things differently. “There are also far more varied “We have a wide range of customers, competitors – Lindt, Ferrero and so from sporting clubs to pharmacies, to “Being part of The Distributors gave on – coming into the business, that service stations, and they do remark me a chance to be involved in weren’t there before, so there is more on our service. We pride ourselves on competing for national business competition. the fact that from order to delivery is contracts. It was the way things were 24 hours or less and most people going for the future, negotiating at that “But people still need a snack or a appreciate that.” level and it also gave me better buying treat, especially from a service station, power.” when they’re driving along. And there’s The Distributors is a co-operative of an edge now, with what’s happening 28 members and 41 warehouses Bruce loves the business he is in, with cigarette sales. They still want across Australia. The group has been describing it as fun. something in the if they’re not in business since 1981 and currently smoking, so they buy something to services more than 40,000 P&C and “I sell lollies, and lollies make people nibble or chew – you’ve only got to route customers in both metropolitan happy! You eat a chocolate – you feel look at the major gains Wrigley’s have and regional areas. better! It’s better than selling toilet had.” seats! The group motto is ‘delivery in full, on Outside working hours, Bruce is the time, every time’. “I also enjoy the fact there are new father of four – three sons and a products arriving constantly, and most daughter, aged 26, 24, 20 and 18. of the time I’m dealing with good He and wife Diane have been happily people. I have a lot of good married for the last 32 years. customers.” “Soccer is a family passion. My 20- Bruce believes the confectionery year-old is the only soccer player in business has plenty of potential even the family but I’m general manager of though the nature has changed. the Sutherland Football Club – just for something else to do! You’ve got to “The consumer base is certainly have an interest, otherwise you just different. People aren’t having as many go home and think about business all the time.”

7 showroomshowroom showdownshowdown onon thethe mountainmountain

All photos courtesy of Chevron Publishing.

Commodore, won his class and The Bathurst 12-Hour is back, 13 years after the last half-day finished fifth outright. enduro for production was run at Mount Panorama. Subsequent Bathurst 12-Hours – and It will be the centrepiece of a huge motorsport festival to be the one year the race was held at held over the Easter long weekend. Peter McKay reports… Sydney's Eastern Creek Raceway – exploded into fierce battles between Porsche and , with the factory- At 5.45am on Easter Sunday, April 8, away from the international entered Japanese RX-7 claiming four the eerie pre-dawn stillness of Mount formula to a two-make Holden versus straight victories. Panorama will be shattered by a noisy, Ford category. acrid race start, when a grid of around The enduro attracted some big name 50 cars will roar away from the bright The 12-Hour races of the 1990s were drivers, too. Indeed, former Formula lights on pit straight, into the semi created to tap into the nostalgic fond One world champion Alan Jones darkness. memories of the 'good old days' of partnered production car specialist series production racing in the Bathurst Garry Waldon to victory in 1993 If the rumours are true, we will see a 500 (miler), when Allan Moffat, Peter (Waldon also won in 1992). The 1994 variety of makes and models not seen Brock, Bob Jane, Harry Firth and race was won by the fast and at Mount Panorama for more than a others powered into the psyche of the mechanically sympathetic duo of the decade, many driven by the big names broader Australian motoring public. late Gregg Hansford and Neil of local motor sport. Crompton, while the following year, at The first Bathurst 12-Hour was won Eastern Creek, Dick Johnson and Supporting the Bathurst 12-Hour at by Allan Grice and Peter Fitzgerald in John Bowe were to triumph. the second annual WPS International a Toyota Supra. Motor Festival, are races for historic enthusiastically supported the 12-Hour While each of the past Easter Sunday touring cars, , and turned up to Mount Panorama 12-hour races were considered an Commodore Cup and GT sportscars. accompanied by his family and towing artistic achievement, they failed to a caravan. He then proceeded to attract the big numbers needed to For four years, from 1991 through to camp in the paddock area behind the make the show a financial success. 1994, the Bathurst 12-Hour fought pits, announcing that it was “just like valiantly to establish itself as an the good old days”. Brock shared a Economics helped killed the Bathurst alternative to the annual Neil Crompton-entered V6 (and Eastern Creek) 12-Hour of the which, in those years, was moving early 1990s; the organisers just 8 couldn't make the sums add up, despite the race's anecdotal appeal in car company boardrooms, and with motor racing purists.

