Proprietary freshly made food can be a great way to propel customer visits, store margin and associated impulse sales thus boosting the overall revenue of local convenience stores which are currently burdened by cost-of-living crisis, low footfall and legislative prohibitions, Asian Trader has learnt.
The UK food-to-go (FTG) sector has been tipped to grow 3.5 per cent in 2024, reaching a value of £23 billion, according to a new report from Lumina Intelligence. The report states that convenience store grab and go achieved strong food to go growth versus pre-covid, driven by investment in ranges and value and that value growth is expected to have been +17.4 per cent from 2019-2024.
According to TWC’s MealTrak, FTG sales through convenience stores have risen by 5 per cent in the last 12 months (MAT) despite the cost-of-living crisis and other factors. The segment has thus been emerging as one of the biggest drivers to independent convenience stores.
Many c-stores across the UK are leveraging fresh and hot FTG, either made in-house and/or sourced locally and a few of them are performing really well.
Wigston Fields News & Deli in a sleepy Leicester suburb and Baba’s Kitchen in Glasgow suburb are a few examples of how a corner shop can become a beacon for food lovers in the neighbourhood and thus emerging over and beyond the strict definition of convenience store.
Baba’s Kitchen Costcutter store owner Umar Majid has changed his store’s perception from “a convenience store with a bit of food” to “a food store with a bit of convenience” and is cashing the resulting benefits.
He has a special team of a chef and support staff who make everything in-store, so all the meals are always fresh. The menu remains flexible depending on the performance and changing demands.
“As our food sales have grown over the years, we have also seen an increase in soft drinks, confectionery and crisps as whenever a customer buys food, they usually also buy a drink. We sell between 300-350 meals a week with some of them giving us a minimum of 60 per cent margin,” Majid told Asian Trader.
Food and convenience retail industry guru and pathfinder Scott Annan bats strongly for proprietary fresh food, saying this section can easily be developed into a store’s USP, something that should be nurtured to beat competition and bring more footfall.
Convenience retail expert Scott Annan
Annan told Asian Trader, “With UK independent retail having a 1.4 per cent and declining market share, proprietary fresh Food to Go is the only category that can increase customer visits, store margin and associated impulse sales of confectionery, snacks and drinks.
“Successful foodservice retailers include David’s Kitchen in Scotland, Jempson’s in East Sussex and Milestone in Northern Ireland. Fresh Food to Go is the dominant category across the Island of Ireland and is well established in what I term ‘tier one’ UK independents.”
The key point and the most noteworthy aspect of FTG is the promising margin, which usually falls into a range of 60-80 per cent (even > 100 per cent).
Annan said, “Tier two and three convenience retailers are waking up to the margin available from FTG. It’s taken a while and the profit loss cliff edge from the banning of disposable vapes is acting as a very loud wake up call.
“I recommend UK retailers to visit both Northern Ireland and The Republic to see best practice and the latest food trends. It’s a one-hour flight from most parts of the UK so there’s only lazy excuses not to do this!”
Ireland is only a few miles away, but its convenience sector is radically different in the missions it serves and the customers it reaches compared with that of the UK.
Stating that fresh food can become pivotal to success of corner shops, FTG expert Gavin Rothwell agrees with Annan, recommending UK’s independent retailers to take inspiration from their Irish and other European peer.
Rothwell cited 7-Eleven Denmark as the best example to take inspiration from.
“We have also seen some great developments from SPAR across a range of European markets, with the Netherlands being one such example,” Rothwell told Asian Trader.
“It can be daunting to move your business into a new area, and in particular one that requires different core competences, but there are many fantastic suppliers out there able to support. It’s possible to start small, but this needs to be balanced against the need to create an impact and reset customer perceptions around what your store is able to deliver.”
Rothwell recommends working with well known brands can provide a good route, adding instant credibility to the offer.
He, however added, “If you feel you have the core food competences and the right environment and structures in place, don’t be afraid to build your own proposition.”
Rothwell also feels that the food section can be a great savior amid increasingly volatile legislative environment.
FTG expert Gavin Rothwell
“Many of the traditional drivers of sales and profit are diminishing in importance and, in some cases, are becoming more legislatively challenging and complex. Food-to-go isn’t the only opportunity, but it’s an increasingly well-trodden path for convenience retailers to look to pivot and develop their FTG propositions as core elements of their offer,” he said.
Global FTG expert Matt Cundrick believes that convenience stores are “incredibly well positioned" to cater to changing consumer needs when it comes to ready meals and a quick grab and go.
“Traditional meal cycles and routines have been replaced by snacking and more grab and go approach. Convenience stores are incredibly well positioned to take advantage of this and those that adopted and moved early have seen significant growth.
“Being easily accessible to the customer, and building a trust of fulfilling the mission have always been the mainstay of the sector, and food to go is purely the next step in this journey,” Cundrick told Asian Trader.
Best practices and New Trends
Demand for nuanced health and premium quality is driving new product development in the market, with most new products surveyed aligned with healthier eating, carrying price points of +£4.00, states the Lumina Intelligence report. Vegan, high protein and high fibre products all gained share year-on-year while gut health and immune system boosting products are the new kids on the block.
The introduction of tiered meal deal ranges allows store operators to avoid hiking costs of meal deals whilst bringing-in more premium and foodservice-standard ranges.
Cundrick cautions retailers to do a bit of research before embarking on this journey.
Global FTG expert Matt Cundrick
“Think over which missions are you serving and who is your customer. Getting branded support in for example hot snacks or pastries can help add instant credibility.
“If you have hot food to offer, don’t feel the need to offer it throughout your entire opening hours. Of course, make sure there are options, but think about focusing your key solutions just during the peak lunchtime and breakfast trading hours.”
Think about waste – and accept that you will have some.
“Think about how you serve products in their best state. For example don’t be tempted to stretch hot hold times beyond supplier recommendations – a bad experience in food-to-go will have a significant impact on the likelihood of a customer returning to your store.
Cundrick also reminds retailers to keep their neighborhood’s demography in mind.
“If you are going down the bespoke route, think about how you can make both unique to your store and relevant to the customers in your catchment. For example, if you’ve a lot of families, maybe consider children’s ranges or deals.
“Don’t underestimate the importance of coffee in driving footfall. But it does need to be done well. A sad-looking, poorly maintained coffee machine will likely detract from the rest of the store rather than enhance its appeal so consider the ongoing resource you will need to dedicate to upkeep and maintenance.
Talking about best practices in this section of the store, Cundrick recommends local retailers to group and signpost FTG proposition as well as keep it neat, attractive and well-lit.
“Retailers should consider coffee dwell time (during preparation of the drink) as an up-selling opportunity by offering pastries, donuts or sweet treats alongside the coffee unit,” he told Asian Trader.
If the space allows, having a small sitting area is another great way to boost FTG as well as other related sales. A little sitting area, either inside or right outside, can also work as a community meet and greet place.
One of the latest trends in FTG is vending machine which is increasingly becoming more prevalent. Growth here is huge in minimising labour costs but delivering increasingly better-quality product.
Self-serve solutions are also interesting and promising. Retailers looking to make ground here can help make their FTG section more profitable.
Food for thought
Industry experts cite fresh proprietary FTG as a great opportunity though they also want retailers to tread in this section with caution and only after extensive research.
Rothwell said, “Food-to-go won’t be right for everyone. But it’s a growing sector with broad appeal and the ability to attract new customer to your stores as well as getting existing customers returning to store more often – so think carefully before dismissing it as an opportunity.”
TWC Development Director Tom Fender also echoes Rothwell’s thoughts saying FTG is not for everyone.
“A full FTG offer isn’t right for every independent convenience retailer – certainly not from day one. We have to be realistic. But those who have started on their FTG journey should be ready to accelerate their offering. Marketing and communication are also keys, especially while introducing new lines.”
“Many convenience retailers already offer a very comprehensive and impressive FTG range. The benefits are clear – more footfall, higher margins, diversifying away from other categories which might be in decline and tailoring towards local community needs,” Fender told Asian Trader.
Looking beyond 2024, Lumina Intelligence believes that the sector could reach a market value of £25bn by 2027.
Be it Indian snacks and meals like samosa or a vegetarian curry or biryani, Italian delicacies or quick grab options like burgers and sandwiches to locally-made Polish bakeries, c-stores can create their own unique offering.
Annan strongly feels proprietary fresh FTG should be the way forward as it is one of the most effective ways to beat nearest multiple and/or discounter.
