Welcome to our ‘weekly news in brief’, covering the latest from UK retailers and manufacturers.
RETAIL NEWS
M&S announces major overhaul of Sparks as “digital first loyalty scheme” in huge digital push
Marks & Spencer has announced a major overhaul of its iconic Sparks loyalty programme, relaunching it as a “Digital First loyalty scheme”. M&S’ Sparks loyalty scheme will now be entirely digital and will be hosted through an updated M&S App from Thursday July 9.
Existing members can download their Sparks cards via the app straight to their phone or have it stored on their online shopping account. Sparks’ 7 million members will no longer receive points on their cards, but will instead have access to instant rewards including a guarantee that one customer every week will get their shopping absolutely free.
Rewards also include giveaways worth thousands of pounds to spend in store, to smaller personalised ‘customer thank yous’ like free packs of Percy Pigs and Candles.
The updated Sparks scheme will also offer better and more personalised offers to members the more they shop, thanks to significant investment in its digital and data science teams. It has also more than doubled its charity partners to 35, enabling Sparks holders to donate to a charity of their choice every time they shop.
This major revamp forms part of M&S’ wider “Never the Same Again Programme”, marking a heavy investment in and focus on becoming a “digital first” retailer. This move is also understood to form part of M&S plan to unite data from Sparks, M&S.com, M&S Bank and soon Ocado in order to prioritise personalisation and make major improvements to its digital experience.
Source: Charged retail 2nd July 2020
Lloyds Pharmacy links up with Deliveroo
Lloyds Pharmacy and Deliveroo have announced a new partnership that offers the delivery of a selected range of medical essentials in as little as 30 minutes. The Lloyds Pharmacy Deliveroo service will be available this week from 16 stores, in a selection of cities, including Southampton, Cardiff, Edinburgh, Bristol, Newcastle upon Tyne, Cambridge and Coventry.
The tie-up will then roll-out to a further 24 stores across the UK with the aim of supporting people isolating at home due to COVID-19 and the elderly.
A range of Lloyds Pharmacy’s 50 best-selling products will be available to purchase via Deliveroo’s app. These include PPE equipment, hayfever relievers, first aid products, and various pain relief and medicines for conditions such as cold & flu. Lloyds Pharmacy already offers next day click & collect and delivery services, but it stated that the Deliveroo partnership would meet the needs of customers who require emergency medication.
Toby Anderson, Lloyds Pharmacy CEO said: “Pharmacy plays a pivotal role in not only offering prescriptions and advice to patients, but in also providing over the counter medicine for minor ailments, helping to alleviate pressure on the NHS.
“Over the past few weeks we have taken a number of steps to review and alter our in-store and online operations to ensure that customers can continue to access essential medicines and healthcare products safely and conveniently. This partnership with Deliveroo marks a step change in the evolution of pharmacy and illustrates our commitment to continue delivering first-class healthcare services to our customers.”
Deliveroo has secured tie-ups with a host of retailers during the pandemic, including Holland & Barrett, Aldi, M&S, Morrisons, and the Co-op.
Ajay Lakhwani, Vice President of New Business, Deliveroo said: “At Deliveroo, we are doing everything we can to make sure that people get the food and health products they need and want during this unprecedented time. We are pleased to partner with Lloyds Pharmacy and deliver a new range of over the counter medicines to our customers.”
Source: NamNews 30th June 2020
Express Vending unveils ‘COVID compliant’ micro markets
Selecta-owned Express Vending has adapted its Express Hub Micromarkets to ensure they are Covid-19 compliant. The Express Hub Micromarket solutions are unattended markets suitable for workplaces, university campuses and similar locations.
According to Express Vending, a range of new features have been added to ensure the markets remain safe and hygienic. New features include the addition of perspex screens and social distancing floor stickers; touch-free product scanning and payment with a new smartphone app; one-way systems to control the flow of traffic; and hygienic touch-free hand wash stations.
