Вы находитесь на странице: 1из 54

Convenience

July 2010

MustStocks

INSIDE:
BRAND LEADERS CATEGORY ADVICE PILLAR BRANDS
Nielsen data reveals the Major suppliers share How iconic lines play
independent trade’s their top tips for a major role in helping
best-sellers in every maximising sales shoppers navigate
major product group in key categories your store

A promotional supplement to Independent Retail News

MustStocks cover.indd 1 26/07/2010 16:25:56


AM O N S T E R S A L E S
OPPORTUNITY

MONSTER
No .1*
US ENE RGY
BRAND
NOW WOR
£11.6m TH

IN GB 1

MONSTER
KHAOS
MONSTE
ERR KHAOS
$50m
BRAND IN THE US2
B
THE
BIGSHOT
50% JUICE
100% MON
STER

THE U.K’S FIRST


90ml ENERGY SHOT

www.monsterenergy.com
ails retail
For stockist details retailers onta 08457 227 222
ould contact
rs should
Sources: *US Source AC Nielsen Convenience MAT unit sales end of August 09. 1. AC Nielsen total coverage latest 52 wks ending 16th January 2010. 2. US source AC Nielsen Scantrak data MAT ending 21.11.09.

COCA-OFF_0306_Monster
MustStocks2010.indd 2 Ad_SP_IRN_AW2.indd 1 26/07/2010 16:30:48
26/07/2010 13:21
COntents

Welcome to Introduction

ALCOHOL
5 HOT BEVERAGES

Coffee 32

Convenience Beers 6 Tea 32

Muststocks 2010
Cider 8 Category advice 34
sponsored by
Category advice 10
sponsored by

A
s an provider, to gather together
independent impulse channel sales
convenience figures for the leading lines SOFT DRINKS
retailer there in no less than 26 grocery Wines 12
are some brands that categories and sub- Energy drinks 36
you just have to have categories – everything Spirits 12
in stock. These are the from biscuits and bagged Category advice 38
brands that define their snacks to waters, juices BISCUITS AND SNACKS sponsored by
categories, that help signpost and smoothies.
each section of your shop to your Of course, it’s not simply a Biscuits 14
customers and assist them in matter of taking the top three
navigating their way around your brands from each table and Bagged snacks 14
store. These are the must-stock putting them on your shelves.
brands you really can’t do without. What you decide to stock will BREAD AND CEREALS Carbonates 40
This supplement, now in its be based on a variety of factors,
second year, is our way of helping including price points, regional Bread 16 Juice-based drinks 42
you decide what those top brands variations and the size of your
are. We’ve teamed up with store. Own-label lines may also Cereals 18 Cordials 42
Nielsen, the highly respected data come into play. Nevertheless, we
hope the following tables and CONFECTIONERY Water 43
articles will provide a valuable
Independent Retail News
insight into those best-selling lines Chocolate 20 Juices and smoothies 43
Metropolis Business Publishing, to help you make a considered
6th Floor, Davis House, and informed choice. Sugar confectionery 20 Category advice 44
2 Robert Street, As well as listing the top five or sponsored by
Croydon, CR0 1QQ 10 brands in each category, we’ve Category advice 22
tried to highlight some of the sponsored by
EDITORIAL reasons behind their success and
Written by indicate what the future may hold. TOBACCO
david shrimpton 020 8253 8704
Martin Gurdon Where we can, we’ve also picked DAIRY
James dallas out some of the biggest climbers Cigarettes 46
Production and future stars of each category
Waqas Qureshi 020 8253 8709
dan Harder to help you plan ahead and keep Category advice 48
one eye on the future. DAIRY supported by
ADVERTISING Once you’ve chosen your brands,
Head of Sales
rizwan Chaudhrey 020 8253 8708
however, that’s not the end of it. Butters and spreads 24
Senior Sales Manager As the saying goes, it’s what you
paul Abbott 020 8253 8701 do with them that counts. That’s Cheese 26
Key Account Executive why this year’s Convenience
Kim reddick 020 8253 8703
MustStocks also includes category Yogurts 28 READER SURVEY
printed by William Gibbons Ltd
management advice from some
26 Planetary Road, Willenhall, West of the sector’s leading suppliers – Yogurt drinks 28 Questionnaire 51
Midlands, WV13 3XT
Heineken, Nestlé, Red Bull, Nestlé
Rowntree, Coca-Cola Enterprises, Flavoured milks 28
JTI and Kepak – which will give
you hints and tips on how to FOOD-TO-GO
merchandise each fixture. Thanks
to everyone for their support. Category advice 30
sponsored by
David Shrimpton
Editor
Independent Retail News

Independent Retail News Convenience MustStocks 3

13:21 MustStocks2010.indd 3 26/07/2010 18:14:48


The Grosvenor House Ballroom
Thursday 14th October 2010

Join us for an evening out at The Grosvenor House Hotel, Park Lane,
London to congratulate and award the industry’s top retailers.

Enjoy a sumptuous gourmet dinner in these outstanding


surroundings, plus entertainment from award winning stand-up star
of radio, TV and now film, Marcus Brigstocke.

To book your place or table contact:Farah Ahsan on 020 8453 8320 Email: farah.ahsan@bestway.co.uk

RDA 10 IRN Full page Ad Feb10.indd 1 22/7/10 17:00:39


MustStocks2010.indd 4 26/07/2010 18:14:52
IntrOdUCtIOn

Must-stock brands: the


pillars of convenience
TIMES have been tough for the across the trade. of the store. The weaker by being a staple for their basket
retail trade so far this year – Categories showing categories have been but also helping them navigate
despite the better weather and the strong growth in this alcoholic drinks and the store.
(rather short-lived) World Cup. sector have been confectionery, where However, if all stores just
Sales in the grocery multiples are non-alcoholic drinks, pressure from the major stock these brands, how do you
up by only 1.2% year on year (12 fresh food and chilled retailers has become drive individuality and a unique
weeks ending 26 June 2010). In food – all of which greater. shopping experience? Shoppers
contrast, the convenience sector provide great As always, when enjoy the unique experience
(stores under 3,000sq ft) is up impulse purchasing we look across convenience retailers can offer as
2.7% in the same period – and opportunities for the categories we well as the convenience of having
this includes the smaller stores impulse retailers to see the same key all the staples close by. The key is
of the grocery multiples, who get more into shoppers’ baskets. lines that shoppers demand to to have their favourite variety of
are outgrowing their out-of- Research Nielsen compiled with be in stock come up time and coffee and biscuits, but also to have
town relatives. If we exclude the Him! research and consultancy last time again. These are the pillar something they didn’t expect and
convenience fascias of the grocery year identified chilled food as one brands of the categories, the ones couldn’t find in their supermarket.
multiples and focus in on impulse of the key areas where potential that will always be purchased as Innovation plays a big role
retailers, including co-operative impulse purchases were missed. they have built up trust and an in this, and in particular new
societies, forecourts, off-licences, Chilled food is particularly accepted level of quality over time products that directly meet the
unaffiliated stores and symbol vulnerable to the main causes of in shoppers’ minds. Many of these needs of the convenience shopper.
groups, we see the growth drop lost sales – availability and range are iconic brands that have been A good example of this has been
to 1% in the same period as – so making sure the staples are around for decades and play a role the development of ‘shots’ in the
competition continues to intensify always in stock is vital in this area in the shoppers’ journey, not just energy drinks market – now worth
£6m in the impulse market (52
weeks ending 26 June 2010), with
more than 80% of their sales in the
impulse sector. Despite being only
2% of category sales, energy shots
contributed 14% of the annual
growth for the category. This new
format of an existing product
was able to meet the needs of the
shopper and be merchandised
either next to the till or in special
shelf-end fixtures, making it the
ideal impulse purchase.
The balance between core and
new will flex depending on your
type of store and your shoppers,
but there must be some of both to
keep the interest and keep your
relationship with your shoppers
developing. When space is at a
premium every inch must be made
to work as hard as possible; get
your basics right and the ‘must-
Methodology stations. Data in this report covers Copyright
All data in this feature is sourced from the impulse market and includes all The data in Convenience MustStocks stocks’ will earn you the right
Nielsen’s Scantrack retail measurement markets other than grocery multiples. was compiled by The Nielsen Company to do the other things that keep
service. Nielsen’s retail measurement service exclusively for Independent Retail
Scantrack monitors weekly sales from provides comprehensive information News and Metropolis Business shoppers coming back.
a national network of EPoS checkout on actual purchases, market shares, Publishing. All data remains the
scanners. Coverage includes grocery distribution, pricing and promotional intellectual property of The Nielsen
multiples, co-ops, multiple off-licences, activities. Company. No reproduction in part or in Jake Shepherd, director of
independents, symbols, multiple Category commentaries are provided full is permitted without prior consent marketing and communications,
forecourts and motorway service by Independent Retail News. from The Nielsen Company.
The Nielsen Company

Independent Retail News Convenience MustStocks 5

:39
MustStocks2010.indd 5 26/07/2010 18:14:55
FYC_I

BEER

Here for the beer m



S
ales in the beer category which grew by 8.2% to £45.2m, a new multi-million pound
went a bit flat last year, recently launched new-look advertising campaign that taps
dipping by 4.5% to packaging featuring a “Gallic, edgy into the Aussie ‘no worries’ ethos,
more than £1.26bn. The and more modern look” to give under a new strapline of “Good
category is dominated by lager, of the brand “superior shelf stand- Call”. The multi-media campaign
course, which accounts for £1.1bn out”. The repackaging forms part encompasses three new TV
of the total, with lager brands of a major new marketing push executions, plus digital and social
taking all the slots in the Top 10. designed to “build on the brand’s media activity.
Ale saw a marginal uplift in sales reputation as a sophisticated,
to £121m, but stout dropped by 7% high-quality premium lager worth Packaging formats
to £35.4m. savouring”. Heineken UK has been supporting
More than one-third (36%) of Kronenbourg is the UK’s number Kronenbourg and Foster’s, along
beer sales go through the impulse two premium lager in impulse with its John Smith’s bitter and
channel, so the category remains of and brand owner Heineken cider brands Strongbow and
great importance to convenience says its recent growth has been Bulmers, with a “Who Wants to be
stores, despite the deep discounts achieved, in part, by “challenging a Football Millionaire?” promotion
on offer in the major multiples. a staid canned lager category that runs until August.
Stella Artois stands head and with innovations designed to give Heyes advises independent
shoulders above the other brands, shoppers a product which looks retailers that “convenience is key”
with sales of nearly £208m, despite great on shelf and delivers an when choosing which packaging
a 6.2% fall in impulse this year. outstanding pour and taste”. formats to stock, with consumers
Foster’s grew by 8.8% but Carling generally willing to pay more
was down by nearly 22%. Marketing activity for added product functionality,
Gainers included Carlsberg, up It adds: “The premium lager has portability and ease of use. Price-
by just 1%, and Budweiser, with a dynamic new look, while its marked packs (PMPs) are also vital
an increase of 18.9%. Carlsberg Dynamo Système widget has for the independent sector and
Export grew by 15.4% but Grolsch helped to differentiate the brand Heineken UK and other brewers
dropped by nearly 19%. among competitor products, have developed a range of PMPs A big climber outside the Top 10
Budweiser has enjoyed heavy capturing a point of difference across their portfolio of big brands. was Stella Artois 4%, which grew
marketing support since April this in the category and helping to “Shoppers love PMPs because sales by nearly 80% to more than
year, including the launch of its maintain healthy price points. they reassure the shopper that they £20m and moved into the number
biggest-ever on-pack promotion This investment has paid off, with are getting a great deal and they 12 spot, seemingly without
for the football World Cup in Dynamo Système providing 12% benefit the retailer because they affecting sales of its mother brand
South Africa, more TV advertising of total sales for Kronenbourg sell through faster than non price- too much. It was launched in 2008
and the launch of Budweiser 1664 in the off-trade. marked packs and shoppers will with massive TV advertising as a
Brew No 66, described as a This year promises to be a big return to the store more quickly ‘lower-alcohol’ alternative to the
“lightly carbonated lager” with an one for the brand, with a new for repeat purchase,” he says. standard Stella Artois. IRN
alcoholic content of 4%. multi-million pound TV and
Kronenbourg 1664, press advertising campaign due to
launch from October. Top 10 Beer Brands 2010
Foster’s, the leading standard Sales 2009 Sales 2010 Year on
lager in the off-trade, has Year
recently been given a fresh Change
new look, designed to provide Total Beer £1,326.2m £1,266.3m -4.52%
improved visibility and
prominence on-shelf. “The 1. Stella Artois £221.6m £207.7m -6.24%
impulse channel has been the 2. Foster’s £148.2m £161.1m 8.76%
bedrock of Foster’s success and 3. Carling £170.5m £133.3m -21.85%
Heineken UK has invested in 4. Carlsberg £96.5m £97.3m 0.9%
the channel through creating 5. Budweiser £52.4m £62.2m 18.85%
dedicated price-marked packs 6. Kronenbourg 1664 £41.7m £45.2m 8.2%
and promoting the portable 7. Carlsberg Export £48.2m £40.8m 15.38%
8. Tennent’s £32.1m £33.5m 4.31%
eight-pack format,” says Shaun
9. Carlsberg Special Brew £34.8m £31.1m -10.63%
Heyes, head of customer
10. Grolsch £30.7m £24.8m -18.99%
marketing for the off-trade.
Source: Nielsen, data to May 2010
The brand recently launched

6 Convenience MustStocks Independent Retail News

MustStocks2010.indd 6 27/07/2010 09:30:48


FYC_IRN Lager 297x210:Layout 2 26/7/10 15:30 Page 1

“ Knowing what
lagers to buy, and how
much, is really helping them
move off the shelf.
Neil Thakkar ”
Shop owner, Leicester

Range & Visibility

Research tells us that most shoppers visit independent stores to find specific
Lager
products but up to 17% of them leave the beer and cider fixture without
Cide
r
making a purchase, often because they can’t find what they are looking for.
Ale
Alcopops

These lost opportunities can be turned into sales by stocking the right products,
&S
tou

giving them the right space and displaying them effectively.


t

68% 20% 9% 3%

Fixture space recommendation The Lager category


for convenience stores.

• Shoppers want to buy the favourite brands they


know and trust - particularly Price Marked Packs.

• Ensure lager takes around 2/3 of your beer, cider


and alcopop fixture space.

• Stock the best sellers from the 2 key segments - standard like Foster’s,
Carling and Carlsberg and premium like Kronenbourg 1664 and Stella Artois.

