pages

INSIDE:BRAND LEADERSNielsen data reveals theindependent trade’sbest-sellers in everymajor product group

CATEGORY ADVICEMajor suppliers share their top tips for maximising sales in key categories

PILLAR BRANDSHow iconic lines play a major role in helpingshoppers navigateyour store

ConvenienceMustStocks

July 2010

A promotional supplement to Independent Retail News

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

For stockist details retailers should contact 08457 227 222

MONSTER KHAOS�$50mBRAND IN THE US2

MONS

B

MONSTER

50% JUICE 100% MONSTER

THE U.K’S FIRST 90ml ENERGY SHOT

ails retail rs ould onta 08457 227 222

www.monsterenergy.com

MONSTER No.1* US ENERGY BRAND

NOW WORTH £11.6m IN GB1

A MONSTER SALES OPPORTUNITY

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.

MONS ER KH

MONSTER

KHAOS

THE

BIGBIGBIGTHE

U.K’S FIRST .K’S FIRST

BIGBIGBIGSHOT

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

COntents

Convenience MustStocks 3Independent Retail News

Independent Retail NewsMetropolis Business Publishing, 6th Floor, Davis House, 2 Robert Street,Croydon, CR0 1QQ

EDITORIALWritten bydavid shrimpton 020 8253 8704Martin GurdonJames dallasProductionWaqas Qureshi 020 8253 8709dan Harder

ADVERTISINGHead of Salesrizwan Chaudhrey 020 8253 8708Senior Sales Managerpaul Abbott 020 8253 8701Key Account ExecutiveKim reddick 020 8253 8703

printed by William Gibbons Ltd26 Planetary Road, Willenhall, West Midlands, WV13 3XT

Introduction 5

ALCOHOL

Beers 6

Cider 8

Category advice 10sponsored by

Wines 12

Spirits 12

BISCUITS AND SNACKS

Biscuits 14

Bagged snacks 14

BREAD AND CEREALS

Bread 16

Cereals 18

CONFECTIONERY

Chocolate 20

Sugar confectionery 20


DAIRY

DAIRY

Butters and spreads 24

Cheese 26

Yogurts 28

Yogurt drinks 28

Flavoured milks 28

FOOD-TO-GO


HOT BEVERAGES

Coffee 32

Tea 32


SOFT DRINKS

Energy drinks 36


Carbonates 40

Juice-based drinks 42

Cordials 42

Water 43

Juices and smoothies 43


TOBACCO

Cigarettes 46

Category advice 48supported by

READER SURVEY

Questionnaire 51

Welcome to Convenience Muststocks 2010

As an independent convenience retailer there

are some brands that you just have to have in stock. Th ese are the brands that defi ne their categories, that help signpost each section of your shop to your customers and assist them in navigating their way around your store. Th ese are the must-stock brands you really can’t do without.

Th is supplement, now in its second year, is our way of helping you decide what those top brands are. We’ve teamed up with Nielsen, the highly respected data

provider, to gather together impulse channel sales fi gures for the leading lines in no less than 26 grocery categories and sub-categories – everything from biscuits and bagged snacks to waters, juices

and smoothies.Of course, it’s not simply a

matter of taking the top three brands from each table and putting them on your shelves. What you decide to stock will be based on a variety of factors, including price points, regional variations and the size of your store. Own-label lines may also come into play. Nevertheless, we hope the following tables and articles will provide a valuable insight into those best-selling lines to help you make a considered and informed choice.

As well as listing the top fi ve or 10 brands in each category, we’ve tried to highlight some of the reasons behind their success and indicate what the future may hold. Where we can, we’ve also picked out some of the biggest climbers and future stars of each category to help you plan ahead and keep one eye on the future.

Once you’ve chosen your brands, however, that’s not the end of it. As the saying goes, it’s what you do with them that counts. Th at’s why this year’s Convenience MustStocks also includes category management advice from some of the sector’s leading suppliers – Heineken, Nestlé, Red Bull, Nestlé Rowntree, Coca-Cola Enterprises, JTI and Kepak – which will give you hints and tips on how to merchandise each fi xture. Th anks to everyone for their support.

David ShrimptonEditorIndependent Retail News

provider, to gather together impulse channel sales fi gures for the leading lines in no less than 26 grocery categories and sub-categories – everything from biscuits and bagged

For stockist details retailers should contact 08457 227 222

MONSTER KHAOS�$50mBRAND IN THE US2

MONSTER

50% JUICE 100% MONSTER

THE U.K’S FIRST 90ml ENERGY SHOT

www.monsterenergy.com

MONSTER No.1* US ENERGY BRAND

NOW WORTH £11.6m IN GB1

A MONSTER SALES OPPORTUNITY

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.

KHAOS

BIGTHE

SHOT

COCA-OFF_0306_Monster Ad_SP_IRN_AW2.indd 1 26/07/2010 13:21 MustStocks2010.indd 3 26/07/2010 18:14:48

The Grosvenor House BallroomThursday 14th October 2010The Grosvenor House BallroomThe Grosvenor House Ballroom

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: [email protected]

RDA 10 IRN Full page Ad Feb10.indd 1 22/7/10 17:00:39MustStocks2010.indd 4 26/07/2010 18:14:52

IntrOdUCtIOn


TIMES have been tough for the retail trade so far this year – despite the better weather and the (rather short-lived) World Cup.

Sales in the grocery multiples are up by only 1.2% year on year (12 weeks ending 26 June 2010). In contrast, the convenience sector (stores under 3,000sq ft ) is up 2.7% in the same period – and this includes the smaller stores of the grocery multiples, who are outgrowing their out-of-town relatives. If we exclude the convenience fascias of the grocery multiples and focus in on impulse retailers, including co-operative societies, forecourts, off -licences, unaffi liated stores and symbol groups, we see the growth drop to 1% in the same period as competition continues to intensify

across the trade.Categories showing

strong growth in this sector have been non-alcoholic drinks, fresh food and chilled food – all of which provide great impulse purchasing opportunities for impulse retailers to get more into shoppers’ baskets. Research Nielsen compiled with Him! research and consultancy last year identifi ed chilled food as one of the key areas where potential impulse purchases were missed.

Chilled food is particularly vulnerable to the main causes of lost sales – availability and range – so making sure the staples are always in stock is vital in this area

of the store. Th e weaker categories have been alcoholic drinks and confectionery, where pressure from the major retailers has become

greater.As always, when

we look across the categories we see the same key

lines that shoppers demand to be in stock come up time and time again. Th ese are the pillar brands of the categories, the ones that will always be purchased as they have built up trust and an accepted level of quality over time in shoppers’ minds. Many of these are iconic brands that have been around for decades and play a role in the shoppers’ journey, not just

by being a staple for their basket but also helping them navigate the store.

However, if all stores just stock these brands, how do you drive individuality and a unique shopping experience? Shoppers enjoy the unique experience convenience retailers can off er as well as the convenience of having all the staples close by. Th e key is to have their favourite variety of coff ee and biscuits, but also to have something they didn’t expect and couldn’t fi nd in their supermarket.

Innovation plays a big role in this, and in particular new products that directly meet the needs of the convenience shopper. A good example of this has been the development of ‘shots’ in the 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. Th is 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 fi xtures, making it the ideal impulse purchase.

Th e balance between core and new will fl ex 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-stocks’ will earn you the right to do the other things that keep shoppers coming back.

Jake Shepherd, director of marketing and communications, � e Nielsen Company

Must-stock brands: thepillars of convenience

MethodologyAll data in this feature is sourced from Nielsen’s Scantrack retail measurement service.

Scantrack monitors weekly sales from a national network of EPoS checkout scanners. Coverage includes grocery multiples, co-ops, multiple off -licences, independents, symbols, multiple forecourts and motorway service

stations. Data in this report covers the impulse market and includes all markets other than grocery multiples.

Nielsen’s retail measurement service provides comprehensive information on actual purchases, market shares, distribution, pricing and promotional activities.

Category commentaries are provided by Independent Retail News.

CopyrightThe data in Convenience MustStocks was compiled by The Nielsen Company exclusively for Independent Retail News and Metropolis Business Publishing. All data remains the intellectual property of The Nielsen Company. No reproduction in part or in full is permitted without prior consent from The Nielsen Company.

The Grosvenor House BallroomThursday 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: [email protected]

RDA 10 IRN Full page Ad Feb10.indd 1 22/7/10 17:00:39 MustStocks2010.indd 5 26/07/2010 18:14:55

BEER

Sales in the beer category went a bit � at last year, dipping by 4.5% to more than £1.26bn. � e

category is dominated by lager, of course, which accounts for £1.1bn of the total, with lager brands taking all the slots in the Top 10. Ale saw a marginal upli� in sales to £121m, but stout dropped by 7% to £35.4m.

More than one-third (36%) of beer sales go through the impulse channel, so the category remains of great importance to convenience stores, despite the deep discounts on o� er in the major multiples.

Stella Artois stands head and shoulders above the other brands, with sales of nearly £208m, despite a 6.2% fall in impulse this year. Foster’s grew by 8.8% but Carling was down by nearly 22%.

Gainers included Carlsberg, up by just 1%, and Budweiser, with an increase of 18.9%. Carlsberg Export grew by 15.4% but Grolsch dropped by nearly 19%.

Budweiser has enjoyed heavy marketing support since April this year, including the launch of its biggest-ever on-pack promotion for the football World Cup in South Africa, more TV advertising and the launch of Budweiser Brew No 66, described as a “lightly carbonated lager” with an alcoholic content of 4%.

Kronenbourg 1664,

which grew by 8.2% to £45.2m, recently launched new-look packaging featuring a “Gallic, edgy and more modern look” to give the brand “superior shelf stand-out”. � e repackaging forms part of a major new marketing push designed to “build on the brand’s reputation as a sophisticated, high-quality premium lager worth savouring”.

Kronenbourg is the UK’s number two premium lager in impulse and brand owner Heineken says its recent growth has been achieved, in part, by “challenging a staid canned lager category with innovations designed to give shoppers a product which looks great on shelf and delivers an outstanding pour and taste”.

Marketing activityIt adds: “� e premium lager has a dynamic new look, while its Dynamo Système widget has helped to di� erentiate the brand among competitor products, capturing a point of di� erence in the category and helping to maintain healthy price points. � is investment has paid o� , with Dynamo Système providing 12% of total sales for Kronenbourg 1664 in the o� -trade.

� is year promises to be a big one for the brand, with a new multi-million pound TV and press advertising campaign due to launch from October.

Foster’s, the leading standard lager in the o� -trade, has recently been given a fresh new look, designed to provide improved visibility and prominence on-shelf. “� e impulse channel has been the bedrock of Foster’s success and Heineken UK has invested in the channel through creating dedicated price-marked packs and promoting the portable eight-pack format,” says Shaun Heyes, head of customer

marketing for the o� -trade.� e brand recently launched

a new multi-million pound advertising campaign that taps into the Aussie ‘no worries’ ethos, under a new strapline of “Good Call”. � e multi-media campaign encompasses three new TV executions, plus digital and social media activity.

Packaging formatsHeineken UK has been supporting Kronenbourg and Foster’s, along with its John Smith’s bitter and cider brands Strongbow and Bulmers, with a “Who Wants to be a Football Millionaire?” promotion that runs until August.

Heyes advises independent retailers that “convenience is key” when choosing which packaging formats to stock, with consumers generally willing to pay more for added product functionality, portability and ease of use. Price-marked packs (PMPs) are also vital for the independent sector and Heineken UK and other brewers have developed a range of PMPs across their portfolio of big brands.

“Shoppers love PMPs because they reassure the shopper that they are getting a great deal and they bene� t the retailer because they sell through faster than non price-marked packs and shoppers will return to the store more quickly for repeat purchase,” he says.

Here for the beer

A big climber outside the Top 10 was Stella Artois 4%, which grew sales by nearly 80% to more than £20m and moved into the number 12 spot, seemingly without a� ecting sales of its mother brand too much. It was launched in 2008 with massive TV advertising as a ‘lower-alcohol’ alternative to the standard Stella Artois. IRN

alcoholic content of 4%.Kronenbourg 1664,

multi-million pound TV and press advertising campaign due to launch from October.

Foster’s, the leading standard lager in the o� -trade, has recently been given a fresh new look, designed to provide improved visibility and prominence on-shelf. “� e impulse channel has been the bedrock of Foster’s success and Heineken UK has invested in the channel through creating dedicated price-marked packs and promoting the portable eight-pack format,” says Shaun Heyes, head of customer

marketing for the o� -trade.� e brand recently launched

Sales 2009 Sales 2010 Year on Year Change

Total Beer £1,326.2m £1,266.3m -4.52%

1. Stella Artois £221.6m £207.7m -6.24%2. Foster’s £148.2m £161.1m 8.76%3. Carling £170.5m £133.3m -21.85%4. Carlsberg £96.5m £97.3m 0.9%5. Budweiser £52.4m £62.2m 18.85%6. Kronenbourg 1664 £41.7m £45.2m 8.2%7. Carlsberg Export £48.2m £40.8m 15.38%8. Tennent’s £32.1m £33.5m 4.31%9. Carlsberg Special Brew £34.8m £31.1m -10.63%10. Grolsch £30.7m £24.8m -18.99%

Source: Nielsen, data to May 2010

Top 10 Beer Brands 2010

6 Convenience MustStocks Independent Retail News

Knowing what

lagers to buy, and how

much, is really helping them

move off the shelf.

“”

Range &Visibility

Research tells us that most shoppers visit independent stores to find specific

products but up to 17% of them leave the beer and cider fixture without

making a purchase, often because they can’t find what they are looking for.

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

giving them the right space and displaying them effectively.

The Lager category

• 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.

Neil ThakkarShop owner, Leicester

Alcopops

Ale&Stout

Cider

Lager

9%20%68% 3%

Fixture space recommendation

for convenience stores.

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

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

Knowing what

lagers to buy, and how

much, is really helping them

move off the shelf.

“”

Range &Visibility

Research tells us that most shoppers visit independent stores to find specific

products but up to 17% of them leave the beer and cider fixture without

making a purchase, often because they can’t find what they are looking for.

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

giving them the right space and displaying them effectively.

The Lager category

• 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.

Neil ThakkarShop owner, Leicester

Alcopops

Ale&Stout

Cider

Lager

9%20%68% 3%

Fixture space recommendation

for convenience stores.

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

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

CIder

the growth seen by cider in recent years has continued, with the category adding a further

9.85% in value sales over the year. Some 14% of cider is sold through the impulse channel.

Th ere are various reasons for this beyond changes in public taste, with the decline of the pub trade identifi ed by some as a driver for the rise in over-the-counter cider sales.

Strongbow strengthened its position as the number one brand, growing by nearly 13% to £105m. It is by some margin the biggest player in the sector, and this has been refl ected in the heavy promotion its products have enjoyed, with a mix of television, cinema and poster advertising.

