Any organisation is a reflection of its employees. The same philosophy holds true for retail and convenience stores too, as shown by Tenby Stores & Post Office, a local convenience store in the lap of Wales where customers are served everything (from snacks to postage stamps to banking needs) with warm smiles and positive vibes.
In the bustling seaside town of Pembrokeshire, Tenby Stores & Post Office radiates warmth, reliability, trust and innovation, thus embodying a beacon of excellent service. Run by the retailer couple Vince Malone and Fiona Malone, this store in Pembrokeshire stands apart not only in the local community but also renowned in UK's retail world and has been honored with multiple awards to recognise and celebrate their contribution towards the community.
Speaking to Asian Trader, Fiona attributed the success of her store to its staff, calling them the “store’s USP” (unique selling point).
She said, “We employ people for their personality who go an extra mile to offer that little bit extra service to our customers.
"It’s easy to train someone on how to do a post office transaction or how to do a transaction in the shop. We mainly look for and employ people who have a great sense of empathy. We hire people who can work well and can get on with most people.”
Fiona makes sure that its store’s staff remains attuned to going a step beyond servicing rather than just “selling stuff”.
"We understand that without customers, we don't have any business. That doesn't always mean that the customer is right, but we need to make sure we try and go over and above you know to make sure that they want to come back here.”
At Tenby Stores & Post Office, the day starts early with the morning paper round which reaches more than 200 customers. The store is located in a town of 5,000 residents. Being a seaside town, its population spikes in summers, usually expanding to more than 60,000 due to an influx of tourists.
Apart from offering exceptionally empathetic and warm service, Tenby Stores & Post Office is also playing a huge role in circulating cash in the community.
Fiona told Asian Trader, "We are losing our last bank, which is HSBC that's going on Aug 6 this year. To cater to needs, we have pushed, and we've got an enhanced banking post office status.
“So now, we have one of the bank accounting machines in our post office to manage customer deposits as we service quite a few businesses from the community as well. We not only offer them banking facilities but also offer them change facilities as well.”
"We are reaching out to local businesses, and we talk to local people to remind them that they can still do the usual banking with us.”
Vince and Fiona moved to Pembrokeshire in 2014 and took over the local post office. They expanded the premises, thus adding a thriving and a vibrant section of the convenience store.
Before entering into retail, Malone was an HR executive in Sainsbury’s but now is seemingly in love with her what she does.
“In retailing, every day is interesting because every day is slightly different, so that's why I like it. Because of my experience in HR while working at lots of different organisations, I had the expertise in dealing with lots of people. Vince was also in Sainsbury’s so he is also very passionate about retail,” she added.
The store gets delivery from wholesale giant Booker, though it also keeps lots of local products like Welsh whiskey, Welsh rum and local cakes.
She said, “We always make sure that we test and quality-check the products before we put them on our shelves. Our customers do appreciate that. Also when we get the tourists in the summer, they quite like to try something local and authentic.”
The store is heavily involved with its local community as well. During Covid times, Tenby Post Office and Store was operational “seven days a week” during which it did lots of home deliveries without any extra charges, sometimes even helping the elderly people in keeping away stuff in refrigerators and kitchen cabinets.
Being an employee-centric store, Fiona remains concerned about the safety and wellbeing of her staff, particularly amid current times when shoplifting and retail staff abuse continue to run high.
To counter this, she has invested in an AI technology to monitor suspicious activity on the shop floor which automatically recognises suspicious gestures and alerts the store staff through headsets.
The couple was relieved that the government was considering making assaulting a shop worker a special offense.
"My main concern is that our members of staff are protected because we are also a post office. We do have panic alarms. The headsets we have given to staff can also record conversation with the customer so if a member of staff has an abusive customer, they can actually press the button and record the conversation,” she said.
Looking forward, the store is now set expand its food-to-go section, particularly hot fresh food.
She said, “We are looking at expanding our range in terms of our own fresh sandwiches and hot food. We are also looking to further expand our home deliveries.”
From their commitment to exceptional service to their proactive stance against challenges, it is evident how Vince and Fiona have woven a tapestry of trust and camaraderie that transcends from the aisles of their store into the community.