MustStocks2010.indd 7 26/07/2010 18:15:00


CIder

Apples and pears


t
he growth seen by
top 10 Cider Brands 2010
cider in recent years
has continued, with the Sales 2009 Sales 2010 Year on
category adding a further Year
9.85% in value sales over the year. Change
Some 14% of cider is sold through Total cider £275.87m £303.05m 9.85%
the impulse channel.
There are various reasons for this 1. Strongbow £92.9m £104.96m 12.98%
beyond changes in public taste, 2. Frosty Jack’s £16.91m £17.87m 5.69%
with the decline of the pub trade 3. Magners £21.69m £16.66m -23.2%
identified by some as a driver for 4. Scrumpy Jack £11.12m £12.41m 11.63%
the rise in over-the-counter cider 5. Bulmers Original £8.42m £9.83m 16.73%
6. White Star £6.54m £8.34m 27.54%
sales.
7. Jacques Fruits de Bois £6.89m £7.87m 14.21%
Strongbow strengthened its
8. Woodpecker Medium Sweet £3.64m £7.37m 102.52%
position as the number one 9. Bulmers Pear Cider £4.02m £7.16m 77.93%
brand, growing by nearly 13% 10. Olde English £8.3m £6.97m -15.95%
to £105m. It is by some margin
Source: Nielsen, data to May 2010
the biggest player in the sector,
and this has been reflected in the
heavy promotion its products have commercials, which firmly Cider is no longer an exclusively
enjoyed, with a mix of television, marketed cider as a lifestyle rather Anglo-Saxon drink. Heading
cinema and poster advertising. than traditional drink. towards the premium price end of
Shaun Heyes, head of customer This is an idea many of the the market, Jacques Fruits de Bois
marketing for the off-trade at biggest sector players are keen is a fruit-based Belgium product
Heineken UK, which owns the to exploit. They also want to that has made a lot of friends in
Strongbow brand, says its success encourage female drinkers, and Britain. Its sales of £7.87m are can pack, has been a contributing
is down to sustained investment, move their products away from 14.2% up year on year. factor to the brand’s growth.
such as its most recent “Bowtime being perceived as the preserve of Exploiting a niche is also another He adds: “The cider market is
for Grafters” TV campaign “which bearded Morris dancers. route to sales success, as eighth becoming increasingly similar to
continues to position the brand Fifth placed Bulmers is a good placed Woodpecker Medium that of beer in terms of choice, in
as the ultimate refreshing reward example of this. Its well-known Sweet proves in a market perhaps that you can have several brands
after a hard day’s work”. Original cider is 16.7% more better known for dry products. offering a range of tastes to meet
Frosty Jack’s jumped into second popular than it was a year ago, but Last year it achieved sales of increasing consumer demand.
place with a 5.7% increase to the company also sells a pear cider, £3.64m. Twelve months on this has The cider category spectrum now
almost £17.9m, leapfrogging which it claims is the most popular risen by 102.5% to £7.37m. moves from dry-tasting cider on
Magners, which saw sales drop by impulse drink of its type. This has Tradition sells too, as one end to sweeter-tasting cider
23% to £16.7m. This comes after been so successful that it’s now the demonstrated by 10th placed on the other and this spectrum
a period where Magners enjoyed category’s ninth best selling, worth Gaymers’ Olde English cider, applies to multiple layers; it
rapid growth, and a raised profile £7.2m, a 77.9% improvement on made by a company that has applies across original apple
thanks in part to a run of well- the £4m it earned last year. been around since the 1770s. ciders, pear ciders and latterly,
known television The company is also Just outside the Top 10, fruit ciders.
marketing a limited the fastest growing brands “It is no longer enough
edition Summer were Kopparberg Pear just to have one pear cider
Blend, mixing apple Cider (14), which put on or one apple cider and
and pear. nearly 150% to hit sales think that the consumer’s
Scrumpy Jack cider of £4.35m, and Gaymers needs are being met; the
first appeared in 1973, Original, up by 100% to cider category is now
but has been part of £2.9m. much bigger than this.
the Bulmers empire for Kopparberg UK Positively, we are now
the past 21 years, during managing director seeing an increasing
which time its parent has Davin Nugent says number of convenience
skilfully marketed the the introduction of store operators becoming
brand, so that its fourth Kopparberg Pear Cider aware of this and taking
placed ranking actually in a 4 x 500ml can advantage of the sales
puts it one place ahead of format, as well as the benefit that widening their
Bulmers Original. more recent 6 x 330ml cider range brings.” IRN

8 Convenience MustStocks Independent Retail News

MustStocks2010.indd 8 26/07/2010 18:15:03 KC49


Enjoy Kopparberg responsibly

Find the brand


that outperForms
the Cider market

Find

The UK On-Trade’s number 1 selling pear Kopparberg Cider is growing by over 154%
cider brand. (CGA On-Trade Data, Period 3, 2010) in GB Impulse stores v. 16% growth for
premium cider as a category.
The UK Off-Trade’s number 2 pear cider (Nielsen Scantrack, Value, June 2010)
brand in GB Impulse.
(Nielsen Scantrack, Value, June 2010) Kopparberg Mixed Fruit Cider is the
fastest growing fruit cider of the top
Kopparberg Pear Cider is the UK cider brands.
Off-Trade’s number 1 canned pear cider. (CGA On-Trade Data, Period 3, 2010)
(Nielsen Scantrack, Value & Volume, June 2010)

KC4985_Kopp_IRN_AW.indd
MustStocks2010.indd 9 1 23/7/10 17:37:16
26/07/2010 18:15:04
FYC_IRN 297x420 DPS:Layout 1 26/7/10 12:40 Page 1

Make the most of your


Beer and Cider Fixture
with these hints and tips
from Heineken UK

in g only


ck 1 Focus on what
By sto b rands, shoppers are buying
in g
the lead cider sales • Don’t be tempted to offer too

y be er and wide a variety of products


m oved
r because this leads to confusion


im p
have n tly.
and reduces brand visibility.

sig n ifi ca imons


• A reduced but popular range is
more likely to sell well and is
Emma S dditch
ger, Re
ana
Shop m also a more cost-effective way
to stock.
• Ensure you always have the 10 must stock products
in your beer and cider fixture and chiller.

2 Shoppers love Price Marked Packs because…


• Like promotion packs , price marked packs stand out.


They reassure the shopper that they are getting a great deal.
• They clearly communicate the price they will pay.
By stocking
Price
P

…and they work for you because… Marked Pac


ks, sa
• They sell through faster than non price marked packs.
across the ra les right
• Shoppers will keep returning nge went


• Repeat purchasing will make you more money.
up last mont
h S
&
Vip Measuria
Shop Owner
, Derby

MustStocks2010.indd 10 26/07/2010 18:15:04


3 Warm beer and cider isn’t cool
“ Since I
my chil
and cid
rearran
le
ged
r, beer
• er sales
really im have
Chilled products will really set you aside from


supermarkets , but don’t just chill lager, cider
needs to be chilled too. proved
• Stock your chiller with small and medium sized
packs. Almost 9/10 of your shoppers will Amand
e
Shop O ep S. Cheema
wner, Ke
consume chilled beer and cider purchases on ttering

the same day.


• Shoppers will return to purchase chilled drinks
so have the top 10 must stock products (see list
on other page) ready for them.

rinks
“ o ck in g m y d
St tively
m o re e ffe c
fixture stomers
lp ed m y c u
has he
k
and my ban

4 Making your merchandising
balance ngh Khaira
work for you
Mandeep Si Sheffield
Shop owner, • Put key brands, such as Foster’s, Strongbow and
John Smith’s in high-visibility positions to act
as signposts.
• Use vertical brand blocking to maximise
visibility.

BOTTLED
PREMIUM
& NICHE
NICHE NICHE BIG BRAND LOW
ALCOPOPS
• Fridays and Saturdays are busiest for beer sales
so make sure you’ve stocked up well ahead of
ALES LAGER LAGER PREMIUM LAGER ALCOHOL
CIDER
the rush.
PREMIUM
SUPER
CANNED PREMIUM BIG BRAND VALUE
WORLD LAGER STRENGTH
ALE & CIDER PREMIUM LAGER LAGER
LAGER
STOUT

PREMIUM BIG BIG


TRAD.
& BIG BRAND BRAND BRAND BIG BRAND
CANNED
EVERYDAY PREMIUM LAGER PREMIUM STANDARD STANDARD LAGER
ALE
CIDER LAGER LAGER

BIG BIG
STRONG
EVERYDAY BIG BRAND BRAND BRAND BIG BRAND
& VALUE
CIDER PREMIUM LAGER PREMIUM STANDARD STANDARD LAGER
CIDER
LAGER LAGER

Display your products to reflect what shoppers are buying


Stock your fixture as follows: Ale & Stout 9%, Cider 20%, Lager 68%, Alcopops 3% and follow
diagram for best-practice display positions and shelf space allocation for sub categories

MustStocks2010.indd 11 26/07/2010 18:15:05


WInes & spirits

A lot of bottle!
T
he wine category Brands at the bottom end Top 10 Wine Brands 2010
grew by 1.3% to of the Top 10 fared better,
reach £1.47bn in the with Wolf Blass up 6.6% to Sales 2009 Sales 2010 Year on
impulse channel £25.4m, Concha Y Toro up Year
Change
during the year to May. 15% to nearly £24m and
Blossom Hill heads the Oyster Bay rising by 18.7% Total light wine £1,452m £1,472m 1.3%
table, with a 7.4% increase to to just more than £19m.
£122.5m. A limited edition Henry Currie, national 1. Blossom Hill £113.97m £122.45m 7.4%
of its White Zinfandel in sales manager for Oyster 2. Echo Falls £61.35m £70.52m 14.9%
the run-up to Christmas Bay in the UK, says: 3. Gallo Family Vineyards £82.73m £61.03m -26.2%
4. Jacob’s Creek £64.35m £57.22m -11.1%
2009 helped the brand “During a year of
5. Hardys £44.16m £44.38m 0.5%
capitalise on its success tremendous change we
6. Stowells £44.62m £29.19m -34.6%
in the rosé category, have been consistent in 7. Lindemans £32.32m £26.02m -19.5%
while in February our approach, ensuring 8. Wolf Blass £23.85m £25.42m 6.6%
it developed a new our pricing and 9. Concha Y Toro £20.84m £23.97m 15%
California Pinot Grigio promotional activity 10. Oyster Bay £16.01m £19.01m 18.7%
to tap into increasing balanced with our Source: Nielsen, data to May 2010
consumer demand for super-premium market
the grape variety. More positioning.”
recently it invested £1m Outside the Top 10,
Top

10 Spirits Brands 2010
in a summer campaign the fastest growing Sales 2009 Sales 2010 Year on
entitled “Summer brands were Arniston Year
Perfectly Served”, centred Bay (13), up nearly 40% Change
on its sponsorship of to £16.2m, and Isla Negra Total spirits £918.1m £907.7m -1.1%
Wimbledon. (14), up by 120% to £15.7m.
Second placed Echo Falls grew Neil Barker, UK commercial 1. Smirnoff Red Label £100.8m £102.8m 1.9%
by 15% to £70.5m. Paul Hillier, director for Fosters EMEA, whose 2. Glen’s £95.9m £90.7m -5.4%
European consumer marketing brands include Wolf Blass and 3. Bell’s Original £46.9m £58.5m 24.8%
controller for Echo Falls at brand Lindemans, says: “The good 4. The Famous Grouse £36.2m £38.1m 5.3%
owner Constellation Europe, news is that the impulse wine 5. Gordon’s £29.7m £31.2m 4.8%
puts the brand’s success down to category is increasing in value and 6. Jack Daniel’s £29m £27.4m -5.3%
7. Bacardi Superior Rum £27.2m £25.1m -7.5%
its focused consumer targeting, is demonstrating year-on-year
8. High Commissioner £21.1m £21.2m 0.6%
including sponsorship of Channel growth and we predict this growth
9. Chekov Imperial £20.3m £18.7m -8.1%
4’s Come Dine With Me and the is set to continue if retailers put 10. Baileys Original £13.9m £13.6m -1.9%
launch of a new variant, Echo Falls the right emphasis on their wine
Source: Nielsen, data to May 2010
Spritz. offering.”
Hardys, in fifth place, grew by
0.5% to reach sales of £44.4m. Neil Spirits bottle is price-marked at £8.99. Bell’s was boosted by a
Anderson, European marketing The spirits category recorded a “It’s important to clearly display £2.3m Christmas 2009
controller for Constellation’s slight drop in sales during the year, the pricing using POS to ensure campaign with the theme
Australia and New Zealand wines, falling by 1.1% to £908m. that shoppers can see the value of “Spirit of Arthur Bell”.
says: “Hardys has developed a Category leader Smirnoff for money they are getting,” says Its more recent Father’s
leading brand proposition as the Red Label grew by nearly 2% Helen Facey, senior brand manager Day initiative featured
wine for food occasions. This to £102.8m, increasing its lead for Smirnoff. an on-pack “No.1
association has been promoted at over second-placed Glen’s, which In addition, Diageo has recently Dad” rosette for dads
point of purchase, in marketing dropped by 5.4% to £90.7m. redesigned the packaging across to wear as a badge,
and in particular through Hardys’ Smirnoff has been particularly its Smirnoff No.21 vodka and giving it extra appeal
high-profile sponsorship of Come active, launching Lime and Green Smirnoff Flavours range. as a gift.
Dine With Me.” Apple flavoured vodkas last The advertising campaign for Fastest growing
Gallo Family Vineyards suffered year, with an additional £2.5m Gordon’s Gin featuring celebrity brands outside the
a 26% drop to £61m, while Jacob’s marketing campaign in the spring. chef Gordon Ramsay also seems to Top 10 included 1860
Creek fell by 11% to £57.2m. Other Earlier this year brand owner be paying dividends, with sales up Imperial (18), up by
well-known brands that saw a Diageo GB rolled out a new by 4.8% to £31.2m. But the stand- 13.5% to £7.7m, and
drop-off included Stowells (down 500ml bottle size for Smirnoff out performance came from Bell’s Russian Standard (20),
by 34.6%) and Lindemans (down No.21 vodka within cash and Original, up by nearly a quarter to which increased sales
by 19.5%). carry and convenience. The 500ml reach £58.5m. by 12.2% to £6.5m. IRN

12 Convenience MustStocks Independent Retail News

MustStocks2010.indd 12 26/07/2010 18:15:13


Sometimes
it pays to
seek out the
wines your
customers are
looking for.

Oyster Bay is proudly the number 1 selling New Zealand


Sauvignon Blanc, Chardonnay, Pinot Noir and Merlot in
the United Kingdom.*
With strong growth and an average price point of £6.51
against a total category average of £4.50, Oyster Bay
undoubtedly presents your greatest opportunity to profit
from the New Zealand wine category.

Sometimes the world


really is your oyster.

oysterbaywines.com Source: MAT 12/06/10 AC Nielsen.