Shaun Heyes, head of customer marketing for the off -trade at Heineken UK, which owns the Strongbow brand, says its success is down to sustained investment, such as its most recent “Bowtime for Graft ers” TV campaign “which continues to position the brand as the ultimate refreshing reward aft er a hard day’s work”.

Frosty Jack’s jumped into second place with a 5.7% increase to almost £17.9m, leapfrogging Magners, which saw sales drop by 23% to £16.7m. Th is comes aft er a period where Magners enjoyed rapid growth, and a raised profi le thanks in part to a run of well-known television

Apples and pears


Total cider £275.87m £303.05m 9.85%

1. Strongbow £92.9m £104.96m 12.98%2. Frosty Jack’s £16.91m £17.87m 5.69%3. Magners £21.69m £16.66m -23.2%4. Scrumpy Jack £11.12m £12.41m 11.63%5. Bulmers Original £8.42m £9.83m 16.73%6. White Star £6.54m £8.34m 27.54%7. Jacques Fruits de Bois £6.89m £7.87m 14.21%8. Woodpecker Medium Sweet £3.64m £7.37m 102.52%9. Bulmers Pear Cider £4.02m £7.16m 77.93% 10. Olde English £8.3m £6.97m -15.95%


top 10 Cider Brands 2010

commercials, which fi rmly marketed cider as a lifestyle rather than traditional drink.

Th is is an idea many of the biggest sector players are keen to exploit. Th ey also want to encourage female drinkers, and move their products away from being perceived as the preserve of bearded Morris dancers.

Fift h placed Bulmers is a good example of this. Its well-known Original cider is 16.7% more popular than it was a year ago, but the company also sells a pear cider, which it claims is the most popular impulse drink of its type. Th is has been so successful that it’s now the category’s ninth best selling, worth £7.2m, a 77.9% improvement on the £4m it earned last year.

Th e company is also marketing a limited

edition Summer Blend, mixing apple and pear.Scrumpy Jack cider

fi rst appeared in 1973, but has been part of the Bulmers empire for the past 21 years, during which time its parent has skilfully marketed the brand, so that its fourth placed ranking actually

puts it one place ahead of Bulmers Original.

Cider is no longer an exclusively Anglo-Saxon drink. Heading towards the premium price end of the market, Jacques Fruits de Bois is a fruit-based Belgium product that has made a lot of friends in Britain. Its sales of £7.87m are 14.2% up year on year.

Exploiting a niche is also another route to sales success, as eighth placed Woodpecker Medium Sweet proves in a market perhaps better known for dry products. Last year it achieved sales of £3.64m. Twelve months on this has risen by 102.5% to £7.37m.

Tradition sells too, as demonstrated by 10th placed Gaymers’ Olde English cider, made by a company that has been around since the 1770s.

Just outside the Top 10, the fastest growing brands were Kopparberg Pear Cider (14), which put on nearly 150% to hit sales of £4.35m, and Gaymers Original, up by 100% to £2.9m.

Kopparberg UK managing director Davin Nugent says the introduction of Kopparberg Pear Cider in a 4 x 500ml can format, as well as the more recent 6 x 330ml

can pack, has been a contributing factor to the brand’s growth.

He adds: “Th e cider market is becoming increasingly similar to that of beer in terms of choice, in that you can have several brands off ering a range of tastes to meet increasing consumer demand. Th e cider category spectrum now moves from dry-tasting cider on one end to sweeter-tasting cider on the other and this spectrum

applies to multiple layers; it applies across original apple ciders, pear ciders and latterly, fruit ciders.

“It is no longer enough just to have one pear cider

or one apple cider and think that the consumer’s needs are being met; the cider category is now much bigger than this. Positively, we are now seeing an increasing number of convenience store operators becoming aware of this and taking advantage of the sales benefi t that widening their cider range brings.” IRN

Apples and pears


The UK On-Trade’s number 1 selling pear cider brand. (CGA On-Trade Data, Period 3, 2010)

The UK Off-Trade’s number 2 pear cider brand in GB Impulse. (Nielsen Scantrack, Value, June 2010)

Kopparberg Pear Cider is the UK Off-Trade’s number 1 canned pear cider. (Nielsen Scantrack, Value & Volume, June 2010)

Kopparberg Cider is growing by over 154% in GB Impulse stores v. 16% growth for premium cider as a category. (Nielsen Scantrack, Value, June 2010)

Kopparberg Mixed Fruit Cider is the fastest growing fruit cider of the top cider brands. (CGA On-Trade Data, Period 3, 2010)

Find the brand that outperForms the Cider market

Enjoy Kopparberg responsibly

Find

KC4985_Kopp_IRN_AW.indd 1 23/7/10 17:37:16MustStocks2010.indd 8 26/07/2010 18:15:03

The UK On-Trade’s number 1 selling pear cider brand. (CGA On-Trade Data, Period 3, 2010)

The UK Off-Trade’s number 2 pear cider brand in GB Impulse. (Nielsen Scantrack, Value, June 2010)

Kopparberg Pear Cider is the UK Off-Trade’s number 1 canned pear cider. (Nielsen Scantrack, Value & Volume, June 2010)

Kopparberg Cider is growing by over 154% in GB Impulse stores v. 16% growth for premium cider as a category. (Nielsen Scantrack, Value, June 2010)

Kopparberg Mixed Fruit Cider is the fastest growing fruit cider of the top cider brands. (CGA On-Trade Data, Period 3, 2010)

Find the brand that outperForms the Cider market

Enjoy Kopparberg responsibly

Find

KC4985_Kopp_IRN_AW.indd 1 23/7/10 17:37:16MustStocks2010.indd 9 26/07/2010 18:15:04

Make the most of yourBeer and Cider Fixturewith these hints and tipsfrom Heineken UK

Focus on whatshoppers are buying

• Don’t be tempted to offer too

wide a variety of products

because this leads to confusion

and reduces brand visibility.

• A reduced but popular range is

more likely to sell well and is

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.

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.

…and they work for you because…

• They sell through faster than non price marked packs.

• Shoppers will keep returning

• Repeat purchasing will make you more money.

By stocking only

the leading brand

s,

my beerand cide

r sales

have improved

significantly.

“”Emma S

imons

Shop manager, Redditch

By stocking PriceMarked Packs, sales rightacross the range wentup last month

“

”Vip MeasuriaShop Owner, Derby

Since I rearrangedmy chiller, beerand cider sales havereally improved

“

”Amandeep S. CheemaShop Owner, Kettering

1

2

Warm beer and cider isn’t cool

• Chilled products will really set you aside from

supermarkets , but don’t just chill lager, cider

needs to be chilled too.

• Stock your chiller with small and medium sized

packs. Almost 9/10 of your shoppers will

consume chilled beer and cider purchases on

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.

3

Making your merchandisingwork for you

• 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.

• Fridays and Saturdays are busiest for beer sales

so make sure you’ve stocked up well ahead of

the rush.

4

Display your products to reflect what shoppers are buyingStock your fixture as follows:Ale & Stout 9%, Cider 20%, Lager 68%,Alcopops 3% and followdiagram for best-practice display positions and shelf space allocation for sub categories

Stocking my drinks

fixture more effectively

has helped mycustomers

and my bank

balance

“”Mandeep Sin

gh Khaira

Shop owner, Sheffield

BOTTLEDALES

PREMIUMCIDER

PREMIUM& NICHECIDER

WORLD LAGERBIG BRAND

PREMIUM LAGER

BIGBRANDPREMIUMLAGER


BIGBRAND

STANDARDLAGER

BIGBRAND

STANDARDLAGER

BIG BRANDSTANDARD LAGER


VALUELAGER

SUPERSTRENGTHLAGER

EVERYDAYCIDER

STRONG&VALUECIDER

PREMIUM&

EVERYDAYCIDER

PREMIUMCANNEDALE &STOUT

TRAD.CANNED

ALE

NICHELAGER

NICHELAGER

BIG BRANDPREMIUM LAGER

LOWALCOHOL

ALCOPOPS



FYC_IRN 297x420 DPS:Layout 1 26/7/10 12:40 Page 1

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

Make the most of yourBeer and Cider Fixturewith these hints and tipsfrom Heineken UK

Focus on whatshoppers are buying

• Don’t be tempted to offer too

wide a variety of products

because this leads to confusion

and reduces brand visibility.

• A reduced but popular range is

more likely to sell well and is

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.

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.

…and they work for you because…

• They sell through faster than non price marked packs.

• Shoppers will keep returning

• Repeat purchasing will make you more money.

By stocking only

the leading brand

s,

my beerand cide

r sales

have improved

significantly.

“”Emma S

imons

Shop manager, Redditch

By stocking PriceMarked Packs, sales rightacross the range wentup last month

“

”Vip MeasuriaShop Owner, Derby

Since I rearrangedmy chiller, beerand cider sales havereally improved

“

”Amandeep S. CheemaShop Owner, Kettering

1

2

Warm beer and cider isn’t cool

• Chilled products will really set you aside from

supermarkets , but don’t just chill lager, cider

needs to be chilled too.

• Stock your chiller with small and medium sized

packs. Almost 9/10 of your shoppers will

consume chilled beer and cider purchases on

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.

3

Making your merchandisingwork for you

• 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.

• Fridays and Saturdays are busiest for beer sales

so make sure you’ve stocked up well ahead of

the rush.

4

Display your products to reflect what shoppers are buyingStock your fixture as follows:Ale & Stout 9%, Cider 20%, Lager 68%,Alcopops 3% and followdiagram for best-practice display positions and shelf space allocation for sub categories

Stocking my drinks

fixture more effectively

has helped mycustomers

and my bank

balance

“”Mandeep Sin

gh Khaira

Shop owner, Sheffield

BOTTLEDALES

PREMIUMCIDER

PREMIUM& NICHECIDER

WORLD LAGERBIG BRAND

PREMIUM LAGER



BIGBRAND

STANDARDLAGER

BIGBRAND

STANDARDLAGER



VALUELAGER

SUPERSTRENGTHLAGER

EVERYDAYCIDER

STRONG&VALUECIDER

PREMIUM&

EVERYDAYCIDER

PREMIUMCANNEDALE &STOUT

TRAD.CANNED

ALE

NICHELAGER

NICHELAGER


LOWALCOHOL

ALCOPOPS



FYC_IRN 297x420 DPS:Layout 1 26/7/10 12:40 Page 1

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

WInes & spIrIts

the wine category grew by 1.3% to reach £1.47bn in the impulse channel

during the year to May.Blossom Hill heads the

table, with a 7.4% increase to £122.5m. A limited edition of its White Zinfandel in the run-up to Christmas 2009 helped the brand capitalise on its success in the rosé category, while in February it developed a new California Pinot Grigio to tap into increasing consumer demand for the grape variety. More recently it invested £1m in a summer campaign entitled “Summer Perfectly Served”, centred on its sponsorship of Wimbledon.

Second placed Echo Falls grew by 15% to £70.5m. Paul Hillier, European consumer marketing controller for Echo Falls at brand owner Constellation Europe, puts the brand’s success down to its focused consumer targeting, including sponsorship of Channel 4’s Come Dine With Me and the launch of a new variant, Echo Falls Spritz.

Hardys, in fifth place, grew by 0.5% to reach sales of £44.4m. Neil Anderson, European marketing controller for Constellation’s Australia and New Zealand wines, says: “Hardys has developed a leading brand proposition as the wine for food occasions. This association has been promoted at point of purchase, in marketing and in particular through Hardys’ high-profile sponsorship of Come Dine With Me.”

Gallo Family Vineyards suffered a 26% drop to £61m, while Jacob’s Creek fell by 11% to £57.2m. Other well-known brands that saw a drop-off included Stowells (down by 34.6%) and Lindemans (down by 19.5%).

Brands at the bottom end of the Top 10 fared better, with Wolf Blass up 6.6% to £25.4m, Concha Y Toro up 15% to nearly £24m and Oyster Bay rising by 18.7% to just more than £19m.

Henry Currie, national sales manager for Oyster Bay in the UK, says: “During a year of tremendous change we have been consistent in our approach, ensuring our pricing and promotional activity balanced with our super-premium market positioning.”

Outside the Top 10, the fastest growing brands were Arniston Bay (13), up nearly 40%

to £16.2m, and Isla Negra (14), up by 120% to £15.7m.

Neil Barker, UK commercial director for Fosters EMEA, whose brands include Wolf Blass and Lindemans, says: “The good news is that the impulse wine category is increasing in value and is demonstrating year-on-year growth and we predict this growth is set to continue if retailers put the right emphasis on their wine offering.”

spiritsThe spirits category recorded a slight drop in sales during the year, falling by 1.1% to £908m.

Category leader Smirnoff Red Label grew by nearly 2% to £102.8m, increasing its lead over second-placed Glen’s, which dropped by 5.4% to £90.7m.

Smirnoff has been particularly active, launching Lime and Green Apple flavoured vodkas last year, with an additional £2.5m marketing campaign in the spring.

Earlier this year brand owner Diageo GB rolled out a new 500ml bottle size for Smirnoff No.21 vodka within cash and carry and convenience. The 500ml

A lot of bottle!


Total light wine £1,452m £1,472m 1.3%

1. Blossom Hill £113.97m £122.45m 7.4%2. Echo Falls £61.35m £70.52m 14.9%3. Gallo Family Vineyards £82.73m £61.03m -26.2%4. Jacob’s Creek £64.35m £57.22m -11.1%5. Hardys £44.16m £44.38m 0.5%6. Stowells £44.62m £29.19m -34.6%7. Lindemans £32.32m £26.02m -19.5%8. Wolf Blass £23.85m £25.42m 6.6%9. Concha Y Toro £20.84m £23.97m 15%10. Oyster Bay £16.01m £19.01m 18.7%


top 10 Wine Brands 2010


Total spirits £918.1m £907.7m -1.1%

1. Smirnoff Red Label £100.8m £102.8m 1.9%2. Glen’s £95.9m £90.7m -5.4%3. Bell’s Original £46.9m £58.5m 24.8%4. The Famous Grouse £36.2m £38.1m 5.3%5. Gordon’s £29.7m £31.2m 4.8%6. Jack Daniel’s £29m £27.4m -5.3%7. Bacardi Superior Rum £27.2m £25.1m -7.5%8. High Commissioner £21.1m £21.2m 0.6%9. Chekov Imperial £20.3m £18.7m -8.1%10. Baileys Original £13.9m £13.6m -1.9%


top 10 spirits Brands 2010

bottle is price-marked at £8.99. “It’s important to clearly display the pricing using POS to ensure that shoppers can see the value for money they are getting,” says Helen Facey, senior brand manager for Smirnoff.

In addition, Diageo has recently redesigned the packaging across its Smirnoff No.21 vodka and Smirnoff Flavours range.