But maybe the sportscar dominance of the 12-Hour was another big factor in keeping the paying public at home. Maybe, as many pundits believe, the punters prefer to watch mass- produced family chariots and their derivatives doing battle.

Certainly the organisers of the 2007 revival of the Bathurst 12-Hour have taken steps to ensure that the exotic marques and expensive sports cars ON THE BOX won't ride roughshod on the opposition at Easter. They're banned! The Bathurst 12-Hour race for production-based cars priced below $125,000 will be televised across Australia on No car over $125,000 is eligible, and the organisers have ruthlessly culled the Nine Network. To be shown as a two-hour highlights some models priced beneath that retail show hosted by Wade Aunger and Grant Boyden, the telecast price. will be seen in all capital cities and many regional areas two So no Porsches can race, not even weeks after the race. will also show this package. the less pricey Boxster model. The BMW M3 doesn't make the price ceiling and there are no Maseratis, Lamborghinis, Dodge Vipers, Ferraris or AMG Mercedes allowed either.

In fact, the big-capacity ‘Performance Cars over 4.5 litres’ category extends only to these cars: FPV F6 Typhoon, FPV GT, FPV/Tickford TE50, HSV GTS Coupe, HSV GTS, HSV GTO, HSV GTO Coupe, HSV Club Sport R8, BMW 335i Twin Turbo, Chrysler SRT8, and Chrysler Crossfire Coupe SRT6.

Likewise, the cars must be widely available. There will be no hotrods such as the definitely non-production 7.0-litre Monaro that dominated the two Bathurst 24-Hour marathons several years back.

Some manufacturers wanted to see a return to pure showroom stock production cars – making the race a genuine consumer performance and reliability guide.

But this was rejected as there is no ongoing domestic series for pure production cars and the organisers were pessimistic that potential competitors would build brand-new showroom cars for one race a year.

9 The rules for the revived 12-Hour are A spokesman for the organisers Then there are the hot hatches and largely aligned with the existing CAMS acknowledged that the 2007 race rules another potential tussle between the category for the Australian Production won't please everyone, but are part pocket rockets such as Ford Focus Car Championship, with additional of the aim to give the race a XR5, Holden Astra SRi Turbo, HSV classes for diesels and tarmac rally sustainable long term platform to VXR, Mazda 3 MPS, BMW 130i, Mini cars. ensure it survives – unlike the earlier Cooper S JCW, Renault Megane Sport 12- and 24-hour events. 225, Volkswagen Golf GTi and Alfa Race organisers invited input from car Romeo 147 GTA V6. importers and manufacturers, while “Our plan for the future would be to CAMS conducted forums with evolve the event to eliminate sports Scrutineering will be tough, say the competitors. The new rules retain the cars entirely, so it is a production organisers. Each class winner will be showroom production car essence, touring event,” says Craig Denyer of totally stripped on the Monday after but allow for some modifications so Spherix. the event – this includes removal of manufacturers and other entrants can wiring loom, engine, gearbox, diff and easily cross-enter the same vehicle in “A pure showroom event for current turbo checks. Dyno units at the race other events such as Targa Tasmania models only would be considered if track will measure torque and and other tarmac rally events. we believed this was sustainable as a horsepower figures of selected cars one-off and delivered mass at random, and overlay over other cars Contentiously, the organisers have manufacturer support and high grid of the same model if necessary. Boost agreed to some mechanical freedoms numbers,” Denyer emphasises. monitors must be fitted to turbo cars. which appear to benefit mainly local Outright victory looms as a fight among cars. These concessions include the In all, there are 10 classes in the 12- the local big V8s and turbo sixes, the fitment of oil coolers, choice of clutch, Hour, the most interesting perhaps twin-turbo BMW 335i and the and racing fuel tanks of 100 litres’ being the two ‘eco’ categories for speedsters from the all-wheel-drive capacity in the case of the over 4.5- diesels and hybrids – over and under performance class, which includes litre cars. The smaller the engine- 3.5 litres. With diesel sales cranking Mitsubishi Lancer Evo 8 and 9 (RS capacity class, the smaller the fuel up spectacularly in the last two years, and GSR Spec), Subaru WRX STi, tank. some serious factory interest is being generated here. Holden has already VW Golf R32, Subaru Liberty GT Spec In the old days of production car entered an Astra CDTi in the smaller B, Alfa Romeo Brera AWD, Audi S3 racing, standard tank capacities was eco engine class, while VW, Audi, Alfa 3.2, and Mazda6 MPS. one way of keeping the faster and Romeo and Fiat are believed to be thirstier cars in check, while giving the considering taking part, at either a smaller-capacity and more fuel-efficient works or entrant support level. cars a better shot at outright victory.