MustStocks2010.indd 13 26/07/2010 18:15:15


BIsCUIts & snACKs

snacks on the attack


A
lthough only about
15% of biscuits are sold
top 10 Biscuit Brands 2010
through impulse stores, Sales 2009 Sales 2010 Year on
the biscuit category did Year
enjoy 3.4% growth in the sector Change
last year. Total biscuits £314m £324.8 m 3.4%
McVitie’s Digestives is the
category leader, with sales up by 1. McVitie’s Digestives £29.8m £30.2m 1.5%
1.5% to £30.2m. Hobnobs and 2. Kit Kat £12.4m £12.4m 0.1%
Jaffa Cakes both declined, but 3. McVitie’s Hobnobs £13m £11.8m -9.3%
Crawford’s was the highest riser in 4. McVitie’s Jaffa Cakes £12.3m £10.8m -12.2%
the Top 10, with sales up by 32% 5. Kellogg’s Rice Krispies £7.6m £9.6m 26.2%
to £7.6m. 6. Maryland £8.3m £9.2m 10.7%
7. Kellogg’s Nutri-Grain £8.4m £8.8m 4.6%
United Biscuits (UB), whose
8. Crawford’s £5.8m £7.6m 32%
brands include McVitie’s and
Bagged snacks 9. Fox’s Creams £5.7m £6.7m 17.7%
Penguin, puts the success of 10. Penguin £5.5m £6.1m 10.8%
its brands down to “marketing The crisps, snacks and nuts
Source: Nielsen, data to May 2010
support through TV advertising category grew by 2% in impulse
and engaging consumer on- stores over the year, but this was
pack promotions”. The McVitie’s a slower rate of growth than the
top 10 Bagged snacks Brands 2010
Digestives range underwent a 50% category showed in the grocery Sales 2009 Sales 2010 Year on
reduction in saturated fats earlier sector as a whole. Nevertheless, Year
this year, with the fact promoted on the impulse sector remains of huge Change
TV at the beginning of 2010 with importance to the category, with Total crisps, snacks and nuts £539.1m £549.9m 2%
a four-week advertising campaign one-quarter of total sales.
that helped grow sales. Walkers crisps, of course, is 1. Walkers Crisps £147.7m £141.9m -3.9%
The brand appeared on TV the pillar brand here, with sales 2. McCoy’s £40.2m £41.4m 3.1%
screens for a second time in March of nearly £142m, despite a dip 3. Doritos £33m £37.4m 13.3%
with a campaign that promoted its of 3.9% over the period. During 4. Pringles £36.9m £30.2m -18.1%
“Dunk or Not” on-pack promotion. summer 2010 Walkers launched the 5. Quavers £21.6m £23.7m 9.3%
Penguin performed particularly “Walkers Flavour Cup” campaign – 6. Monster Munch £15.9m £23.3m 46.6%
7. Hula Hoops £21.6m £20.1m -7%
well, with sales up by 11%, a fact its biggest-ever flavour promotion.
8. Kettle Chips £20.2m £18.8m -6.8%
that Nick Stuart, commercial Next in the pecking order is
9. Mini Cheddars £15.2m £16.9m 10.7%
manager at UBUK, says is largely United Biscuits (UBUK) brand 10. Sensations £15.1m £14.7m -2.6%
down to the brand’s activity earlier McCoy’s, whose sales climbed by
Source: Nielsen, data to May 2010
this year, including the launch of a 3.1% to reach £41.4m. The brand
new mint variant. kick-started the year with a £2m
This year also saw Penguin marketing campaign to target that asked consumers to create of 2008, it has continued to grow.
return to TV screens after a seven- football fans, which included a six- their own 30-second adverts In 2009, building on its nostalgic
year absence, as part of a £1.5m month sponsorship deal with radio and submit them for review by a appeal, Monster Munch launched
campaign to promote its new station talkSPORT and the return celebrity panel. “Watch It, Love It, a retro t-shirt on-pack promotion
partnership with WWF, which of its “Man Crisps” advertising. Share It” promotional packs then across its range of 40g and 85g
included an on-pack promotion This was combined with football- encouraged customers to watch and price-marked packs.
and new Penguin website. themed limited edition flavours share the top 15 ads. Another big climber was Mini
McVitie’s Caramels was the fastest Chicken Winger and Sausage The biggest climber was Monster Cheddars, which grew by 10.7%.
growing brand sitting outside the Striker. Munch, which put on a 47% Nick Stuart, commercial manager
Top 10 category; it grew by more Third-placed Doritos showed growth spurt to hit £23.3m. Having for the brand, said: “UB has seen
than 18% to reach sales of £3.8m, growth of more than 13%. It re-launched specifically for the great results for its Mini Cheddars
placing it in 17th position. New launched a “King of Ads” campaign impulse channel at the back end brand for 2010 following the
product development (NPD) increased exposure generated by
included Weetabix Oaty Bars and the brand’s return to TV screens
Cadbury Mini Fingers Snackbites. nationwide at the end of 2009.”
They contributed 12.1% and 11.3% Outside the Top 10, the fastest
respectively to NPD growth. growing brands were Tyrrells
Maryland’s growth was down to Crisps (15), up by almost 50% to
TV adverts earlier this year, plus its £7.4m, and Walkers Max, up by
price-marked packs strategy. 41% to £5.4m. IRN

14 Convenience MustStocks Independent Retail News

MustStocks2010.indd 14 26/07/2010 18:15:18 CARA


Got a welfare problem?

Feeling blue? Having financial trouble?

Maybe a bit off colour? Or going through a bad patch?

Don’t forget, your industry charity is always


here for personal support or advice.

Just freephone 08088 02 11 22


or visit us at www.caravan-charity.org.uk

Caravan is the trading name of the National Grocers Benevolent Fund, A Registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England and Wales No 4620683.

CARA-0100_HelplineAd_AW1.indd
MustStocks2010.indd 15 1 12/07/2010
26/07/2010 17:33
18:15:18
bread

Making a crust
T
he market for plant bread Top 5 Bread Brands 2010 combination of wholegrain oats
dropped by 2.6% this and wheat flour and tapping into
year, whereas a year ago Sales 2009 Sales 2010 Year on the growing consumer demand for
Year
it was growing by 8%. Yet healthier food options. The launch
Change
the category, of course, remains – which was also backed by TV
a key footfall driver for the Total plant bread £460.4m £448.4m -2.6% advertising – came hot on the heels
independent trade and the impulse of the introduction of its small-
channel accounts for nearly a 1. Warburtons £163.2m £159.4m -2.3% format Little Big Loaf. In April
2. Kingsmill £97.3m £97.7m 0.4%
quarter (24%) of bread sales. this year, Kingsmill partnered with
3. Hovis £77.4m £79.9m 3.3%
Warburtons fell back by 2.3% Britain’s Got Talent for an on-pack
4. Roberts £23m £25.2m 9.5%
to £159m during the year, after 5. Brace’s £20.1m £19.1m -4.8% promotion, whereby consumers
recording 11% growth a year could collect tokens to win tickets
Source: Nielsen, data to May 2010
earlier. Kingsmill held firm at to the show.
£97.7m, while Hovis increased Hovis has also been tapping
sales by 3.3% to just less than climate. Standard white breads retailers offer their customers not into the potential of oats with the
£80m. The fastest growing brand enjoyed an upsurge at the start of only the best-selling SKUs but also launch in April of Hovis Hearty
was Roberts Bakery, which grew the recession, but more recently a range of new products in order Oats, backed by a £5m media
by 9.5% to hit sales of £25.2m. shoppers have begun to trade to keep their offering fresh and campaign.
Carolyn Chadwick, marketing up again to healthier and more appealing.” Overall, the brand’s big idea has
manager at Frank Roberts & Sons, premium breads, with healthier Kingsmill has also been active, been its move to 100% British
says: “The Roberts Bakery brand whites and seeded varieties becoming in June 2009 the wheat across the whole Hovis
continues to go from strength enjoying the strongest growth. first bread manufacturer in the range. Another £5m campaign ran
to strength. The independent Martin Garlick, category director UK to use the Carbon Trust’s for six weeks from 12 February
convenience trade is a key part at Warburtons, says: “Despite the Carbon Reduction Label on pack, 2010. It featured four separate
of our business and in response difficult economic climate of late, highlighting its commitment to commercials, each showing a
to overall market decline in this bread remains a staple product reduce its carbon footprint. In different Hovis loaf, including
sector we have recently re-focused for many consumers and as such September 2009 it returned to TV Soft White, Wholemeal, Best of
our van sales team to enable us to the category remains vitally screens with the start of an £11m Both and Granary. Each advert
place more focus on driving sales important to independent retailers. campaign spread over 12 months. featured a different person making
specifically through this channel. Consumers continue to look for Its big news this year was the a sandwich before cutting it into
“We have also streamlined our quality products, particularly when launch in January of Kingsmill eight pieces to create a Union Jack
range in a number of areas to make it comes to staples such as bread. Oatilicious, baked with a shape. IRN
it work harder in terms of driving
sales and maximising availability New products
from limited shelf space in smaller “However, consumers are
stores. Despite being a regional also looking for value from
brand our penetration is rising the products they buy – not
steadily.” necessarily the cheapest, but the
product that delivers the greatest
Economic woes overall value in terms of the
The convenience trade lost out last product, its price and quality
year as multiple grocers increased and suits their needs best. It is
the number of loaves on multi- important that retailers allocate
buy deals and the offers have adequate shelf space to the top-
continued in 2010 with the likes selling bakery SKUs in order
of Asda’s “three for £3” deal on to maximise sales and profit
Kingsmill Great Everyday White opportunities.
800g. As shoppers have stocked “With a raft of NPD welcomed
up their freezers with these offers, into the bread category over
convenience stores have lost out the last year, including several
on top-up purchases. new launches from Warburtons
According to Warburton’s latest – comprising two new SKUs
Bakery Review, published last from our 600g range, two new
autumn, nearly half of all bread farmhouse loaves, brown and
shoppers have bought more bread grained variants, and two unsliced
on promotion due to the economic tiger loaves – it is important

16 Convenience MustStocks Independent Retail News

MustStocks2010.indd 16 26/07/2010 18:15:21 20078


Growing...
With sales up 9.5%* Roberts Bakery
is driving sales as the fastest growing
major bread brand in convenience

Going...
Which means our much loved
bread won’t be staying on your
shelves for long

Gone
So stock up as more and more
consumers discover the great taste
and freshness of a Roberts loaf

Don’t miss out on a regional


favourite. If you’re in our area then
get in touch - our van sales team
are dedicated to driving growth
through the convenience channel.

Call us now on
01606 818030
sales@robertsbakery.co.uk • www.robertsbakery.co.uk Baked with a pride you can taste
*source:  Nielsen Scantrack: 52w/e 15/5/10

200783 Roberts Trade Ad_FIN.indd


MustStocks2010.indd 17 1 23/07/2010
26/07/2010 15:32
18:15:22
Indep

CereALs

Breakfast business T
s
tocking the best-selling content of the average chocolate- top 10 Cereal Brands 2010
cereals can “tick all flavoured breakfast cereal.
Sales 2009 Sales 2010 Year on
the right boxes” for Chocolate Weetabix launched Year
convenience retailers, on 12 July and will be backed by Change
especially if they are merchandised a £3m national TV advertising
alongside related products such campaign from September after Total cereals £139.5m £142.7m 2.3%
as milk, bread and newspapers. it has rolled out across all major
1. Weetabix £16.2m £16.5m 2.3%
Some 9.7% of cereal sales are retailers. The product is aimed at
2. Kellogg’s Special K £10.8m £11m 1.8%
made through impulse outlets, and filling a gap in the market for a 3. Kellogg’s Crunchy Nut £10.3m £10.5m 2.2%
although this is down slightly on healthier breakfast cereal that will 4. Kellogg’s Cornflakes £9.7m £9.7m -0.3%
last year’s 9.8%, it still indicates the appeal to both mothers and sweet- 5. Kellogg’s Coco Pops £7.6m £7.6m -0.2%
importance of cereals to the top- toothed children. 6. Quaker £5.7m £6.5m 14.7%
up shopper. “A healthier cereal that meets 7. Kellogg’s Rice Crispies £5.7m £6.3m 10.5%
The cereals market was up by the requirements of mums and 8. Nestlé Shredded Wheat £5m £4.6m -6.5%
2.3% last year in the impulse children is the holy grail of 9. Nestlé Cheerios £4.9m £4.6m -4.7%
sector, with total sales rising to breakfast time,” says Sally Abbott, 10. Nestlé Shreddies £4.8m £4.6m -4.1%
£142.7m. Weetabix leads the marketing director for Source: Nielsen, data to May 2010

category with sales of £16.5m Weetabix. Chocolate


(also up by 2.3%) and is followed Weetabix is “the answer is one brand reaping the
by Kellogg’s brands Special K, stressed mums have benefits of that. We’ve up-
Crunchy Nut, Cornflakes and been searching for years weighted our speciality
Coco Pops, all of which saw sales to find,” she claims. accounts team to provide
remain relatively static or increase greater support to our
slightly. promotional push customers and we are
Special K’s sales, for example, Weetabix returned committed to being more
were up by 1.8% to £11m. The to TV screens at the visible in-store to offer our
brand launched a £3m media end of 2009 with the advice on merchandising,
campaign in January in a bid to “Someone’s Had Their promotions and anything
cash in on the New Year slimming Weetabix” campaign, else that can help drive
market and also unveiled new which continued into sales.”
packaging. 2010. The advertisement Kellogg’s says it has
Market leader Weetabix has seeks to use humour changed its TV advertising
moved to consolidate its position to show how having to show customers they
with the launch of Chocolate a good breakfast can can buy Crunchy Nut in their local
Weetabix, which it claims contains set you up to meet the makes it the perfect partner for convenience store as well as in
the same wholegrain content as day’s challenges. Weetabix says Weetabix.” grocery multiples. Recent adverts
Weetabix but just half the sugar the campaign has reinforced its Weetabix launched a series of show customers buying cereal in
position as Britain’s best-loved four new pack designs between an independent store and a petrol
breakfast cereal. March and May this year, each station forecourt.
The brand has also teamed up featuring a wheat sculpture from Two brands that saw their sales
with Disney Pixar to launch a the 2009 “Weetabix Wheat Art” increase were Kellogg’s Rice
Toy Story 3 on-pack promotion farmers’ competition, which it says Crispies, up by 10.5% to £6.3m
offering thousands of Toy Story underlines its support for British and Quaker, up by nearly 15%
prizes. From July the promotion farmers. to £6.5m. Quaker cashed in on
has been supported by TV Kellogg’s says targeting the the cold snap during December
advertising. It features on packs of convenience and impulse markets to grow sales of Quaker Oats by
Weetabix, Weetabix Minis, Oaty has helped drive up Crunchy Nut 15.2%, outperforming strong
bars and Weetos. sales values by 45% in the total category growth and ending the
Weetabix is giving away family breakfast cereal market. year on a high. At the back end
holidays to Florida every month as of 2009 Quaker also introduced
part of the promotion, as well as Convenience sector Paw Ridge, an oat-based porridge
kits of Toy Story prizes. Says Chris McLaughlin, head of designed specifically for kids.
Paul Goold, senior brand speciality accounts at Kellogg’s: Outside the Top 10, Alpen (15)
manager for Weetabix, says: “Toy “We placed a huge emphasis on saw sales in impulse increase by
Story 3 is set to be massive and has the convenience and impulse 23%, while Kellogg’s Fruit n’ Fibre
strong appeal to families, which markets in 2009 and Crunchy Nut (14) was up by 8.6%. IRN