The advertising campaign for Gordon’s Gin featuring celebrity chef Gordon Ramsay also seems to be paying dividends, with sales up by 4.8% to £31.2m. But the stand-out performance came from Bell’s Original, up by nearly a quarter to reach £58.5m.

Bell’s was boosted by a £2.3m Christmas 2009 campaign with the theme of “Spirit of Arthur Bell”. Its more recent Father’s Day initiative featured an on-pack “No.1 Dad” rosette for dads to wear as a badge, giving it extra appeal as a gift.

Fastest growing brands outside the Top 10 included 1860 Imperial (18), up by 13.5% to £7.7m, and Russian Standard (20), which increased sales by 12.2% to £6.5m. IRN


Sometimes the world really is your oyster.

Sometimes it pays to

seek out the wines your

customers are looking for.

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

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.

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

Sometimes the world really is your oyster.

Sometimes it pays to

seek out the wines your

customers are looking for.

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

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.

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

BIsCUIts & snACKs

Although only about 15% of biscuits are sold through impulse stores, the biscuit category did

enjoy 3.4% growth in the sector last year.

McVitie’s Digestives is the category leader, with sales up by 1.5% to £30.2m. Hobnobs and Jaff a Cakes both declined, but Crawford’s was the highest riser in the Top 10, with sales up by 32% to £7.6m.

United Biscuits (UB), whose brands include McVitie’s and Penguin, puts the success of its brands down to “marketing support through TV advertising and engaging consumer on-pack promotions”. Th e McVitie’s Digestives range underwent a 50% reduction in saturated fats earlier this year, with the fact promoted on TV at the beginning of 2010 with a four-week advertising campaign that helped grow sales.

Th e brand appeared on TV screens for a second time in March with a campaign that promoted its “Dunk or Not” on-pack promotion.

Penguin performed particularly well, with sales up by 11%, a fact that Nick Stuart, commercial manager at UBUK, says is largely down to the brand’s activity earlier this year, including the launch of a new mint variant.

Th is year also saw Penguin return to TV screens aft er a seven-year absence, as part of a £1.5m campaign to promote its new partnership with WWF, which included an on-pack promotion and new Penguin website.

McVitie’s Caramels was the fastest growing brand sitting outside the Top 10 category; it grew by more than 18% to reach sales of £3.8m, placing it in 17th position. New product development (NPD) included Weetabix Oaty Bars and Cadbury Mini Fingers Snackbites. Th ey contributed 12.1% and 11.3% respectively to NPD growth.

Maryland’s growth was down to TV adverts earlier this year, plus its price-marked packs strategy.

Bagged snacksTh e crisps, snacks and nuts category grew by 2% in impulse stores over the year, but this was a slower rate of growth than the category showed in the grocery sector as a whole. Nevertheless, the impulse sector remains of huge importance to the category, with one-quarter of total sales.

Walkers crisps, of course, is the pillar brand here, with sales of nearly £142m, despite a dip of 3.9% over the period. During summer 2010 Walkers launched the “Walkers Flavour Cup” campaign – its biggest-ever fl avour promotion.

Next in the pecking order is United Biscuits (UBUK) brand McCoy’s, whose sales climbed by 3.1% to reach £41.4m. Th e brand kick-started the year with a £2m marketing campaign to target football fans, which included a six-month sponsorship deal with radio station talkSPORT and the return of its “Man Crisps” advertising. Th is was combined with football-themed limited edition fl avours Chicken Winger and Sausage Striker.

Th ird-placed Doritos showed growth of more than 13%. It launched a “King of Ads” campaign

that asked consumers to create their own 30-second adverts and submit them for review by a celebrity panel. “Watch It, Love It, Share It” promotional packs then encouraged customers to watch and share the top 15 ads.

Th e biggest climber was Monster Munch, which put on a 47% growth spurt to hit £23.3m. Having re-launched specifi cally for the impulse channel at the back end

snacks on the attack

of 2008, it has continued to grow. In 2009, building on its nostalgic appeal, Monster Munch launched a retro t-shirt on-pack promotion across its range of 40g and 85g price-marked packs.

Another big climber was Mini Cheddars, which grew by 10.7%. Nick Stuart, commercial manager for the brand, said: “UB has seen great results for its Mini Cheddars brand for 2010 following the increased exposure generated by the brand’s return to TV screens nationwide at the end of 2009.”

Outside the Top 10, the fastest growing brands were Tyrrells Crisps (15), up by almost 50% to £7.4m, and Walkers Max, up by 41% to £5.4m. IRN


Total biscuits £314m £324.8 m 3.4%

1. McVitie’s Digestives £29.8m £30.2m 1.5%2. Kit Kat £12.4m £12.4m 0.1%3. McVitie’s Hobnobs £13m £11.8m -9.3%4. McVitie’s Jaffa Cakes £12.3m £10.8m -12.2%5. Kellogg’s Rice Krispies £7.6m £9.6m 26.2%6. Maryland £8.3m £9.2m 10.7%7. Kellogg’s Nutri-Grain £8.4m £8.8m 4.6%8. Crawford’s £5.8m £7.6m 32%9. Fox’s Creams £5.7m £6.7m 17.7%10. Penguin £5.5m £6.1m 10.8%


top 10 Biscuit Brands 2010


Total crisps, snacks and nuts £539.1m £549.9m 2%

1. Walkers Crisps £147.7m £141.9m -3.9%2. McCoy’s £40.2m £41.4m 3.1%3. Doritos £33m £37.4m 13.3%4. Pringles £36.9m £30.2m -18.1%5. Quavers £21.6m £23.7m 9.3%6. Monster Munch £15.9m £23.3m 46.6%7. Hula Hoops £21.6m £20.1m -7%8. Kettle Chips £20.2m £18.8m -6.8%9. Mini Cheddars £15.2m £16.9m 10.7%10. Sensations £15.1m £14.7m -2.6%


top 10 Bagged snacks Brands 2010

14 Convenience MustStocks Independent Retail News 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.

Feeling blue? Having financial trouble?

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

Just freephone 08088 02 11 22 or visit us at www.caravan-charity.org.uk

Don’t forget, your industry charity is always here for personal support or advice.

Got a welfare problem?

CARA-0100_HelplineAd_AW1.indd 1 12/07/2010 17:33MustStocks2010.indd 14 26/07/2010 18:15:18

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.

Feeling blue? Having financial trouble?

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

Just freephone 08088 02 11 22 or visit us at www.caravan-charity.org.uk

Don’t forget, your industry charity is always here for personal support or advice.

Got a welfare problem?

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

BreAd

the market for plant bread dropped by 2.6% this year, whereas a year ago it was growing by 8%. Yet

the category, of course, remains a key footfall driver for the independent trade and the impulse channel accounts for nearly a quarter (24%) of bread sales.

Warburtons fell back by 2.3% to £159m during the year, after recording 11% growth a year earlier. Kingsmill held firm at £97.7m, while Hovis increased sales by 3.3% to just less than £80m. The fastest growing brand was Roberts Bakery, which grew by 9.5% to hit sales of £25.2m.

Carolyn Chadwick, marketing manager at Frank Roberts & Sons, says: “The Roberts Bakery brand continues to go from strength to strength. The independent convenience trade is a key part of our business and in response to overall market decline in this sector we have recently re-focused our van sales team to enable us to place more focus on driving sales specifically through this channel.

“We have also streamlined our range in a number of areas to make it work harder in terms of driving sales and maximising availability from limited shelf space in smaller stores. Despite being a regional brand our penetration is rising steadily.”

economic woesThe convenience trade lost out last year as multiple grocers increased the number of loaves on multi-buy deals and the offers have continued in 2010 with the likes of Asda’s “three for £3” deal on Kingsmill Great Everyday White 800g. As shoppers have stocked up their freezers with these offers, convenience stores have lost out on top-up purchases.

According to Warburton’s latest Bakery Review, published last autumn, nearly half of all bread shoppers have bought more bread on promotion due to the economic

climate. Standard white breads enjoyed an upsurge at the start of the recession, but more recently shoppers have begun to trade up again to healthier and more premium breads, with healthier whites and seeded varieties enjoying the strongest growth.

Martin Garlick, category director at Warburtons, says: “Despite the difficult economic climate of late, bread remains a staple product for many consumers and as such the category remains vitally important to independent retailers. Consumers continue to look for quality products, particularly when it comes to staples such as bread.

new products“However, consumers are also looking for value from the products they buy – not necessarily the cheapest, but the product that delivers the greatest overall value in terms of the product, its price and quality and suits their needs best. It is important that retailers allocate adequate shelf space to the top-selling bakery SKUs in order to maximise sales and profit opportunities.

“With a raft of NPD welcomed into the bread category over the last year, including several new launches from Warburtons – comprising two new SKUs from our 600g range, two new farmhouse loaves, brown and grained variants, and two unsliced tiger loaves – it is important

retailers offer their customers not only the best-selling SKUs but also a range of new products in order to keep their offering fresh and appealing.”

Kingsmill has also been active, becoming in June 2009 the first bread manufacturer in the UK to use the Carbon Trust’s Carbon Reduction Label on pack, highlighting its commitment to reduce its carbon footprint. In September 2009 it returned to TV screens with the start of an £11m campaign spread over 12 months.

Its big news this year was the launch in January of Kingsmill Oatilicious, baked with a

Making a crustcombination of wholegrain oats and wheat flour and tapping into the growing consumer demand for healthier food options. The launch – which was also backed by TV advertising – came hot on the heels of the introduction of its small-format Little Big Loaf. In April this year, Kingsmill partnered with Britain’s Got Talent for an on-pack promotion, whereby consumers could collect tokens to win tickets to the show.

Hovis has also been tapping into the potential of oats with the launch in April of Hovis Hearty Oats, backed by a £5m media campaign.

Overall, the brand’s big idea has been its move to 100% British wheat across the whole Hovis range. Another £5m campaign ran for six weeks from 12 February 2010. It featured four separate commercials, each showing a different Hovis loaf, including Soft White, Wholemeal, Best of Both and Granary. Each advert featured a different person making a sandwich before cutting it into eight pieces to create a Union Jack shape. IRN


Total plant bread £460.4m £448.4m -2.6%

1. Warburtons £163.2m £159.4m -2.3%2. Kingsmill £97.3m £97.7m 0.4%3. Hovis £77.4m £79.9m 3.3%4. Roberts £23m £25.2m 9.5%5. Brace’s £20.1m £19.1m -4.8%


top 5 Bread Brands 2010


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

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

Baked with a pride you can tasteBaked with a pride you can taste

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 [email protected] • www.robertsbakery.co.uk

*source: Nielsen Scantrack: 52w/e 15/5/10

200783 Roberts Trade Ad_FIN.indd 1 23/07/2010 15:32MustStocks2010.indd 16 26/07/2010 18:15:21

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

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

Baked with a pride you can tasteBaked with a pride you can taste

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 [email protected] • www.robertsbakery.co.uk

*source: Nielsen Scantrack: 52w/e 15/5/10

200783 Roberts Trade Ad_FIN.indd 1 23/07/2010 15:32MustStocks2010.indd 17 26/07/2010 18:15:22


Total cereals £139.5m £142.7m 2.3%

1. Weetabix £16.2m £16.5m 2.3%2. Kellogg’s Special K £10.8m £11m 1.8%3. Kellogg’s Crunchy Nut £10.3m £10.5m 2.2%4. Kellogg’s Cornflakes £9.7m £9.7m -0.3%5. Kellogg’s Coco Pops £7.6m £7.6m -0.2%6. Quaker £5.7m £6.5m 14.7%7. Kellogg’s Rice Crispies £5.7m £6.3m 10.5%8. Nestlé Shredded Wheat £5m £4.6m -6.5%9. Nestlé Cheerios £4.9m £4.6m -4.7%10. Nestlé Shreddies £4.8m £4.6m -4.1%


top 10 Cereal Brands 2010

CereALs


stocking the best-selling cereals can “tick all the right boxes” for convenience retailers,

especially if they are merchandised alongside related products such as milk, bread and newspapers. Some 9.7% of cereal sales are made through impulse outlets, and although this is down slightly on last year’s 9.8%, it still indicates the importance of cereals to the top-up shopper.

Th e cereals market was up by 2.3% last year in the impulse sector, with total sales rising to £142.7m. Weetabix leads the category with sales of £16.5m (also up by 2.3%) and is followed by Kellogg’s brands Special K, Crunchy Nut, Cornfl akes and Coco Pops, all of which saw sales remain relatively static or increase slightly.

Special K’s sales, for example, were up by 1.8% to £11m. Th e brand launched a £3m media campaign in January in a bid to cash in on the New Year slimming market and also unveiled new packaging.

Market leader Weetabix has moved to consolidate its position with the launch of Chocolate Weetabix, which it claims contains the same wholegrain content as Weetabix but just half the sugar

Breakfast businesscontent of the average chocolate-fl avoured breakfast cereal.

Chocolate Weetabix launched on 12 July and will be backed by a £3m national TV advertising campaign from September aft er it has rolled out across all major retailers. Th e product is aimed at fi lling a gap in the market for a healthier breakfast cereal that will appeal to both mothers and sweet-toothed children.

“A healthier cereal that meets the requirements of mums and children is the holy grail of breakfast time,” says Sally Abbott, marketing director for Weetabix. Chocolate Weetabix is “the answer stressed mums have been searching for years to fi nd,” she claims.

promotional pushWeetabix returned to TV screens at the end of 2009 with the “Someone’s Had Th eir Weetabix” campaign, which continued into 2010. Th e advertisement seeks to use humour to show how having a good breakfast can set you up to meet the day’s challenges. Weetabix says the campaign has reinforced its position as Britain’s best-loved breakfast cereal.

Th e brand has also teamed up with Disney Pixar to launch a Toy Story 3 on-pack promotion off ering thousands of Toy Story prizes. From July the promotion has been supported by TV advertising. It features on packs of Weetabix, Weetabix Minis, Oaty bars and Weetos.

Weetabix is giving away family holidays to Florida every month as part of the promotion, as well as kits of Toy Story prizes.

Paul Goold, senior brand manager for Weetabix, says: “Toy Story 3 is set to be massive and has strong appeal to families, which

makes it the perfect partner for Weetabix.”

Weetabix launched a series of four new pack designs between March and May this year, each featuring a wheat sculpture from the 2009 “Weetabix Wheat Art” farmers’ competition, which it says underlines its support for British farmers.

Kellogg’s says targeting the convenience and impulse markets has helped drive up Crunchy Nut sales values by 45% in the total breakfast cereal market.

Convenience sectorSays Chris McLaughlin, head of speciality accounts at Kellogg’s: “We placed a huge emphasis on the convenience and impulse markets in 2009 and Crunchy Nut

is one brand reaping the benefi ts of that. We’ve up-weighted our speciality accounts team to provide greater support to our customers and we are committed to being more visible in-store to off er our advice on merchandising, promotions and anything else that can help drive sales.”