Price-marked packs (PMPs) have become a cornerstone of UK convenience retail, with seven out of 10 impulse shoppers now opting for them over non price-marked alternatives. This trend, which gained momentum during the pandemic, has only strengthened as both retailers and manufacturers recognise the value of PMPs in today’s challenging economic landscape.
Now, over the course of 2024 and into next year, which has been characterised by an ongoing cost-of-living crisis and rising bills, PMPs have taken on renewed importance, offering shoppers a sense of transparency and value while helping retailers to guard against shopper dissatisfaction. For independent convenience retailers, PMPs represent not just a tool to meet consumer demand, but a strategic advantage, enabling them to compete more effectively against larger chains and win customer loyalty in a highly competitive market.
According to Matt Stanton, head of insight at DCS Group, PMPs offer clear benefits to both retailers and shoppers. “Ultimately, PMPs make things easier for shoppers and for retailers because the price is obvious and clear on pack,” he explains. This clarity plays a crucial role in addressing shoppers’ primary concern during the current economic climate: finding value for money. “Through the cost-of-living crisis, demonstrating value for money to shoppers is the most important factor for gaining share of their spend. Our key recommendation is that if a PMP is available, you will grow sales by ranging it in your store,” Stanton adds.
Matt Stanton
Looking ahead, Stanton believes PMPs will remain essential for independents as shoppers are managing the pressures from the cost-of-living crisis by sourcing and buying products that offer value for money.
“Shoppers are responding to these pressures by shopping across more channels, buying on promotion and switching into private label. By offering PMPs in the independent convenience sector, shoppers are reassured that they are not being overcharged for the brands they know and love,” he points out.
Stanton highlights that PMPs are particularly effective in categories like household and health & beauty, which have a well-established PMP range across many of the major brands and formats. He also highlights the importance of strong in-store displays, noting that “focusing on value with PMPs and strong display space will be a key driver to success in this channel over the coming year.”
In response to the rising demand for PMPs, DCS Group continues to expand its offerings. “DCS Group works closely with the leading household, health, and beauty brands to monitor the effectiveness of the PMP and identify opportunities to introduce new products,” says Stanton. With a Co-Packing division capable of quickly creating new PMPs, DCS is well-positioned to meet market needs and ensure that independent retailers can capitalise on the benefits PMPs offer. Retailers can find their detailed convenience channel core range information and advice at www.CoreRange.com.
Driving snack value
Matt Collins, sales director at KP Snacks, also notes that the PMP format will stay increasingly relevant as the cost of living remains high and consumers continue to be more price-conscious.
“Retailers report that 86 per cent of shoppers are looking for value and deals [KP Snacks/ACS survey, August 2022] and PMPs cater to this trend, offering consumers great value for money and clear pricing which reassures them that they’re getting a good deal. 57 per cent of impulse shoppers buy PMPs [Lumina] with this segment driving £325m in sales within CSN [NielsenIQ],” Collins says.
The KP Snacks PMP portfolio is valued at £129 million, offering a wide range of SKUs that cater to various tastes, occasions, and budgets. From 40p PMPs to £1.25 formats, the portfolio aims to engage a broad spectrum of consumers and drive impulse purchases in convenience stores. “Our mission is always to deliver the right products at the right price points to meet consumer needs and bolster sales for our retailer partners,” Collins says.
Matt Collins
With £1.25 PMPs accounting for 50 per cent of CSNP sales at Independent and Symbol stores, this format alone contributes £322.7 million to the category, growing in value by 6.1 per cent [NielsenIQ].
KP Snacks’ diverse PMP range is a cornerstone of this success, Collins says, noting that six of the 18 £1.25 PMPs in the top 20 best-selling SKUs are KP Snacks brands.
“Our range of large format PMPs is worth £121.4m. The KP Snacks portfolio includes four of the top five best-selling large PMP SKUs, Hula Hoops Big Hoops BBQ Beef, McCoy’s Flame Grilled Steak, Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy,” he says.
KP Snacks is constantly evolving its PMP range to meet consumer trends and retailer needs. Collins reveals that the company’s NPD strategy is informed by category insights and close collaboration with its retailer partners through the SnacKPartners initiative.
KP Snacks launches KP Mini Chips in PMP format
In early 2023, KP Snacks expanded its PMP portfolio with the launch of two new SKUs: KP Mini Chips Salt & Vinegar £1.25 PMP and KP Mini Chips Beef £1.25 PMP.