The new 365 Beacon App allows consumers to scan items and pay on their smart device, eliminating unnecessary touchpoints.
Meanwhile, coffee machines featuring Distance Selection technology have been introduced, allowing users to select drinks by hovering their finger over the selection screen, from a distance of up to two centimetres.
Kelvin Locke, head of sales & innovation for the Hub UK/Ireland, said: “We’re extremely excited about the launch of our Covid-compliant Hub. As businesses begin to think about reopening, this solution will be ideal for supporting shift/flexi-working, without staff having to leave the office unnecessarily. Seen as a more cost-effective alternative to on-site catering and a step up from traditional vending, the HUB provides employees with a huge range of fresh food, healthy snacks, and hot and cold drinks.
“As a result of Covid-19, our refreshment solutions have adapted to ensure that staff feel safe at the workplace, as government measures begin to lift.”
Source: FoodBev Media 2nd July 2020
Sainsbury’s posts bumper Q1 sales but warns of tougher times ahead
Simon Roberts has begun his reign as Chief Executive of Sainsbury’s by revealing a jump in grocery sales following strong demand during the lockdown period in both its stores and online. However, the group is still facing a hit of more than £500m from costs relating to running the business during the coronavirus pandemic.
Over the 16 weeks to 27 June, the group’s total retail sales rose 8.5% (excl. fuel) with like-for-like growth of 8.2%. Sainsbury’s no longer breaks down like-for-like performance by division.
Total grocery sales surged up 10.5% in the first-quarter quarter period, boosted by stockpiling, the return of big weekly shops, and good weather.
As flagged by other supermarket chains, Sainsbury’s online grocery operation also saw particularly strong performance as people did more of their shopping from home during the lockdown. Online sales climbed 87% year-on-year and orders grew from around 370,000 a week to over 650,000. The group highlighted that nearly 50% of new groceries online customers were new to the business.
Meanwhile, the group revealed that sales in its convenience store chain were down 5% due to weak performance in its city centre stores, where trade is usually driven by office workers, and the temporary closure of 26 outlets. However, this was partially offset by “very strong” sales growth in neighbourhood locations.
Sales in the group’s General Merchandise unit grew 7.2%, driven by a 10.7% increase in its Argos business which offset a 9.3% fall in sales of non-grocery products in Sainsbury’s supermarkets. All the 573 standalone Argos stores were closed for most of the period but the business benefited from strong online activity during the lockdown with home delivery sales surging up 78% and click & collect from Sainsbury’s outlets growing 53%.
However, clothing sales in its the group’s supermarkets plummeted 26.7% as consumers focused their spending on essentials. Roberts praised the efforts of his staff during the crisis, adding: “We have worked really hard to listen and to respond to customers throughout the crisis. We have lowered prices on many key products as we continue to focus on lower regular prices. Our price position versus our competitors has improved in the quarter, Sainsbury’s key customer feedback scores are at record levels and we have gained market share.”
However, Robert’s highlighted that the coming weeks and months will continue to be challenging for its customers and staff with the business not expecting the current strong sales growth to continue as consumer spending weakens during the expected recession.
As flagged back in April, Sainsbury’s is also facing significantly increased costs related to maintaining supplies and keeping its customers and staff safe during the pandemic. The business has also been hit by weak sales of fuel, clothing and general merchandise within its supermarkets.
Sainsbury’s said it still expected flat underlying pre-tax profit for the full year, with the impact of the crisis expected to be more than £500m. However, it is hoped that this will be broadly offset by business rates relief and better grocery sales.
Roberts succeeded Mike Coupe as Chief Executive on 1 June. He said his focus so far has been on steering the business through the crisis rather than new strategic thinking. Roberts said Sainsbury’s would examine the impact of the changes in how customers are now shopping. “Inevitably, things on the other side of Covid will be different and we’ll be looking at those issues as we move forward. But four weeks into the job it’s too early to speculate.”