“Independent retail has traditionally relied on suppliers and symbol wholesalers to provide guidance on assortment and store layouts. However, proprietary fresh food means retailers can be their own supplier and store planner.
“This does not mean you are alone as there are hundreds of Tier-one retailers who can provide ‘do this and don’t do that’ advice,” he said.
C-stores can always offer more than just groceries. With a little research about clientele and lots of innovation, local shops can even position themselves as a more affordable, quick and a wholesome alternative to foodservice outlets.
Convenience stores are now in the position of being able to potentially expand their ranges of OTC medicines and remedies, as the complexion of high street OTC medical provision changes radically.
In recent years community pharmacies, meaning prescribing establishments run by qualified pharmacists, have been facing increasing economic pressures. Recent analysis by the National Pharmacy Association (NPA) found the number of closures to be nearly 50 per cent higher this year than last, with 177 pharmacies closing between January and April 2024 (it was a mere 116 in 2023). That shocking figure means that on average 10 high street, village or estate pharmacies are shutting up shop every week – over 500 a year.
What this disaster means for convenience stores is that another function of the “Swiss Army Knife” local store model is being added to the community role of the independent retailer.
Of course, indies cannot prescribe (unless some forward-thinking entrepreneur decides there could be a good business case for setting up a small licensed dispensary alongside the slushie machine and food-to-go counter...) but much of the business lost when pharmacies close is the range of non-prescription pills, potions, creams, lozenges and accessories that go to make up a significant portion of traditional pharmacy turnover. That retail-shelf real estate will be increasingly up for grabs and convenience should be ready to accommodate it.
Of course, it was during lockdown that OTC sales of medicines and health products first began to shoot up in the c-channel. Indies were often the only shops left open for long periods, and at the same time the public became increasingly focussed on their symptoms, which was understandable.
Now the pandemic has gone, but the health concerns remain, and a habit has been formed. Couple that with fewer dedicated drugstores and an ageing population that naturally suffers more ailments, and the remedies and pain meds a c-store can offer suddenly seems a very important and interesting shelf to stock and add to. Especially over winter when we all get ill.
Preparing for the cold(s)
Elizabeth Hughes-Gapper, Jakemans Senior Brand Manager, says that demand for OTC products can be attributed to the number of cold, flu and COVID-19 symptoms that people regularly experience, “as 39 per cent of the public have suffered with these symptoms between two and three times in the past year”.
She points out the vastness of the market: 93 per cent of people have purchased OTC products within the past 12 months and over one third (36 per cent) of people buy them several times a year.
Matt Stanton, Head of Insight at DCS Group, explains that there are three or maybe four key Winter Medicines categories that symbols and independents should be sure to stock up for.
Adult pain remedies is the largest year-round demand that shoppers have, with a peak in the colder weather of course, and an annual value of £45.5m (+2.6 [per cent YoY). It is followed by treatment for coughs, colds and flu specifically, and is the big one over the winter months, worth £34.8m and up +5.3 per cent in revenue compared to the previous year. After that, children’s medicines – your Calpols and so on – are worth £12.5m over the counter in c-stores, and from all these figures it is easy to see that not only is the category a significant one, but that it continues to grow, sadly partly at the expense of the community pharmacy sector.
Photo: iStock
"It’s also worth bearing in mind digestive health," adds Stanton. “Whilst not typically thought of as a ‘winter medicine’, it is a particularly important category through the festive period, and for people taking winter sun breaks abroad.” Digestive health is quite significant, with £17.7m sales per year – again, up on the year before (+6.3per cent).
He notes that value is performing ahead of volume (on average down slightly), driven by inflation over the past 12 months, as is the case across the majority of the grocery market, but the category is robust, and he points out that with many people still struggling to get doctors' appointments, shoppers will continue to resort to self-care for minor illnesses over the winter.
Also, price is quite inelastic compared to other categories: “Medicines shoppers who are ill and in distress are looking for a product they can trust to do the job. These shoppers are generally less price-sensitive, they trust brands as the experts, and they will buy from you if you have the top-selling products in your range," says Stanton.
Fisherman’s Friend Regional Business Manager, Jon R White, agrees. He says that despite inflation finally slowing, we’re still in a cost-of-living crisis, and that shoppers are continuing to pull back spending where they can whilst seeking out value for money when they do have to make purchases. “What makes the Winter Remedies category unique is that there are key moments when shoppers really do need what’s on offer, particularly when they’ve been struck down with a dreaded cold or flu,” he says.
According to Stanton, medicines shoppers are extremely brand loyal because they see brands as the experts who produce products that can be trusted to get the job done. Whereas other grocery categories are seeing shoppers trading down to cheaper private label products, shoppers are less likely to do this on medicines.
Elizabeth Hughes-Gapper underlines this, saying, “Independent traders can compete with multiples by ensuring they’re stocking brands that consumers trust. Consumers hold expertise, trust and reputation highly when it comes to choosing branded products.”
Brands are key, but also don’t underestimate sales from trusted generic molecules, adds Stanton: “Most retailers should stock own-label paracetamol and ibuprofen products alongside the leading brands (Nurofen, Anadin and Panadol), especially those looking to attract larger top-up missions,” he says.
He reveals that the biggest driver of medicines category growth in convenience stores over the past 12 weeks has been penetration. Therefore, “Retailers stocking a full range covering all the core shopper needs will benefit from this continued trend over the coming weeks,” as we slide into the colder months.
Soothing solutions
Jakemans has been around for over a century and as a result understands the market extremely well. Hughes-Gapper says that winter remedies present a significant opportunity for independent retailers, “particularly as demand for OTC products remains high this year and has continued to increase into 2024. We know that 93 per cent of people have purchased these products within the past 12 months and over one third (36 per cent) of people buy OTC products several times a year".
She says that looking towards the future (given that 80 per cent of people have suffered from a cough and 72 per cent from a sore throat in the past 12 months), “it will be essential for traders to stock a variety of products that help consumers prepare for winter ailments, such as throat lozenges. With the NHS advising patients experiencing common winter ailments to self-medicate, retailers should ensure that trusted brands that help ease symptoms are part of their customer offering. By stocking a range of remedies, independent retailers can maximise their seasonal sales. Through winter, menthol lozenges – such as Jakemans – are a vital product to stock. Jakemans uses only the finest ingredients to provide menthol lozenges with a soothing vapour action to ease sore or tickly throats and keep airways clear."
Lozenges such as those made by Jakemans sell at the sweet spot where the attractive taste of the confectionery aisle blends with the therapeutic value of symptom-alleviating lozenges and OTC remedies. Having the best tasting, attractively packaged cough sweets is an essential for c-stores in their druggist role. “Flavour variety continues to be a critical factor in consumer preference, with a growing interest in seasonal and limited-edition flavours," Hughes-Gapper explains. “Retailers should look to brands that can diversify their flavour offerings and introduce innovative combinations to attract a broader audience.”
Jakemans has recently launched a Limited-Edition Blood Orange & Winter Spice flavour to sit alongside its permanent range of soothing menthol lozenges to provide further choice for consumers. While convenience stores can maximise their seasonal sales by stocking a diverse range of remedies, menthol lozenges such as Jakemans are essential for soothing sore throats.
“Year on year, Jakemans remains the No.1 cough / throat lozenge brand," says Hughes-Gapper. “Jakemans alone contributes to 24 per cent market share and overall annual sales in the category which can be attributed to its 100+ year heritage. Brands that have established a strong reputation for expertise and reliability have seen continued demand. All Jakemans products are also sold in shelf ready packaging making it easy to display whether on shelf or at the till.
Stocking Jakemans alongside menthol heavy hitters such as Fisherman’s Friend gives a retailer the artillery to deal with winter’s scratchy throat onslaught.
“Menthol is an ingredient traditionally associated with cold and flu relief, and Fisherman’s Friend offers one of the highest levels of menthol in any lozenge product (10mg in Original Extra Strong) which, coupled with our relatively low price per pack (RRP: 99p, 25g), continues to resonate with shoppers," says White.
“This has contributed to Fisherman’s Friend sales across total retail hitting £1.94m, making our lozenges the perfect companions to your Winter Remedies fixtures this cold and flu season.”'
White points out that in this subcategory, price still plays a part, “At the moment, shoppers are clearly dividing into two very distinct camps at either end of the premium vs value scale, so it’s the brands sitting in the middle that are likely to feel the greatest pinch this coming winter.