Kellogg’s says it has changed its TV advertising to show customers they

can buy Crunchy Nut in their local convenience store as well as in grocery multiples. Recent adverts show customers buying cereal in an independent store and a petrol station forecourt.

Two brands that saw their sales increase were Kellogg’s Rice Crispies, up by 10.5% to £6.3m and Quaker, up by nearly 15% to £6.5m. Quaker cashed in on the cold snap during December to grow sales of Quaker Oats by 15.2%, outperforming strong category growth and ending the year on a high. At the back end of 2009 Quaker also introduced Paw Ridge, an oat-based porridge designed specifi cally for kids.

Outside the Top 10, Alpen (15) saw sales in impulse increase by 23%, while Kellogg’s Fruit n’ Fibre (14) was up by 8.6%. IRN

makes it the perfect partner for

is one brand reaping the benefi ts of that. We’ve up-weighted our speciality accounts team to provide greater support to our customers and we are committed to being more visible in-store to off er our advice on merchandising, promotions and anything else that can help drive sales.”

changed its TV advertising to show customers they

can buy Crunchy Nut in their local convenience store as well as in

£3 MILLIONTV LAUNCH CAMPAIGN

NICKELODEONSPONSORSHIP

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

THE UK’s No.1 CEREAL BRAND

PROUDLY PRESENTS **

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

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

£3 MILLIONTV LAUNCH CAMPAIGN

NICKELODEONSPONSORSHIP

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

THE UK’s No.1 CEREAL BRAND

PROUDLY PRESENTS **

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

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

COnFeCtIOnerY

the chocolate confectionery category within the impulse channel recorded a 2.2% fall in sales and also

lost share to the grocery multiples over the year.

Cadbury Dairy Milk remains far and away the market leader, despite growing by just 0.4% to £169.5m. It was a busy year for the number one brand, with its Cadbury Dairy Milk Buttons gaining Fairtrade accreditation in February, almost one year since parent Dairy Milk itself started carrying the logo. A new series of TV adverts for the brand featured the “Chocolate Charmer” – a master chocolate maker at work.

Galaxy, in second place, saw sales increase by 4% to £99.7m. Growth was helped by two new large-format additions to the Galaxy range: large-format Galaxy Cookie Crumble and large-format Galaxy Caramel. Galaxy Bubbles was the range’s biggest launch for 2010. It consists of Galaxy Milk Chocolate in the same bar format but with a light, aerated chocolate centre.

In February the Rainforest Alliance Certified seal appeared on all packs of Galaxy Milk chocolate bars in the UK & Ireland.

Maltesers saw a 6.2% year-on-year sales reduction, but was still worth £54.6m. The brand received heavy promotion, including limited edition, redeemable tear-off pouch strips.

Solid sales were also achieved by fourth placed Kit Kat, up 2.1% at £48.5m, and seventh placed Aero, which enjoyed a 6% demand increase to £33.8m. For Kit Kat, 2010 was mostly about big events, including its “Perfect Break” and “Cross Your Fingers” on-pack promotions. The third big promotion, “Music Break”, launches

next month (August).But the star performer was

Cadbury’s Wispa bar, which recorded a 38% leap to just over £35m. The brand consolidated its comeback with an advertising campaign entitled “For the Love of Wispa” and the return of Wispa Gold, its caramel-centred variant, in September 2009. Only last month (June) it launched new Wispa Duo.

Further new launches within the category in the past year included Kit Kat Chunky Caramel (sales of £6.8m) and Galaxy Bubbles (sales of £3.1m).

sugar confectioneryGums and jellies were the big winners in sugar confectionery over the past year, despite an overall drop for the category of 1.6%.

The Rowntree brand from Nestlé strengthened its position with a 16.6% sales increase to £45.1m, largely driven by Randoms, which generated sales of £9.4m. Launched in 2009 and targeted at 16- to 24-year-olds, Rowntree’s Randoms sold more than 30 million units in the first 12 months “It was the biggest sugar impulse launch the UK has ever seen,” says Nestlé trade communications manager Graham Walker.

Nestlé is launching a new Randoms 195g sharing bag from 23 August 2010, which will contain 10 new shapes.

Third-placed Haribo also performed strongly, up by 14.5% to £35.8m. In 2009, the brand introduced a variety of new innovations, including Super Sour Monsters, Fruity Frutti and Funny Mix, its first bagged sweets suitable for vegetarians. “Value for money and variety are key to keeping

consumer interest and ultimately driving sales,” says Herwig Vennekens, Haribo managing director.

Fourth placed

Maynards reckons its Wine Gums is the top seller in the sugar bag sector for independent retailers, and is worth £19m annually. Wine Gum roll packs are the sector’s second biggest sugar single.

The brand is being marketed on television with a £2m campaign, and there are specific marketing moves for lines like Fruit Duos, which are being offered in new flavours and as limited editions.

In chewing gums it was Cadbury’s Trebor Extra Strong Gum that led new product development, helping the brand achieve a 2.3% sales uplift to £14.7m. But Wrigley’s Extra remains the runaway leader

sweets tempered


Total chocolate confectionery £1,173m £1,147m -2.2%

1. Cadbury Dairy Milk £168.8m £169.5m 0.4%2. Galaxy £95.8m £99.7m 4%3. Maltesers £58.2m £54.6m -6.2%4. Kit Kat £47.5m £48.5m 2.1%5. Mars £47.2m £45m -4.7%6. Cadbury Wispa £25.5m £35.1m 37.9%7. Aero £31.9m £33.8m 6%8. Snickers £31.5m £30.2m -4%9. Twix £25.1m £24.5m -2.7%10. Cadbury Twirl £22.4m £21.6m -3.6%


top 10 Chocolate Confectionery Brands 2010

with sales of £79m, despite a sales drop of 7.4%.

Sixth placed Trebor Softmints are the biggest sellers in their category, and together with the brand’s Extra Strong mints are worth some £54m a year.

Polo enjoyed a healthy 3.8% sales rise this year. It has been the subject of a £2.5m marketing campaign using a mix of outdoor, consumer competitions and online promotions. From August, it is launching its biggest piece of marketing activity for 10 years, the £2.5m “Are You a Sucker or a Cruncher” campaign. IRN


Total sugar confectionery £577m £567.7m -1.6%

1. Wrigley’s Extra £85.3m £79m -7.4%2. Rowntree £38.6m £45.1m 16.6%3. Haribo gums and jellies £31.2m £35.8m 14.5%4. Maynards £32.8m £30.7m -6.2%5. Wrigley’s Airwaves £17.8m £20m 11.9%6. Trebor Softmints £19.5m £18.1m -7.5%7. Polo £16.7m £17.3m 3.8%8. Starburst £18.3m £15.3m -16.4%9. Trebor Extra £14.3m £14.7m 2.3%10. Bassett’s £13.8m £13.1m -5.1%


top 10 sugar Confectionery Brands 2010


promotion, “Music Break”, launches consumer interest and ultimately driving sales,” says Herwig Vennekens, Haribo managing director.

20 Convenience MustStocks

sugar bag sector for independent with sales of £79m,

• GALAXY® Bubbles Single has

rocketed into the Top 10

Eat Now Choc Singles*

• Biggest and most successful

GALAXY® launch ever

• Strong distribution and

ROS performance

Maintain

stock levels

and watch

sales rise

Sales keep

bubblingup and up

*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.

1404 BUBBLES SALES Ad AW HR.pdf 25/6/10 14:32:51

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

• GALAXY® Bubbles Single has

rocketed into the Top 10

Eat Now Choc Singles*

• Biggest and most successful

GALAXY® launch ever

• Strong distribution and

ROS performance

Maintain

stock levels

and watch

sales rise

Sales keep

bubblingup and up

*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.

1404 BUBBLES SALES Ad AW HR.pdf 25/6/10 14:32:51

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

Simple Steps to Sweeter Sales!

Hunger Snack

Fruit refreshment Mint refreshment

Everyday treats

Pleasure Play

Did you know…more than 80% of all confectionery sales in small shops come from the main fi xture – this is the fi rst place a retailer should focus on.

By simply following these three easy steps and taking a shopper-based approach to confectionery, retailers can increase sales by 8%1

Retailers can generate incremental sales by executing product launches and promotions in store with temporary POS.

Group similar products together

The fi rst decision a shopper makes when buying confectionery is what type of product they want. Nestlé Confectionery terms this ‘need states’.

Retailers should merchandise by need state to make it easier for shoppers to fi nd what they are looking for on fi xture.

Place best sellers in the best positions

The best selling products within each need state should be placed in ‘hot spots’ on the main fi xture.

These products also act as beacon brands for the need states, guiding shoppers to the right area of the fi xture.

Allocate space according to sales

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 fi nd what they are looking for.

Stock best-selling products within each need state in order to provide maximum choice for shoppers.

Abdul Jabar from Waller Stores, Luton says:“This year, along with our local Nestlé Confectionery representative, Ilse Evans, we remerchandised our main fi xture 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 signifi cantly, which ultimately means there’s more money in the till.”

1. Nestle Field Audit 2008

NEW1 2 3

1 2 3

1 2 3

Snack

Mint refreshment

Hunger

Pleasure

Everyday treats

Play

Fruit

refreshment

Mint refreshment

refreshment

Fruit

Permanent solutions:

Temporary POS:

Clip on impulse unitImpulse units adjacent

to magazines canincrease sales by

up to 15%1.

Floorbin: Placing a fl oorbin in a high traffi c area, whilst using a price promotion, can increase sales by up to 450%1.

Counter unit: Placing a counter unit at the till can increase sales by up to 18%1.

Three TierCounter unit

Placing a counter unitat the till can increase

sales by up to 18%1.

Window Bill

Wobbler

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

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

Simple Steps to Sweeter Sales!

Hunger Snack

Fruit refreshment Mint refreshment

Everyday treats

Pleasure Play

Did you know…more than 80% of all confectionery sales in small shops come from the main fi xture – this is the fi rst place a retailer should focus on.

By simply following these three easy steps and taking a shopper-based approach to confectionery, retailers can increase sales by 8%1

Retailers can generate incremental sales by executing product launches and promotions in store with temporary POS.

Group similar products together

The fi rst decision a shopper makes when buying confectionery is what type of product they want. Nestlé Confectionery terms this ‘need states’.

Retailers should merchandise by need state to make it easier for shoppers to fi nd what they are looking for on fi xture.

Place best sellers in the best positions

The best selling products within each need state should be placed in ‘hot spots’ on the main fi xture.

These products also act as beacon brands for the need states, guiding shoppers to the right area of the fi xture.

Allocate space according to sales

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 fi nd what they are looking for.

Stock best-selling products within each need state in order to provide maximum choice for shoppers.

Abdul Jabar from Waller Stores, Luton says:“This year, along with our local Nestlé Confectionery representative, Ilse Evans, we remerchandised our main fi xture 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 signifi cantly, which ultimately means there’s more money in the till.”

1. Nestle Field Audit 2008

NEW1 2 3

1 2 3

1 2 3

Snack

Mint refreshment

Hunger

Pleasure

Everyday treats

Play

Fruit

refreshment

Mint refreshment

refreshment

Fruit

Permanent solutions:

Temporary POS:

Clip on impulse unitImpulse units adjacent

to magazines canincrease sales by

up to 15%1.

Floorbin: Placing a fl oorbin in a high traffi c area, whilst using a price promotion, can increase sales by up to 450%1.

Counter unit: Placing a counter unit at the till can increase sales by up to 18%1.

Three TierCounter unit

Placing a counter unitat the till can increase

sales by up to 18%1.

Window Bill

Wobbler

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

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

Sales 2009 Sales 2010 Year on Year

Change

Total butters and spreads £145.5m £143m -1.7%

1. Lurpak £30.62m £30.54m -0.3%2. Flora £27.11m £25.04m -7.6%3. Clover £12.22m £12.75m 4.3%4. Utterly Butterly £11.17m £12.06m 8%5. Anchor £11.97m £10.09m -15.7%


top 5 Butters & spreads Brands 2010

BUtters And spreAds

the butters and spreads category dipped by 1.7% in impulse stores

over the period, falling by £1.5m to £143m.

Th at’s still not a bad performance in the light of the aggressive promotional activity on the part of the UK’s large supermarkets in the past 18 months. Price promotions such as bogofs and half-price deals have taken away from convenience sales, with consumers buying into deals when they see them. As a result, consumers have in eff ect been stocking up on butters and spreads, which has hit the number of top-up shopping missions.

Despite these challenges, butters and spreads remain important stock lines for independent retailers. “Butters, spreads and margarines are a valuable category for convenience stores, where products are most frequently bought as top-up items or distress purchases,” says Kimberley Green, manager of Partners for Growth, Unilever’s category management initiative.

Others say the current economic climate and the rise in baking, cooking and food preparation at home have benefi ted the category.

Category champion Lurpak – which saw sales hold more or less steady at £30.54m and currently holds a 21% market share – has tapped into this sentiment with a £12m marketing campaign throughout 2010

featuring TV ads that “explore the pride and sense of achievement felt when cooking from scratch”. Th e fi rst advert in the “Joy of Creation” campaign featured a man baking a steak-and-ale pie.

Th e advertising was designed to build on the award-winning “Good Food Deserves Lurpak” campaign and has been supported by 5,000 outdoor posters, branded lorries and a new website.

Th e second advertisement featured a woman baking a cake in her kitchen at home, getting sticky and messy in the process. It fi nished with the line “You don’t measure taste with a spirit level”.

Second-placed Flora dipped by 7.6% to just more than £25m in sales. Its activity this year has included the launch of Flora pro.activ Buttery – a new variant of its cholesterol-lowering pro.activ spread brand. Th e new addition to the range aims to trade consumers up into cholesterol-lowering products and increase frequency of purchase among existing users. Th e launch is being supported by a £1m marketing investment,

including a dedicated TV campaign.

Caroline Banquet, Flora pro.activ brand

manager at Unilever UK, says: “Buttery spreads is the fastest-growing segment within the category as taste is a key driver

for consumers, even those concerned with health.”

spread the word

Marketing for the mainstream Flora brand during the period included the launch of the third year of its successful “Cooking with Schools” campaign, which delivers a healthy eating message to the nation’s children. Th e activity, which ran until the end of March, included a dedicated TV advert featuring celebrity chef Gary Rhodes. Six out of 10 primary schools in the UK have already registered with the programme and more than £500,000-worth of tokens have been collected since Cooking with Schools” launched in 2008.

Clover, at number three, was up by 4.3% to £12.75m. A brand re-launch in 2009 included new TV adverts, through-the-line marketing support, new packaging and a new logo. In June 2010 Clover expanded its range with the launch of Clover Lighter 1kg. Th e launch makes up part of the £5m support for the brand in 2010.