18 Convenience MustStocks Independent Retail News

MustStocks2010.indd 18 26/07/2010 18:15:25


Independant Retail News:Layout 1 21/7/10 13:45 Page 1

A L B R A N D
N o .1 C E R E
TH E U K ’s S E N TS **

L Y P R E
PROUD

£3 MILLION
TV LAUNCH CAMPAIGN

NICKELODEON
SPONSORSHIP

Available in 10x24s pk

Half the sugar of the average chocolate cereal*


*15.9g of sugar per 100g compared with 31.8g average of other chocolate flavoured cereals. Category average figures calculated April 2010.
**Nielsen data: Total Value Category Sales (£M) MAT 15/5/10

MustStocks2010.indd 19 26/07/2010 18:15:25


COnFeCtIOnerY

sweets tempered
t
he chocolate confectionery next month (August).
category within the But the star performer was top 10 Chocolate Confectionery Brands 2010
impulse channel recorded Cadbury’s Wispa bar, which Sales 2009 Sales 2010 Year on
a 2.2% fall in sales and also recorded a 38% leap to just over Year
lost share to the grocery multiples £35m. The brand consolidated Change
over the year. its comeback with an advertising Total chocolate confectionery £1,173m £1,147m -2.2%
Cadbury Dairy Milk remains far campaign entitled “For the Love
and away the market leader, despite of Wispa” and the return of Wispa 1. Cadbury Dairy Milk £168.8m £169.5m 0.4%
growing by just 0.4% to £169.5m. Gold, its caramel-centred variant, 2. Galaxy £95.8m £99.7m 4%
It was a busy year for the number in September 2009. Only last 3. Maltesers £58.2m £54.6m -6.2%
one brand, with its Cadbury Dairy month (June) it launched new 4. Kit Kat £47.5m £48.5m 2.1%
Milk Buttons gaining Fairtrade Wispa Duo. 5. Mars £47.2m £45m -4.7%
accreditation in February, almost Further new launches within the 6. Cadbury Wispa £25.5m £35.1m 37.9%
one year since parent Dairy Milk category in the past year included 7. Aero £31.9m £33.8m 6%
itself started carrying the logo. A Kit Kat Chunky Caramel (sales of 8. Snickers £31.5m £30.2m -4%
9. Twix £25.1m £24.5m -2.7%
new series of TV adverts for the £6.8m) and Galaxy Bubbles (sales
10. Cadbury Twirl £22.4m £21.6m -3.6%
brand featured the “Chocolate of £3.1m).
Source: Nielsen, data to May 2010
Charmer” – a master chocolate
maker at work. sugar confectionery
Galaxy, in second place, saw sales Gums and jellies were the big top 10 sugar Confectionery Brands 2010
increase by 4% to £99.7m. Growth winners in sugar confectionery Sales 2009 Sales 2010 Year on
was helped by two new large- over the past year, despite an overall Year
format additions to the Galaxy drop for the category of 1.6%. Change
range: large-format Galaxy Cookie The Rowntree brand from Nestlé Total sugar confectionery £577m £567.7m -1.6%
Crumble and large-format Galaxy strengthened its position with a
Caramel. Galaxy Bubbles was the 16.6% sales increase to £45.1m, 1. Wrigley’s Extra £85.3m £79m -7.4%
range’s biggest launch for 2010. It largely driven by Randoms, which 2. Rowntree £38.6m £45.1m 16.6%
consists of Galaxy Milk Chocolate generated sales of £9.4m. Launched 3. Haribo gums and jellies £31.2m £35.8m 14.5%
in the same bar format but with a in 2009 and targeted at 16- to 4. Maynards £32.8m £30.7m -6.2%
light, aerated chocolate centre. 24-year-olds, Rowntree’s Randoms 5. Wrigley’s Airwaves £17.8m £20m 11.9%
In February the Rainforest sold more than 30 million units 6. Trebor Softmints £19.5m £18.1m -7.5%
Alliance Certified seal appeared on in the first 12 months “It was the 7. Polo £16.7m £17.3m 3.8%
all packs of Galaxy Milk chocolate biggest sugar impulse launch the 8. Starburst £18.3m £15.3m -16.4%
9. Trebor Extra £14.3m £14.7m 2.3%
bars in the UK & Ireland. UK has ever seen,” says Nestlé trade
10. Bassett’s £13.8m £13.1m -5.1%
Maltesers saw a 6.2% year-on- communications manager Graham
Source: Nielsen, data to May 2010
year sales reduction, but was still Walker.
worth £54.6m. The brand received Nestlé is launching a new
heavy promotion, including limited Randoms 195g sharing bag from 23 Maynards reckons its Wine
edition, redeemable tear-off pouch August 2010, which will contain 10 Gums is the top seller in the
strips. new shapes. sugar bag sector for independent with sales of £79m,
Solid sales were also achieved Third-placed Haribo also retailers, and is worth £19m despite a sales drop of 7.4%.
by fourth placed Kit Kat, up performed strongly, up by 14.5% annually. Wine Gum roll packs are Sixth placed Trebor Softmints are
2.1% at £48.5m, and seventh to £35.8m. In 2009, the brand the sector’s second biggest sugar the biggest sellers in their category,
placed Aero, which enjoyed a 6% introduced a variety of new single. and together with the brand’s Extra
demand increase to £33.8m. For innovations, including Super Sour The brand is being marketed on Strong mints are worth some £54m
Kit Kat, 2010 was mostly about Monsters, Fruity Frutti and Funny television with a £2m campaign, a year.
big events, including its “Perfect Mix, its first bagged sweets suitable and there are specific marketing Polo enjoyed a healthy 3.8%
Break” and “Cross Your Fingers” for vegetarians. “Value for money moves for lines like Fruit Duos, sales rise this year. It has been
on-pack promotions. The third big and variety are key to keeping which are being offered in new the subject of a £2.5m marketing
promotion, “Music Break”, launches consumer interest flavours and as limited editions. campaign using a mix of outdoor,
and ultimately In chewing gums it was Cadbury’s consumer competitions and
driving sales,” says Trebor Extra Strong Gum that led online promotions. From August,
Herwig Vennekens, new product development, helping it is launching its biggest piece of
Haribo managing the brand achieve a 2.3% sales marketing activity for 10 years,
director. uplift to £14.7m. But Wrigley’s the £2.5m “Are You a Sucker or a
Fourth placed Extra remains the runaway leader Cruncher” campaign. IRN

20 Convenience MustStocks Independent Retail News

MustStocks2010.indd 20 26/07/2010 18:15:28


S ales keep
u b b
b d upling
up an

i n g l e has
ain
Maintevels ®
B u b bles S 10
l G AL A XY to the Top
stock atch • cketed in g l es*
and w rise ro S i n
N o w Choc ssful
sales Ea t
most r s u c c e
es t a n d
ve
• BigLgAXY ® launch e and
GA i b ution
i s t r
S t rong d mance
• rfor
ROS pe

*IRI : Grocery Impulse Outlets Value ROS 12 w/e to 24th April 2010 Excl Eat Now Kids sgls. ©Mars 2010. GALAXY® is a registered trademark of Mars 2010.

MustStocks2010.indd 21 26/07/2010 18:15:28


Simple Steps t
Did you know…more than 80% of all confectionery sales in small
shops come from the main fixture – this is the first place a retailer
should focus on.

Group similar products together

1 2 3
Hunger Snack
The first decision a shopper makes when
buying confectionery is what type of
Fruit refreshment Mint refreshment
product they want. Nestlé Confectionery
terms this ‘need states’.
Pleasure Play
Retailers should merchandise by need
state to make it easier for shoppers to
find what they are looking for on fixture. Everyday treats

Place best sellers in the best


Mint refreshment

1 2 3
positions
Snack Hunger
The best selling products within each
need state should be placed in ‘hot
Play
spots’ on the main fixture. Pleasure

These products also act as beacon


Fruit
brands for the need states, guiding Everyday treats
refreshment
shoppers to the right area of the fixture.

Allocate space according to sales

2 3 Retailers should multi-face the best


sellers in each need state. This helps
ensure the availability of these products,
as well as their visibility so shoppers can
easily find what they are looking for.

Stock best-selling products within each


need state in order to provide maximum
choice for shoppers.

By simply following these three easy steps and taking a shopper-based


approach to confectionery, retailers can increase sales by 8%1

MustStocks2010.indd 22 26/07/2010 18:15:30


s to Sweeter Sales!
With 70% of confectionery bought on impulse, retailers should
use shopper insight to place secondary sitings in store to maximise
incremental sales.

Permanent solutions:
NEW

Clip on impulse unit Three Tier


Impulse units adjacent Counter unit
to magazines can Placing a counter unit
increase sales by at the till can increase
up to 15%1. sales by up to 18%1.

Temporary POS: Retailers can generate incremental sales by executing product


launches and promotions in store with temporary POS.

Floorbin: Window Bill


Placing a floorbin in a high
traffic area, whilst using a
price promotion, can increase
sales by up to 450%1.

Counter unit: Placing a


counter unit at the till can
Wobbler
increase sales by up to 18%1.

Abdul Jabar from Waller Stores,


Luton says:
“This year, along with our local Nestlé Confectionery
representative, Ilse Evans, we remerchandised our main
fixture by consumer need states. We’re delighted with the
results as total confectionery sales have grown by over 15%!
Secondary sitings have also proven to work really well, in particular
our permanent confectionery counter unit, which has increased
impulse sales by 18%.
Since we implemented the changes our sales have grown significantly,
which ultimately means there’s more money in the till.”

1. Nestle Field Audit 2008

MustStocks2010.indd 23 26/07/2010 18:15:32


BUtters And spreAds

spread the word


t
he butters and top 5 Butters & spreads Brands 2010
spreads category
dipped by 1.7% Sales 2009 Sales 2010 Year on
Year
in impulse stores
Change
over the period, falling by
£1.5m to £143m. Total butters and spreads £145.5m £143m -1.7%
That’s still not a bad
performance in the light of 1. Lurpak £30.62m £30.54m -0.3%
the aggressive promotional 2. Flora £27.11m £25.04m -7.6%
3. Clover £12.22m £12.75m 4.3%
activity on the part of the UK’s
4. Utterly Butterly £11.17m £12.06m 8%
large supermarkets in the past 18
5. Anchor £11.97m £10.09m -15.7%
months. Price promotions such as featuring TV ads that “explore the
Source: Nielsen, data to May 2010
bogofs and half-price deals have pride and sense of achievement felt
taken away from convenience when cooking from scratch”. The
sales, with consumers buying into first advert in the “Joy of Creation” Marketing for the mainstream Utterly Butterly, in the number
deals when they see them. As a campaign featured a man baking a Flora brand during the period four slot, increased sales by 8%
result, consumers have in effect steak-and-ale pie. included the launch of the third to more than £12m. Brand owner
been stocking up on butters and The advertising was designed year of its successful “Cooking Dairy Crest says it can be found
spreads, which has hit the number to build on the award-winning with Schools” campaign, which in one-third of UK household
of top-up shopping missions. “Good Food Deserves Lurpak” delivers a healthy eating message fridges and claims its 500g tub is
Despite these challenges, butters campaign and has been supported to the nation’s children. The the number one SKU within the
and spreads remain important by 5,000 outdoor posters, branded activity, which ran until the end convenience sector.
stock lines for independent lorries and a new website. of March, included a dedicated This year Dairy Crest is investing
retailers. “Butters, spreads and The second advertisement TV advert featuring celebrity £3m to further build the brand’s
margarines are a valuable category featured a woman baking a cake chef Gary Rhodes. Six out of strength and push home its key
for convenience stores, where in her kitchen at home, getting 10 primary schools in the UK messages of “irresistible taste”
products are most frequently sticky and messy in the process. It have already registered with and “70% less saturated fat than
bought as top-up items or distress finished with the line “You don’t the programme and more than butter”. Utterly Butterly went
purchases,” says Kimberley Green, measure taste with a spirit level”. £500,000-worth of tokens have back on TV in July 2010 for a
manager of Partners for Growth, Second-placed Flora dipped been collected since Cooking with seven-week period, with the aim
Unilever’s category management by 7.6% to just more than £25m Schools” launched in 2008. of maintaining the brand’s strong
initiative. in sales. Its activity this year has Clover, at number three, was position as well as driving further
Others say the current economic included the launch of Flora pro. up by 4.3% to £12.75m. A brand success.
climate and the rise in baking, activ Buttery – a new variant of re-launch in 2009 included new Additional brand activity this
cooking and food preparation at its cholesterol-lowering pro.activ TV adverts, through-the-line summer includes new Utterly
home have benefited the category. spread brand. The new addition to marketing support, new packaging Butterly 250g ‘plus 100% extra
Category champion Lurpak – the range aims to trade consumers and a new logo. In June 2010 free’ marked promotional packs
which saw sales hold more or less up into cholesterol-lowering Clover expanded its range with the targeted at the convenience
steady at £30.54m and currently products and increase frequency launch of Clover Lighter 1kg. The channel. IRN
holds a 21% market share – has of purchase among existing users. launch makes up part of the £5m
tapped into this sentiment with The launch is being supported support for the brand in 2010.
a £12m marketing campaign by a £1m marketing investment, The 1kg tub launch aims to
throughout 2010 including a dedicated TV encourage current Clover
campaign. Lighter buyers to
Caroline trade up to a bigger
Banquet, tub, increasing their
Flora pro. weight of purchase,
activ brand and also to attract
manager at Unilever larger households to the
UK, says: “Buttery brand. Lighter variants
spreads is the fastest- are driving the growth of
growing segment dairy spreads, which are
within the category themselves growing faster
as taste is a key driver than the butters, spreads
for consumers, even and margarines category as
those concerned with health.” a whole.