“We are therefore confident that the Fisherman’s Friend proposition and price point will continue to be right in the sweet spot of what many shoppers are looking for.” Fisherman’s Friend also now offers a variety of flavours – but be sure not to neglect the original!
“A massive 55 per cent of our sales still come from our Original Extra Strong product, showing this variant has most definitely stood the test of time,” he reveals.
“The impulse channel remains a significant player in the Winter Remedies market. Fisherman’s Friend continues to be a popular choice, representing 31.6 per cent of value share and 38.8 per cent of volume share — making it a must-stock brand for convenience retailers and the second-highest channel for the brand,” says White, adding that Fisherman’s Friend sales in the impulse channel increased by +25 per cent in 2023.
The same goes for relief candy brand Halls, which has introduced a new visual identity and striking new look to unify the brand’s range and help in driving visibility and shelf standout. Halls is one of those trusted brands and grew by an incredible 32 per cent over the past year – highlighting the importance of brand as a signpost to the category.
Clearing the tubes
Menthol is an almost magical winter solution to blocked noses, and alongside sore throats is probably the major undiagnosed symptom that OTC meds can deal with.
Olbas recently launched a new campaign to support parents in preparing for the wave of sniffles and colds that often accompany the return to school as part of a series of campaigns this autumn and winter season, designed to promote their comprehensive range of congestion relief products.
Recent research, commissioned by Olbas, highlighted the challenges faced by parents during this period. Nearly two-thirds (65 per cent) of parents expect their children to miss school within the first month due to illness, with 42 per cent of parents needing to take time off work to care for sick children. The research underscores the importance of preparation, as over half (55 per cent) of parents express concern about their children bringing illnesses home from school, potentially affecting the entire family.
Therefore, ensuring retailers’ shelves are stocked with trusted health and wellness products is more important than ever. Decongestants are seeing a year-on-year growth highlighting the demand for these types of OTC products to be readily available in retailers and pharmacies. By stocking up on these OTC essentials, customers’ needs will be met as we approach winter.
“Siblings may be more prone to catching something off their brother or sister if they play together, share toys or sleep in the same room,” said Dr Roger Henderson, family GP and spokesperson for Olbas. This means that two or more children may have colds and sniffles at the same time, which can have implications for the parents if one becomes unwell and has to stay at home, with the parent taking time off work to look after them. Children in a family may then get into a ‘rolling roadblock’ or ‘domino effect’ of repeated colds being passed between them over many weeks.
“Retailers should ensure that cold relief products, such as decongestant oils, are a key part of their offering as children return to school. This gives retailers and pharmacies an opportunity to help prepare parents, by shifting their behaviour from distress to planned purchasing, and encourage them to stock up on OTC products they know and trust before the sniffles hit.”
Rachel Anthony, Brand Manager for Olbas, commented: "We’re committed to helping retailers provide families with the tools they need to manage the inevitable sniffles and colds that come with this season."
The Olbas range includes Olbas Oil, Olbas for Children, Olbas Inhaler Stick, Olbas Nasal Spray, Olbas Menthol Pastilles, Olbas Bath and new for 2023, Olbas Breathe Easy Patches, ensuring there is an Olbas product suitable for the needs of all the family.
Meanwhile, Jakemans and Olbas owner Lane’s Health has acquired all distribution rights to Go2, the 100 per cent natural essential oil inhaler sticks. The Go2 brand was founded by Marc Shipman, a father of three, entrepreneur and amateur freestyle wrestler who discovered the impact that essential oils had on his busy life and wellbeing in 2016. Over a 24-month period he researched everything there was to know about essential oils and tested products from all over the globe, until he became an expert in blending.
Determined to bring the proven benefits to as many people as possible, he developed the Go2 inhaler sticks, designed to ensure the quickest effect and easiest access on the go, creating a better day for people and being their go-to mood changer.
Lanes Health will be focusing solely on Go2’s core range of grab ‘n’ go, no fuss wellness products: the Energy Stick, Focus Stick, B.Calm Stick and Sleep Stick - all great impulse skus that would sit perfectly on the ambitious retailers OTC shelves.
“We are delighted to be able to leverage our expertise and established foothold in OTC and herbal remedies to support the growth and acceleration of the Go2 brand through the expansion of the brand’s distribution footprint,” said Aden Kelly, Sales Director of Lanes Health.
Merching the meds
Because price and branding (and loyalty) do play so large a part, despite shoppers buying what their bodies tell them they need to feel better, good merchandising of remedies certainly comes into play as a vital factor.
DCS’s Stanton says that visibility is key because shoppers will reach for a product on impulse.
“We usually recommend medicines are displayed on the main shop floor wherever possible, rather than behind the counter, as this makes them easier for shoppers to find, although we would make exceptions for stores with particularly high levels of shoplifting,” he advises.
“Stocking medicines behind the till creates a barrier to purchase. If there is no option to display medicines on the shop floor, then you should at least make sure they are very visible behind the till and make sure the prices are easy for shoppers to read from a distance. Having to ask the price creates a barrier for some shoppers.”
He says it’s also worth having POS that directs shoppers to the till point from relevant shop-floor categories, such as toiletries or baby care, to make sure they know where to look.
“Convenience stores are seen by shoppers as an essential local service, and interaction with store staff is important for many. The ability to confidently answer basic questions about key products, for example the difference between chesty cough and tickly cough remedies, is likely to be helpful to shoppers and therefore improve shopper loyalty. That said, it’s also important that more complicated questions are signposted to medical experts.
"Ease of purchase is important to customers,” stresses Elizabeth Hughes-Gapper, “meaning retailers should look to place winter ailments remedies in prominent locations to ensure products have the best visibility on shelf – and should try dual siting, for example by displaying menthol lozenges at both the till point and healthcare aisle, to help with convenience and ease of purchase.”
It may be a long winter ahead, but look on the bright side: it’s also a long season of sales for OTC remedies.
Long gone are the days when pasta, rice and noodles were merely dry basic commodity goods in cellophane wrappers and wax paper bags.
They still are this, of course, and no pantry would be complete without its dried spaghetti and pasta shapes, its noodle stack and its bag of basmati – many meals demand these rehydrating champions, and they will always have their place on retailers’ shelves and in the nation’s kitchens.
But they are also so much more, and the action in the industry now is on convenience, flavour, world cuisine and added value: the greatest grocery brains have for some time now been focussing on how these essential basics can be made instant, more colourful and tasty, and generate more margin for both supplier and seller.
The 1970s and 1980s saw the birth of Vesta curries and Pot Noodles (saviour of the school lunchtime!) but things have changed since then – and certainly Pot Noodles with them.
Today, the rich and tasty hinterland of recipes and ingredients are pressed into employment to offer customers an incredibly wide range of instant, cook-in-the-bag, microwave, and of course dried options (ever-more niche, exotic and sophisticated) for these carb champions – and instead of just providing a base to a meal, they have come into their own as fabulously desirable foods and legends in their own lunchtime.
Pasta
“Customers in the pasta category are increasingly seeking products that offer more than just basic carbohydrates,” confirms Carmen Ferguson, Brand Manager at Windmill Organic, the parent company of Biona, a brand that has done so much to change pasta and noodles into objects of high culinary desire.
She reveals that according to recent market research from Mintel, 56 per cent of consumers express interest in not only pasta but also rice and noodles when they contain added healthy ingredients.
One such brand to do this is Pasta Nostra, whose authentic Italian fusilli pasta is made from natural ingredients, using a high-quality preparation process to create a premium product with distinctive flavour profile, made with durum wheat grown and harvested in the fields of Italy, then packed into pots near Bologna, in the Emilia-Romagna region of Northern Italy. The fusilli pasta is pressed through a bronze mould, called a die, then air-dried slowly to create the characteristic Pasta Nostra fusilli pasta texture that soaks up every drop of sauce in each of the six recipes.
It is these artisanal credentials and high-quality ingredients that contribute to Pasta Nostra possessing clean-label nutrition, because also no artificial preservatives, colourings or palm oil are used, and all recipes are non HFSS (high fat, salt and sugar).
Ross Beattie, Managing Director of Beattie Brands which produces Pasta Nostra in Italy said, “If you take an honest look at the instant snack pot category, you’ll see that it is largely dominated by legacy brands and has little to no innovation. Some modern Asian-inspired brands have started to attract a younger and more affluent consumer base but there are no authentic Italian pasta pots, so Pasta Nostra is well positioned to disrupt the market with authentic Italian cuisine that is good enough for the plate, but which is now served in a pot.”