“Combining the increasingly popular PMP format and classic KP Mini Chips brand, the launch has created a sense of nostalgia, driving shopper engagement,” Collins says.
Similarly, new flavours in the McCoy’s Epic Eats range—Grilled Cheese and Flamin’ Fajita—were introduced earlier this year in 6-packs and £1.25 PMPs. The two new SKUs feature an exciting on-pack promotion offering shoppers the chance to win an epic adventure, including five American road trips.
Something for everyone
The versatility of the KP Snacks PMP range ensures that there is something for every shopper. “Large PMPs are growing in value by 6.1 per cent, and KP Snacks’ large PMPs hold a 37.6 per cent share of the segment,” says Collins. Products like Hula Hoops are particularly strong performers, outgrowing the category with 14.9 per cent growth.
“Where large format PMPs are the ideal choice for a bigger eat and hunger-fill missions, smaller format PMPs offer great value and are an excellent option for daytime snacking and ‘tide me over’ occasions,” he notes, adding that Space Raiders, worth £25.1m, offers the UK’s number one best value brand with tasty Pickled Onion, Spicy, Beef and Saucy BBQ flavours available in 40p PMPs.
Heritage brands such as Discos and Nik Naks are also thriving in the PMP segment. Discos is available in £1.25 PMP and 50p formats in classic Cheese & Onion and Salt & Vinegar flavours. Worth £35m, the Discos brand is growing 14.9 per cent MAT. Available in £1.25 PMPs, the Nik Naks brand is growing 3.1 per cent and is one of the top 10 best-selling large PMP ranges.
In response to the HFSS regulations introduced in 2022, KP Snacks has also focused on offering healthier snacking options. “Available in Barbeque and Sour Cream & Onion flavours, popchips £1.25 PMPs come in at under 100 calories per serving without compromising on great flavour. Worth £45.6m, popchips are a delicious but permissible snack,” he says.
In addition, the market-leading KP Nuts brand, which is exempt from HFSS restrictions due to its natural health benefits, provides retailers with an opportunity to tap into the growing demand for healthier snacks.
Healthier snacking, clear pricing
Susan Nash, trade communications manager at Mondelēz International, also stresses on the focus on healthier products, noting that PMPs can help retailers tap into the growing demand for healthier snacking options, particularly with the introduction of non-HFSS recipes.
Mondelez has rolled out a price-marked five-pack multipack of belVita Soft Bakes Choc Chip, the brand’s top-selling product. This new format is designed to attract value-conscious shoppers while also providing a healthier option.
“With all belVita Soft Bakes flavours now non-HFSS following recent recipe changes which brought Choc Chips and Choco-Hazelnut variants in line with the rest of the range, the new multipack will also help retailers to boost their healthier snacking offering within larger formats,” Nash explains.
Similarly, Cadbury Brunch Choc Chip, the leading healthier biscuit SKU, is now available in a PMP at £1.39 for a multipack of five. This move is aimed at increasing brand visibility and communicating value to shoppers.
“Choc Chip is the number one Cadbury Brunch flavour, which is up by 172 per cent in the independents and symbols channel [Nielsen], and the new PMP will make this bestseller stand out even more on shelf with its clear and striking price point,” she adds.
“PMP sales are currently outperforming standard pack sales in the independents and symbols channel, so this new format from Cadbury Brunch is set to help retailers attract new shoppers and boost sales.”
Shaun Whelan, Convenience/Wholesale and OOH controller at Link Snacks International, makers of Peperami, underscores the importance of PMPs in the protein meat-snacking category.
"PMPs offer shoppers price confidence and reassure them they are not being overcharged. This is important when shoppers are watching what they spend.,” he says, adding that Peperami PMPs are very effective at generating sales. “New PMP £1.25 flashed two for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales,” he notes.
Peperami’s £1.25 PMP range include Original, Hot, Firestick, Chorizo, and the recently introduced BBQ variants.
Peperami’s focus on value doesn’t stop at the shelf. The brand also supports convenience retailers with promotions and case sizes to keep the price points at the recommended retail prices.