HAPPY CAMPERS Campground sites are available at $50 a site: check out www.nimf.com.au or email [email protected]

BEING THERE Admission tickets are available from Ticketek. A three-day adult general admission is just $45 (advance sale) or $55 at the gate. A covered grandstand pass is $80 (bought in advance) and $100 at the gate. Sunday admission is $35 on the day. 10 SNACK FOODS 11 SNACK FOODS What’s happening with snack foods and why?

“It is a growing segment, a healthier making category – and I think I can say without argument that’s because of us!” Simon laughs.” cents of “Snackfoods grew by about 3.3 per cent nationally last year and in total Smiths grew by 10.6 per cent. Within UCB, it’s even more – like for like, we’re talking about it being up 12.4 snacks per cent. UCB is definitely outperforming the overall market.” The old adage suggests that everything you like is immoral, “People never stop needing to snack illegal or fattening – but snacks, it would appear, are moral, but we’ve also seen some growth in legal and a lot healthier for body and the bottom line. our Smiths brands, which is the largest brand in P&C – almost 20 per cent up since we went to the 25 per cent less The Smiths name is an institution in What are the biggest sellers? saturated fat with our potato chips. itself, synonymous with potato chips That move has really kicked the growth for any true-blue Australian, but it’s “Smiths, Red Rock Deli 100g packs, along.” also behind some of the country’s Twisties – especially cheese, Burger other major snack favourites as we Rings is a fantastic product, both of “Red Rock Deli, the second biggest discovered by talking with Simon those in the 50g and 100g sizes and brand in the channel, is also up. We’re Henry, National P&C Accounts Doritos.” talking around 14 per cent, like for like. Manager with Smiths Snackfoods.

What does your current range include and is there anything new on the horizon?

“Our range includes Smiths, Red Rock Deli, Twisties, Doritos, Burger Rings, Cheetos, Nobbies, Parkers and Sakata. This year we are releasing a smaller Doritos dip, a 107g size, which was designed especially for the P&C channel.”

“And this year, this quarter, football Tazos are back bigger and better. We did 24 million last year and we’re doing 40 million this year – that’s a lot of packets of chips!”

“Last year was a great success – the biggest Tazos since Tazos started back in the early Nineties. It was huge last year and it will be again. We will be doing some special promotions in UCB stores. There will be a couple of 50g promotions to help drive sales – not that they need it. They generally fly off the shelves.”

12 It’s a consumer preferred product, a “We also introduced Dijon Mustard and they are the key sellers. Customers SNACK FOODS premium product, and secondly, it’s Honey to the Red Rock Deli range and will buy them from there, lifting their a lower fat product – 75 per cent less they’re very popular – a fairly solid basket size generally but not fat – there’s definitely a move in that performer, pretty much mid-range in cannibalizing sales of the bigger healthier eating direction.” the Red Rock Deli rankings.” packs.”