With the impending recession in the UK also likely to mean a new wave of price battles with the discounters, Sainsbury’s could face pressure to further improve its competitiveness. Last Friday, Tesco revealed that it was more than doubling its Aldi price-match promotion as part of moves towards an EDLP strategy.
Source: NamNews 1st July 2020
MANUFACTURING NEWS
Peperami launches spray to lure lost dogs
Peperami is hoping to gain headlines with the launch of body spray it claims can lure lost dogs. The pork-scented Puperami: Eau De Lurette was inspired by a recent news story featuring a dog-owning couple in Edinburgh who used a salami stick to tempt their beloved pooch Coco back home.
Currently at the prototype stage, the meaty mist with spray top will contain a water-based solution spiked with the distinctive scent of Peperami.
“We’re thrilled to hear that Coco has been found safe and sound, thanks to the help of Peperami,” a company spokesperson said.
“Although our pork snacks aren’t suitable to be digested by dogs, we’ve been inspired by the story and looking into how we can replicate the same smell of our original salami stick in spray form. The Puperami: Eau de Lurette prototype will aim to help future dog-owners find their furry friends.”
Source: Marketing Week 1st July 2020
Lush launches savvy new self-timing soap in collaboration with Deliveroo to help fight COVID-19
Lush has announced the launch of a new self-timing soap, which is designed to dissolve after 30 seconds – just the right amount of hand-washing time said to prevent catching COVID-19, according to a report by Spring Watch.
The soap has been developed in a partnership with Deliveroo UAE, which will deliver the bars with food deliveries, and is being promoted by ad agency ‘and us.’
Discussing how the soap aims to help change consumer habits on handwashing, Fadi Yaish, Founder and Chief Creative Officer of and us, said, “Most people just assume that means they need to wash their hands for a little longer than usual, but ‘usual’ for most people generally means five seconds or less. With the 30-Second Soap, Lush and Deliveroo give their customers a one-off demonstration of how long 30 seconds actually feels like in practice, hopefully influencing their hand cleansing rituals in the future.”
The soaps are thought to be a way for Lush to get sample products to consumers during continued retail closures, while giving Deliveroo the benefit of being associated with hygiene.
Likewise, it is a sign of innovative and pioneering NPD in the wake of the crisis, with both companies said to be planning to extend the scheme into new locations.
Source: Global Cosmetic News 3rd July 2020
Mondelēz introduces calorie cap on key brands
Mondelēz International has announced that it will fulfil its pledge to bring all its Cadbury chocolate and wider biscuit products typically bought for children to under 100 calories by the end of this year.
As part of its drive to help tackle childhood obesity, the Fudge, Curly Wurly, Chomp and Barny brands will now be brought under 100 calories over the next few months. This follows in the footsteps of some of the other brands in its portfolio, including Cadbury Mini Fingers and Cadbury Animals, which were brought under 100 calories in 2019.
New pack designs will roll out across the portfolio, including singles and multipacks, which will highlight the under 100 calories messaging to help make the portion size clear to consumers.
Louise Stigant, UK Managing Director at Mondelēz International, commented: “We believe this is the right approach in terms of helping parents control the calories, when wanting to treat their children.
“We feel strongly about playing our part in tackling childhood obesity and are focusing on the areas where we can make the greatest impact, this being one of them. Our brands have been around for hundreds of years and play a special role in people’s lives as treats to be enjoyed in moderation. We feel we have a responsibility to support parents when they choose to give their children a treat and introducing this calorie cap will make it simpler for them to find one under 100 calories that children will enjoy.”
Source: NamNews 30th June 2020
Biotiful Dairy debuts range of kefir ice cream in the UK
Biotiful Dairy has unveiled a range of kefir ice cream, marking the UK company’s entry into a new category.
Made using British milk and containing ‘gut-friendly’ cultures, the brand’s latest innovation is available in three variants: Vanilla, Chocolate and Cherry.