24 Convenience MustStocks Independent Retail News

MustStocks2010.indd 24 26/07/2010 18:15:35


MustStocks2010.indd 25 26/07/2010 18:15:36
CHeese

nice ‘n’ cheesy does it


H
ard cheeses enjoyed introduction of a new-look top 5 Hard Cheese Brands 2010
a good year as far as Cathedral City snacking range,
sales were concerned, incorporating Cathedral City with Sales 2009 Sales 2010 Year on
increasing in value by Crackers & Pickle, Cathedral City Year
Change
nearly 22% within the impulse with Pickle, Cathedral City Mature
channel to hit sales of £141m. Minis and Snackpack. The new Total hard cheese £115.62m £140.98m 21.9%
Dairy Crest’s Cathedral City snacking range has clear, on-pack
was the top brand in hard cheese, communication, says Dairy Crest, 1. Cathedral City £19.95m £21.07m 5.6%
growing by 5.6% to just more gives a stronger presence in-store 2. Wyke Farms £12.62m £12.44m -1.4%
than £21m. In second place, Wyke and enables the brand to appeal to 3. Pilgrims Choice £5.72m £5.86m 2.4%
4. Seriously £2.68m £3m 12%
Farms saw sales ease by 1.4% to a wider audience.
5. Happy Shopper £2.82m £2.23m -21%
£12.4m, while Pilgrims Choice, in
third, grew by 2.4% to £5.86m. processed cheese Source: Nielsen, data to May 2010

The biggest climber was the Within processed cheese it is


Seriously brand, from Lactalis, Dairylea, from Kraft Foods, that top 5 processed Cheese Brands 2010
which grew sales by 12% to £3m. continues to lead the pack, despite
Since November 2009, Dairy a 6.5% drop in sales to just under Sales 2009 Sales 2010 Year on
Year
Crest has invested £10m in a £35m. Its fall was broadly in line
Change
full re-launch of the Cathedral with that of the whole category,
City master brand, consisting of which dropped by 7.4% to £73.6m. Total processed cheese £79.58m £73.66m -7.4%
three clear phases of investment: Following its re-launch in 2008,
the launch of new packaging the brand hit TV screens for 1. Dairylea £36.97m £34.59m -6.5%
and advertising creatives from four weeks in March 2009 with 2. Cheesestrings £10.43m £9.98m -4.2%
3. Laughing Cow £4.54m £4.21m -7.4%
November 2009, embedding the adverts for Dairylea Dunkers and
4. Philadelphia £4.74m £3.87m -18.4%
new strategy throughout early Spreads, part of a £4.3m brand
5. Primula £3.33m £3.41m 2.5%
2010, and driving long-term campaign that year. In March
Source: Nielsen, data to May 2010
loyalty and growth through new 2010 it trumpeted its new “even
usage occasions in 2010 and 2011. cheesier” recipe with the start of a
£4.7m campaign that included TV, top 5 natural Cheese Brands 2010
Cheese slice online, in-store and POS.
Called “A Slice of Britain” Sales of second-placed Sales 2009 Sales 2010 Year on
Year
and narrated by actor Pete Cheesestrings, a Kerry Foods
Change
Postlethwaite, the advert gives a brand, dropped by 4.2% to just
snapshot of modern British life, under £10m, while Bel UK’s Total natural cheese (fixed weight) £25.11m £26.86m 7%
showing frequent cheese occasions Laughing Cow was down 7.4% at
and the role cheese plays in £4.21m. 1. Philadelphia £6.84m £7.51m 9.8%
everyday life. Cathedral City also Philadelphia’s processed cheese 2. Mini Bel £3.66m £3.38m -7.8%
3. Boursin £590,000 £1.02m 75%
launched a new website, at www. lines dropped 18.5% to £3.87m,
4. St Agur £490,000 £740,000 50.9%
cathedralcity.co.uk, and to drive but Primula rose 2.5% to £3.41m.
5. President £590,000 £640,000 8.6%
consumers to the site ran an on- Craig Brooks, marketing director
Source: Nielsen, data to May 2010
pack promotion called “Britain’s at Kavli, maker of Primula, says:
Got Favourites” that offered “Great taste, convenience and
consumers a chance to win their value for money are at the heart of ever. knowing every time they buy from
favourite prizes. the Primula brand and these values “Following that success, Primula the Primula brand, a proportion of
June 2010 saw the have been particularly has committed significant the profit goes to charities both in
important with consumers investment to developing new the UK and abroad.”
over the last 12 months. recipes for ongoing marketing Natural cheese brands (fixed
“A new recipe-led activity. These recipes will also be weight) grew in total by 7% within
focus supported by an available on the new-look Primula the channel to more than £26.8m.
integrated marketing website where visitors can sign up Philadelphia grew by 9.8% to
campaign incorporating for a monthly newsletter to receive achieve sales of £7.51m, but Mini
TV, print and online regular inspiration in the shape of Bel fell by 7.8% to £3.38m.
media demonstrated the our recipe of the month. Boursin and St Agur both
versatility of our range, “A packaging redesign has also recorded huge uplifts, with
broadening consumer brought into focus our unique Boursin rising by 75% to just
usage and resulting in our ownership structure, which gives over £1m and St Agur up 50% to
best Christmas trading period consumers the added benefit of £740,000. IRN

26 Convenience MustStocks Independent Retail News

MustStocks2010.indd 26 26/07/2010 18:15:40


MustStocks2010.indd 27 26/07/2010 18:15:41
YOGUrts, desserts And FLAVOUred MILKs

Feeling the chill


s
ales in the yogurts and investing a record £16m to ensure important one for flavoured flavoured milk Mars was down by
desserts category were Corner retains its leading position. milk, accounting for 29% of total nearly 6% to £6.7m. Galaxy held
slightly down during the “We undertook a major re- category sales. steady at £3m while Nesquick
past year, declining by launch of the Corner brand in Sales rose by 0.2% year on year increased sales by 4.1% to £2m.
0.5% to a total of £157.7m, but May with new Greek Style Yogurt to £50m but it was number one Outside the Top 5 there was also
that still means about 7.5% of the and new Fruit Corner variants brand Yazoo that saw the biggest some impressive growth. Ninth-
category is sold through impulse being added to the range, new increase among the Top 5, jumping placed Crusha was up by 10.5%,
stores. pack designs, the re-branding of by nearly 13% to £19m. tenth-placed Malteasers up 19.7%
Sector leader Müller Corner Snack Size as Müller Mini Corner Frijj, in second place, grew by and eleventh-placed Bounty rose
held relatively firm, dropping Yogurt and the backing of a 2.1% to £11.1m but third-placed by 24.3%. IRN
by 1.6% to just under £24m, but multi-media advertising campaign.
stablemate Müllerlight was down We’re confident the programme top 10 Yogurts & desserts Brands 2010
by 5.8% to £14m. of support activity, which includes
Sales 2009 Sales 2010 Year on
Star of the category was Danone sampling and TV sponsorship Year
Activia, whose 45% sales growth as well as the TV, press and Change
catapulted the brand into second outdoor poster ‘Thank You Cows’
place with sales approaching advertising campaign, will take the Total yogurts and desserts £158.5m £157.7m -0.5%
£17m. Helping drive the increase brand’s development on to a new
1. Müller Corner £24.32m £23.94m -1.6%
was the launch of Activia Single level in the year ahead.
2. Danone Activia £11.67m £16.95m 45.3%
Pots, which added £765,000 to the “We’re also backing Müllerlight, 3. Müllerlight £14.43m £13.59m -5.8%
brand in impulse. Müller Rice,Vitality and Cadbury 4. Petit Filous £6.56m £8.59m 30.9%
The company says the Single Twin pots with a range of 5. Yeo Valley Organic £7.39m £7.3m -1.2%
Pot format has allowed Activia marketing support including a 6. Cadbury £7.33m £6.79m -7.5%
to successfully enter the lucrative mix of TV and press advertising, 7. Müllerice £6.3m £6.04m -4.1%
snacking market, thanks to its on-pack promotions, sampling and 8. Onken Biopot £4.34m £5.04m 16%
‘grab-and-go’ limited edition lines.” 9. Weight Watchers £4.65m £3.54m -23.8%
format, variety Only five yogurt 10. Müller Amore £3.07m £2.71m -11.7%
of flavours drink brands Source: Nielsen, data to May 2010

and healthy enjoy


positioning. The annual top 5 Yogurt drinks Brands 2010
brand’s growth has sales of more than
also been driven £1m through the Sales 2009 Sales 2010 Year on
Year
by the launch of impulse channel and
Change
its “TLC” advertising the category is down by
campaign featuring former 4.7% year on year. Total yogurt drinks £14m £13.3m -4.7%
Eastenders actress Martine Number one brand Actimel,
McCutcheon. however, enjoyed a sales increase 1. Actimel £6.51m £7.38m 13.3%
Further big gains were recorded 2. Yop £2.22m £1.93m -13.1%
of 13.3% to £7.38m, buoyed by
3. Benecol £1.8m £1.72m -4.5%
by Petit Filous, up by nearly one- the launch of a new raspberry
4. Müller Vitality £1.84m £1.1m -40%
third at £8.59m, and Onken Biopot, flavour at the beginning of the 5. Yakult £1.33m £1.05m -20.8%
which rose by 16% to just over £5m. year. A TV campaign that shows
Source: Nielsen, data to May 2010
Jonathan Dee, Müller Dairy’s “Actimel drinkers making the most
interim marketing director, says: of their day to the bemusement
“Value growth in chilled yogurts of onlookers” has been on air
top 5 Flavoured Milk Brands 2010
and pot desserts as a whole has since the end of last year. Running Sales 2009 Sales 2010 Year on
slowed over the past year and there alongside this has been the brand’s Year
is a need to get growth back into sponsorhip of Lorraine Kelly on Change
the category through marketing GMTV. Total flavoured milk* £49.9m £50m 0.2%
and new product developments, Number two brand Yop declined
and encouraging convenience and by 13.1% to £1.93m, Benecol fell 1. Yazoo £16.8m £19m 12.9%
impulse stores to focus on stocking by 4.5% to £1.72m and Müller 2. Frijj £10.9m £11.1m 2.1%
the big brands. Vitality lost 40% of sales as it 3. Mars £7.1m £6.7m -5.9%
“Corner is still by far the biggest dropped to £1.1m. Yakult was also 4. Galaxy £3m £3m 0.1%
selling brand in the impulse in decline, falling by 21% to just 5. Nesquik £1.9m £2m 4.1%
sector. But brands can’t rest on over £1m. Source: Nielsen, data to May 2010
* includes ready-made and syrups and powders
their laurels and this year we are The impulse channel is an

28 Convenience MustStocks Independent Retail News

MustStocks2010.indd 28 26/07/2010 18:15:42 5422_


30 July 2010 30 July 2010 Independent Retail News 29

5422_IND_RETAIL_NEWS_AD_A4.indd
MustStocks2010.indd 29 1 21/7/10 17:39:36
26/07/2010 18:15:42
HOT SNACKING 1 THE KEPAK
WORTH £108M RANGE
6 Million households buy the Allowing retailers to compete with
category every year. 2
food service outlets.

A range of quick & easy microwavable

BR TV
O

O DS 20
burgers targeted at young males.

AN IN
N

UR A 1
WORTH:

RE 0
£56 Million – growing 22%
1

MUST STOCK LINES


1
Account for half of category sales

KEPAK BRANDS ACCOUNT FOR


94% OF CATEGORY SALES. 3 BIG EAT EVERY DAY LOW PRICE

Rustlers 82%
UGO’S 9%
Speedy Snacks 3% A range of delicious Hot Subs sandwiches
targeted at 16-24 year old males and females.
Other 6%
WORTH:
£5.3 Million in 7 months 1

RUSTLERS IS BIGGER THAN THESE


PRODUCTS IN CONVENIENCE4

A range of deli delicious Panini. A perfect hot


lunchtime solution targeted at working adults.
WORTH:
£10 Million - growing 3%
1 5

Source: *1 Nielsen 20/03/10 *2 Nielsen Homescan 20/03/10 *3 Nielsen Impulse 20/03/10 *4 Nielsen Impulse w/e 13th June *5 X-Factory data *6 Retailer Data

MustStocks2010.indd 30 26/07/2010 18:15:44


kepak catman dps IRN 297x420mm july10.indd 1-2
STOCK THE 3 STEPS TO
RIGHT RANGE IMPROVE YOUR
FOR YOUR STORE SALES...
1 METRE FIXTURE

2 METRE FIXTURE

1. ENSURE YOU STOCK THE RIGHT RANGE

2. INCREASE VISIBILITY & AVAILABILITY


•On average shoppers only spend 4 minutes instore
•Visibility is key
•Kepak branded shelf trays have a proven success,
increasing sales by 55% = £ 620 per store 6

3. INSTALL A KEPAK BRANDED MICROWAVE


•Drive all day long sales of hot snacking
3 METRE FIXTURE •Increase your sales by as much as 200%
= £2,225 per store 6

PURCHASE A KEPAK BRANDED MICROWAVE FOR


£240 AND RECEIVE £100 OF VOUCHERS FOR
RUSTLERS & UGO’S DELI CAFÉ (£50 OF EACH).
To place an order contact RH Hall Sales & Advice Centre
using the reference ‘KEPAK’ on 01296 663400.