“Good enough for the plate but which is now served in a pot” is an excellent tagline for the revolution in aspiration among instant and pot cuisine over the past few years, as convenience has become uppermost in many consumers’ minds.
“By identifying this gap in the UK market for a proper pasta which is healthy and authentically Italian, Pasta Nostra will satisfy the needs of consumers who are poorly served with the current ranges of pasta pots available," said Beattie Brands Marketing Director, Chris Lewis.
Overall, Ferguson concludes, consumers want pasta products that align with their health goals without compromising on taste or convenience.
Pasta Nostra instant fusilli pasta pots are available in six flavours, two containing meat - Bolognese, Carbonara; three vegetarian options – Tomato & Mozzarella, Cheese & Pepper and Mushroom; and one that is suitable for vegans – Arrabbiata. Each recipe is 70g and when boiling water is added to the fill line, provides a 250g serve, with calories for the different flavours ranging from 233-263 kcal per pot.
Pasta Nostra has a suggested retail price of £1.75 per pot.
Talking of taste, Italian sauce brand Loyd Grossman has launched new Pesto Alla Genovese and Pesto Sun Dried Tomato sauces, aiming to elevate midweek meals and plain old pasta with sophisticated ingredients
The brand says the opportunity is ripe within pesto and there is a real space for a tried and trusted brand, that is already known for its taste and quality, to help retailers tap into the subcategory’s full potential and to bring new shoppers into the aisle.
Makers Premier Foods points out that the total market value of Italian sauces is £356m and within this pesto holds £67m [Circana], showing a strong potential for pesto, and that the subcategory demonstrates a lot of headroom for growth with only 26.7 per cent penetration, compared to 71.2 per cent penetration in total pasta sauces [Kantar].
“With 25 years of experience in pasta sauces, Loyd Grossman is ready to attract new and affluent shoppers into pesto to help grow the subcategory. The sauces are made from simple and high-quality ingredients such as pine nuts, sundried tomatoes, Italian basil, pecorino and parmesan – allowing consumers to recreate an authentic Italian experience at home,” Premier Foods said.
Loyd Grossman also recently added a Tomato & Mascarpone sauce to its line-up of products, as it targets new, younger shoppers looking for more indulgent taste profiles.
Meanwhile, pasta sauce maestros Barilla recently returned to the nation’s TV screens in a campaign to capitalise on the 147-year-old brand’s excellent 4.2 per cent MAT growth in 2024.
“Getting Barilla back on screen shows retailers that we’re determined to give them the high-profile support they’ve been demanding from brands," said Peter Butler, Managing Director at Barilla’s UK distributor, Euro Food Brands. "Together with further promotional work, the campaign will help us grow sales of this authentic Italian brand still further – whether in dry pasta, pesto or sauces.”
Alberto Costella, Marketing Manager for Export Markets at Barilla, added: “In Italy, Barilla is the number one pasta brand and with the UK being an important market, we’re looking to achieve the same position here – Barilla is ready to play a key role in the category. The TV campaign is a significant further investment aimed at increasing Barilla’s awareness and consideration in the UK. Our vision is to be the one-stop brand in pasta meals, offering shoppers the widest choice and bringing value to the category.”
Rice
The immediate good news is that India – probably the biggest exporter of rice and which accounted for more than 40 per cent of the world's rice shipments in 2022 (22.2 million metric tons out of a total of 55.4 million) – has removed most of the export curbs it slapped on the trade in 2023. This year’s monsoon has been kind, and the rains are “expected to boost crop yields amid overflowing stocks in state granaries” according to Reuters, and high rice prices are set to come down again.
Carmen Ferguson says that the wider rice market experienced a healthy uptick from Q1 2023 to 2024 with a 15 per cent increase in sales in one of the UK’s biggest online retailers. “At Biona, we have seen a huge 43 per cent surge in our rice category sales,” she adds, “driven in part by our convenient Biona organic easy-cook brown rice that grew by 48 per cent YoY, emphasizing the demand for healthy products that fit into consumer’s busy lives.
Other popular rice products in Biona’s broad range include its organic risotto rice, white and brown basmati rice and also sushi rice: “All the products in our rice range come in innovative paper packaging, which is unique in the category and proves very popular with consumers who care about minimising their packaging waste.”
Mars Food and Nutrition UK has unveiled the first products to spearhead its brand-new cupboard-ready meal range, marking the start of a multi-year innovation pipeline for Ben’s Original and Dolmio.
With the “heat and eat” trend growing by seven per cent annually and a projected UK market size of £1bn by 2028 [Nielsen], the ready-meal occasion is on the rise. Known best for being cupboard staples, Ben’s Original and Dolmio are now responding to changing consumer preferences for convenient, easy and healthy meals at home or on-the-go.“We know people want to enjoy healthy, tasty meals, but often don’t have the time to prepare them from scratch. This insight has driven our ready meal innovation strategy which is all about giving consumers a range of tasty and nutritious meals that can be made in minutes,” Nick Reade, general manager of Mars Food and Nutrition Europe, commented.
Ben’s Original Favourites and Lunch Bowls are the first ranges to launch, rolling into convenience (after debuting earlier in the year in the mults) just about now.
The Lunch Bowls are a healthy range of grain and vegetable bowls that can be enjoyed hot or cold, full of textures and flavours. The range contains eight different grains and products high in fibre and a source of protein.
Ben’s Original Favourites are ready-to-eat rice-based dishes with familiar flavours from some of the nation’s most popular meals, bound to elevate mealtime. Containing no artificial colours, flavours or preservatives, the range is packed full of a large variety of plants and vegetables.
“Ben’s Original Favourites and Lunch Bowls will join an existing line-up of exciting products that have hit shelves in recent years, including Ben’s Original Plant Powered and Dolmio Pronto pasta products,” added Reade.
Noodles
“When it comes to Noodles, affordability, health and convenience are key factors driving the demand, especially during difficult times such as the Covid pandemic which showed a surge in consumption, as well as the cost-of-living crisis,” Ferguson explains.
She says that, as in many categories, consumers are becoming increasingly concerned about ultra processed food and are instead looking for something healthier and more natural.
“So, it’s no surprise our organic noodles are also experiencing strong volume growth, up 64.5 per cent YoY, with a 49.6 per cent sales value increase from January to April 2024, compared to the same period in 2023. Our Biona organic spelt noodles are proving the most popular, especially amongst consumers looking for a much healthier alternative to some of the better-known instant noodle brands out there which have particularly high levels of sodium in them.”
This is clearly the Age of the Noodle, and the NPD that we are seeing confirms it – and instant noodles are once again becoming a cupboard staple after a makeover spurred by a social media trend, supermarket sales and search data show.
Sales of instant noodles have risen by 50 per cent year on year on Ocado’s website, while searches for ramen noodles have jumped by 35 per cent.
Searches for ingredients to upgrade the quick meal are also up. Chilli oil searches have increased by 48 per cent, crispy onions are up 27 per cent and seaweed about 20 per cent in September this year, in comparison with 2023.
According to Jonny Forsyth, senior director of Mintel’s food and drink division, the market for instant noodles had evolved, and brands are now using influencers to push their product.
“In recent years, they have been marketed on TikTok to engage younger audiences through creative and interactive content. Brands are tapping into TikTok’s short-form video format to resonate with gen Z,” said Forsyth.
The classic Pot Noodle has also risen in popularity, with sales up 10 per cent year on year, owing to many of the recipes seen on social media that feature the popular South Korean Buldak instant ramen noodles.
Just last month Pot Noodle released a new flavour in its successful Fusions range, Korean BBQ Beef. This innovation taps into the fast-growing food trend of Korean street food and delivers the bold flavour that Pot Noodle consumers expect from the brand
The noodle category is driven by impulse purchases, so unique and on-trend flavours encourage trial of new products, which helps retain loyalists and recruit new consumers. Taste is also the most important factor that motivates a consumer’s decision to purchase pot or packet noodle products, with 77 per cent of shoppers citing it as very important.
Pot Noodle Fusions Korean BBQ Beef is available now exclusively at Co-op for three months and will roll out to the wider grocery channel from January.
Elsewhere in the noodle landscape, Organic fine foods specialist Clearspring has added three new products to its popular Organic Thai range: Organic Gluten Free Black Rice Noodles, Organic Gluten Free 100 per cent Brown Rice Vermicelli Noodles and an organic, gluten free and plant-based Pad Thai Sauce.