“That’s why we think Sakata will be a “And Snakata, which is part of the Is it a clear-cut impulse purchase or big performer across all channels in Sakata range. We changed the formula not that easy to define? the future. There’s a much healthier on the range, the texture and the taste, perception and it is a much healthier and there has been a definite lift in the “A lot of sales are impulse, non- product.” sales. They’re not a huge player yet, planned purchases, when someone but they’ve definitely grown since the realizes they feel like something salty, “Our lower fat products are definitely formula change.” but there is also a very high pre- better for the customer without losing planned purchase too – barbecues, the taste, and Smiths and Red Rock How does a retailer make more sales? parties, a night at home with the family Deli are definitely the driver brands.” watching DVDs, so we’re also very “Location is always the key. We’ve occasion-driven.” What was new in the last 12 months? done some trials around the country and closer to the counter definitely “Easter and Christmas are always big “Toobs have been big. We re-released works. We’re seeing category growth for that reason as are football finals, them. We haven’t sold them since of 8 to 16 per cent with that move.” around September/October. But chips 1998. It’s actually public demand that never really suffer any dip in sales brought them back and they are selling “That’s the trend overseas – more front because they can be eaten in any extremely well for us. They are selling counter sales – and it does work. Put weather. You don’t get the seasonal about 15 units per store per week, the 50g packs there, the top selling highs and lows that you see with a lot which is great.” products – Twisties, Burger Rings, a of other products – they always work.” couple of Smiths varieties – because What new trends are we likely to see?

“Overseas, the healthy alternatives are big and we’re already seeing that happening here with the products that are going that way.”

“We’re certainly working on more healthier choice products – both changing the oil we’re using, changing formula on existing products and introducing new lines. We will be doing more and more of that, because we’ve already seen that it works for us.

“There are still lots of opportunities for us in terms of different products, and for the retailers, because of the margins.”

“We will continue developing products – and promotions – to drive sales at UCB sites.”

13 HIM Australia kicks off second survey

UCB will be receiving more customer on areas that each believes will be a data from HIM Australia after it focus in the coming year if the completes its second survey in March. convenience network is to thrive in this competitive environment. The HIM team has been finalising the survey questions which will be focusing Some of the key focus areas in this on some of the key findings that came survey will be: out of the first survey in September • Availability of key categories last year. • Freshness of products • Product mix in the store After that study in which over 5500 • Frequency of visits people were surveyed, some of the key findings were availability issues at The questionnaires will be completed certain day parts and week parts in at all participating retailers in March key categories, lack of shopping and the results will be available in early missions outside of fuel purchase April. which really limits category participation and the importance of the If you are a supplier looking for speed in which people are getting in customer data to support your category, and out of the store. please do not hesitate to contact Brett Barclay on 0419 305 558 or HIM Australia is currently working with [email protected] both retailer and supplier participants

AUSTRALIA

turning answers into actions 14 BEVERAGES 15 cooper’s clues

In the December issue of The Informer, you heard about the annual conference. Chris Nixon has more hints from one of the key speakers …

The experience of English His story of developing the Hudsons And having set the standard for businessman Nick Cooper is a lesson chain held the audience rapt during supporting new residential for Australian convenience store his keynote presentation at the 2006 developments, Hudsons is not only operators seeking opportunity in the UCB annual conference on the Gold targeting store sites in existing booming growth of inner-urban Coast. developments but also integrating itself apartment life in our capital cities. with the design stages of future Hudsons has four upmarket mini- projects. There can be few tougher markets stores, which are complemented by than London, where the energetic one in-store florist and one in-store Another factor influencing Cooper’s Cooper has carved a unique niche dry cleaner. approach is that he believes large with his Hudsons convenience stores. weekly supermarket buys are a thing Their key difference is that all are of the past for inner-urban dwellers. A marketing expert formerly with located not on street frontages, but People live singly, in couples or in companies including British Airways within new-style private residential smaller families and want to buy and Unilever, Cooper saw how developments, which already tend to convenient, premium products consumers’ needs were changing with accommodate other businesses such somewhere very close to home. their increasingly-busy, time-poor as kindergartens and gymnasiums. lifestyles. The Hudsons proposition is carefully Thus the Hudsons stores have refined. “Short on time, long on cash,” he become part of the self-contained notes. communities within closed residential “We invest time searching for unique precincts. products – for example fresh and His boutique convenience stores, chilled foods, organics and gluten-free providing everything from exclusive The concept means not only a captive – providing variety for one-night food lines to home handymen for market. Rents can be half the price dinners,” Cooper says. customers in the immediate area, are of those in the centre and Hudsons is a prime example of “thinking outside able to have complete control of the the square.” fit-out.