For further details or FREE POS please contact the Kepak team on 01772 688 300

Source: *1 Nielsen 20/03/10 *2 Nielsen Homescan 20/03/10 *3 Nielsen Impulse 20/03/10 *4 Nielsen Impulse w/e 13th June *5 X-Factory data *6 Retailer Data

MustStocks2010.indd 31 26/07/2010 18:15:44


20/07/2010 12:08:28
HOt BeVerAGes

What’s brewing?
I
nstant coffee showed “rather Walker advises: “Due to the top 5 Coffee Brands 2010
slow” growth of 4.6% huge support Nescafé Gold
through the impulse channel, Blend is receiving in 2010, every Sales 2009 Sales 2010 Year on
according to Nielsen, but the convenience store should stock Year
channel still accounts for nearly and merchandise the 100g jar on Change
14% of overall coffee sales. the best shelf in their hot beverage Total instant coffee £87.8m £91.8m 4.6%
Nescafé remains by far the fixture.”
market leader, with sales up 2.1% Nescafé also continues to bring 1. Nescafé £60.6m £61.9m 2.1%
to almost £62m, while second- new consumers into the category 2. Kenco £13.5m £15.2m 13.1%
placed Kenco put on an impressive through innovation. Its Nescafé 3. Douwe Egberts £2.1m £2.4m 17.3%
£1.7m-worth of sales to take its Dolce Gusto range has brought the 4. Maxwell House £1.6m £1.8m 12.8%
5. Carte Noire £1.4m £1.5m 11.6%
total to £15.2m. Douwe Egberts out-of-home coffee experience into
Source: Nielsen, data to May 2010
showed the highest percentage the homes of coffee drinkers, says
growth, with sales up by 17.3% to Nestlé, while September 2009 saw
reach £2.4m. the launch of Nescafé Green Blend. top 5 tea Brands 2010
Nescafé brand activity over Kenco’s emphasis this year has
Sales 2009 Sales 2010 Year on
the past 12 months has included been on sustainability. Since
Year
the £43m “Nescafé – Coffee at January 2010, the entire range of Change
its Brightest” campaign, which Kenco’s freeze-dried coffees has
launched at the end of August been fully sourced from beans Total tea £70.7m £80.4m 13.6%
2009. The campaign has driven grown on Rainforest Alliance
1. Tetley £23.9m £27m 12.9%
growth and introduced new Certified farms. New 150g Eco
2. PG Tips £19m £20.2m 6.1%
consumers to the instant coffee Refill packs, launched last year,
3. Twinings £6.6m £7.5m 14.7%
category, says brand owner Nestlé. have contributed 20% value sales 4. Typhoo £3.6m £5.5m 53.3%
“As the category leader, we to the Kenco freeze-dried range. 5. Yorkshire Tea £4.9m £5.4m 11.2%
recognise that the instant The Kenco brands are being Source: Nielsen, data to May 2010
coffee category requires a step supported by £9m marketing
change in communication,” says spend in 2010, including TV
Graham Walker, Nestlé’s trade advertising. above dairy, and Tetley Extra
communications manager for the Strong, for people who like a
UK. “If we are to build long-term tea stronger cup of tea but not the
success, we know that driving the About 13% of tea is sold through stewed taste you get from leaving it
relevance and role of instant coffee the impulse channel and the to brew for longer,” he says.
for our customers, shoppers and category saw growth of 13.6% by Initiatives by Typhoo over the
consumers is vital.” value last year. But the number of past year have included partnering
May saw the Nescafé Gold Blend units sold was only 3.9% ahead, with the English Federation of
couple return to TV screens for the suggesting some price increases Disability Sport (EFDS) to help
first time in 25 years, delivering but also the sale of larger packs. increase participation in sport and
a modern twist to the old “will Market leader Tetley grew by ensure disabled people can access
they, won’t they” story line and 13% to £27m, while second-placed the sport of their choice.
demonstrating “how Nescafé Gold PG Tips rose by 6.1% to just over In 2009, Typhoo launched
Blend brings like-minded people £20m. Typhoo, in fourth position, its “Typhoo Sports for All”
together”. grew by an impressive 53.3% to project, which provided 1,100
£5.5m, leaving it just £2m behind community-based sports coaches
third-placed Twinings. across the UK with an accredited
Simon Attfield, customer qualification in coaching disabled prices, often price-marked on pack
marketing manager at Tata people. A donation from every to deliver customer confidence.
Beverages, which owns Tetley, pack of Typhoo tea purchased This has been done in conjunction
puts the brand’s success down to helps fund and support the EFDS. with ‘extra free’ on-pack offers,
understanding customers’ needs Typhoo also teamed up with allowing retailers to maintain
in tea and being able to meet those Coronation Street to celebrate standard or promotional RSPs and
needs with good-quality products. the TV soap’s 50th anniversary still deliver increased volume sales,
“Good examples of developing in December 2009, while in the driving up consumer basket spend
products that meet genuine needs convenience sector specifically its in place of a pure price-reduction
are our new product Tetley for aim has been to combine brand strategy, says brand manager Kate
Soya, for people who opt for soya activity with offering competitive Willoughby. IRN

32 Convenience MustStocks Independent Retail News

MustStocks2010.indd 32 26/07/2010 18:15:49 T360


The perfect teatime
blend for rising sales.

Your voucher.

Yorkshire Tea is the No.3 branded tea across the total market
with a 12.3% year on year growth in the Impulse Channel.

We’re now working with the Rainforest Alliance as part of our


commitment towards caring for our growers and the environment.

£3.7m marketing support for the Yorkshire Tea Brand in 2010


including national TV campaign.

T360/10 P&H Trade Ad33


MustStocks2010.indd 2010.indd 1 26/07/2010
26/07/2010 17:02
18:15:49
The Hot Beverage Category in the UK Convenience channel is worth over £189m1 (+5.2%1).

Instant Coffee is the largest segment within Hot Beverages with sales of £88m (+5.6%1) giving
a 47%1 share.

While currently the numbers look good, the major manufacturers recognise there is work to be
done to bring in a new generation of hot beverage consumers to safe guard the category’s
long-term future.

NESCAFÉ®, Coffee At Its Brightest™ is the biggest investment in


the brand for 20 years. This £43million campaign (to end 2010) is set
to reignite the category and return NESCAFÉ to iconic status.

In recent years, consumers, particularly younger consumers have


lost sight of instant coffee as a natural, ‘real’ product. The new
campaign aims to reconnect consumers with the journey of bean
to jar, reminding them that NESCAFÉ is 100% pure.

Hot beverage shoppers are vital to convenience outlets


The average coffee shopper spends almost twice as much per visit compared to the
average Convenience shopper (£10.47 vs. £5.10)2.

Hot beverage shoppers are also more likely to buy into other categories than the average
C-store shopper – average of 4.8 vs 2.8 items per trip2.

Therefore it is essential that stores satisfy these shopper needs and provide the
necessary space for products that are so important to their business.

Regular Premium Decaff Super Premium Café Style


100g Original #1 sku 100g Gold Blend #1 sku 100g Original #2 sku 100g Alta Rica #2 sku Cappuccino #1 sku
worth £19.1m1 worth £10.9m1 worth £2m1 worth £1.3m1 worth £3.7m1

MustStocks2010.indd 34 26/07/2010 18:15:50


®

Stock the right range


Ensure you stock the leading brands from each segment to aid shopper satisfaction and maximise your sales.

78% of shoppers know exactly what brand they want to buy before entering the store2.

61% of convenience shoppers have 1 or 2 preferred brands of tea or coffee.

Make it visible
Over 30% of shoppers fail to purchase
in Convenience retailers because they
believe the shop doesn’t sell the item
they want or they couldn’t find what they
wanted in-store2.

Help guide them to the category with


clear signage. Use beacon brands such
as NESCAFÉ Original for regular coffees
to signpost the sub category.

Make it available
The priority for Convenience retailers is
to ensure consistent product availability.
42% of shoppers failed to purchase a
product because of Out Of Stocks2.
100g jars of Instant Coffee are the core
packs for Convenience.

u
1 IRI 52 w/e 2 Jan 2010 2 HIM CTP 2009 TNS.

MustStocks2010.indd 35 26/07/2010 18:15:50


enerGY drInKs

Finger on the pulse


s
ales through the impulse top 5 energy drinks Brands 2010
channel account for
Sales 2009 Sales 2010 Year on
nearly 60% of demand in Year
this category, so it really Change
is a must-stock for independent
stores. And it’s been a good year, Total energy drinks £307.1m £344.5m 12.2%
with sales up by more than 12%
1. Lucozade £131.4m £130.4m -0.8%
overall, boosted by the growing
2. Red Bull £113.6m £121.5m 7%
market for energy shots. 3. Relentless £28m £33.3m 19.1%
The big brands all did well, 4. Monster £2m £11.4m 472.4%
with Lucozade holding steady at 5. Boost £7.6m £8.1m 6.4%
around the £131m mark and Red Source: Nielsen, data to May 2010
Bull increasing by 7% to £121.5m.
Relentless was up by 19% to
£33.3m, while Monster rampaged in positions seven and eight £10m investment being made
ahead with a near 500% increase respectively. in promoting Lucozade Energy,
from £2m to £11.4m. Red Bull Energy Shot and including last spring’s “Lucozade
Selena Taylor, Coca-Cola Lucozade Alert were the main new Energy Win An Adventure Every C

Enterprises’ trade communications launches during the year, together Day” promotion, where winners M

manager, points to the meteoric contributing 82% to new product could take part in activities like
rise in US energy shot sales as development (NPD) growth. trekking through the Sahara Y

being a good indicator of where Some £5m is being invested in a desert or husky dog racing. CM

this category might go in Britain. variety of promotions to drive up Red Bull trade communications
Her company launched awareness and sales of Lucozade manager Tom Smith believes the
MY

Relentless Shots earlier this year. Alert Plus, which its makers now market is still stabilising. “The CY

“We are confident at CCE that reckon takes 32% of sales in its energy drinks market is still CMY

this launch will drive penetration category. establishing itself, but is already
and the overall result should be “The launch of Lucozade Alert delivering good incremental value K

increased sales and value driven Plus has been a great success,” to retailers,” he says.
into the energy sector,” she says. says the drink’s brand manager, These marketing activities are
Alex Saunders. “It has delivered part of a much bigger promotional
summertime blues the strongest unit rate of sale of trend for energy drinks. According
Both the Red Bull and Relentless the energy shot brands available to the 2010 Britvic Soft Drinks
brands have enjoyed an in independents since launch and report, there has been a market-
astonishing rise in a broader soft established itself as an important wide 20% uplift in promotional
drinks category that last year player in the UK energy shots support.
actually declined in general terms, market.” Another reason for the increased
a situation driven by poor summer sales penetration of these products
weather conditions and perhaps a energy shots is that their distribution is steadily
backwash of sentiment about the The generic energy shot market improving, both for established as finding ready markets. A greater
state of the wider economy, which in Britain is still a young one, but and newly launched product lines, variety of container sizes has also
depressed consumer spending in a according to Matt Hollier, off-trade according to the Britvic Soft Drinks helped sales, with 250ml products
variety of areas. head for GlaxoSmithKline, these Report. Its authors believe total increasingly being joined to 500ml
This year the weather has been products could take 12% of the distribution has increased by 12%. offerings.
kinder and there is a sense that sports and energy drink A wider selection of energy The consensus view is that
although the economy is far from sector by 2013 – making drink price points is seen by energy drinks are now an
healthy, it is no longer facing them worth many industry important part of the independent
meltdown. Having tightened some £114m. watchers as an retail sector’s sales armoury, and
their belts, people are apparently Another additional have the advantage that they do
more comfortable spending pointer of reason the not necessarily need to be chilled.
once more, and soft drinks are how public is Given the impulse nature of
generally regarded as an affordable important turning to energy drinks, especially shots,
indulgence. this whole these products, those who market them tend to
Outside the Top 5, Red Rooster sector has with Britvic agree that keeping stocks close
Hi Energy and Rockstar are become singling out to tills is a good way to generate
the fastest growing brands, is the sub-£2 items demand. IRN

36 Convenience MustStocks Independent Retail News

MustStocks2010.indd 36 26/07/2010 18:15:57


Jul16
C

CM

MY

CY

CMY

* NIELSEN SCANTRACK, % SALES VALUE GROWTH, SPORTS & ENERGY DATABASE,


MAT TY 30.4.10, TOTAL GB

MustStocks2010.indd 37 26/07/2010 18:15:58


Jul16p19Rockstar.indd 1 08/07/2010 10:44:17
INDEPENDENT RETAIL NEWS SPECIAL

RED BULL ENERGISING THE CATEGORY.

Red Bull 250ml: No.1 soft drink in Impulse


GIVING CONSUMERS

Sugarfree 250ml: Only 8 calories


A LIFT WITH THE NO.1
SOFT DRINK.
BRINGING ENERGY TO THE CATEGORY…
Currently worth more than £708m1 sports
and energy is still one of the only soft
drink sub-categories in impulse which is
in growth. This is evidence of the role that
Sports and Energy products now play and
more importantly, they opportunity that
exists for independent retailers.
Independent retailers are hugely
important to the ongoing success of
the Energy drinks category. With many
purchases being impulse buys and for
immediate consumption, the nature of
their stores and set up means they are
well equipped to meet these consumer
demands and usage occasions.
ENERGY WHEN YOUR SHOPPER NEEDS IT… TOP 10 CASH RATE OF SALE SOFT DRINKS SALES £) 12 WE 20.02.10

What’s interesting about shopping habits 1 RED BULL ENERGY 250ML CAN SINGLE ORIGINAL 25.9
of Sports and Energy consumers is that
there are three main consumption time 2 COCA COLA 500ML PLASTIC BOTTLE SINGLE 22.4
peaks throughout the day. The first is 3 LUCOZADE ENERGY 380ML PLASTIC BOTTLE SINGLE ORANGE 18.5
mid-morning, where consumers want
4 COCA COLA DIET 500ML PLASTIC BOTTLE SINGLE 15.5
that pick-me-up to help get them through
to lunchtime. Then early afternoon hits 5 RED BULL ENERGY 355ML CAN SINGLE ORIGINAL 14.5
which is when the category sees the 6 COCA COLA 330ML CAN SINGLE 12.5
biggest peak of the day with around
7 LUCOZADE ENERGY 500ML PLASTIC BOTTLE SINGLE ORANGE 11.6
20%4 of products consumed at this time.
This is when consumers are beginning 8 LUCOZADE ENERGY 380ML PLASTIC BOTTLE SINGLE ORIGINAL 11.5
to hit that post lunch slump and need 9 RED BULL ENERGY 473 ML CAN SINGLE ORIGINAL 11.3
that extra bit of energy to get through
10 LUCOZADE SPORT 500ML PLASTIC BOTTLE SINGLE ORANGE 10.0
the afternoon or on the way to that next
meeting. Finally, early evening comes
7 OF THE TOP 10 SOFT DRINKS ARE SPORTS & ENERGY PRODUCTS
and people need that final bit of drive

*SOURCE: AC NIELSEN MAT 23.01.10

IRN_DPS Energy Advertorial JULY10_v3.indd 1-2


MustStocks2010.indd 38 26/07/2010 18:15:59
THE RED BULL RANGE

Sugarfree 355ml: More energy less calories

473ml: The biggest Red Bull serve

60ml: Goes where the can can’t

Sugarfree 60ml: Only 2 calories


355ml: More energy now

before the gym or on the way home to they want. That way they will be able to part of that, merchandising units have
ensure they’ve been energised throughout decide on their products to fit with their been developed to ensure the category
the day. usage occasion, from on the go to in the is prominently displayed and that
From a retailer perspective, it’s important car, during the boardroom meeting or at counters are kept clutter-free, whilst
they the offer right range of products, with the gym. helping to communicate the usage
good visibility of best selling brands and occasion to the shopper.
good in-store communication to maximise GIVE IT A SHOT
On too many occasions, till points
the potential of the category as well as The Energy Shots category is an
are awash with many different products
reducing out of stocks, especially around emerging one, and with the right focus
which don’t add value and take up
the key sales peaks. from retailers, could be an area which
valuable space - space that can be given
Having the right range of drinks; will put a lot of cash in the till. The key
to categories which will deliver growth.
branded versus own label as well as thing to remember is to stock Energy
different sizes of cans and now Energy Shots at till point away from chillers
Shots will give the shopper the choice to maximise impulse purchases. As

TOP TIPS FOR SUCCESSFUL SOFT


DRINKS SALES:
AVAILABILITY: Make sure the best
selling lines are available in chillers
Try a secondary chiller for
additional sales
PRICING: Clearly marked on shelf
VISIBILITY: Sports & Energy should
have at least 25% of Soft Drinks to
reflect share
ACTIVATION: POS to communicate offer
ENERGY SHOTS: Till not chill!