Enhancing soft drinks opportunities
Soft drinks are a key category for price-marked packs, providing an essential point of differentiation between independent retailers and larger stores, notes Amy Burgess, senior trade communications manager at Coca-Cola Europacific Partners (CCEP), as she urges retailers to stock market leading brands in a variety of PMP formats – including on-the-go and multipacks – to cater to multiple soft drink occasions.
“Soft drinks PMPs are growing in importance within independent and symbol convenience stores [Lumina]. Our best-loved brands, including Coca-Cola, Fanta, Sprite, Dr Pepper, Monster, Relentless and Reign are all available in PMPs and plain packs,” she says.
One recent highlight from CCEP is the introduction of PMP versions of the Schweppes one-litre PET bottles, which have proven successful in the mixers segment.
n 2024, CCEP continued to innovate with PMP launches, including multipacks for Monster Juiced Mango Loco and Zero Sugar Lewis Hamilton energy drinks. The launch of PMP variants of Costa Coffee’s ready-to-drink Latte and Caramel Latte is expected to help convenience retailers enhance their competitive edge when it comes to the RTD chilled coffee segment.
“And most recently, we launched price-marked packs of our Jack Daniel’s and Coca-Cola alcohol ready-to-drink range to help convenience retailers provide visible value to shoppers and drive sales,” she added.
The 330ml price-marked cans of Jack Daniel’s and Coca-Cola Original Taste and Jack Daniel’s and Coca-Cola Zero Sugar have rolled out across Britain at a price-mark of £2.39.
Britvic’s approach to PMPs is centred on the role these packs play in building shopper confidence and fostering brand loyalty during the cost-of-living crisis. Ben Parker, GB retail commercial director at Britvic, points out that PMPs help reassure shoppers about price fairness: “Stocking PMPs can signal to shoppers that retailers understand the current market challenges and are providing affordable options. In turn, this is a great way to drive further sales opportunities in the soft drinks category, given the current landscape.”
Ben Parker
Agreeing with Burgess, Parker says that retailers can meet these shopper needs and demands by stocking popular brands in a variety of price-marked formats, both catering to different occasions, such as food-to-go and big night in, and signposting value to shoppers.
“For example, soft drinks is the number one category bought on a food-to-go mission, so operators should consider catering to this demand with popular soft drinks in on-the-go PMP formats,” he advises.
“This year we launched Tango Mango in a 500ml PMP format, a great option for shoppers looking for an on-the-go drink which also provides great value. Combining a bold, in-demand flavour with an iconic pack design, Tango Mango creates standout on shelves and in chillers.”
Robinsons, the top-selling squash brand, is available in a 750ml PMP bottle at £1.49, providing great value for family shoppers. For those seeking more premium options, Britvic’s Fruit Creations range is also available in a 750ml PMP bottle format, offering flavors such as Peach & Raspberry and Orange & Mango, at £1.89.
Tango has also recently extended its PMP range to include Tango Apple Sugar Free. Available in a two-litre bottle price marked at £1.99, the PMP is ideal for big night in and at-home gatherings.
In addition to take-home packs, Britvic continues to cater to the impulse nature of energy drink shoppers.
“Retailers can tap into consumer demands by stocking up on popular choices like Rockstar Energy. Available in flavours including Watermelon & Kiwi No Sugar and No Sugar Blueberry, the £1.29 PMP cans not only provide an extensive range of flavours for shoppers to choose from but also offer great value,” Parker says.
Confident energy
Energy drinks are a key driver in the soft drinks category, and PMPs play a crucial role in making these products more accessible to price-conscious consumers. Brand remains one of the core drivers for shopping the category, however price is also a key consideration, ranking number two in importance [Lumina] and sitting front of mind when shopping the fixture.
“Price-marked packs can help to drive rate of sale, with 75 per cent of convenience shoppers more inclined to buy if in a price-marked pack. This is even more relevant in times of financial hardship when shoppers are more careful about what they spend their money on,” says a Red Bull spokesperson.
More than ever, price-marked packs are a key way of helping shoppers to navigate the soft drink aisle in convenience, where the majority of soft drinks are bought on impulse and shoppers are accustomed to seeing price-marked packs in stores. According to Lumina Intelligence, in the 52 weeks to 18 August 2024, 35 per cent of baskets contained a soft drink PMP and 41 per cent of these were bought on impulse.