16 “We work with small suppliers to give Hudsons’ practice of occupying Finally, Cooper urged UCB delegates us a point of difference and we try to private residential precincts instead of to take the risk of thinking outside the add a lot of interesting products.” high street frontages means the square, strive to be different and take customer base of each store is around the opposite direction to the big Products from a wide variety of 1500 people, instead of the 10,000 operators. suppliers are sold, each offering not who usually would visit a convenience just a good price but also good value. store.

Unknown brands achieve extra However, the benefit is that the stores benefits when separated from others have a close relationship with the local in their category and given “hero” community, protected by exclusivity treatment in promotions or point-of- agreements with the property lessors. sale. The result of Nick Cooper’s perceptive, Rejecting the common tool of a innovative approach to convenience website, Hudsons prefers to talk with store operation is that Hudsons’ gross customers to build relationships and margins are around 30 per cent, that learn their personal preferences. is, 50 per cent above industry norms.

“Then we leverage our customer service to provide services, such as newspaper delivery, dry cleaning, flowers, domestic and office cleaning and handyman repairs.”

“Hudsons has 15 cleaners. Customers drop their keys into the store on the way to work in the morning and return to find their homes clean.”

“Another thing we offer is corporate monthly accounts, which suits the requirements of many of our business customers.”

Good customer service is vital, Cooper says, echoing the advice of every other keynote speaker at the conference.

“Customer service in the UK today is still pretty appalling, but we think it’s extremely important to our customers,” Cooper says.

“(It is) the single biggest thing that makes us different and makes convenience competitive against ‘big box’ retailers.”

“If you don’t believe it (customer service), it won’t happen.”

Hudsons conducts its own customer service training, which emphasises the importance of the relationship with the customer, of recognising who the customer is and of respecting the way customers want to be treated.

17 CONFECTIONERY sugar & spice

Constant innovation of the product range is the key, according to major If a little of what you fancy does you good, it’s no wonder the player, Masterfoods Snackfoods. confectionery category keeps on keeping on. We caught up Masterfoods is responsible for some with one industry insider to find out what they are up to in 2007. of Australia’s favourite confectionery lines including Mars, Snickers, M&Ms, Bounty, Maltesers, Skittles and While there will always be a place for keysite, in aisle and in the cool site at Starburst. treats, there is also an emerging trend the point of purchase. toward ‘nutritional’ bars. He believes According to Rohan Sutherland, this category will grow in convenience “Many shoppers purchase both a drink National Business Manager for and Masterfoods is considering and a chocolate bar, so chocolate Masterfoods, the company’s strategy development of a range that caters to should be located in the cool site all is to reinvigorate its powerful core this consumer need. year round – not just in winter. brands on a regular basis with new A chilled chocolate bar is a completely ‘news’ for shoppers in the form of “We have about 20 per cent share of different eating experience and up to flavour variants. the market at the moment in traditional 50 per cent of shoppers prefer confectionery and we are definitely chocolate chilled.” “It means a new excuse for a shopper driving the growth within the category. to purchase in the form of a flavour We saw solid growth in 2006, and Within sugar confectionery, Rohan variant launched in the market a couple expect to maintain this momentum in describes Starburst and Skittles as of times a year.” For February this year, 2007 with a strong innovation pipeline ‘undercooked’ and says they have a it’s the Snickers ‘Maximus’, which is to keep shoppers purchasing treats lot more potential. a bar without nougat – which means for themselves on the go.” more caramel and even more peanuts. Starburst ranging should be improved “Sugar confectionery has been a solid in time for the biggest promotion ever “In February of 2006, we released performer, and the strong portfolio of on the Starburst brand in early 2007. Snickers Chewy Nougat, while in activity for chocolate brands across Starburst will team up again with Big August we introduced Mars Triple X. the market in 2007 should drive Brother this year for a ‘money can’t Constant innovation keeps consumer chocolate growth,” Rohan says. buy experience’ for many lucky interest high and naturally has a consumers. positive impact on sales – both Mars ”Traditionally, chocolate has had the and Snickers are growing well.” most focus but last year there were “Retailers need to make the most of no big success stories. Core category every new opportunity that is Rohan says the core confectionery (aside from UCB) is reasonably flat. presented to drive their confectionery market is still about ‘treat/reward’ as Share of voice for the confectionery impulse sales in 2007,” Rohan says. far as the consumer is concerned. category within the store has been Good margins for the retailers don’t eroded and retailers need to keep core hurt either. brands well represented both on