FOR MORE INFORMATION, PLEASE CONTACT:


customer.marketing@uk.redbull.com

** TNS WORLDPANEL PURCHASE SEPT 09 ***TNS WORLDPANEL USAGE – OUT OF HOME CONSUMPTION 12 M/E MAY 2009

20/07/2010 10:45
MustStocks2010.indd 39 26/07/2010 18:15:59
CArBOnAtes

Bubbling under
s
oft drinks are massive phones and gain access to Nokia’s top 10 Carbonates Brands 2010
sellers for independent free music library.
retailers, with carbonates Inevitably a lot of this summer’s Sales 2009 Sales 2010 Year on
being the most popular marketing was tied in with Year
Change
category, but this year saw the the World Cup, and the big
sector take a slight dip. expenditure promotions that Total carbonates £773.1m £767.3m -0.7%
Coca-Cola remains way out went with this. For instance,
in front of the pack, with sales Coca-Cola offered match tickets, 1. Coca-Cola £404.2m £404.1m 0.0%
remaining virtually static at just flights, accommodation and meals. 2. Pepsi £79.2m £78.5m -0.9%
over £404m. Fanta, however, took Despite the English football team’s 3. Fanta £51.9m £47.2m -9.1%
4. Irn-Bru £48.7m £47.1m -3.3%
a bit of a hit, as sales ignominious performance, it’s
5. Dr Pepper £35.3m £35.9m 1.9%
dropped 9% to £47.2m. unlikely that these activities will
6. Sprite £22.9m £23.3m 1.9%
The hero of the have been regarded as failures in 7. Schweppes £17.6m £17.3m -1.4%
category was Vimto, terms of profile raising and sales 8. Barr’s £10.4m £11.6m 11.7%
which grew sales by generation. 9. Vimto £7.8m £10.1m 29.8%
nearly 30% to £10.1m Vimto’s resurgence can in part 10. 7Up £9.4m £9.8m 4.3%
over the 12-month be linked with this once old- Source: Nielsen, data to May 2010
period. school brand embracing new
Tango and media and pursuing a younger 9 August to 4 October across all
Rubicon are the target audience. Its senior brand 7Up bottles and cans.
fastest growing manager, Emma Hunt, says: “To enter the prize draw,
brands sitting “Vimto has had a fantastic year, consumers simply have to log
outside the Top growing by 28%. To ensure this onto the 7Up website at www.7up.
10, in positions continues, we’re increasing our co.uk and enter the prompted
11 and 16 marketing investment by 20% to four digits from the barcode on
respectively. drive awareness and trial of Vimto the back of a bottle or can of 7Up.
Tango upped and new Cherry Vimto over the Each code will give them a chance
sales by 11% crucial summer trading period. to win the first portable digital
to £9.2m, “Our strong multimedia camera and printer combination
while Rubicon programme will ensure we reach of its kind. Consumers will also
increased by our target teen audience across get the chance to share their
38% to £2.3m. the UK and this together with the favourite photos on the website,”
Eighth placed Barr’s brand’s excellent growth this year says brand manager Lucy
also enjoyed a good year, with sales should give retailers the confidence Harman.
up by 11.7% to £11.6m. to stock the Vimto range.” “The on-pack activity will aim people’s diets and a move to
The figures show that with the Tenth placed 7Up is also to be the to build on the success of the 7Up healthy eating, colas have actually
right products and intelligent subject of an intensive marketing brand, which recorded double- won new friends, or regained
promotions, traditional soft campaign. Called digit growth last old ones, thanks to the economic
drinks can still grow significant “Simple year and is downturn.
market share, but it helps that Pleasures”, still the fastest According to the Britvic Soft
these products are sold in a sector the growing lemon Drinks Report, a fall-off in
the latest Britvic Soft Drinks campaign and lime fruit smoothie and pure juice sales has
Report describes as “recession- kicks off in carbonate been compensated for by a rise in
proof,” although recent economic August in the UK demand for colas. As the report’s
strictures mean far more price- and is market,” she authors put it, “these switches
conscious consumers. offering says. predominantly favoured low-cal
Just maintaining market share, consumers Although variants.”
as Pepsi has done, with sales of the chance some This trend generally works in
£78.6m this year that are only to win carbonates favour of smaller, independent
slightly down on 2009, has Polaroid have been on retailers, for whom carbonates
required consistent marketing, Two digital the receiving are an important element of their
and finding ways of using new cameras end of less than offering. Last year the overall
technology, such as last summer’s every hour. favourable take-home market was reckoned
tie-in with Nokia, featuring pack The on-pack publicity to be worth around £6.2bn, which
promotions that gave customers promotion tied in with represents a 1% volume increase
the opportunity to win mobile will run from improving and a value rise of 2%. IRN

40 Convenience MustStocks Independent Retail News

MustStocks2010.indd 40 26/07/2010 18:16:11


MustStocks2010.indd 41 03/08/2010 15:48:46
MustStocks2010.indd 41 26/07/2010 18:16:23
JUICe-BAsed drInKs And COrdIALs

Juice on the loose


J
uice-based soft drinks are Thanks to heavy promotion, top 5 Juice-based drinks Brands 2010
growing in the impulse Nielsen reckons the brand has
Sales 2009 Sales 2010 Year on
channel but the category enjoyed a 40% brand awareness
Year
has shown only a small increase during 2009, helped by a Change
increase of 3.3% overall. The mix of television advertising and
impulse channel accounts for a variety of on-pack promotions. Total juice-based drinks £160.5m £165.7m 3.3%
one-third of sales of juice-based The packaging was also revised.
1. Ribena Original £43.3m £44.3m 2.2%
soft drinks. Robinsons Fruit Shoot’s
2. Oasis £39.5m £37.9m -4.1%
Ribena, the market leader, saw performance is a good indicator
3. Robinsons Fruit Shoot £22m £20.8m -5.5%
sales rise by 2.2% to £44.3m, of how competitive the market 4. Capri Sun £15.2m £19.7m 29.4%
while Oasis and Robinsons is. Aimed squarely at children, 5. Juicy Drench £800,000 £7.8m 891.4%
Fruit Shoot both this product saw a 5.5% fallback Source: Nielsen, data to May 2010
experienced declines. The in demand, and is now worth
star performer was £20.8m. Last year the
Capri Sun, up by figure was £22m. top 5 Cordials Brands 2010
nearly one-third This was despite
to £19.7m. well-received, high- Sales 2009 Sales 2010 Year on
Year
Activity on profile interactive
Change
Ribena’s part advertising,
included a inviting Total cordials £58.9m £59.8m 1.5%
“Pick Your children to
Own” campaign demonstrate skills 1. Robinsons £34.4m £34.1m -1%
this summer, in a competition 2. Ribena £6.7m £7.4m 10.6%
3. Princes Jucee £4.2m £4.2m 1.7%
designed to that would see the
4. Vimto £1.9m £2.1m 12%
drive frequency winners fronting 5. Rose’s £1.1m £1m -11%
of purchase. a television
Source: Nielsen, data to May 2010
Part of a £2.5m commercial for the
investment brand, which was
in the brand, also the subject of substantially ahead of second
the campaign a packaging design placed Ribena, which nonetheless
included national upgrade. enjoyed a 10.6% demand increase
TV and outdoor Robinsons in the space of a year.
advertising as well is promising This summer the company
as a big on-pack to continue this launched on-pack promotions
promotion. Earlier this year it programme for the rest of the with cash prizes intended to
launched Raspberry Ribena in a year. increase awareness of all the
bid to build on the success of its “The summer is a key period Ribena flavours.
Strawberry variant. and to drive consumer awareness “At times, blackcurrant can
As with the resurgence of and sales, we will continue to dominate consumers’ perception
familiar names in other sectors supply the trade with targeted of the Ribena brand. We expect
of the drinks market, Capri-Sun’s activity,” says Leslie Davey, that this activity will help raise the
growth might in part be the Robinsons’ brands director. profile of the entire Ribena range,”
result of cash-conscious shoppers Despite a 4.1% year-on-year says its brand manager, Andy
seeking value for money rather sales reduction, second placed Mahoney.
than so-called premium products, Oasis is still worth some £37.9m. Ribena also brought back its
something borne out by findings The 20-something target audience having only a 12.3% share in this animated berry characters in
in the latest Britvic Soft Drinks for this product explains why category, but sales have seen a a £3.5m TV advertising and
Report, which suggests this flight promotions have included tie-ins small increase of 1.5% on the marketing campaign.
to value has actually helped the with the Sun newspaper, Zoo and previous year. Sandwiched between third and
category grow by 3% last year, Empire magazines, together with Successful launches this year fifth placed Princes and Rose’s
having shrunk 1% in 2008. digital and social networking included Robinsons Be Natural cordials, Vimto proved that its
A further reason for Capri Sun’s activity. and Robinsons Select, which brand revival cut across more than
resurgence could be that it has between them contributed 85.8% one soft drinks category, thanks to
worked to broaden its appeal Cordials of NPD sales. the 12% rise in demand it posted,
from its once traditional market Most cordials are sold through This brand really dominated the in the process growing its sales
of younger children. the multiples, with impulse sector, with its sales of £34.1m from £1.9m to £2.1m. IRN

42 Convenience MustStocks Independent Retail News

MustStocks2010.indd 42 26/07/2010 18:16:25


WAter, JUICes And sMOOtHIes

refreshing change
A
lthough the water Buxton has invested in television top 5 Water Brands 2010
category as a whole has advertising this year, and is
been on the decline for planning promotional tie-ins with Sales 2009 Sales 2010 Year on
Year
the last three years, the professional cricket. “The Ashes
Change
impulse channel has seen some start in November, so in the build-
growth in the past 12 months, albeit up we will be creating some theatre Total water £135.2m £135.6m 0.3%
a slim 0.3%. It’s still a good category around cricket and the Ashes,
for independents, however, as which will be supported by price 1. Volvic £40.9m £39.2m -4.2%
2. Evian £33.1m £33.8m 2.3%
impulse accounts for nearly one- promotions,” said Nestlé Waters
3. Highland Spring £18m £16.2m -9.9%
third of sales of bottled water. trade marketing manager Andrea
4. Buxton £8.8m £11m 25.4%
Until around 2007 the category Cahill. 5. Vittel £5.9m £3.6m -40%
was in growth, but recent
economic strictures and concerns Juices and smoothies Source: Nielsen, data to May 2010

about sustainability caused some The recession has seen shoppers


consumers to go back to tap water. moving away from smoothies top 5 Juices and smoothies Brands 2010
With an improved economic towards pure fruit juices, and away
outlook, it is reckoned to have from pure juices towards juice Sales 2009 Sales 2010 Year on
Year
plenty of further development drinks, hence the category as a
Change
potential, as compared whole is in decline.
with some other This is very much a sign Total juices and smoothies £139.5m £134.9m -3.3%
countries, UK bottled of the economic times,
water consumption according to the Britvic 1. Tropicana £42.6m £39.4m -7.4%
per capita is relatively Soft Drinks Report 2010. 2. Ocean Spray £7.1m £6m -16.5%
3. Copella £5.4m £4.8m -10.8%
low. For instance, it’s Smoothies are often seen
4. Princes £4.6m £4.8m 5.6%
half that found in the as premium, indulgence
5. Just Juice £6.1m £4.1m -33.2%
USA. items, and these tend to
Source: Nielsen, data to May 2010
Volvic retains the be the first products to
number-one slot, go from shopping lists
despite a 4.2% drop in when household budgets first branded blueberry juice to cranberry products, its American
sales to £39.2m. The are put under strain. the grocery sector and will meet heritage is also being highlighted.
biggest gainer in the Tropicana is still the a growing consumer demand for Apple Juice specialist Copella,
Top 5 is Buxton, which best-selling branded ‘superfruit’ products. New Ocean which sits at third place in this
grew sales by more juice, with sales of Spray Blueberry will be available category’s rankings, has promoted
than a quarter to £11m. £39.4m, even though it in one-litre chilled and ambient its Englishness, and variations of
Vittel, on the other has seen sales drop by formats, with an additional ambient flavours to match seasonal changes.
hand, slumped by 40% 7.4%. flavour, Blueberry Light. Prince’s continues to be one of
to £3.6m. Outside the Top 5, It has also pumped £7m into a the category’s biggest suppliers, and
Schweppes Abbeywell (7) Innocent (14) grew its sales through variety of advertising mediums, its sales increased by 5.6% year on
and Pure Life (12) are the fastest- the Impulse channel from virtually including TV, and although year to £4.8m, slightly ahead of Just
growing brands outside the Top nothing to some £700,000, proving Ocean Spray is best known for its Juice, which generated £4.1m. IRN
5, while major new launches that having a strong brand identity
during the period included Iceni and distinctive marketing can buck
and Slazenger, which offers three broader sales trends.
flavours of Northumbrian spring Despite challenging trading
water. conditions, this remains a vibrant
Highland Spring saw a year-on- category. A good example of this is
year fallback of 9.9%, with sales second placed Ocean Spray, which
of £16.2m, but is working on a after signing a distribution deal
variety of packaging updates, and with Coca-Cola has busied itself
this summer has seen it running a with a re-branding exercise.
number of on-pack promotions. This includes new, one-litre packs
“We finished 2009 ahead of the with ‘a fresh premium look,’ that are
market, which stands us in good taller, slimmer and feature a new
stead for a strong, robust 2009,” says cap. This design is also intended to
Sally Stanley, the brand’s marketing make pouring easier.
director. The re-launch will also bring the

Independent Retail News Convenience MustStocks 43

MustStocks2010.indd 43 26/07/2010 18:16:28


want to
open more
keep your
business? soft drinks
chilled

74% of soft drinks purchases are consumed


fact within two hours.*

Shoppers say that, after brand and flavour,


fact chilled availability is the most important
factor when buying a soft drink.§

top tips
Provide enough chilled space
to keep all of your impulse
Large
soft drinks cold
A large store should have
a minimum of 20 metres
chilled space
A medium sized store Meduim
should have a minimum of
15 metres chilled space
A small store should have
a minimum of 10 metres
Small
chilled space

Coca-Cola, Coke, Diet Coke, the design of the Coca-Cola Contour Bottle and the
Dynamic Ribbon device are registered trade marks of The Coca-Cola Company.