Th e 1kg tub launch aims to encourage current Clover Lighter buyers to trade up to a bigger tub, increasing their weight of purchase, and also to attract larger households to the brand. Lighter variants are driving the growth of dairy spreads, which are themselves growing faster than the butters, spreads and margarines category as a whole.

throughout 2010 including a dedicated TV campaign.

Caroline Banquet,

activ brand manager at Unilever UK, says: “Buttery spreads is the fastest-growing segment within the category as taste is a key driver

for consumers, even those concerned with health.”

Utterly Butterly, in the number four slot, increased sales by 8% to more than £12m. Brand owner Dairy Crest says it can be found in one-third of UK household fridges and claims its 500g tub is the number one SKU within the convenience sector.

Th is year Dairy Crest is investing £3m to further build the brand’s strength and push home its key messages of “irresistible taste” and “70% less saturated fat than butter”. Utterly Butterly went back on TV in July 2010 for a seven-week period, with the aim of maintaining the brand’s strong position as well as driving further success.

Additional brand activity this summer includes new Utterly Butterly 250g ‘plus 100% extra free’ marked promotional packs targeted at the convenience channel. IRN

Th e 1kg tub launch aims to encourage current Clover

larger households to the brand. Lighter variants are driving the growth of dairy spreads, which are themselves growing faster than the butters, spreads and margarines category as


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

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

CHeese

nice ‘n’ cheesy does itHard cheeses enjoyed

a good year as far as sales were concerned, increasing in value by

nearly 22% within the impulse channel to hit sales of £141m.

Dairy Crest’s Cathedral City was the top brand in hard cheese, growing by 5.6% to just more than £21m. In second place, Wyke Farms saw sales ease by 1.4% to £12.4m, while Pilgrims Choice, in third, grew by 2.4% to £5.86m.

Th e biggest climber was the Seriously brand, from Lactalis, which grew sales by 12% to £3m.

Since November 2009, Dairy Crest has invested £10m in a full re-launch of the Cathedral City master brand, consisting of three clear phases of investment: the launch of new packaging and advertising creatives from November 2009, embedding the new strategy throughout early 2010, and driving long-term loyalty and growth through new usage occasions in 2010 and 2011.

Cheese sliceCalled “A Slice of Britain” and narrated by actor Pete Postlethwaite, the advert gives a snapshot of modern British life, showing frequent cheese occasions and the role cheese plays in everyday life. Cathedral City also launched a new website, at www.cathedralcity.co.uk, and to drive consumers to the site ran an on-pack promotion called “Britain’s Got Favourites” that off ered consumers a chance to win their favourite prizes.

June 2010 saw the

introduction of a new-look Cathedral City snacking range, incorporating Cathedral City with Crackers & Pickle, Cathedral City with Pickle, Cathedral City Mature Minis and Snackpack. Th e new snacking range has clear, on-pack communication, says Dairy Crest, gives a stronger presence in-store and enables the brand to appeal to a wider audience.

processed cheeseWithin processed cheese it is Dairylea, from Kraft Foods, that continues to lead the pack, despite a 6.5% drop in sales to just under £35m. Its fall was broadly in line with that of the whole category, which dropped by 7.4% to £73.6m.

Following its re-launch in 2008, the brand hit TV screens for four weeks in March 2009 with adverts for Dairylea Dunkers and Spreads, part of a £4.3m brand campaign that year. In March 2010 it trumpeted its new “even cheesier” recipe with the start of a £4.7m campaign that included TV, online, in-store and POS.

Sales of second-placed Cheesestrings, a Kerry Foods brand, dropped by 4.2% to just under £10m, while Bel UK’s Laughing Cow was down 7.4% at £4.21m.

Philadelphia’s processed cheese lines dropped 18.5% to £3.87m, but Primula rose 2.5% to £3.41m.

Craig Brooks, marketing director at Kavli, maker of Primula, says: “Great taste, convenience and value for money are at the heart of the Primula brand and these values

have been particularly important with consumers over the last 12 months.

“A new recipe-led focus supported by an integrated marketing campaign incorporating TV, print and online media demonstrated the versatility of our range, broadening consumer usage and resulting in our

best Christmas trading period

ever.“Following that success, Primula

has committed signifi cant investment to developing new recipes for ongoing marketing activity. Th ese recipes will also be available on the new-look Primula website where visitors can sign up for a monthly newsletter to receive regular inspiration in the shape of our recipe of the month.

“A packaging redesign has also brought into focus our unique ownership structure, which gives consumers the added benefi t of

knowing every time they buy from the Primula brand, a proportion of the profi t goes to charities both in the UK and abroad.”

Natural cheese brands (fi xed weight) grew in total by 7% within the channel to more than £26.8m. Philadelphia grew by 9.8% to achieve sales of £7.51m, but Mini Bel fell by 7.8% to £3.38m.

Boursin and St Agur both recorded huge uplift s, with Boursin rising by 75% to just over £1m and St Agur up 50% to £740,000. IRN


Total hard cheese £115.62m £140.98m 21.9%

1. Cathedral City £19.95m £21.07m 5.6%2. Wyke Farms £12.62m £12.44m -1.4%3. Pilgrims Choice £5.72m £5.86m 2.4%4. Seriously £2.68m £3m 12%5. Happy Shopper £2.82m £2.23m -21%


top 5 Hard Cheese Brands 2010


Total natural cheese (fixed weight) £25.11m £26.86m 7%

1. Philadelphia £6.84m £7.51m 9.8%2. Mini Bel £3.66m £3.38m -7.8%3. Boursin £590,000 £1.02m 75%4. St Agur £490,000 £740,000 50.9%5. President £590,000 £640,000 8.6%


top 5 natural Cheese Brands 2010


Total processed cheese £79.58m £73.66m -7.4%

1. Dairylea £36.97m £34.59m -6.5%2. Cheesestrings £10.43m £9.98m -4.2%3. Laughing Cow £4.54m £4.21m -7.4%4. Philadelphia £4.74m £3.87m -18.4%5. Primula £3.33m £3.41m 2.5%


top 5 processed Cheese Brands 2010

June 2010 saw the have been particularly important with consumers over the last 12 months.

focus supported by an integrated marketing campaign incorporating TV, print and online media demonstrated the versatility of our range, broadening consumer usage and resulting in our

best Christmas trading period


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

MustStocks2010.indd 27 26/07/2010 18:15:41

YOGUrts, desserts And FLAVOUred MILKs

sales in the yogurts and desserts category were slightly down during the past year, declining by

0.5% to a total of £157.7m, but that still means about 7.5% of the category is sold through impulse stores.

Sector leader Müller Corner held relatively fi rm, dropping by 1.6% to just under £24m, but stablemate Müllerlight was down by 5.8% to £14m.

Star of the category was Danone Activia, whose 45% sales growth catapulted the brand into second place with sales approaching £17m. Helping drive the increase was the launch of Activia Single Pots, which added £765,000 to the brand in impulse.

Th e company says the Single Pot format has allowed Activia to successfully enter the lucrative snacking market, thanks to its ‘grab-and-go’ format, variety of fl avours and healthy positioning. Th e brand’s growth has also been driven by the launch of its “TLC” advertising campaign featuring former Eastenders actress Martine McCutcheon.

Further big gains were recorded by Petit Filous, up by nearly one-third at £8.59m, and Onken Biopot, which rose by 16% to just over £5m.

Jonathan Dee, Müller Dairy’s interim marketing director, says: “Value growth in chilled yogurts and pot desserts as a whole has slowed over the past year and there is a need to get growth back into the category through marketing and new product developments, and encouraging convenience and impulse stores to focus on stocking the big brands.

“Corner is still by far the biggest selling brand in the impulse sector. But brands can’t rest on their laurels and this year we are

investing a record £16m to ensure Corner retains its leading position.

“We undertook a major re-launch of the Corner brand in May with new Greek Style Yogurt and new Fruit Corner variants being added to the range, new pack designs, the re-branding of Snack Size as Müller Mini Corner Yogurt and the backing of a multi-media advertising campaign. We’re confi dent the programme of support activity, which includes sampling and TV sponsorship as well as the TV, press and outdoor poster ‘Th ank You Cows’ advertising campaign, will take the brand’s development on to a new level in the year ahead.

“We’re also backing Müllerlight, Müller Rice,Vitality and Cadbury Twin pots with a range of marketing support including a mix of TV and press advertising, on-pack promotions, sampling and

limited edition lines.”Only fi ve yogurt

drink brands enjoy annual

sales of more than £1m through the impulse channel and

the category is down by 4.7% year on year.

Number one brand Actimel, however, enjoyed a sales increase of 13.3% to £7.38m, buoyed by the launch of a new raspberry fl avour at the beginning of the year. A TV campaign that shows “Actimel drinkers making the most of their day to the bemusement of onlookers” has been on air since the end of last year. Running alongside this has been the brand’s sponsorhip of Lorraine Kelly on GMTV.

Number two brand Yop declined by 13.1% to £1.93m, Benecol fell by 4.5% to £1.72m and Müller Vitality lost 40% of sales as it dropped to £1.1m. Yakult was also in decline, falling by 21% to just over £1m.

Th e impulse channel is an

Feeling the chill


Total yogurts and desserts £158.5m £157.7m -0.5%

1. Müller Corner £24.32m £23.94m -1.6%2. Danone Activia £11.67m £16.95m 45.3%3. Müllerlight £14.43m £13.59m -5.8%4. Petit Filous £6.56m £8.59m 30.9%5. Yeo Valley Organic £7.39m £7.3m -1.2%6. Cadbury £7.33m £6.79m -7.5%7. Müllerice £6.3m £6.04m -4.1%8. Onken Biopot £4.34m £5.04m 16%9. Weight Watchers £4.65m £3.54m -23.8%10. Müller Amore £3.07m £2.71m -11.7%


top 10 Yogurts & desserts Brands 2010


Total flavoured milk* £49.9m £50m 0.2%

1. Yazoo £16.8m £19m 12.9%2. Frijj £10.9m £11.1m 2.1%3. Mars £7.1m £6.7m -5.9%4. Galaxy £3m £3m 0.1%5. Nesquik £1.9m £2m 4.1%

Source: Nielsen, data to May 2010* includes ready-made and syrups and powders

top 5 Flavoured Milk Brands 2010


Total yogurt drinks £14m £13.3m -4.7%

1. Actimel £6.51m £7.38m 13.3%2. Yop £2.22m £1.93m -13.1%3. Benecol £1.8m £1.72m -4.5%4. Müller Vitality £1.84m £1.1m -40%5. Yakult £1.33m £1.05m -20.8%


top 5 Yogurt drinks Brands 2010

important one for fl avoured milk, accounting for 29% of total category sales.

Sales rose by 0.2% year on year to £50m but it was number one brand Yazoo that saw the biggest increase among the Top 5, jumping by nearly 13% to £19m.

Frijj, in second place, grew by 2.1% to £11.1m but third-placed

fl avoured milk Mars was down by nearly 6% to £6.7m. Galaxy held steady at £3m while Nesquick increased sales by 4.1% to £2m.

Outside the Top 5 there was also some impressive growth. Ninth-placed Crusha was up by 10.5%, tenth-placed Malteasers up 19.7% and eleventh-placed Bounty rose by 24.3%. IRN

snacking market, thanks to its

positioning. Th e brand’s growth has also been driven by the launch of its “TLC” advertising campaign featuring former

on-pack promotions, sampling and limited edition lines.”

Only fi ve yogurt drink brands

enjoy annual

sales of more than £1m through the impulse channel and

the category is down by 4.7% year on year.


5422_IND_RETAIL_NEWS_AD_A4.indd 1 21/7/10 17:39:36MustStocks2010.indd 28 26/07/2010 18:15:42

Independent Retail News 2930 July 2010 30 July 2010

5422_IND_RETAIL_NEWS_AD_A4.indd 1 21/7/10 17:39:36MustStocks2010.indd 29 26/07/2010 18:15:42

1 METRE FIXTURE

STOCK THE RIGHT RANGE FOR YOUR STORE

2 METRE FIXTURE

3 METRE FIXTURE

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

3 STEPS TO IMPROVE YOUR SALES...

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

•Drive all day long sales of hot snacking

•Increase your sales by as much as 200% = £2,225 per store 6

3. INSTALL A KEPAK BRANDED MICROWAVE

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

RUSTLERS IS BIGGER THAN THESE PRODUCTS IN CONVENIENCE4

OUR

BRANDS ARE

ON TV IN 2010

6 Million households buy the category every year.2

HOT SNACKING WORTH £108M1


KEPAK BRANDS ACCOUNT FOR 94% OF CATEGORY SALES.3

Rustlers 82%

UGO’S 9%

Speedy Snacks 3%

Other 6%

Allowing retailers to compete with food service outlets.

THE KEPAK RANGE

A range of delicious Hot Subs sandwiches targeted at 16-24 year old males and females.

WORTH:£5.3 Million in 7 months1

A range of deli delicious Panini. A perfect hot lunchtime solution targeted at working adults.

WORTH:£10 Million1 - growing 3%5

MUST STOCK LINES Account for half of category sales1

A range of quick & easy microwavable burgers targeted at young males.

WORTH:£56 Million1 – growing 22%

BIG EAT EVERY DAY LOW PRICE

kepak catman dps IRN 297x420mm july10.indd 1-2 20/07/2010 12:08:28MustStocks2010.indd 30 26/07/2010 18:15:44

1 METRE FIXTURE

STOCK THE RIGHT RANGE FOR YOUR STORE

2 METRE FIXTURE

3 METRE FIXTURE


3 STEPS TO IMPROVE YOUR SALES...

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

•Drive all day long sales of hot snacking

•Increase your sales by as much as 200% = £2,225 per store 6

3. INSTALL A KEPAK BRANDED MICROWAVE

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

RUSTLERS IS BIGGER THAN THESE PRODUCTS IN CONVENIENCE4

OUR

BRANDS ARE

ON TV IN 2010

6 Million households buy the category every year.2

HOT SNACKING WORTH £108M1


KEPAK BRANDS ACCOUNT FOR 94% OF CATEGORY SALES.3

Rustlers 82%

UGO’S 9%

Speedy Snacks 3%

Other 6%

Allowing retailers to compete with food service outlets.

THE KEPAK RANGE

A range of delicious Hot Subs sandwiches targeted at 16-24 year old males and females.

WORTH:£5.3 Million in 7 months1

A range of deli delicious Panini. A perfect hot lunchtime solution targeted at working adults.

WORTH:£10 Million1 - growing 3%5

MUST STOCK LINES Account for half of category sales1

A range of quick & easy microwavable burgers targeted at young males.

WORTH:£56 Million1 – growing 22%

BIG EAT EVERY DAY LOW PRICE

kepak catman dps IRN 297x420mm july10.indd 1-2 20/07/2010 12:08:28MustStocks2010.indd 31 26/07/2010 18:15:44

HOt BeVerAGes

Instant coff ee showed “rather slow” growth of 4.6% through the impulse channel, according to Nielsen, but the

channel still accounts for nearly 14% of overall coff ee sales.