“We are very proud to finally introduce these three new additions to our Organic Thai range," said Maria Dawson, managing director at Clearspring. “Over the past few years, we have seen demand grow for our existing noodles from Thailand and wanted to offer our customers more choice in the category with the addition of two new noodles which perfectly complement our existing Thai products,”
The Black Rice Noodles are made using finest quality wholegrain brown and black rice, which is an ancient grain renowned for its delicate nutty flavour. It helps give the noodles a firm texture and unique colour which adds contrast when paired with vegetables in Pad Thai, Asian soups and noodle salads.
The Brown Rice Vermicelli Noodles are a thin variety of rice noodles made in Thailand using organic wholegrain brown rice for a firmer texture and delicate nutty flavour. Clearspring Organic Vermicelli Noodles are cut shorter, making them easier to cook with, and are great at absorbing flavour. Ready in just three minutes, they are perfect for creating sumptuous Asian soups, stir-fries (and even sweet vermicelli puddings).
Clearspring Organic Pad Thai Sauce is the UK’s first organic and vegan Pad Thai sauce. It’s easy to use to create a quick and sumptuous Pad Thai. It is packed full of flavour and perfectly captures the essence of a good Pad Thai sauce with beautiful savoury, tangy and sweet notes, whilst being added refined sugar free.
Despite the German origin of the name, noodles are decidedly Oriental in flavour these days, and global food importer and distributor Empire Bespoke Foods has launched its Master Cook "Asia” collection of authentic, easy-to-cook meal kits, noodles and condiments inspired by the evocative flavours and recipes of Japan, Korea and India.
The range comprises four easy to prepare Japanese meal kits (Katsu Curry, Sesame Teriyaki, Curry Udon and Yaki Soba), plus Ramen, Udon and Sobadry noodles (ideal for soup or stir-fries), Soy sauces (Premium, Dark and Light), Ramen Broth and Classic Kimchi (spicy fermented vegetables). The meal kits and the condiments (excluding Ramen broth) are all suitable for vegan and vegetarian diets.
Master Cook ‘Asia’ is the first range extension to the original Master Cook brand launched last year. Each kit contains pre-measured ingredients to add to the consumer’s preferred protein or vegetables, to help create chef-crafted meals, at home, within 15 minutes.
“Our long-standing relationships with the finest Asian suppliers have helped us create this truly authentic and high-quality range,” commented Upuli Ambawatta, brand manager at Empire Bespoke Foods.
“The Master Cook recipes have been developed by chefs who possess a deep understanding of aromatic ingredients and traditional culinary techniques, and who have drawn on their extensive knowledge and experience to create these delicious and convenient meal solutions.
“For consumers, the kits help deliver authentic and delicious meals while empowering them to confidently explore bold Asian flavours without spending excessive time or effort in the kitchen,” added Upuli. “For retailers, the range offers a valuable opportunity to make the most of growing consumer demand for high quality authentic Asian meals and convenient ‘at home’ taste adventures.” The RRPs for the range go from £1 – £3.75.
It’s clearly time to give shelf space to more of these no-longer-basic, no-longer-dry ingredients.
Things are changing and they are changing fast. A couple of decades ago, sipping a non-alcoholic drink at a gathering or on a date meant only two things-either the person is a bore nerd or pregnant. Fast forward to present, opting for a non-alcoholic drink is not only accepted but is also appreciated as being more self-aware and responsible.
Be it the quest for better health, sounder sleep, clearer skin or to raise much-needed funds for that charity, Brits are shunning alcohol at a higher rate than what their parents and grandparents did (if they ever did so).
But here’s the kicker- they're also not settling for sugary sodas, thus giving way to a brand new category of adult soft drinks—the perfect middle ground.
This rising category of adult soft drinks is basically a collection of premium, functional, sophisticated and healthier drinks that are lately making waves in the market. They are as sophisticated as their alcoholic counterparts and still considered fun and healthier.
Think botanical infusions, exotic ingredients, and flavour profiles that are less about sugar highs and more about nuance. From craft sodas to functional beverages packed with health benefits, these drinks offer something exciting to health-conscious consumers.
The category broadly includes premium soft drinks, craft sodas, no-alcohol drinks such as sparkling water infusions and functional beverages that offer additional health benefits.
Today, there is an array of non-alcoholic craft drinks that offer superior quality, premium ingredients and unique flavours and it is imperative that convenience stores stock as much variety as they can. In fact, this little section, if nurtured properly with thought and creativity, can even turn out to be a huge footfall magnet, thus a unique feature of the store.
Stocking these products allows convenience retailers to cater to evolving consumer preferences, especially with the "sober curious" movement gaining traction.
Refreshing Flavours
Fresh and distinct flavors are what make these new-age adult soft drinks distinct from the mainstream sodas and juices.
Ben Parker, GB Retail Commercial Director at Britvic, believes that flavor innovation is key to keeping shoppers engaged in a category full of choice.
“New product development (NPD) is the key to this, enticing shoppers to come into store in search of the latest launches and also encouraging impulse purchases with additional bold new flavours.”
A great example of this is Tango’s limited-edition flavor series, Tango Editions, which launched in 2021. These editions, like Tango Paradise Punch (now worth almost £15 million in RSV), have turned heads with their striking designs and bold tastes.
“The brand’s successful rotational flavour series has seen Tango Paradise Punch become the number one flavoured fruit carbonate new product development of 2023, now worth almost £15m RSV, with the year before seeing Tango Berry Peachy crowned the number one fruit flavoured carbonate new product development of 2022,” he said.
Following its success, Britvic introduced Tango Mango in February this year, meeting growing consumer demand for mango-flavored drinks, which have seen a 26 per cent rise in sales over the past year. This sugar-free option lets consumers enjoy bold flavors without the guilt.
Speaking about new launches, Pepsi disrupted the cola category once again in May this year with its brand new, limited-edition blue cola launch, Pepsi Electric.
Parker told Asian Trader, “Following a successful rebrand earlier this year and longstanding flavour innovation within the market, the new launch challenges what consumers expect from a cola – boasting a zesty, citrus taste with a striking blue liquid, available for 12 months across the convenience, wholesale and grocery channels.”
Pepsi Electric launched exclusively in a 500ml bottle format, offering shoppers more choice when they’re on-the-go. The new product development is also sugar-free, designed to enable retailers to cater to growing preferences for zero sugar soft drink options, without having to compromise on bold flavours and great taste.
Not to forget here is premium drink mixer Fever-Tree that offers refined drinking experience that competes directly with alcohol, complete with superior flavour profiles and healthier alternatives. Tapping into the trend of sophisticated flavours, Fever-Tree blends high-quality, authentic profiles to complement the evolving tastes of consumers.
Botanical ingredients such as herbs, flowers and spices are experiencing a surge in popularity within the adult soft drinks category. And an interesting name to consider tapping this trend is botanical brewery brand Fentimans, that provides consumers with soft drinks that are “just as good” as alcoholic beverages.
The brand is known for scouring the globe for the finest natural, high-quality ingredients, from Bulgarian rose oil to “China’s best” ginger root. Fentimans also said to employs a “one-of-a-kind" botanical brewing process, using a secret base that only a select few people in the world know.
Some of Fentiman’s best-sellers include botanically brewed takes on timeless classics, such as its Cherry Cola, Dandelion & Burdock, Pink Ginger, Rose Lemonade, Victorian Lemonade, Mandarin and Seville Orange Jigger and its Curiosity Cola, an artisanal take on the popular beverage that features sweet cinnamon for a deeper flavour.
Health and wellbeing
Health is another driving factor behind the growing demand for adult soft drinks.
Parker notes that the rise in health-conscious consumers has significantly impacted the types of soft drinks people purchase, especially with the introduction of HFSS (high in fat, salt, and sugar) regulations.
Newly launched Jimmy’s Myprotein Iced Coffee contains protein enriched milk and boasts 5.6g of protein per 100ml, as well as being HFSS-compliant. The launch is helping retailers expand their on-the-go beverage offering, while tapping into the UK protein market which is estimated to reach over £438m in 2024.
Parker told Asian Trader, “At Britvic, we know how important it is to offer retailers and shoppers choice, and as a business, we have a long history of helping people make healthier choices. Our innovation pipeline continues to centre around low and no-sugar products which meet HFSS regulations and offer consumers better-for-you options as part of our strategy.”
