Heineken’s biggest-ever price rises in the UK failed to stop its profit being slashed during its latest financial year as it battled “economic volatility”.
According to recently-filed results, Heineken UK’s pre-tax profit was cut from £165m to £106m in 2023 while its revenue increased from £2.3bn to £2.4bn. The Edinburgh-based division raised its prices in 2023 as it faced “significant inflationary pressure on input costs”, reducing consumer spending, higher labour costs and rising energy bills.
The division also makes and sells brands such as Birra Moretti, Desperados, Foster’s, Amstel, Inch’s, Old Mout and Strongbow as well as Beavertown. At the end of 2023, Heineken’s Star Pubs estate totalled 2,382 locations, down from 2,394.
A statement signed off by the board said, “Economic volatility continued into 2023 leading to significant inflationary pressure on input costs. Reduced consumer spending and increased labour costs, as well as high energy bills affecting production and UK retail. continue to provide headwinds.
“To protest margins the group delivered its largest-ever price increases to date, contributing to the off-trade share decline. The group also increased focus on managing our cost base to drive productivity efficiencies and deliver cost savings across the business.”
Meanwhile, Heineken UK's Birra Moretti has overtaken Carling to become the best-selling draught lager in the UK. The company stated that premiumisation is driving this trend.
It was reported that Heineken Silver and Strongbow Ultra have disappeared from shelves in the UK, a little over two years after launching, due to its poor performance. The two brand extensions were launched by Heineken UK in early 2022, but poor sales have reported to have led the major multiples to delist them.
Heineken UK however, denied the claims, saying that Heineken UK has an unrivalled portfolio for both breadth and choice.
innocent drinks, Europe’s leading healthy drinks company, is announcing a new partnership with Alexandra Rose Charity as it advances its mission to help people live well through the delicious goodness of fruits and vegetables.
Government statistics reveal that just one third of adults, and 12 per cent of 11–18-year-olds, are managing to get the recommended “Five a Day”. This is even starker for lower-income families, with the most deprived fifth of adults consuming 37 per cent less fruit and veg than the least deprived, and their children 29 per cent.
innocent is launching its partnership with Alexandra Rose Charity by teaming up with Co-op, to help donate a portion of fruit & veg for every smoothie bought in stores. The charity helps families in need to buy and eat more fresh fruit & veg. Until 19th November 2024, innocent will donate the cost of a portion of fruit and veg (£0.24) to the Alexandra Rose Charity for every “Mango & Passionfruit” and “Strawberry & Banana” smoothie sold in UK Co-op stores.
innocent’s partnership with Alexandra Rose Charity will see a total of 520,000 portions of fruit & veg donated by the end of the year through the charity’s Rose Vouchers for Fruit & Veg Project. Rose Vouchers are given out to families every week, helping them to afford fresh fruit and veg from local markets for them and their children.
John Taylor, General Manager for UK & Ireland, innocent Drinks commented,“At innocent, we’re on a mission to help make sure everyone can access the delicious goodness of fruit and veg - its why our drinks are crammed full of the stuff. Eating a wide variety of fruit and vegetables is key to a healthy and nutritious diet, but we know that lots of us aren’t getting enough of it. Lower-income families face significant barriers to ensuring they can give their children the nutrition they need.
"Our partnership with Alexandra Rose Charity, and campaign with Co-op marks an ongoing commitment to helping improve access for everyone so they can unlock the health benefits of a balanced diet.”
Jonathan Pauling, Chief Executive at Alexandra Rose Charity, commented, “We are thrilled to be working with innocent Drinks and the Co-op to raise awareness of the challenges that families up and down the country are facing in affording to put healthy food on the table for them and their children. Food related ill-health costs the UK 98 billion a year, to the NHS, the economy and society.
"The long-term consequences of a lack of access to healthy food has a detrimental effect on health, wellbeing, and life chances. Through the funds raised from this promotion, we will be able to help families in need to make sure they can give their children the best possible start with a diet rich in fresh fruit & veg.”
Sinead Bell, Co-op’s Commercial Director, commented,“Supporting campaigns that address the issue of food poverty and access to food is important to us and the millions of Co-op member owners, and we are proud to be partnering with innocent on this fantastic initiative across our stores.”innocent drinks and Co-op team up to donate portions of fruit and veg
As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.
With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.
POS and store activation remain pivotal in capturing these sales opportunities, as shoppers are more likely to make purchases when displays are both visually engaging and convenient to access.
Anthony Furnell, Head of Retail Operations at NP Group, which operates six stores, has significant experience in retailing. From his background with major retailers and suppliers, he understands that capitalising on seasonal periods is critical for convenience stores.