Nescafé remains by far the market leader, with sales up 2.1% to almost £62m, while second-placed Kenco put on an impressive £1.7m-worth of sales to take its total to £15.2m. Douwe Egberts showed the highest percentage growth, with sales up by 17.3% to reach £2.4m.

Nescafé brand activity over the past 12 months has included the £43m “Nescafé – Coff ee at its Brightest” campaign, which launched at the end of August 2009. Th e campaign has driven growth and introduced new consumers to the instant coff ee category, says brand owner Nestlé.

“As the category leader, we recognise that the instant coff ee category requires a step change in communication,” says Graham Walker, Nestlé’s trade communications manager for the UK. “If we are to build long-term success, we know that driving the relevance and role of instant coff ee for our customers, shoppers and consumers is vital.”

May saw the Nescafé Gold Blend couple return to TV screens for the fi rst time in 25 years, delivering a modern twist to the old “will they, won’t they” story line and demonstrating “how Nescafé Gold Blend brings like-minded people together”.

Walker advises: “Due to the huge support Nescafé Gold Blend is receiving in 2010, every convenience store should stock and merchandise the 100g jar on the best shelf in their hot beverage fi xture.”

Nescafé also continues to bring new consumers into the category through innovation. Its Nescafé Dolce Gusto range has brought the out-of-home coff ee experience into the homes of coff ee drinkers, says Nestlé, while September 2009 saw the launch of Nescafé Green Blend.

Kenco’s emphasis this year has been on sustainability. Since January 2010, the entire range of Kenco’s freeze-dried coff ees has been fully sourced from beans grown on Rainforest Alliance Certifi ed farms. New 150g Eco Refi ll packs, launched last year, have contributed 20% value sales to the Kenco freeze-dried range.

Th e Kenco brands are being supported by £9m marketing spend in 2010, including TV advertising.

teaAbout 13% of tea is sold through the impulse channel and the category saw growth of 13.6% by value last year. But the number of units sold was only 3.9% ahead, suggesting some price increases but also the sale of larger packs.

Market leader Tetley grew by 13% to £27m, while second-placed PG Tips rose by 6.1% to just over £20m. Typhoo, in fourth position, grew by an impressive 53.3% to £5.5m, leaving it just £2m behind third-placed Twinings.

Simon Attfi eld, customer marketing manager at Tata Beverages, which owns Tetley, puts the brand’s success down to understanding customers’ needs in tea and being able to meet those needs with good-quality products.

“Good examples of developing products that meet genuine needs are our new product Tetley for Soya, for people who opt for soya

above dairy, and Tetley Extra Strong, for people who like a stronger cup of tea but not the stewed taste you get from leaving it to brew for longer,” he says.

Initiatives by Typhoo over the past year have included partnering with the English Federation of Disability Sport (EFDS) to help increase participation in sport and ensure disabled people can access the sport of their choice.

In 2009, Typhoo launched its “Typhoo Sports for All” project, which provided 1,100 community-based sports coaches across the UK with an accredited qualifi cation in coaching disabled people. A donation from every pack of Typhoo tea purchased helps fund and support the EFDS.

Typhoo also teamed up with Coronation Street to celebrate the TV soap’s 50th anniversary in December 2009, while in the convenience sector specifi cally its aim has been to combine brand activity with off ering competitive

What’s brewing?

prices, oft en price-marked on pack to deliver customer confi dence.

Th is has been done in conjunction with ‘extra free’ on-pack off ers, allowing retailers to maintain standard or promotional RSPs and still deliver increased volume sales, driving up consumer basket spend in place of a pure price-reduction strategy, says brand manager Kate Willoughby. IRN


Total instant coffee £87.8m £91.8m 4.6%

1. Nescafé £60.6m £61.9m 2.1%2. Kenco £13.5m £15.2m 13.1%3. Douwe Egberts £2.1m £2.4m 17.3%4. Maxwell House £1.6m £1.8m 12.8%5. Carte Noire £1.4m £1.5m 11.6%


top 5 Coffee Brands 2010


Total tea £70.7m £80.4m 13.6%

1. Tetley £23.9m £27m 12.9%2. PG Tips £19m £20.2m 6.1%3. Twinings £6.6m £7.5m 14.7%4. Typhoo £3.6m £5.5m 53.3%5. Yorkshire Tea £4.9m £5.4m 11.2%


top 5 tea Brands 2010


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.

Your voucher.Your voucher.Your voucher.

The perfect teatimeblend for rising sales.The perfect teatimeblend for rising sales.The perfect teatimeblend for rising sales.

T360/10 P&H Trade Ad 2010.indd 1 26/07/2010 17:02MustStocks2010.indd 32 26/07/2010 18:15:49

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.

Your voucher.Your voucher.Your voucher.

The perfect teatimeblend for rising sales.The perfect teatimeblend for rising sales.The perfect teatimeblend for rising sales.

T360/10 P&H Trade Ad 2010.indd 1 26/07/2010 17:02MustStocks2010.indd 33 26/07/2010 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.

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.

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.

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.

Regular100g Original #1 sku

worth £19.1m1

Premium100g Gold Blend #1 sku

worth £10.9m1

Café StyleCappuccino #1 sku

worth £3.7m1

Decaff 100g Original #2 sku

worth £2m1

Super Premium 100g Alta Rica #2 sku

worth £1.3m1 1 IRI 52 w/e 2 Jan 2010 2 HIM CTP 2009 TNS.

®

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

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.

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.

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.

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.

Regular100g Original #1 sku

worth £19.1m1

Premium100g Gold Blend #1 sku

worth £10.9m1

Café StyleCappuccino #1 sku

worth £3.7m1

Decaff 100g Original #2 sku

worth £2m1

Super Premium 100g Alta Rica #2 sku

worth £1.3m1 1 IRI 52 w/e 2 Jan 2010 2 HIM CTP 2009 TNS.

®

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

enerGY drInKs

sales through the impulse channel account for nearly 60% of demand in this category, so it really

is a must-stock for independent stores. And it’s been a good year, with sales up by more than 12% overall, boosted by the growing market for energy shots.

Th e big brands all did well, with Lucozade holding steady at around the £131m mark and Red Bull increasing by 7% to £121.5m. Relentless was up by 19% to £33.3m, while Monster rampaged ahead with a near 500% increase from £2m to £11.4m.

Selena Taylor, Coca-Cola Enterprises’ trade communications manager, points to the meteoric rise in US energy shot sales as being a good indicator of where this category might go in Britain.

Her company launched Relentless Shots earlier this year. “We are confi dent at CCE that this launch will drive penetration and the overall result should be increased sales and value driven into the energy sector,” she says.

summertime bluesBoth the Red Bull and Relentless brands have enjoyed an astonishing rise in a broader soft drinks category that last year actually declined in general terms, a situation driven by poor summer weather conditions and perhaps a backwash of sentiment about the state of the wider economy, which depressed consumer spending in a variety of areas.

Th is year the weather has been kinder and there is a sense that although the economy is far from healthy, it is no longer facing meltdown. Having tightened their belts, people are apparently more comfortable spending once more, and soft drinks are generally regarded as an aff ordable indulgence.

Outside the Top 5, Red Rooster Hi Energy and Rockstar are the fastest growing brands,

in positions seven and eight respectively.

Red Bull Energy Shot and Lucozade Alert were the main new launches during the year, together contributing 82% to new product development (NPD) growth.

Some £5m is being invested in a variety of promotions to drive up awareness and sales of Lucozade Alert Plus, which its makers now reckon takes 32% of sales in its category.

“Th e launch of Lucozade Alert Plus has been a great success,” says the drink’s brand manager, Alex Saunders. “It has delivered the strongest unit rate of sale of the energy shot brands available in independents since launch and established itself as an important player in the UK energy shots market.”

energy shotsTh e generic energy shot market in Britain is still a young one, but according to Matt Hollier, off -trade head for GlaxoSmithKline, these products could take 12% of the sports and energy drink sector by 2013 – making them worth some £114m.

Another pointer of how important this whole sector has become is the

£10m investment being made in promoting Lucozade Energy, including last spring’s “Lucozade Energy Win An Adventure Every Day” promotion, where winners could take part in activities like trekking through the Sahara desert or husky dog racing.

Red Bull trade communications manager Tom Smith believes the market is still stabilising. “Th e energy drinks market is still establishing itself, but is already delivering good incremental value to retailers,” he says.

Th ese marketing activities are part of a much bigger promotional trend for energy drinks. According to the 2010 Britvic Soft Drinks report, there has been a market- wide 20% uplift in promotional support.

Another reason for the increased sales penetration of these products is that their distribution is steadily improving, both for established and newly launched product lines, according to the Britvic Soft Drinks Report. Its authors believe total distribution has increased by 12%.

A wider selection of energy drink price points is seen by

many industry watchers as an

additional reason the public is turning to these products, with Britvic singling out sub-£2 items

Finger on the pulse

as fi nding ready markets. A greater variety of container sizes has also helped sales, with 250ml products increasingly being joined to 500ml off erings.

Th e consensus view is that energy drinks are now an important part of the independent retail sector’s sales armoury, and have the advantage that they do not necessarily need to be chilled.

Given the impulse nature of energy drinks, especially shots, those who market them tend to agree that keeping stocks close to tills is a good way to generate demand. IRN


Total energy drinks £307.1m £344.5m 12.2%

1. Lucozade £131.4m £130.4m -0.8%2. Red Bull £113.6m £121.5m 7%3. Relentless £28m £33.3m 19.1%4. Monster £2m £11.4m 472.4%5. Boost £7.6m £8.1m 6.4%


top 5 energy drinks Brands 2010

Finger on the pulse


* NIELSEN SCANTRACK, % SALES VALUE GROWTH, SPORTS & ENERGY DATABASE, MAT TY 30.4.10, TOTAL GB

C

M

Y

CM

MY

CY

CMY

K

10-07-002-1ltr-resize-bar.eps 1 08/07/2010 09:44

Jul16p19Rockstar.indd 1 08/07/2010 10:44:17MustStocks2010.indd 36 26/07/2010 18:15:57

* NIELSEN SCANTRACK, % SALES VALUE GROWTH, SPORTS & ENERGY DATABASE, MAT TY 30.4.10, TOTAL GB

C

M

Y

CM

MY

CY

CMY

K

10-07-002-1ltr-resize-bar.eps 1 08/07/2010 09:44

Jul16p19Rockstar.indd 1 08/07/2010 10:44:17MustStocks2010.indd 37 26/07/2010 18:15:58

Sugarfree 355m

l: More energy less calories

before the gym or on the way home to ensure they’ve been energised throughout the day.

From a retailer perspective, it’s important they the offer right range of products, with good visibility of best selling brands and good in-store communication to maximise the potential of the category as well as reducing out of stocks, especially around the key sales peaks.

Having the right range of drinks; branded versus own label as well as different sizes of cans and now Energy Shots will give the shopper the choice

they want. That way they will be able to decide on their products to fit with their usage occasion, from on the go to in the car, during the boardroom meeting or at the gym.

GIVE IT A SHOTThe Energy Shots category is an emerging one, and with the right focus from retailers, could be an area which will put a lot of cash in the till. The key thing to remember is to stock Energy Shots at till point away from chillers to maximise impulse purchases. As

part of that, merchandising units have been developed to ensure the category is prominently displayed and that counters are kept clutter-free, whilst helping to communicate the usage occasion to the shopper.

On too many occasions, till points are awash with many different products which don’t add value and take up valuable space - space that can be given to categories which will deliver growth.

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… What’s interesting about shopping habits of Sports and Energy consumers is that there are three main consumption time peaks throughout the day. The first is mid-morning, where consumers want that pick-me-up to help get them through to lunchtime. Then early afternoon hits which is when the category sees the biggest peak of the day with around 20%4 of products consumed at this time. This is when consumers are beginning to hit that post lunch slump and need that extra bit of energy to get through the afternoon or on the way to that next meeting. Finally, early evening comes and people need that final bit of drive

RED BULL ENERGISING THE CATEGORY.

GIVING CONSUMERS A LIFT WITH THE NO.1 SOFT DRINK.

*SOURCE: AC NIELSEN MAT 23.01.10 ** TNS WORLDPANEL PURCHASE SEPT 09 ***TNS WORLDPANEL USAGE – OUT OF HOME CONSUMPTION 12 M/E MAY 2009

TOP 10 CASH RATE OF SALE SOFT DRINKS SALES £) 12 WE 20.02.10

1 RED BULL ENERGY 250ML CAN SINGLE ORIGINAL 25.9

2 COCA COLA 500ML PLASTIC BOTTLE SINGLE 22.4

3 LUCOZADE ENERGY 380ML PLASTIC BOTTLE SINGLE ORANGE 18.5

4 COCA COLA DIET 500ML PLASTIC BOTTLE SINGLE 15.5


6 COCA COLA 330ML CAN SINGLE 12.5


8 LUCOZADE ENERGY 380ML PLASTIC BOTTLE SINGLE ORIGINAL 11.5

9 RED BULL ENERGY 473 ML CAN SINGLE ORIGINAL 11.3

10 LUCOZADE SPORT 500ML PLASTIC BOTTLE SINGLE ORANGE 10.0

THE RED BULL RANGEINDEPENDENT RETAIL NEWS SPECIAL

TOP TIPS FOR SUCCESSFUL SOFT DRINKS SALES:AVAILABILITY: Make sure the best selling lines are available in chillersTry 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!

Sugarfree 250m

l: Only 8 calories

Red B

ull 250ml: N

o.1 soft drink in Impulse

473ml: The biggest R

ed Bull serve

60ml: G

oes where the can can’t

Sugarfree 60m

l: Only 2 calories

FOR MORE INFORMATION, PLEASE CONTACT:[email protected]

7 OF THE TOP 10 SOFT DRINKS ARE SPORTS & ENERGY PRODUCTS

355ml: M

ore energy now

IRN_DPS Energy Advertorial JULY10_v3.indd 1-2 20/07/2010 10:45MustStocks2010.indd 38 26/07/2010 18:15:59

Sugarfree 355m

l: More energy less calories

before the gym or on the way home to ensure they’ve been energised throughout the day.

From a retailer perspective, it’s important they the offer right range of products, with good visibility of best selling brands and good in-store communication to maximise the potential of the category as well as reducing out of stocks, especially around the key sales peaks.

Having the right range of drinks; branded versus own label as well as different sizes of cans and now Energy Shots will give the shopper the choice

they want. That way they will be able to decide on their products to fit with their usage occasion, from on the go to in the car, during the boardroom meeting or at the gym.