“Our leading approach to low and no-sugar reformulations has resulted in 85 per cent of our portfolio being low or no calorie across GB and Ireland, all while maintaining our commitment to never compromising on taste.
“A recent example of this is the launch of sugar free Pepsi MAX Mango and Tango Mango. With the growing popularity of flavoured carbonates, both products meet the latest consumer demand for tasty sugar free flavours.”
Consumers are realising that it’s not just about what you eat, but also what you drink that contributes to a healthy, balanced diet and lifestyle.
Pip Brook, FHIRST Living Soda Co-founder and UK Head of Brand, said, “FHIRST is one of the healthiest functional gut loving sodas on the market right now. Whether it’s adults or children, FHIRST is the guilt-free, healthy go-to soda. We’re here to change the soda landscape, showing that sugar and sweetener laden sodas are a thing of the past.”
With the backlash against traditional sodas that are “full of sugars, sweeteners and a whole lot of nasties”, people are genuinely looking for healthier alternatives and it is crucial that convenience stores have just the right fit for them, she said.
Overall, adult consumers are demanding more from their soft drinks than a standard, traditional soft drink. They want beverages that offer them something specific to their need state (e.g. relaxation, energy, overall health, gut health), giving them the luxury of personalising their drink choices throughout the course of the day. It’s all about choice. They are innovation hunters, wanting products with added extras, Brook said.
She continued, “In a lot of cases, they will be health and wellbeing focused. Importantly, they’re often willing to pay more for the functionality so, for retailers bring greater value through the tills. This has been helped along with the growth in consumers looking for low/no alcoholic drinks too, changing their lifestyles to not consuming or limiting alcohol.
The consumers are becoming increasingly savvy and looking at what’s actually in their drinks - reading the labels, and moving towards more all-natural beverages with no added sugars or sweeteners – like FHIRST.
And of course, consumer interest in gut health has been incredible and continues, added Brook, stating how Google “gut health” searches have increased +243 per cent over the last two years, and the hashtag #gutmicrobiome is clocking over 730k views each week on TikTok.
“This is fuelling the new category of gut-focused products – first came kombucha, then prebiotics and now sodas with both probiotics and prebiotics like FHIRST,” she added.
Launched this summer, FHIRST Living Soda Lemon Lime brings together revitalising lemon and zingy lime, offering a healthier alternative to current sugar-laden lemon lime soft drinks on the market.
Brook told Asian Trader, “Refreshingly sweet, with a gentle fizz that tickles the tongue to deliver the perfect gut lovin’ combination, FHIRST is proof that healthy can taste good. The new Lemon Lime variant joins old school Cherry Vanilla, fiery Ginger Mandarin, and tropical Passion Fruit.
“FHIRST Living Soda offers a healthier alternative to current sodas on the market. We’re on a mission to change the face of the soda category, delivering great tasting, guilt free, healthy sodas that support gut, immune and brain health. FHIRST’s unique all-natural gut loving formulation makes it the only functional soda globally to contain probiotics and prebiotics with zero sugar and absolutely no artificial sweeteners. Each can provide a powerful combination of 2 billion living probiotic cultures, 5g prebiotic plant fibre, and added zinc, and just 6kcals.”
FHIRST has won numerous industry awards since launching in 2023 including most recently, the Zenith Innobev Award for Best Functional Drink. It is now stocked via Ocado and Amazon, as well as in over 600 independents and 150 health stores across the UK and Ireland.
Retailers can stock up on FHIRST via CN Foods, CLF, Cotswold Fayre, DDC, Dundeis, Epicurium, Simply Heavenly, Greencity (Scotland) and Wholefoods Ireland.
Going a step ahead in wellness is “functional”, a word on everyone’s lips in the industry right. Craft soda company Dalston’s is tapping the trend.
Dalston’s latest line has prebiotic sodas, fortified with magnesium and plant fibre while it’s ‘For your gut’ line includes botanicals like baobab and lemon balm, traditionally known for their digestive support properties.
Nestlé-owned Maison Perrier recently introduced a new collection of premium sparkling beverages – marking the brand’s debut in the sophisticated drinks segment. Maison Perrier has launched four distinct lines – Forever, Chic, Magnetic Juice and Energize – developed through deep consumer research, market-leading R&D capabilities and collaboration with top flavour houses.
UK-based craft lemonade brand Gunna Drinks is another must-stock item in this section. The brand has a range of planet-positive, immune-boosting beverages to cater to the increasing health consciousness among consumers.
Packaged in recyclable and reusable aluminium bottles, each of Gunna’s functional lemonades provides 100 per cent of the recommended daily intake of vitamin C and zinc, supporting immune health while maintaining low sugar content.
GUNNA proudly claims to be the first in the UK to offer immune-boosting soda drinks in aluminium packaging.
Make it wider
Adult soft drink is an exciting new category and holds a huge potential for local shops. A wide interesting range can make them curios to try and thus push more sales. Plus, don’t forget that they are already aware of the buzz and might go on looking for these products else where so why not give them all at their neighborhood convenience stores?
Another new launch to stock is Zooz, an innovative non-alcoholic wellness drink based on mushrooms.
Zooz is a ground-breaking product in the rapidly growing no-and-low category which its creator believes will establish a whole new sub-category, redefining the way adventurous consumers and bar-owners think about adult soft beverages.
Zooz is remarkable not only because of its highly unusual ingredient base, packed with mushroom energy, but also for the distinctively delicious taste and the wellbeing benefits it delivers. Developed and launched by competitive swimming champion and former personal trainer to top business-people and celebrities including Harry Styles Daniel Soos, Zooz is very different from the overly sweet or overly caffeinated soft drinks that have, until now, been the mainstays of the adult beverage non-alcoholic category.
This low-calorie drink comes in at just 26.25 calories per 250ml serving. Zooz will become a natural alternative to booze for those who are health- and calorie-conscious and who enjoy sophisticated flavours. This drink will appeal to the sober, the sober-curious and those who want a truly different mixer.
The taste of Zooz is akin to Italian bitters but with a depth of flavour that is unique. It is amber in colour so looks attractive in the glass; and the taste makes it enjoyable either as a drink in its own right or an accompaniment to savoury foods. The flavour profile delivers a crisp, sharp citrus twist; it is zesty, natural, and invigorating.
Ironically, so many drinks in this category are defined by what they are not, rather than what they are.
Zooz is not only sugar-free, gluten free, plastic-free and has no artificial additives but it also goes beyond. The ingredients are sustainably sourced. Zooz is classed as a mushroom-based food supplement and is for over-18s only because it contains natural caffeine.
Soos said at the time of the launch earlier this year, “Zooz is not just pushing the boundaries in the world of soft drinks: it is trailblazing a whole new sub-category. The idea took shape one day as I was walking through a supermarket. I decided to make it a reality. I quit personal training and devoted everything to this dream, enduring financial hardships, but I never lost sight of my vision.
“Now, the market is primed and I am excited to bring our innovative drink to the world. I believe it will be a new benchmark in the non-alcoholic beverages category. It’s nothing short of a revolution and supports my personal belief that good energy comes not just from what you take in but what you give out to the world.”
Another interesting drink to stock in stores is Skip, the first British made cold-pressed active CBD drinks brand.
Skip’s CBD has up to eight times the beneficial strength of standard CBD isolate and is not subject to Novel Foods. It gives buyers a product range which navigates the tightening regulatory environment around CBD while also offering consumers a healthy choice.
Each 250ml can contains5mg of cold-pressed active CBD (below the most recent FSA guidance of 10mg/day) as well as fruit juices and botanicals and no soya lecithin. The range is available in three sparkling variants- Peach & Ginger, Elderflower & Mint and Lemon & Basil.
The indicative RRP of £1.79-£2.99 and £6 for a 4-pack makes it an affordable, everyday product. Skip’s founders have lengthy experience in the UK CBD and FMCG industry as well as ownership of a highly-respected route-to-market and operations business servicing the requirements of multi-national challenger brands. They are also working on Skip with a team of scientific researchers at the University of Oxford.
Skip co-founder Adam Pritchard pioneered the pomegranate juice industry in the UK with the founding of the Pomegreat brand and was a strategic advisor and shareholder in Love Hemp ahead of its £9m sale to medical cannabis investment firm World High Life.