COCA-OFF-0307_ChilledLocationOFF_DPS_AW1.indd
MustStocks2010.indd 44 1-2 26/07/2010 18:16:29
and visible
in the right
locations

fact 42% of soft drinks purchases are unplanned.*

1 in 2 Soft Drinks bought in convenience


fact stores are part of lunch meal or treat.**

top tips fast lane chiller

Locate soft drinks in high


footfall areas of your store
to encourage purchase
The category most often
purchased with soft drinks
is confectionery, followed by
crisps and snacks,* so locate
and link soft drinks with
these categories

Applying these simple steps can unlock


up to 8%† growth for your soft drinks.
Look out for more information in your depot
or call Customer Services on 08705 33 66 99
Sources: *HIM CTP 2009. **ID Magasin Consumer Research 2008. §Shopper Centric Independents Consumer Study August 2008. †FCRS research 2009.

MustStocks2010.indd 45 19/07/2010
26/07/2010 09:26
18:16:29
tOBACCO

economy class
A
lthough volume sales of 2013 in smaller stores. However,
top 10 tobacco Brands 2010
tobacco are declining both the Liberal Democrats and
in the convenience Conservatives said before the Sales 2009 Sales 2010 Year on
sector when compared election that they were against the Year
with volumes in the big grocery ban, so there is still a chance the Change
multiples, most tobacco – 62% by legislation could be revoked, in Total cigarettes £6,469m £6,522m 0.8%
volume – is still sold through the England at least.
impulse channel. The category as a whole is up 1. Lambert & Butler £1,119m £1,082m -3.3%
Despite being one of the most by just 0.8% in the impulse trade, 2. Richmond £975m £962m -1.4%
resilient categories, tobacco has not with most of the major brands 3. Mayfair £904m £906m 0.2%
been immune to the effects of the experiencing single-digit falls in 4. Benson & Hedges £629m £613m -2.6%
recession. Generally speaking, the sales when compared with the 5. Marlboro £555m £542m -2.4%
market continues to shift towards previous 12 months. Only two 6. Sterling £224m £359m 60.1%
7. Silk Cut £325m £312m -3.8%
cheaper, value-for-money cigarettes. cigarette brands in the Top 10
8. Royals £225m £219m -3.0%
The value category currently managed to buck the trend, both 9. Superkings £253m £218m -13.8%
accounts for just over one-third of them from manufacturer JTI. 10. Embassy £228m £202m -11.4%
of the whole UK cigarette market,
Source: Nielsen, data to April 2010
with economy priced cigarettes Value for money
making up about 16% and Value-price brand Mayfair
premium priced 24%. By 2012 increased its sales by 0.2% executive for Imperial Tobacco, currently ranks at number 11.
the share held by value brands to £906m but the big success says: “In a market place that’s Launched in November 2008, the
is forecast to dip very slightly to story was Sterling, also a value experiencing quite a strong brand is aimed at adult smokers
about 32%, while economy will brand, which saw sales rise by a down-trading dynamic, the fact choosing economy price cigarettes.
increase to 21.5% and premium staggering 60% to £359m, taking it that Lambert & Butler has been JPS Silver 10s were added to the
drop to 23%. into the Top 10 at number six. number one for so long just range in March 2009.
On the regulatory front Jeremy Blackburn, JTI’s head demonstrates the resilience of the While not featured in the table,
uncertainty remains about the of communications, says: “The brand. It’s not an economy brand roll-your-own (RYO) is currently
future of in-store tobacco displays, most significant development to but nonetheless is robustly holding the fastest-growing tobacco sector
which are due to be phased out take place in the cigarette market its position.” in the UK and should not be
by 2011 in supermarkets and by over the last year is the increased Richmond underwent a pack neglected by retailers, urges
demand for brands that offer adult redesign during the period, with Blackburn at JTI. “Amber Leaf is
smokers value for money. the pack gaining a new, more the UK’s number one value RYO
“Sterling is the UK’s number dynamic “swoosh” motif. brand with 50% share of its
one value brand from JTI and Marlboro held on to fifth place, segment,” he says. IRN
continues to go from strength to despite sales dipping by 2.4% to
strength since it was launched four £542m. Developments included
years ago. Sterling now accounts the launch earlier this year of a
for 10% of the total cigarette new pack design for its best-
market and offers quality, value selling premium-priced Gold
and a range to suit all tastes.” range, rebranded as Marlboro
Mayfair has seen its share of the Gold Original.
segment increase since its redesign During 2009 its big move was
last year. Says Blackburn: “Already the launch in September of
the number one cigarette brand Marlboro Bright Leaf – its first
in Scotland and Northern Ireland, new product launch in the UK
Mayfair is the UK’s second biggest for two years. An additional,
seller and accounts for one in every smoother-tasting variant called
seven cigarettes sold in the UK.” Bright Leaf Platinum was
Imperial Tobacco’s Lambert & introduced in April this year.
Butler remains the biggest single
brand, despite a 3.3% dip in sales Bubbling under
to just more than £1bn, while Brands to watch include
sales of second-placed Richmond Imperial’s JPS Silver, which
dropped by just 1.4% to £962m. is the fastest growing brand
Neil Rooke, UK public relations outside of the Top 10 and

46 Convenience MustStocks Independent Retail News

MustStocks2010.indd 46 26/07/2010 18:16:33 A4 ad


Japan Tobacco International (JTI) is the international tobacco division of Japan Tobacco Inc.,
the world’s third largest global tobacco company. It produces three of the top five worldwide
cigarette brands: Winston, Mild Seven and Camel. With headquarters in Geneva, Switzerland,
and net sales of USD of 10.6 billion in the fiscal year ended 31 December, 2008, JTI has more than
23,000 employees and operations in 120 countries. Since April 2007, Gallaher Limited,
the UK-based tobacco products manufacturer, has also formed part of JTI.

Our key cigarette brands in the UK are Benson & Hedges, Silk Cut, Camel, Mayfair and
Sterling. We are a major player in the OTP (Other Tobacco Products) arena with Hamlet cigars,
Old Holborn and Amber Leaf “roll your own” tobacco. To support our brands in the UK,
we have 225 sales people visiting key UK retailers every four weeks.
GA0129_RTR_L_CARD_56x85 7/4/09 17:20 Page 1

Responsible
TOBACCO
RETAILING

www.tobaccoretailing.com
Your one-stop-shop for Responsible Tobacco Retailing

JTI’s UK trading company is Gallaher Limited. Members Hill, Brooklands Road, Weybridge, Surrey, KT13 0QU, England.
UK Customer Care Line 0800 163 503

Use ‘No ID No Sale’ materials - For more information visit www.tobaccoretailing.com


No.1 Value brand in
the UK and growing
in your region

NEW

*JTI EPOS Estimates, **JTI EPOS Estimates 2009 vs. 2008

A4 ad for IRN aw.indd 47


MustStocks2010.indd 1 26/07/2010
26/07/2010 12:04
18:16:33
Improve your
tobacco sales with JTI

With leading brands such as Mayfair, Sterling and Amber Leaf, JTI is one of the
UK’s principal tobacco manufacturers, and is on hand to help develop your business.

Tobacco is the biggest FMCG category by sales value and generates more retail sales
per annum than both confectionery and soft drinks combined1. Worth £6 billion per
year in turnover to convenience store retailers alone2, tobacco is a key category which
retailers need to get right.

On hand to help your sales, JTI has experts that can help you develop what is one of
the most important categories in your shop.

Here, Mark Top Trends C

Cronin, Trading
Mid price brands, JTI’s flagship mid price brand, Mayfair, is M

Director for JTI in already the No.1 cigarette brand in Scotland


which offer adult Y

the Independent smokers value for and Northern Ireland, and the UK’s 2nd
Channel, gives
CM

money, currently biggest seller4, and a must-stock for retailers.


his top tips for represent the biggest MY

However, retailers
maximising your segment of the
should not forget
CY

tobacco sales: cigarette market4.


the importance CMY

Accordingly, JTI has of premium brands K

Avoid out of stocks – research reduced the cost price such as Benson
shows that adult smokers will go and recommended and Hedges
elsewhere if their brand of choice is retail price of its Gold, Silk Cut
Berkeley Superkings range to the mid price and Camel. These
not available3
cigarette sector, to ensure that the brand is brands represent
Ensure the top-selling brands, like best placed to offer greater sales and profits over a quarter of
Mayfair, are well stocked, and that for any retailer who chooses to implement the all cigarette sales5
you provide enough space for them price reduction. Superkings cigarettes are also and offer the
on the gantry in growth5 and this move will ensure Berkeley opportunity for
is best positioned to meet this demand. good profit margins.
Rotate stock regularly so that older
stock is sold through first
For more advice and support speak to
Keep to your recommended Don’t forget your JTI representative or call the JTI
planogram - this has been created Customer Care Line on freephone
according to the bestselling brands From 1st October 2010 it will be illegal
to sell any tobacco products that do 0800 163 503
in your region
not carry pictorial health warnings, You can also visit JTI’s website
Keep the gantry clean and free of including cigars, roll your own and pipe www.tobaccoretailing.com
rubbish at all times and do not stack tobacco. Speak to your representative for information on the legislation
products on top of each other – this or visit www.phwarnings.com for surrounding the sale of tobacco and the
looks untidy and causes damage more information. impact this could have on your business.
to packs

JTI’s UK trading company is Gallaher Limited 1 Nielsen ScanTrack MAT to w/e 03.10.09 2 IGD 2010 3 HIM 2009 4 JTI EPOS Estimates May 10 ytd 5 JTI EPOS Estimates May 10 ytd vs May 09 ytd

Tobacco smugglers stealing your business? If so, contact: Customs Hotline 0800 59 5000 T

IRN Single Page 'Improve


MustStocks2010.indd 48 Your Tobacco Sales With JTI'.indd 1 26/7/10 10:30:22
26/07/2010 18:16:35
Trade ad a4 2.pdf 28/5/10 10:08:54

N E W P R I C E G R E AT VA L U E
COMING IN JUNE

CM

MY

CY

CMY

* Price marked packs


subject to availability. QUALITY BRAND AFFORDABLE PRICE

Tobacco smugglers stealing your business? If so, contact: Customs Hotline 0800 59 5000

0:30:22 MustStocks2010.indd 49 26/07/2010 18:16:36


Book Your Place
30 September 2010
Park Plaza Westminster Bridge, London
Hosted by Ed Byrne

Full name_______________________________________________________________________________________
Job title________________________________________________________________________________________
Company_______________________________________________________________________________________
Address.________________________________________________________________________________________
Postcode________________________________ Email __________________________________________________
Tel_____________________________________ Fax______________________________________________
______

Booking Details
I would like to reserve________ place(s) at the awards @ £199 + VAT Book
Please reserve_______ table(s) of ten at the awards @ £1,990 + VAT
Please reserve ______ table(s) of twelve at the awards @ £2,388 + VAT
Today
Call Riz
w
Payment Details 0208 2 an on
I enclose my cheque for £_______ payable to Metropolis International Group Ltd 53 870
Please debit my Switch/Maestro/Visa/Amex/MasterCard (please delete as necessary) rizwan.c
haud
8
metrop hre
izwan.chaudhrey

olis.co.u y@
k
Card no:_________________________________________________

Expiry date: _______________ Issue no (Switch Only) _______________

(If paying by personal credit card, please supply home address)


Please invoice my company direct. Purchase Order No:________________
Price includes drinks reception, four-course dinner, table wine, entertainment and awards presentation. Payment must be received before the event. The organisers re-
serve the right to alter the content and timings of the programme. Cancellation Fees: You are welcome to substitute any guest(s) at any time. There will be no refunds on
any cancellations received after 30 August 2010. If there are any changes to guests’ names, please contact Emma Doran. Please note that 24 hours prior to the event,
names of guests cannot be changed

Please return to Rizwan Chaudhrey, Head of Sales, Retail Industry Awards. Metropolis Business
Media, 6th Floor, Davis House, 2 Robert Street, Croydon, CR0 1QQ

Jul02p29RIA.indd 1 50
MustStocks2010.indd 26/07/2010 18:06:16
18:16:37
QUESTIONNAIRE

Tell us what you think


Convenience and win some goodies
about MustStocks
We hope you have found How useful do you think the following sections were? As well as the categories already
the information contained in covered this year, which of the
Convenience Muststocks 2010 Not Very following product categories
useful. Page useful useful useful would you also like to see covered
Contents 3    next year?
To help us improve the Introduction 5   
publication, we would be ALCOHOL Ambient products 
grateful if you could give us your Beers 6    Batteries 
feedback below. Cider 8    Cakes 
Category advice 10    Frozen food 
All completed questionnaires will sponsored by Heineken Health and beauty 
be put into a prize draw and the Wines 12    Healthcare 
first lucky respondents will win Spirits 12    Household 
a collection of goodies kindly BISCUITS AND SNACKS Ice-cream 
provided by Kepak. Biscuits 14    Laundry products 
Bagged snacks 14    Magazines 
Bread 16    Newspapers 
Cereals 18    Packaged grocery 
CONFECTIONERY Pasta, rice 
Chocolate 20   
Deadline for reponses: Sugar confectionery 20    Are there any other areas/sections
August 30 2010 Category advice 22    you would like to see included?
sponsored by Nestlé Rowntree Please list below:
To be included in the free draw, DAIRY
please send the completed Butters and spreads 24   
questionnaire to arrive no later Cheese 26   
than August 30 2010 to: Yogurts 28   
Yogurt drinks 28   
Rizwan Chaudhrey Flavoured milks 28   
Head of Sales FOOD-TO-GO How could we improve the category
FREEPOST RSBU-RHXR-GKZJ Category advice 30    management advice?
Metropolis Publishing sponsored by Kepak
6th Floor, Davis House HOT BEVERAGES
Croydon Coffee 32   
CR0 1QQ Tea 32   
Category advice 34   
If you do not wish to disfigure sponsored by Nestlé SOFT DRINKS
your copy of Convenience Energy drinks 36    Your details:
MustStocks 2010, just send us a Category advice 38    Name:
photocopy of these pages or go sponsored by Red Bull
to www.talkingretail.com and Carbonates 40   
Store:
visit Convenience MustStocks Juice-based drinks 42   
2010 and print off the pages. Cordials 42   
Water 43    Address:
Juices and smoothies 43   
Category advice 44   
sponsored by Coca-Cola Enterprises
TOBACCO
Tobacco 46    Telephone number:
Category advice 48   
supported by JTI Email:

Independent Retail News Convenience MustStocks 51

MustStocks2010.indd 51 26/07/2010 16:56:22


This publication could not have been produced without the support of:

Published by Metropolis, 6th Floor, Davis House, 2 Robert Street, Croydon CR0 1QQ

MustStocks2010.indd 52 26/07/2010 16:57:49