“For those concerned with margin, Red Bull is the #1 energy drink selling more units than any other brand in the category, presenting a compelling proposition to help drive price-marked packs sales value,” the spokesperson says.
Red Bull holds three of the top five best-selling price-marked Energy Drinks, worth a total of £199m [NIQ]. Red Bull Energy Drink 250ml, has grown +£5.1m vs YA (7.3 per cent) alongside the growth of larger cans. Red Bull Energy Drink 355ml and 473ml are also driving strong growth, +£8.5m (15.3 per cent) and +£8.0m (15.3 per cent) vs YA, respectively.
Sports & Energy is a key sector for price marked packs, delivering £60m in value growth YOY (+7.3 per cent). Within soft drinks, Sports & Energy contributed 65 per cent of all price marked pack growth this year, with Red Bull delivering more than half of this growth, adding £31m in value, +14 per cent vs YA.
“Offering the right range of price-marked packs is becoming more important, as cost-of-living pressures continue. This will encourage retailers and shoppers to spend as customers trust PMPs and feel reassured that they are not being over-charged, as well as giving the impression that the products are on promotion,” the Red Bull spokesperson notes.
Red Bull is also focused on the take-home occasion with the recent launch of a mixed variety pack, available in 4 x 250ml (£5.25) and 4 x 250ml PMC (£5.35) exclusive to the impulse channel. This new multipack includes the original Red Bull Energy Drink along with the Red, Tropical, and Blue Editions, catering to the 88 per cent of Red Bull shoppers who prefer to buy across a variety of flavors.
Value, taste, convenience
Joe Tomenga, business unit controller (OOH) at FrieslandCampina, highlights how consumers have become savvier than ever before whilst also refusing to compromise on taste.
“In line with this sentiment, FrieslandCampina’s PMP formats offer value, taste and convenience by the bottle, and continue to perform extremely well at this time,” Tomenga says.
FrieslandCampina introduced a PMP version of its popular Chocomel 250ml cans last year, priced at £1.69. According to Tomenga, this PMP offering has been instrumental in helping retailers drive on-the-go beverage sales and attract new shoppers to the category, particularly those looking for an indulgent treat at an affordable price point.
Joe Tomenga
In addition to Chocomel, FrieslandCampina's YAZOO brand offers permanent PMP variants across its entire range of core and limited-edition flavours.
“Retailers can stock the flavours and sizes they know sell well in their locale, whilst communicating great value to shoppers and maintaining that point of difference,” he says.
Retailers can choose from the 400ml PMP priced at £1.29, ideal for impulse occasions, or the 1-litre PMP at £1.99, perfect for take-home and sharing.
Innovation is crucial for maintaining shopper interest, and FrieslandCampina has made significant strides in this area with the launch of YAZOO Thick N' Creamy. This new product, introduced as a £1.49 PMP, represents the brand's first major innovation since 2016. Available in two flavours – Indulgent Chocolate and Creamy Strawberry – YAZOO Thick N’ Creamy offers consumers a premium milkshake experience in a distinctive bottle shape.
“This milkshake offering delivers an OTG treat in a unique and distinctive bottle shape featuring an eye-catching blue and gold logo colourway to immediately differentiate this upscale proposition on-shelf and attract both YAZOO loyalists and new shoppers alike,” Tomenga says.
The products score big on sustainability, a key consideration for FrieslandCampina, as the bottles are made from 100 per cent RPET with tethered caps and new, easy peelable sleeves to make recycling effortless. Additionally, all the cocoa used in YAZOO’s chocolate products is certified by the Rainforest Alliance.
The RTD protein category has seen significant growth, and UFIT, the UK’s leading RTD protein brand, is capitalising on this trend with the introduction of new PMPs aimed at the convenience channel.
Available across all core flavour shakes, the range will entice new shoppers with an attractive £1.79 fixed price point, replacing its current duo impulse packs. The updated packaging will feature across all UFIT 22g Protein 310ml bottles with an initial launch in Spar, Nisa, and Filshill, and wider distribution to follow in January 2025.