Pritchard said, “Skip is the future of CBD drinks. It is the only CBD drink in the market which is fully compliant and future proof.Our category defining CBD is pressed and created in the UK and our proprietary process allows it to sit outside any regulations related to Novel Foods imposed by the UK Food Standards Agency (FSA) since March 2020.
“It means that Skip delivers credibility, certainty and efficacy for both trade and consumers, and at a suggested RRP that ensures mass market penetration to underpin the continuing category growth opportunity.”
Solving the dilemma of what to drink what one is not drinking, there are a range of interesting new products out there which retailers should consider stocking.
Seedlip is a great option here to consider. Considered as the world's first distilled non-alcoholic spirit, it combines six individually-distilled barks, spices and citrus peels to create a complex blend best sipped long with tonic or short with brine as a non-alcoholic martini.
For those looking for drinks that are less sweet than most, but with plenty of flavour, Nix & Kix is the new, award-winning brand that uses the spices to create great-tasting drinks.
Kombucha range by its pioneers Jarr is also something to look up for, especially its pure Ecuadorian passion fruit range. Armed with numerous health benefits like naturally occurring probiotics, antioxidants, vitamins and enzymest, this one is a winner for those shoppers who are looking for a drink when they are not boozing.
Inspired by molecular gastronomy, new lauch Double Dutch hits the sweet spot with their balance of flavours. Made with 100 per cent natural ingredients and containing just 66 calories a bottle, the harmonious combo is something that should be recommended to every shopper.
To Retailers ‘Keep Up or Fall Behind’
Times are changing fast and it is imperative that retailers remain toe-to-toe with it. They need to have a look at the soft drink section and make sure it caters beyond to mainstream popular sodas.
Retailers have a responsibility to their shoppers to offer low/no sugar alternatives. Signposting for both functionality and benefits will be key, and we’re starting to see the likes of Tesco championing this at back of store. However, for smaller retailers, the main responsibility comes down to the producers of these drinks to really deliver packaging with clear benefits that are compliant.
Consumers will continue to focus on monitoring their sugar intake, especially as we go into the festive season and into 2025.
Brook from FHIRST feels that the consumers who are health focused, they will look for drinks that don’t contain sugar or artificial sweeteners like FHIRST.
“Moreover, we’re seeing huge growth in people either quitting or moderating their alcohol consumption – with this is mind, healthy, functional soft drinks have never been more in demand and so retailers should be looking at what they have to offer their shoppers. The days of sugar laden, artificial drinks are coming to an end.
“By creating differentiation and offering unique, compelling alternatives in their beverage fixtures, alongside offering choice.
“Catering for your shoppers’ different beverage need states is how you win. Fridges in larger retailers are often dominated by the usual global brands, and so as an independent you can give customers more choice. And by working hand-in-hand with brands you can develop compelling price deals and promotional strategies,” Brook said.
As the new functional drinks category evolves, it’s important to work with brands that can build kudos for being experts in that area, in other words, credible brands will help build consumer confidence.
Brook told Asian Trader, “With FHIRST, we can honestly say that it’s the healthiest functional gut lovin’ soda on the market right now. We’re building a reputation as the go-to brand for clean living soda. And we say what we do on the can: FHIRST is science-backed. It’s not just our ingredients that are backed by science, but our finished product is backed by science, as proven by our in vitro study, which showed that over 90 per cent of FHIRST’s live cultures actually reach the gut – where they are supposed to be.”
Soft drink consumption is often on-the-go, so chilled is important, Brook added, saying FHIRST best sales happen when it is ready to go. Signposting functionally or by need state isa great way to merchandise.
Brook explained that it is younger generations and male buyers who are the biggest consumers of functional drinks, including sports performance, energy and smart drinks, according to analysis by GlobalData.
“Consumers are becoming more savvy about what they put into their bodies, so keeping it natural and providing enhanced functionality is the future. Plus, we are seeing more and more consumers opting not to drink, so soft drink consumption is only going one way – up!,” she said.
Have fun
With a shift in consumer preferences toward healthier lifestyles, premiumisation, and more discerning tastes, it is the need of the hour for convenience store owners to stock a good wide range of new-age drinks.
Consumers who discover unique or premium adult soft drinks at a convenience store are more likely to return for repeat purchases as they are quite particular about what they want. Offering a variety of well-known brands, alongside emerging local favorites, can help build customer loyalty and differentiate the store from competitors.
Stocking adult soft drinks allows convenience retailers to tap into current consumer trends, enhance margins, and attract a wider range of shoppers—all while boosting their store’s reputation as a destination for modern, health-conscious products.Stocking these drinks isn’t just about filling a gap, it’s about standing out and becoming the go-to destination for the 'sober curious' crowd.
In the quiet village of Fenstanton, where life moves at a slower pace, there stands a decades-old convenience store that has been a never-ending source of not only for essentials but also for support and joy.
A lifeline for more than 3,400 people of Fenstanton in Cambridgeshire, Ash’s Shop has been serving the community since 1988. Fenstanton is the kind of place where everyone knows everyone. Ash’s Shop is a regular hang-out place for the residents who often visit the store knowing they will be welcome.
Second generation retailer Amit Puntambekar has been running the store since 2017 after taking the charge from his parents and has plans to take it to new heights. In a candid conversation with Asian Trader, Puntambekar discussed in detail how Ash's Shop has been evolving over the years to remain relevant and beloved by its customers.
He said, “We have always been good at getting our ranging right. As a business we have been historically owner-operated, with Mum and Dad knowing every customer.
“This has shifted as we transitioned to a staff run model. Our relationship with the customers has had to evolve, but still, most people here are on first name terms with the staff. This highlights the value, and positive impact we have within the village.”
Originally housed in a centuries-old building, the retailer undertook a massive transformation of Ash's Shop, turning it into a modern convenience store while maintaining its village charm.
Ash's Shop
Puntambekar told Asian Trader, “Five years ago, I gutted the whole interior and re-focused the business from a typical c-store offering that focused only on BWS and emergency top-ups to a wholesome everyday top up range.
“The ambition was not to replace a 'supermarket' spend but to stock all the essentials that one finds at a supermarket.”
Post-refit, the shop boasts an 18-meter chilled food section, featuring a diverse range from Co-op, alongside a bakery and coffee machine. Puntambekar is proud of how much the store can now offer, despite its size.
“I am impressed with how much we can range from co-op's chill catalogue. This gives the consumer greater choice, and awareness that they can utilise our business, as well as giving good security for product quality,” he enthused.
Being part of the Nisa Local franchise gives Ash's Shop a certain degree of flexibility in its range and stock, something Puntambekar has expertly curated based on both supplier advice and an intimate knowledge of his customers’ need and taste.
“We are a village C-store with not much passing trade,” he explained. "This is both a positive and a negative. We can fully design our range around customer needs, but we are reliant on a small base of people. If we get pricing, availability, or range wrong, it has serious knock-on effects."
Today, Puntambekar has a strong voice in the industry and works in close collaboration with big brands like CCEP and premium wine maker Hatch Mansfield to get the best discounts as well as new launches and flavours to Fenstanton.
He stated, “Hatch Mansfield is great at doing wine tastings. These tasting session helps the customer understand the price point and gives them confidence about the product.
“CCEP are very supportive on new launches. Like with the new Beetle Juice edition, CCEP supplied us with a balloon arch, and a costume for the staff to dress up in. This created a serious buzz in the village, with some people wondering if I was getting married!”
Ash's Shop
Community engagement continues to remain at the heart of Ash's Shop. Puntambekar, also serving as a parish councilor, has spearheaded numerous initiatives, from distributing advent calendars to underprivileged families to supporting the elderly through "warm space" programs during the harsh winter months.
“Our community work is multi-faceted, whilst I am a big believer in supporting the younger generation as much as possible in sports, education and community initiatives. Our business truly supports people across the age, and social spectrum,” he informed.
In spite and despite the close warm connection with the community, the rise in theft and abusive behavior has left Puntambekar frustrated.
He explained, “The biggest challenge we face is the normalisation of shop theft, with some customers even finding it funny when I mention how much confectionary was stolen over summer holidays.”
“What many people don't realise is theft is a net loss. With the incredible pressures due to the cost of living, and the UK having a very competitive retail market, margins are tight.”
"Criminals know the police support is no longer there, they know how to game the system, our justice system is failing us. I have dealt with more threats to 'smash my face in', 'we will get you later', then my parents did in all their years of work.”