Biotiful says the frozen desserts combine a ‘smooth and creamy texture’ with a ‘refreshing kefir tanginess’ and are aimed at consumers looking to try a healthy alternative to traditional dairy ice cream. Each variant is reportedly a natural source of protein.
“After recognising a gap in the frozen market for kefir products, it made perfect sense for us to take our expertise to a new category,” said Biotiful Dairy founder, Natasha Bowes.
“The aim is to provide an even wider range of delicious products for those already familiar with kefir, as well as bring new consumers into natural gut health by offering a unique product range that couples great taste with better nutrition.”
Biotiful’s kefir ice cream is available, for an RRP of £4.50 per 500ml tub, from Ocado, Wholefoods Market and independent retailers nationwide. Last month, Biotiful announced it had expanded its liquid kefir portfolio with the introduction of Mango and Blackcurrant variants.
Source: FoodBev Media 30th June 2020
WIDER INDUSTRY NEWS
New paper wine bottle under consideration by leading supermarkets
A new paper bottle has arrived in the UK with claims that it could revolutionise sustainability in the wine sector. Packaging company Frugalpac has developed the lightweight bottle, which has several environmental benefits.
The packaging is made from 94% recycled cardboard, with a food-grade liner to hold the liquid inside. This means it has a carbon footprint that is 84% lower than a new glass bottle and a third less than a recycled glass bottle.
Weighing just 83g, it is up to five times lighter than a normal glass bottle, so making it easier and lighter to transport. The Frugal Bottle’s water footprint is also at least four times lower than glass and it can be easily recycled.
The first wine to go on sale in the Frugal Bottle is from Italian vineyard Cantina Goccia. The red wine will be listed by Woodwinters in its Scottish stores and online. However, Frugalpac said the bottle was already “under active consideration by a number of leading UK supermarket chains and hospitality groups keen to promote sustainable packaging”. It will be available from other retail outlets across the UK, in Denmark, and Holland over the next few weeks.
Frugalpac’s Chief Executive, Malcolm Waugh, said: “We want to deliver great wine and spirits in innovative packaging whilst helping our customers and consumers reduce their impact on the environment.
“The Frugal Bottle offers a major point of difference for the global wine and spirits sector through stand out design and positive sustainable benefits. We have had fantastic feedback from people who have trialled the Frugal Bottle – as well as the superior environmental benefits, it looks and feels like no other bottle you have ever seen.”
Source: NamNews 2nd July 2020
Mark Zuckerberg claims ‘advertisers will be back’ despite boycott
Facebook CEO Mark Zuckerberg reportedly told employees that advertisers will return to the social network despite the continuing ad boycott.
Speaking during a private meeting last Friday (26 June), Zuckerberg is reported to have said: “My guess is that all these advertisers will be back on the platform soon enough.”
He allegedly then added: “We’re not going to change our policies or approach on anything because of a threat to a small percent of our revenue.”
More than 600 brands including Unilever, Vans and The North Face have joined the Stop Hate for Profit boycott, which is calling on companies to pull their advertising off Facebook for the month of July. Yesterday Facebook’s head of global affairs and communications, the former Liberal Democrat leader Nick Clegg, issued an open letter in which he claimed the social media giant “does not profit from hate”.
“We may never be able to prevent hate from appearing on Facebook entirely, but we are getting better at stopping it all the time,” said Clegg.
Source: Marketing Week 3rd July 2020
Leicester lockdown tightened as coronavirus cases rise
The UK's first full local lockdown has been announced in Leicester, with stricter measures imposed in the city. Non-essential shops have shut, and schools will close for most pupils on Thursday because of a rise in coronavirus cases. The loosening of restrictions for pubs and restaurants in England on Saturday will also not be taking place there.
The health secretary said measures would be enforced by police "in some cases". Matt Hancock said the city had "10% of all positive cases in the country over the past week". It comes after the city council reported 944 positive tests in the two weeks to 23 June - about one in 16 of the total UK cases during that period.