18 CONFECTIONERY 19 CONFECTIONERY 20 CONFECTIONERY 21 CONFECTIONERY treats of the trade But it takes more than throwing product on a shelf for the candy category to produce impressive results. So why has Red Hed Oil seen double- digit growth in its candy sales each year for the last three years? And how was Emanuel able to increase candy sales in one of its stores by seven per cent in just a year?

Measuring Movement While there's no shortage of new and exciting products on the market, Emanuel Oil recognises the category has to be closely monitored to make the most of impulse sales.

“Core items like Snickers continue to sell well, but it's the new items that drive impressive additional volume,” says Mike Leake, operations manager for the 20-store chain.

“The problem is, after the initial hit, will they keep moving? You have to be careful with your re-orders on some of it.”

Aside from candy being a high-margin category for both Red Hed Oil and Emanuel – 43 per cent and 50 per cent respectively – it's a category customers most frequently purchase in convenience stores. According to The Hershey Company, the convenience channel is outpacing other classes of trade in confection growth.

“In the most recent 52 weeks, total When retailers keep a watchful eye on products and confection is up 3.2 per cent in utilise their vendor relationships, ‘candy’ can produce c-stores versus 1.1 per cent in the other classes of trade,” says Stephanie some ‘dandy’ results, as Kate Quackenbush, managing Moritz, a Hershey spokeswoman. editor of US publication, CS Decisions, reports… “That growth has come from two main sources: exciting new items and a An entire country may separate just about every customer responds. renewed focus on secondary display Kentucky-based Red Hed Oil and From pucker-inducing sours to breath- merchandising.” Washington-based Emanuel Oil, but freshening mints to chocolate's sweet, they both know one thing is true: candy chewy goodness, manufacturers work The M&M Mazing bar is an example is a home run. tirelessly to ensure there's something Leake offered of an item that might on the market to meet any possible have been selling white-hot initially, but Retailers agree that candy is fun to craving. lost its momentum. Counter shippers sell. It's an impulsive category to which of the bar sold very well, so the 22 company decided to order more, only “After a couple of months the category Promotions in Motion CONFECTIONERY to see that movement ceased. can get tired, but if you give products Keith Deaton, area manager and different locations and visibility, it category manager, snacks, for Red “Sometimes it's just unlucky,” Leake helps,” says Leake. Hed Oil, recognises that manufacturers says. are developing innovative products to “We're constantly updating and tempt customers' taste buds. But it's “But in the last year or two, the changing our stores. Sometimes we manufacturers' willingness to help him manufacturers have been really will move the candy aisle to the front move the category that has allowed innovative. Hershey's Take 5 bar is a of the store towards soda. It's more his company to achieve sweet candy great example of a new item that dramatic than just rotating boxes.” sales. hasn't lost its steam even after being on the market eight or nine months. The most dramatic change the company Red Hed Oil has experimented with And Wrigley is one of the best has undergone in the candy category several types of promotions. Two for companies when it comes to longevity is creating a separate theatre box section $1 and three for $1 are very popular – its Orbit brand is a great seller in our in one of its stores, which is located with customers, and the chain has had stores, and with nine flavour down the road from a movie theatre. the co-operation of several different extensions, the company keeps th