Braving the challenges, Puntambekar is determined to push forward, with exciting plans on the horizon
“Right now we are focusing on a few areas, such as our FTG side of the business, with a new kitchen being installed, as well as looking at new hardware for efficiency savings.
“Externally, we are looking to update something of our graphic branding outside the business, focusing on images that will highlight the heritage of our village, and business.”
“We are looking to invest back into the business for a 'tidy up', however the larger focus would be now on growth. A lot of people are surprised I haven't been more aggressive on acquiring sites, but there has been so much to learn, and many mistakes made. I'm a firm believer in building solid foundations,” he concluded.
Keep ReadingShow less
Britain's Chancellor of the Exchequer Rachel Reeves (Photo by JUSTIN TALLIS/AFP via Getty Images)
Chancellor Rachel Reeves’ 2024 budget lands a harsh blow to small businesses already grappling with weakened consumer spending and razor-thin margins. The bigger-than-expected hike in the National Living Wage, coupled with increased National Insurance Contributions, has left many independent retailers reeling, finds Asian Trader.
For countless small business owners, this budget means making painful decisions like scaling back investments, slashing operating hours, and reducing staff simply to stay afloat, pushing the businesses into survival mode. This budget, touted as the most damaging in recent memory, could force countless high-street shops to shutter, leaving communities without the essential services they’ve come to rely on from their local convenience stores.
Across the UK’s 50,000 convenience stores, the impact will be felt differently. While business rate relief and the increased employment allowance will mitigate costs for smaller independent stores, no help is in sight for chains and larger independent businesses.
Among the key measures announced by Reeves that directly impact local stores are an increase in National Living Wage to £12.21 per hour and increase in National Minimum Wage (18-20 rate) to £10 per hour. The two are collectively expected to cost £513 million extra to the convenience sector next year, according to convenience store body Association of Convenience Stores (ACS).
Additionally, Employers’ National Insurance Contributions will rise by 15 per cent, the threshold for Employers’ National Insurance contributions to fall to £5,000 per year and Employment Allowance to rise to £10,500 a year. The collective cost to the convenience sector next year is estimated by ACS at £397m (increase of £85m).
Strongly condemning the budget, retailers' body British Independent Retailers Association (BIRA) called Reeves’ budget as the “most damaging for independent retailers in recent memory”, with a triple blow of doubled business rates, increased National Insurance, and higher minimum wage costs threatening widespread high street closures.
Andrew Goodacre, CEO of Bira, said that the government's actions show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.
"Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they're hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught.
"One member has already calculated these changes will increase their cost base by £150,000 next year alone," he said.
Goodacre added, "For all the government's rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their businesses' future.
"What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They're now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures."
Back breaking burden
Echoing BIRA's opinion, retailer Fiona Malone expressed her unhappiness and concern with Asian Trader, saying "Budget was kind of disappointing.
"We've worked it all out, including the minimum wage going up and the National Insurance contributions. It's probably going to cost us about £23,000 extra a year. And that is obviously concerning when margins are getting tighter and tighter each day.”
Vince and Fiona Malone run Tenby Stores and Post Office in a coastal town in South West Wales. The last bank in the town (HSBC) closed in August, leaving this coastal town residents (5,500 residents in winter and close to 65,000 in summer) completely dependent on their post office for banking needs.
Fiona and Vince Malone
www.asiantrader.biz
She said, “We are the only bank in town and one of the few convenience shops and we feel that the government aren't recognizing what valuable service we offer to the community.
"All banks have left town and we're picking up the slack, but we're not getting any support from the government. We don't expect to make millions but we are able to make sure we can pay all of our bills and make sure that we're making a profit. And at the moment it's looking kind of quite bleak for us and for many small businesses.”
The Malone couple was planning to invest some amount to revamp their store. However, the couple has now halted their investment plan, she said, as it feels it is “not going to be worth it” and there is a sense of uncertainty.
"I can probably easily get a job in the private sector and work Monday to Friday. We don't do that because we really enjoy working in our community and we love what we do. Unless there's some relief coming, it's just not going to be viable for lots of businesses to survive,” she added.
Echoing Fiona's concern, retailer Mo Razzaq, also the National President of the Federation of Independent Retailers (the Fed), said, “As responsible employers we want to ensure we are paying a fair wage to our staff. But a bigger than expected rise to the national living wage to £12.21 an hour from April 2025 is a step too far for hard-pressed small businesses.
“As well as paying our staff more in wages, we must pay more in national insurance and pension costs, at a time when many of our other costs, including energy costs, are rising. There is no easy way for small retailers to combat these increases. As so many of the products that convenience store owners are price marked, we cannot pass these costs onto our customers.
“The only solution available to independent shop owners is to reduce staff hours and staff numbers and, somehow, take on even more hours ourselves.”
Clearly, the budget has hit retailers hard, with the odds now stacked firmly against growth and investment in the short term. These new costs also risk increasing the prices customers pay at the till.
As retailers are bracing for the impact of new costs in 2025, improvements to the business rates system will not come until 2026.
In the words of Helen Dickinson, Chief Executive of the BRC, said, there remains many unanswered questions about the new charges and discounts that will be levied from 2026.
“With retailers paying over 21 per cent of all business rates in the economy, the solution is not to simply shift the burden around the industry, but to look outside retail. Without action to address the disproportionate impact of business rates on retail, the Government’s plan is simply robbing Peter to pay Paul.”
Crackdown on crime
Cracking down on the crippling shoplifting epidemic, Reeves said in her budget speech that the government will scrap the existing threshold that deems stolen goods under £200 as “low value", thereby reversing an act introduced in 2014 that means a person charged with stealing goods worth less than that sum faces less serious punishment.
Reeves also vowed to boost training for police officers and retailers to tackle retail crime.
“I am providing additional funding to crack down on the organized gangs which target retailers and to provide more training to our police officers and retailers to top shoplifting in its tracks,” she said.
iStock image
Getty Images
Reeves’ acknowledgment of the shoplifting crippling retail and removal of threshold value is being widely welcomed by retailers though calls are being raised to introduce some concrete actions.
Fiona, whose store has been no outlier in wave of crime, said, “I welcome the shoplifting measures but again, there are lots of talk about it, but still no practical steps taken yet.
"Currently, we have five open shoplifting cases (including a violent one) and we're still waiting for outcome from the local police, still chasing them for the resolution and closure."
Summing the convenience retailers’ sentiment, ACS Chief Executive James Lowman said, “The Chancellor’s commitment to tackling shop theft will be warmly welcomed by our members, but they are interested only in action and in crime against their stores and their colleagues being tackled effectively.”
Please listen
Putting duty up by 10 per cent on hand rolling tobacco, a flat rate duty on all vaping liquids, a one-off increase in tobacco duty and increases on alcohol duty rates on non-draught products in line with RPI are some of the additional measures announced by the Chancellor in the Budget speech.
However, some of these measures are expected to backfire.
Razzaq said, “When tobacco prices rise, more smokers are lured to the illicit market which damages the business of legitimate retailers and damages communities. The government needs to do more to tackle the illicit market to better protect the livelihoods of members who legitimately sell tobacco.”
Convenience retailers continue to serve as the lifeline in communities and have proven to be a blessing during testing times like Covid-19 lockdown. However, they continue to be unsupported, and many are now struggling to survive.
Razzaq said, “Small businesses play a vital contribution to their communities and to the economy, but with the cost of doing business soaring, many Fed members are struggling to stay in business. It is crucial that they are supported, so going forward, the government must put our concerns and our issues at the top of its agenda.”
Calling the budget "anti-high street" Goodacre stated that the government is seemingly happy for working people to shop online and buy cheap imports, adding "this government has shown complete disregard for the local businesses that create jobs and maintain vibrant communities."
Voicing the concern of convenience channel, Fiona said, “Tescos and Sainsbury’s can survive no matter what gets thrown at them. But they don't provide the level of service that a store like ours do.
“I am very unhappy and concerned after the budget announcements. I am concerned how badly it is going to impact the small businesses and then how are the local communities going to cope, if some of them close down or reduce operation? Because if things get even tighter, I can just see a lot of businesses contracting their hours to cut down their costs.
"Unless there's some relief coming, it's just not going to be viable for lots of businesses to survive. I hope someone in the government listens to us and tries to understand our problems as well as support us, recognising our true value.”
Clearly, without immediate relief, the government risks undermining the heartbeat of local communities, leaving independent retailers as well as the essential services they provide on the brink of collapse.