The health secretary told the House of Commons on Monday evening: "We recommend to people in Leicester, stay at home as much as you can, and we recommend against all but essential travel to, from and within Leicester.” He said the new local measures would be in place for at least two weeks, but kept under constant review.
Mayor of Leicester Sir Peter Soulsby said the measures imposed by the government were "stricter than we anticipated but we understand the need for firm action".
"[The government] are clearly determined to start with the maximum, as it were, to see how it works and then perhaps to use the learning from this in other areas I have no doubt will follow."
Suburbs such as Oadby, Birstall, Thurmaston and Glenfield are also subject to the stricter measures. The county council said it planned to create a postcode tool to allow people to check if they were inside the lockdown boundary.
Source: BBC News 30th June 2020
UK to establish trade commission to monitor postBrexit food standards
The UK government has announced that it will establish a new Trade and Agriculture Commission to help safeguard food standards in any post-Brexit trade deals. International trade secretary Liz Truss made the announcement in a letter to the president of the National Farmers’ Union (NFU) Minette Batters, and the commission will reportedly advise ministers and scrutinise the UK’s approach to post-Brexit trade agreements.
The move follows a campaign from several of the UK’s main farming unions, which have lobbied the government to ensure that trade agreements which result in lower food safety and animal welfare standards should be prevented.
Earlier this month, concerns about post-Brexit food safety standards intensified as Prime Minister Boris Johnson implied that a trade deal with the US could allow the import of certain products that are currently banned from sale into the UK, such as chlorine-dipped chicken and hormone-treated beef and pork.
In a letter to NFU president Minette Batters, Truss claimed that the decision to form the commission followed “positive discussions” with four of the UK’s largest farming unions – the NFU, NFU Scotland, NFU Cymru and Ulster Farmers’ Union.
Truss wrote: “I wholeheartedly agree that any trade deal the UK strikes must be fair and reciprocal to our farmers, and must not compromise on our high standards of food safety and animal welfare. I have been very clear on both these points and will continue to fight for the interests of our farming industry in any and all trade arrangements we negotiate.”
NFU president Minette Batters said: “I am very pleased that the government is taking concrete action to address the challenges of safeguarding our high food and farming standards by agreeing to set up a Trade and Agriculture Commission, something we first called for over 18 months ago. This is a hugely important development.
“The NFU will continue to scrutinise the progress of trade negotiations with the USA and other countries over the coming months outside of the work of the Commission so that our future trade deals work for British farmers and consumers, and we believe it is vital that Parliament is provided a strengthened role in this regard as well.”
Source: FoodBev Media 30th June 2002
MERGERS & ACQUISITIONS
Vibrant Foods acquires Cofresh Snack Foods
Newly-formed ethnic foods company Vibrant Foods has announced the acquisition of Cofresh Snack Foods (CSF), an Indian and healthy snacks firm, for an undisclosed sum. Following the deal, CSF will join a portfolio of brands with the aim to further establish Vibrant Food’s as a producer and distributor of South Asian ethnic foods in the UK and across continental Europe.
Source: FoodBev Media 3rd July 2020
Constellation Brands acquires Empathy Wines
Constellation brands has announced it is acquiring wine brand and direct-to-consumer (DTC) platform, Empathy Wines. Constellation says the brand has sold approximately 15,000 cases and acquired more than 2,000 subscription customers since its initial product launch in 2019.
Source: Foodbev Media 26th June 2020
Victoria Secret: is M&S set to snap up the ailing brand?
M&S is said to be eyeing the acquisition of troubled brand Victoria’s Secret.Victoria’s Secret has been hit hard by the coronavirus pandemic, falling into administration during lockdown. However, it seems that Marks and Spencer isn’t the only UK company eyeing up the sale, with Next also said to have expressed an interest.
Source: Global Cosmetic News 2nd July 2020