Cornering a 30 per cent market share, UFIT is at the forefront of the category. With the RTD protein category demonstrating strong growth potential in the impulse channel [Nielsen: UFIT share in Impulse over 13 weeks up three per cent in both value and units], the refreshed packs and price point are expected to serve as an excellent introduction for new shoppers who have not yet tried a protein milkshake.
“This is a big moment for UFIT. Competitively priced, our new packs create an attractive entry point for new consumers who have never tried a protein drink before – as well as a great deal for our fans,” says sales director Richard Northridge.
“Our goal is to help people get the most out of every day by bringing protein to the masses, with a range of convenient drinks that ‘fit around you’. Whether you’re on the move, busy at work or looking for something to keep you fuller for longer, UFIT makes it simple and enjoyable to stay on top.
“Tapping into the shift in consumer behaviour towards single-price options, this PMP launch not only meets the demand for attractive pricing but also gives us a great opportunity to expand our reach into convenience sector, which has so much potential for the category.”
Busting inflation
PMPs are an invaluable tool for helping to drive beer and cider sales at the independent convenience stores.
In the impulse channel, beer and cider PMPs are worth approximately £456m, accounting for an impressive 24.7 per cent of value sales, and 26.5 per cent of volume sales in the total category. Looking at this more in depth, PMPs have a 19.7 per cent share in beer and five per cent in cider. In volume, PMPs in beer have a 20.6 per cent share, with PMPs in cider commanding a 5.9 per cent share [NielsenIQ].
“PMPs can help retailers drive loyalty among shoppers and, especially during periods of economic downturn, help people plan better on how much they want to spend. PMPs also can act as a PoS-like tool for retailers, as bold signage on-pack can draw customers in, generating potential for trade-up to more premium lines,” notes Alexander Wilson, category & commercial strategy director at Heineken.
The brewer offers a variety of its most popular beer and cider brands, including Heineken, Red Stripe, Foster’s, and Strongbow, in PMP formats.
WKD, the UK's leading RTD alcohol brand, is taking a bold step in the PMP market by significantly reducing the recommended retail price (RRP) of its popular 700ml price-marked packs. Phasing in this autumn, the price of WKD's glass sharing bottles will drop from £3.79 to £3.29, offering a significant 13 per cent reduction. This move is not a limited-time promotion but a permanent price change aimed at providing value to cash-strapped consumers amidst the ongoing cost-of-living crisis.
The lower £3.29 PMP level will apply across all flavours in the WKD 700ml range. WKD PMP bottles are exclusive to independents and available only through cash and carries and wholesalers.
“The focus and energy that we are putting into maximising PMP sales is testimony to the importance of the independent sector to WKD consumers,” Alison Gray, head of brand – WKD at SHS Drinks, says.
“WKD is the leading volume RTD brand in impulse and WKD Blue 700ml is the category’s No.1 bottle SKU and the brand’s flagship pack, so our renewed PMP focus starts from a robust base.”
In addition to the substantial 50p per bottle reduction in on-pack price, WKD brand owner SHS Drinks is also introducing a new initiative with printed shrink-wrap on 700ml PMP cases. Bold graphics will prominently display the new PMP rate, increasing trade awareness and supporting uplifts in throughputs at cash and carry depots.
SHS Drinks’ significant PMP push marks the start of a key period for WKD sales which is bookended by the new university term on one side and the festive peak at the other; the brand has a full programme of autumn-winter activity to engage consumers and drive sales for the rest of the year.
“WKD has always been a category pioneer and here we’re flying in the face of current inflationary trends to maximise value for both our consumers and our customers. The new PMP rate rolls back the years to pre-2022 levels, and our eye-catching innovative new shrink-wrap will stand-out and ensure high trade awareness of the exceptional value that the UK’s No.1 RTD is offering,” Gray adds.
In an economic climate where consumers are more discerning about their spending, PMPs have become an essential tool for convenience retailers looking to build trust, drive sales, and offer value. By stocking a range of PMPs across different categories and price points, retailers can cater to a broad spectrum of shopper needs.
Ultimately, the message is clear: PMPs are not just a trend, but a proven strategy for boosting sales and meeting consumer expectations. As more brands introduce PMP options and retailers refine their in-store merchandising to highlight these products, PMPs will continue to be a cornerstone of success in the convenience retail sector.
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.
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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
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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.