GIVE IT A SHOTThe Energy Shots category is an emerging one, and with the right focus from retailers, could be an area which will put a lot of cash in the till. The key thing to remember is to stock Energy Shots at till point away from chillers to maximise impulse purchases. As

part of that, merchandising units have been developed to ensure the category is prominently displayed and that counters are kept clutter-free, whilst helping to communicate the usage occasion to the shopper.

On too many occasions, till points are awash with many different products which don’t add value and take up valuable space - space that can be given to categories which will deliver growth.

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… What’s interesting about shopping habits of Sports and Energy consumers is that there are three main consumption time peaks throughout the day. The first is mid-morning, where consumers want that pick-me-up to help get them through to lunchtime. Then early afternoon hits which is when the category sees the biggest peak of the day with around 20%4 of products consumed at this time. This is when consumers are beginning to hit that post lunch slump and need that extra bit of energy to get through the afternoon or on the way to that next meeting. Finally, early evening comes and people need that final bit of drive

RED BULL ENERGISING THE CATEGORY.

GIVING CONSUMERS A LIFT WITH THE NO.1 SOFT DRINK.

*SOURCE: AC NIELSEN MAT 23.01.10 ** TNS WORLDPANEL PURCHASE SEPT 09 ***TNS WORLDPANEL USAGE – OUT OF HOME CONSUMPTION 12 M/E MAY 2009

TOP 10 CASH RATE OF SALE SOFT DRINKS SALES £) 12 WE 20.02.10


2 COCA COLA 500ML PLASTIC BOTTLE SINGLE 22.4


4 COCA COLA DIET 500ML PLASTIC BOTTLE SINGLE 15.5


6 COCA COLA 330ML CAN SINGLE 12.5


8 LUCOZADE ENERGY 380ML PLASTIC BOTTLE SINGLE ORIGINAL 11.5

9 RED BULL ENERGY 473 ML CAN SINGLE ORIGINAL 11.3

10 LUCOZADE SPORT 500ML PLASTIC BOTTLE SINGLE ORANGE 10.0

THE RED BULL RANGEINDEPENDENT RETAIL NEWS SPECIAL

TOP TIPS FOR SUCCESSFUL SOFT DRINKS SALES:AVAILABILITY: Make sure the best selling lines are available in chillersTry 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!

Sugarfree 250m

l: Only 8 calories

Red B

ull 250ml: N

o.1 soft drink in Impulse

473ml: The biggest R

ed Bull serve

60ml: G

oes where the can can’t

Sugarfree 60m

l: Only 2 calories

FOR MORE INFORMATION, PLEASE CONTACT:[email protected]

7 OF THE TOP 10 SOFT DRINKS ARE SPORTS & ENERGY PRODUCTS

355ml: M

ore energy now

IRN_DPS Energy Advertorial JULY10_v3.indd 1-2 20/07/2010 10:45MustStocks2010.indd 39 26/07/2010 18:15:59

CArBOnAtes

soft drinks are massive sellers for independent retailers, with carbonates being the most popular

category, but this year saw the sector take a slight dip.

Coca-Cola remains way out in front of the pack, with sales remaining virtually static at just over £404m. Fanta, however, took

a bit of a hit, as sales dropped 9% to £47.2m.

Th e hero of the category was Vimto, which grew sales by nearly 30% to £10.1m over the 12-month period.

Tango and Rubicon are the fastest growing brands sitting outside the Top 10, in positions 11 and 16 respectively. Tango upped sales by 11% to £9.2m, while Rubicon increased by 38% to £2.3m.

Eighth placed Barr’s also enjoyed a good year, with sales up by 11.7% to £11.6m.

Th e fi gures show that with the right products and intelligent promotions, traditional soft drinks can still grow signifi cant market share, but it helps that these products are sold in a sector the latest Britvic Soft Drinks Report describes as “recession-proof,” although recent economic strictures mean far more price-conscious consumers.

Just maintaining market share, as Pepsi has done, with sales of £78.6m this year that are only slightly down on 2009, has required consistent marketing, and fi nding ways of using new technology, such as last summer’s tie-in with Nokia, featuring pack promotions that gave customers the opportunity to win mobile

phones and gain access to Nokia’s free music library.

Inevitably a lot of this summer’s marketing was tied in with the World Cup, and the big expenditure promotions that went with this. For instance, Coca-Cola off ered match tickets, fl ights, accommodation and meals. Despite the English football team’s ignominious performance, it’s unlikely that these activities will have been regarded as failures in terms of profi le raising and sales generation.

Vimto’s resurgence can in part be linked with this once old-school brand embracing new media and pursuing a younger target audience. Its senior brand manager, Emma Hunt, says: “Vimto has had a fantastic year, growing by 28%. To ensure this continues, we’re increasing our marketing investment by 20% to drive awareness and trial of Vimto and new Cherry Vimto over the crucial summer trading period.

“Our strong multimedia programme will ensure we reach our target teen audience across the UK and this together with the brand’s excellent growth this year should give retailers the confi dence to stock the Vimto range.”

Tenth placed 7Up is also to be the subject of an intensive marketing campaign. Called “Simple Pleasures”, the campaign kicks off in August and is off ering consumers the chance to win Polaroid Two digital cameras every hour. Th e on-pack promotion will run from

9 August to 4 October across all 7Up bottles and cans.

“To enter the prize draw, consumers simply have to log onto the 7Up website at www.7up.co.uk and enter the prompted four digits from the barcode on the back of a bottle or can of 7Up. Each code will give them a chance to win the fi rst portable digital camera and printer combination of its kind. Consumers will also get the chance to share their favourite photos on the website,” says brand manager Lucy Harman.

“Th e on-pack activity will aim to build on the success of the 7Up brand, which recorded double-

digit growth last year and is still the fastest growing lemon and lime fruit carbonate in the UK market,” she says.

Although some carbonates have been on the receiving

end of less than favourable publicity tied in with

improving

Bubbling under

people’s diets and a move to healthy eating, colas have actually won new friends, or regained old ones, thanks to the economic downturn.

According to the Britvic Soft Drinks Report, a fall-off in smoothie and pure juice sales has been compensated for by a rise in demand for colas. As the report’s authors put it, “these switches predominantly favoured low-cal variants.”

Th is trend generally works in favour of smaller, independent retailers, for whom carbonates are an important element of their off ering. Last year the overall take-home market was reckoned to be worth around £6.2bn, which represents a 1% volume increase and a value rise of 2%. IRN


Total carbonates £773.1m £767.3m -0.7%

1. Coca-Cola £404.2m £404.1m 0.0%2. Pepsi £79.2m £78.5m -0.9%3. Fanta £51.9m £47.2m -9.1%4. Irn-Bru £48.7m £47.1m -3.3%5. Dr Pepper £35.3m £35.9m 1.9%6. Sprite £22.9m £23.3m 1.9%7. Schweppes £17.6m £17.3m -1.4%8. Barr’s £10.4m £11.6m 11.7%9. Vimto £7.8m £10.1m 29.8%10. 7Up £9.4m £9.8m 4.3%


top 10 Carbonates Brands 2010

a bit of a hit, as sales dropped 9% to £47.2m.

Th e hero of the category was Vimto, which grew sales by nearly 30% to £10.1m over the 12-month period.

Tango and Rubicon are the fastest growing brands sitting outside the Top 10, in positions 11 and 16 respectively. Tango upped sales by 11% to £9.2m, while Rubicon increased by 38% to £2.3m.


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-based soft drinks are growing in the impulse channel but the category has shown only a small

increase of 3.3% overall. Th e impulse channel accounts for one-third of sales of juice-based soft drinks.

Ribena, the market leader, saw sales rise by 2.2% to £44.3m, while Oasis and Robinsons Fruit Shoot both experienced declines. Th e star performer was Capri Sun, up by nearly one-third to £19.7m.

Activity on Ribena’s part included a “Pick Your Own” campaign this summer, designed to drive frequency of purchase. Part of a £2.5m investment in the brand, the campaign included national TV and outdoor advertising as well as a big on-pack promotion. Earlier this year it launched Raspberry Ribena in a bid to build on the success of its Strawberry variant.

As with the resurgence of familiar names in other sectors of the drinks market, Capri-Sun’s growth might in part be the result of cash-conscious shoppers seeking value for money rather than so-called premium products, something borne out by fi ndings in the latest Britvic Soft Drinks Report, which suggests this fl ight to value has actually helped the category grow by 3% last year, having shrunk 1% in 2008.

A further reason for Capri Sun’s resurgence could be that it has worked to broaden its appeal from its once traditional market of younger children.

Th anks to heavy promotion, Nielsen reckons the brand has enjoyed a 40% brand awareness increase during 2009, helped by a mix of television advertising and a variety of on-pack promotions. Th e packaging was also revised.

Robinsons Fruit Shoot’s performance is a good indicator of how competitive the market is. Aimed squarely at children, this product saw a 5.5% fallback in demand, and is now worth

£20.8m. Last year the fi gure was £22m.

Th is was despite well-received, high-profi le interactive advertising, inviting children to

demonstrate skills in a competition that would see the winners fronting a television commercial for the brand, which was also the subject of a packaging design upgrade.

Robinsons is promising

to continue this programme for the rest of the year.

“Th e summer is a key period and to drive consumer awareness and sales, we will continue to supply the trade with targeted activity,” says Leslie Davey, Robinsons’ brands director.

Despite a 4.1% year-on-year sales reduction, second placed Oasis is still worth some £37.9m. Th e 20-something target audience for this product explains why promotions have included tie-ins with the Sun newspaper, Zoo and Empire magazines, together with digital and social networking activity.

CordialsMost cordials are sold through the multiples, with impulse

Juice on the loose

having only a 12.3% share in this category, but sales have seen a small increase of 1.5% on the previous year.

Successful launches this year included Robinsons Be Natural and Robinsons Select, which between them contributed 85.8% of NPD sales.

Th is brand really dominated the sector, with its sales of £34.1m


Total cordials £58.9m £59.8m 1.5%

1. Robinsons £34.4m £34.1m -1%2. Ribena £6.7m £7.4m 10.6%3. Princes Jucee £4.2m £4.2m 1.7%4. Vimto £1.9m £2.1m 12%5. Rose’s £1.1m £1m -11%


top 5 Cordials Brands 2010


Total juice-based drinks £160.5m £165.7m 3.3%

1. Ribena Original £43.3m £44.3m 2.2%2. Oasis £39.5m £37.9m -4.1%3. Robinsons Fruit Shoot £22m £20.8m -5.5%4. Capri Sun £15.2m £19.7m 29.4%5. Juicy Drench £800,000 £7.8m 891.4%


top 5 Juice-based drinks Brands 2010


while Oasis and Robinsons Fruit Shoot both experienced declines. Th e star performer was Capri Sun, up by nearly one-third

included national TV and outdoor advertising as well

is. Aimed squarely at children, this product saw a 5.5% fallback in demand, and is now worth

£20.8m. Last year the fi gure was £22m.

Th is was despite well-received, high-profi le interactive advertising, inviting children to

demonstrate skills in a competition that would see the winners fronting a television commercial for the brand, which was also the subject of a packaging design upgrade.

is promising to continue this

substantially ahead of second placed Ribena, which nonetheless enjoyed a 10.6% demand increase in the space of a year.

Th is summer the company launched on-pack promotions with cash prizes intended to increase awareness of all the Ribena fl avours.

“At times, blackcurrant can dominate consumers’ perception of the Ribena brand. We expect that this activity will help raise the profi le of the entire Ribena range,” says its brand manager, Andy Mahoney.

Ribena also brought back its animated berry characters in a £3.5m TV advertising and marketing campaign.

Sandwiched between third and fi ft h placed Princes and Rose’s cordials, Vimto proved that its brand revival cut across more than one soft drinks category, thanks to the 12% rise in demand it posted, in the process growing its sales from £1.9m to £2.1m. IRN

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

Convenience MustStocks 43


Total water £135.2m £135.6m 0.3%

1. Volvic £40.9m £39.2m -4.2%2. Evian £33.1m £33.8m 2.3%3. Highland Spring £18m £16.2m -9.9%4. Buxton £8.8m £11m 25.4%5. Vittel £5.9m £3.6m -40%


top 5 Water Brands 2010


Total juices and smoothies £139.5m £134.9m -3.3%

1. Tropicana £42.6m £39.4m -7.4%2. Ocean Spray £7.1m £6m -16.5%3. Copella £5.4m £4.8m -10.8%4. Princes £4.6m £4.8m 5.6%5. Just Juice £6.1m £4.1m -33.2%


top 5 Juices and smoothies Brands 2010

WAter, JUICes And sMOOtHIes

Although the water category as a whole has been on the decline for the last three years, the

impulse channel has seen some growth in the past 12 months, albeit a slim 0.3%. It’s still a good category for independents, however, as impulse accounts for nearly one-third of sales of bottled water.

Until around 2007 the category was in growth, but recent economic strictures and concerns about sustainability caused some consumers to go back to tap water. With an improved economic outlook, it is reckoned to have plenty of further development potential, as compared with some other countries, UK bottled water consumption per capita is relatively low. For instance, it’s half that found in the USA.

Volvic retains the number-one slot, despite a 4.2% drop in sales to £39.2m. Th e biggest gainer in the Top 5 is Buxton, which grew sales by more than a quarter to £11m. Vittel, on the other hand, slumped by 40% to £3.6m.

Schweppes Abbeywell (7) and Pure Life (12) are the fastest-growing brands outside the Top 5, while major new launches during the period included Iceni and Slazenger, which off ers three fl avours of Northumbrian spring water.

Highland Spring saw a year-on-year fallback of 9.9%, with sales of £16.2m, but is working on a variety of packaging updates, and this summer has seen it running a number of on-pack promotions.

“We fi nished 2009 ahead of the market, which stands us in good stead for a strong, robust 2009,” says Sally Stanley, the brand’s marketing director.

Buxton has invested in television advertising this year, and is planning promotional tie-ins with professional cricket. “Th e Ashes start in November, so in the build-up we will be creating some theatre around cricket and the Ashes, which will be supported by price promotions,” said Nestlé Waters trade marketing manager Andrea Cahill.

Juices and smoothiesTh e recession has seen shoppers moving away from smoothies towards pure fruit juices, and away from pure juices towards juice drinks, hence the category as a

whole is in decline.Th is is very much a sign of the economic times, according to the Britvic Soft Drinks Report 2010. Smoothies are oft en seen as premium, indulgence items, and these tend to be the fi rst products to go from shopping lists when household budgets are put under strain.

Tropicana is still the best-selling branded juice, with sales of £39.4m, even though it has seen sales drop by 7.4%.Outside the Top 5,

Innocent (14) grew its sales through the Impulse channel from virtually nothing to some £700,000, proving that having a strong brand identity and distinctive marketing can buck broader sales trends.

Despite challenging trading conditions, this remains a vibrant category. A good example of this is second placed Ocean Spray, which aft er signing a distribution deal with Coca-Cola has busied itself with a re-branding exercise.

Th is includes new, one-litre packs with ‘a fresh premium look,’ that are taller, slimmer and feature a new cap. Th is design is also intended to make pouring easier.

Th e re-launch will also bring the

refreshing change

fi rst branded blueberry juice to the grocery sector and will meet a growing consumer demand for ‘superfruit’ products. New Ocean Spray Blueberry will be available in one-litre chilled and ambient formats, with an additional ambient fl avour, Blueberry Light.

It has also pumped £7m into a variety of advertising mediums, including TV, and although Ocean Spray is best known for its

Independent Retail News

whole is in decline.Th is is very much a sign of the economic times, according to the Britvic Soft Drinks Report 2010. Smoothies are oft en seen as premium, indulgence items, and these tend to be the fi rst products to go from shopping lists when household budgets are put under strain.

best-selling branded juice, with sales of £39.4m, even though it has seen sales drop by 7.4%.

cranberry products, its American heritage is also being highlighted.

Apple Juice specialist Copella, which sits at third place in this category’s rankings, has promoted its Englishness, and variations of fl avours to match seasonal changes.

Prince’s continues to be one of the category’s biggest suppliers, and its sales increased by 5.6% year on year to £4.8m, slightly ahead of Just Juice, which generated £4.1m. IRN

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

74% of soft drinks purchases are consumed within two hours.*

Shoppers say that, after brand and fl avour, chilled availability is the most important factor when buying a soft drink.§

fact

factfact 1 in 2 Soft Drinks bought in convenience

stores are part of lunch meal or treat.**

fact 42% of soft drinks purchases are unplanned.*

want to open more business?

Sources: *HIM CTP 2009. **ID Magasin Consumer Research 2008. §Shopper Centric Independents Consumer Study August 2008. †FCRS research 2009.

Look out for more information in your depot or call Customer Services on 08705 33 66 99

Applying these simple steps can unlock up to 8%† growth for your soft drinks.

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.

open more keep your soft drinks

chilled

and visible in the right

locations

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

top tipsProvide enough chilled space to keep all of your impulse soft drinks cold

A large store should have a minimum of 20 metres chilled space

A medium sized store should have a minimum of 15 metres chilled space

A small store should have a minimum of 10 metres chilled space

top tips

Large

Meduim

Small

COCA-OFF-0307_ChilledLocationOFF_DPS_AW1.indd 1-2 19/07/2010 09:26MustStocks2010.indd 44 26/07/2010 18:16:29

74% of soft drinks purchases are consumed within two hours.*

Shoppers say that, after brand and fl avour, chilled availability is the most important factor when buying a soft drink.§

fact

factfact 1 in 2 Soft Drinks bought in convenience

stores are part of lunch meal or treat.**

fact 42% of soft drinks purchases are unplanned.*

want to open more business?

Sources: *HIM CTP 2009. **ID Magasin Consumer Research 2008. §Shopper Centric Independents Consumer Study August 2008. †FCRS research 2009.

Look out for more information in your depot or call Customer Services on 08705 33 66 99

Applying these simple steps can unlock up to 8%† growth for your soft drinks.

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.

open more keep your soft drinks

chilled

and visible in the right

locations

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

top tipsProvide enough chilled space to keep all of your impulse soft drinks cold

A large store should have a minimum of 20 metres chilled space

A medium sized store should have a minimum of 15 metres chilled space

A small store should have a minimum of 10 metres chilled space

top tips

Large

Meduim

Small

COCA-OFF-0307_ChilledLocationOFF_DPS_AW1.indd 1-2 19/07/2010 09:26MustStocks2010.indd 45 26/07/2010 18:16:29

tOBACCO

Although volume sales of tobacco are declining in the convenience sector when compared

with volumes in the big grocery multiples, most tobacco – 62% by volume – is still sold through the impulse channel.

Despite being one of the most resilient categories, tobacco has not been immune to the eff ects of the recession. Generally speaking, the market continues to shift towards cheaper, value-for-money cigarettes.

Th e value category currently accounts for just over one-third of the whole UK cigarette market, with economy priced cigarettes making up about 16% and premium priced 24%. By 2012 the share held by value brands is forecast to dip very slightly to about 32%, while economy will increase to 21.5% and premium drop to 23%.

On the regulatory front uncertainty remains about the future of in-store tobacco displays, which are due to be phased out by 2011 in supermarkets and by

2013 in smaller stores. However, both the Liberal Democrats and Conservatives said before the election that they were against the ban, so there is still a chance the legislation could be revoked, in England at least.

Th e category as a whole is up by just 0.8% in the impulse trade, with most of the major brands experiencing single-digit falls in sales when compared with the previous 12 months. Only two cigarette brands in the Top 10 managed to buck the trend, both of them from manufacturer JTI.

Value for moneyValue-price brand Mayfair increased its sales by 0.2% to £906m but the big success story was Sterling, also a value brand, which saw sales rise by a staggering 60% to £359m, taking it into the Top 10 at number six.

Jeremy Blackburn, JTI’s head of communications, says: “Th e most signifi cant development to take place in the cigarette market over the last year is the increased demand for brands that off er adult smokers value for money.

“Sterling is the UK’s number one value brand from JTI and continues to go from strength to strength since it was launched four years ago. Sterling now accounts for 10% of the total cigarette market and off ers quality, value and a range to suit all tastes.”

Mayfair has seen its share of the segment increase since its redesign last year. Says Blackburn: “Already the number one cigarette brand in Scotland and Northern Ireland, Mayfair is the UK’s second biggest seller and accounts for one in every seven cigarettes sold in the UK.”

Imperial Tobacco’s Lambert & Butler remains the biggest single brand, despite a 3.3% dip in sales to just more than £1bn, while sales of second-placed Richmond dropped by just 1.4% to £962m.

Neil Rooke, UK public relations

executive for Imperial Tobacco, says: “In a market place that’s experiencing quite a strong down-trading dynamic, the fact that Lambert & Butler has been number one for so long just demonstrates the resilience of the brand. It’s not an economy brand but nonetheless is robustly holding its position.”

Richmond underwent a pack redesign during the period, with the pack gaining a new, more dynamic “swoosh” motif.

Marlboro held on to fi ft h place, despite sales dipping by 2.4% to £542m. Developments included the launch earlier this year of a new pack design for its best-selling premium-priced Gold range, rebranded as Marlboro Gold Original.

During 2009 its big move was the launch in September of Marlboro Bright Leaf – its fi rst new product launch in the UK for two years. An additional, smoother-tasting variant called Bright Leaf Platinum was introduced in April this year.

Bubbling underBrands to watch include Imperial’s JPS Silver, which is the fastest growing brand outside of the Top 10 and

economy class

currently ranks at number 11. Launched in November 2008, the brand is aimed at adult smokers choosing economy price cigarettes. JPS Silver 10s were added to the range in March 2009.

While not featured in the table, roll-your-own (RYO) is currently the fastest-growing tobacco sector in the UK and should not be neglected by retailers, urges Blackburn at JTI. “Amber Leaf is the UK’s number one value RYO brand with 50% share of its segment,” he says. IRN


Total cigarettes £6,469m £6,522m 0.8%

1. Lambert & Butler £1,119m £1,082m -3.3%2. Richmond £975m £962m -1.4%3. Mayfair £904m £906m 0.2%4. Benson & Hedges £629m £613m -2.6%5. Marlboro £555m £542m -2.4%6. Sterling £224m £359m 60.1%7. Silk Cut £325m £312m -3.8%8. Royals £225m £219m -3.0%9. Superkings £253m £218m -13.8%10. Embassy £228m £202m -11.4%

Source: Nielsen, data to April 2010

top 10 tobacco Brands 2010


No.1 Value brand in

the UK and growingin your region

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

NEW

A4 ad for IRN aw.indd 1 26/07/2010 12:04MustStocks2010.indd 46 26/07/2010 18:16:33

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

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.

JTI’s UK trading company is Gallaher Limited. Members Hill, Brooklands Road, Weybridge, Surrey, KT13 0QU, England.

UK Customer Care Line 0800 163 503

Responsible

TOBACCORETAILING

Your one-stop-shop for Responsible Tobacco Retailing

www.tobaccoretailing.com

GA0129_RTR_L_CARD_56x85 7/4/09 17:20 Page 1

No.1 Value brand in

the UK and growingin your region

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

NEW

A4 ad for IRN aw.indd 1 26/07/2010 12:04MustStocks2010.indd 47 26/07/2010 18:16:33

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

Q U A L I T Y B R A N D A F F O R D A B L E P R I C E* Price marked packs subject to availability.

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

C O M I N G I N J U N E

C

M

Y

CM

MY

CY

CMY

K

Trade ad a4 2.pdf 28/5/10 10:08:54

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.

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 ytdJTI’s UK trading company is Gallaher Limited

Top Trends

However, retailers should not forget the importance of premium brands such as Benson and Hedges Gold, Silk Cut and Camel. These brands represent over a quarter of all cigarette sales5 and offer the opportunity for good profit margins.

Here, Mark Cronin, Trading Director for JTI in the Independent Channel, gives his top tips for maximising your tobacco sales:

Avoid out of stocks – research shows that adult smokers will go elsewhere if their brand of choice is not available3

Ensure the top-selling brands, like Mayfair, are well stocked, and that you provide enough space for them on the gantry

Rotate stock regularly so that older stock is sold through first

Keep to your recommended planogram - this has been created according to the bestselling brands in your region

Keep the gantry clean and free of rubbish at all times and do not stack products on top of each other – this looks untidy and causes damage to packs


JTI’s flagship mid price brand, Mayfair, is already the No.1 cigarette brand in Scotland and Northern Ireland, and the UK’s 2nd biggest seller4, and a must-stock for retailers.

Mid price brands, which offer adult smokers value for money, currently represent the biggest segment of the cigarette market4.

Accordingly, JTI has reduced the cost price and recommended retail price of its Berkeley Superkings range to the mid price cigarette sector, to ensure that the brand is best placed to offer greater sales and profits for any retailer who chooses to implement the price reduction. Superkings cigarettes are also in growth5 and this move will ensure Berkeley is best positioned to meet this demand.

For more advice and support speak to your JTI representative or call the JTI Customer Care Line on freephone

for information on the legislation surrounding the sale of tobacco and the impact this could have on your business.

0800 163 503

www.tobaccoretailing.comYou can also visit JTI’s website


for information on the legislation

0800 163 503


From 1st October 2010 it will be illegal to sell any tobacco products that do not carry pictorial health warnings, including cigars, roll your own and pipe tobacco. Speak to your representative or visit www.phwarnings.com for more information.

Don’t forgetFrom 1st October 2010 it will be illegal to sell any tobacco products that do not carry pictorial health warnings, including cigars, roll your own and pipe tobacco. Speak to your representative

Don’t forget

IRN Single Page 'Improve Your Tobacco Sales With JTI'.indd 1 26/7/10 10:30:22MustStocks2010.indd 48 26/07/2010 18:16:35


Q U A L I T Y B R A N D A F F O R D A B L E P R I C E* Price marked packs subject to availability.

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

C O M I N G I N J U N E

C

M

Y

CM

MY

CY

CMY

K

Trade ad a4 2.pdf 28/5/10 10:08:54

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.

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 ytdJTI’s UK trading company is Gallaher Limited

Top Trends

However, retailers should not forget the importance of premium brands such as Benson and Hedges Gold, Silk Cut and Camel. These brands represent over a quarter of all cigarette sales5 and offer the opportunity for good profit margins.

Here, Mark Cronin, Trading Director for JTI in the Independent Channel, gives his top tips for maximising your tobacco sales:

Avoid out of stocks – research shows that adult smokers will go elsewhere if their brand of choice is not available3

Ensure the top-selling brands, like Mayfair, are well stocked, and that you provide enough space for them on the gantry

Rotate stock regularly so that older stock is sold through first

Keep to your recommended planogram - this has been created according to the bestselling brands in your region

Keep the gantry clean and free of rubbish at all times and do not stack products on top of each other – this looks untidy and causes damage to packs


JTI’s flagship mid price brand, Mayfair, is already the No.1 cigarette brand in Scotland and Northern Ireland, and the UK’s 2nd biggest seller4, and a must-stock for retailers.

Mid price brands, which offer adult smokers value for money, currently represent the biggest segment of the cigarette market4.

Accordingly, JTI has reduced the cost price and recommended retail price of its Berkeley Superkings range to the mid price cigarette sector, to ensure that the brand is best placed to offer greater sales and profits for any retailer who chooses to implement the price reduction. Superkings cigarettes are also in growth5 and this move will ensure Berkeley is best positioned to meet this demand.


for information on the legislation surrounding the sale of tobacco and the impact this could have on your business.

0800 163 503


From 1st October 2010 it will be illegal to sell any tobacco products that do not carry pictorial health warnings, including cigars, roll your own and pipe tobacco. Speak to your representative or visit www.phwarnings.com for more information.

Don’t forget

IRN Single Page 'Improve Your Tobacco Sales With JTI'.indd 1 26/7/10 10:30:22 MustStocks2010.indd 49 26/07/2010 18:16:36

Book Your Place30 September 2010

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

BookTodayCall Rizwan on 0208 253 8708

izwan.chaudhrey

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QUESTIONNAIRE


Tell us what you thinkabout Convenience

MustStocks and win some goodiesHow useful do you think the following sections were?

Not Very Page useful useful usefulContents 3

Introduction 5

ALCOHOLBeers 6

Cider 8

Category advice 10

sponsored by HeinekenWines 12

Spirits 12

BISCUITS AND SNACKSBiscuits 14

Bagged snacks 14

Bread 16

Cereals 18

CONFECTIONERYChocolate 20

Sugar confectionery 20

Category advice 22

sponsored by Nestlé Rowntree DAIRYButters and spreads 24

Cheese 26

Yogurts 28

Yogurt drinks 28

Flavoured milks 28

FOOD-TO-GOCategory advice 30

sponsored by Kepak HOT BEVERAGESCoffee 32

Tea 32

Category advice 34

sponsored by Nestlé SOFT DRINKSEnergy drinks 36

Category advice 38

sponsored by Red BullCarbonates 40

Juice-based drinks 42

Cordials 42

Water 43

Juices and smoothies 43

Category advice 44

sponsored by Coca-Cola Enterprises TOBACCOTobacco 46

Category advice 48

supported by JTI

We hope you have found the information contained in Convenience Muststocks 2010 useful.

To help us improve the publication, we would be grateful if you could give us your feedback below.

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If you do not wish to dis� gure your copy of Convenience MustStocks 2010, just send us a photocopy of these pages or go to www.talkingretail.com and visit Convenience MustStocks 2010 and print o� the pages.

As well as the categories already covered this year, which of the following product categories would you also like to see covered next year? Ambient products Batteries Cakes Frozen food

Health and beauty Healthcare

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Laundry products Magazines Newspapers Packaged grocery Pasta, rice

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