“Seasonal activation is really important. It’s a very competitive sector, and we’re not just competing with large supermarkets; we’re competing for convenience and ease for our customers. If a customer doesn’t see it, they don’t potentially buy it, so activation is key.”
NP Group’s Halloween strategy this year exemplifies how store activation can capture attention and improve sales. The Darwen store has allocated a dedicated Halloween space, complete with a hanging spider from the ceiling, vinyl window displays, and strategic POS items like floor stickers and overhead signs. This dynamic approach engages customers, driving incremental purchases and creating a one-stop shop for seasonal needs.
However, it’s not one-size-fits-all; each store location is tailored based on size, layout, and customer demographics.
“Our Menston store, for example, is our smallest, so we have to be selective about our seasonal range. Space is key—making sure the displays are in the right place is essential,” Anthony notes. “We’ve also have a group store WhatsApp to share best practices and ideas across locations, ensuring a cohesive yet unique seasonal activation for each store.”
Planning and evaluation are equally important in maximising seasonal sales. To meet the varying demands of each store, NP Group conducts pre-sales planning and end-of-season evaluations, which allows them to better anticipate the stock and POS materials required for future seasonal events.
“By evaluating what sold well and what didn’t, we can refine our approach and ensure we’re offering the right products in the right places for customers,” explains Anthony. “Seasonal displays and POS act as magnets that draw the eye and engage customers on a whole new level. In today’s fast-paced retail environment, it’s vital to have a captivating, well-organised space for seasonal items that entices shoppers, encourages browsing, and, ultimately, drives incremental sales.”
In addition to Halloween, Christmas activation is also underway, with stores gradually introducing festive products.
According to Anthony, “Christmas is another significant period where creative, well-placed POS and choice can create a festive in-store experience, encouraging customers to shop locally and find what they need without visiting larger stores.”
Both Halloween and Christmas offer strong opportunities for convenience retailers to increase footfall and improve basket spend. The rise in seasonal spending in convenience settings, combined with strategic activation, ensures that stores remain competitive and relevant for shoppers seeking both impulse buys and essential items.
For retailers, these activation strategies not only boost sales but also enhance customer satisfaction by creating an engaging shopping experience that keeps them coming back throughout the winter season.
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Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services
Around two thirds (65 per cent) of people affected by the Horizon scandal have said it impacted their family and relationships, while many respondents report estrangement from family members because of the scandal, according to a paper published today (1) by the Post Office Horizon IT Inquiry’s listening project.
The paper title In Your Own Words illustrates the various challenges the Horizon scandal has inflicted on people’s relationships, with respondents reporting the breakdown of relationships, estrangement from family members, and acute loneliness. Some adult children of former sub-postmasters shared how they experienced bullying, financial issues and mental health struggles because of the scandal. Others reported how their parents have died before knowing the truth about the Horizon scandal, which magnified their grief.
For many the post office was a family business legacy, making subsequent issues more impactful. Many reference their parents dying before knowing the truth about Horizon, magnifying the grief of these bereavements.
240 people — including current and former sub-postmasters, family and friends — have anonymously submitted their stories to In Your Own Words so far. This paper covers responses from March 2024 to August 2024.
Some of the anonymous responses mentioned in the paper are as follows:
"“I’m 66. I’ve lost 18 years of a good relationship with my daughter. I’ve lost me.”
“My children had their childhoods abruptly taken from them when the gravity of the situation became too serious for me to shield them any longer.”
“My mother was worried for us and put a lot of her savings into the account. These savings were meant to be left to her grandchildren a regret I will live with until I die.”
“Seeing the effect on my children was extremely difficult and remains a sore subject for me to this day.”
“We would like to clear Dad’s name, so that this isn’t a part of our families inherited trauma and that his memory left is true.”
“What amount of compensation would be adequate for the stress and pain endured over two decades? What would be considered sufficient?”
“The scandal put an enormous strain on our young family. Instead of enjoying the early years of our marriage and our daughter's childhood, we were consumed by the issues at the Post Office. The stress affected our relationship, leading to frequent arguments and a pervasive sense of frustration and helplessness. Our daughter, though too young to understand, was indirectly impacted by the tension and reduced quality time with her parents.”
“My wife has replaced thousands of pounds of money that she thought she had lost due to her illness and died feeling a failure.”
The Federation of Independent Retailers (The Fed) has launched an exclusive benefits scheme for Fed members.
Called FedPlus, the scheme offers a range of discounts on a host of goods and activities, from everyday purchases to luxury products.
Through FedPlus, Fed members will have access to a range of fantastic money-saving benefits covering a wide variety of areas – from health and well-being to home and car essentials, and from food and drink to fashion and tech, entertainment, travel and experiences.
There is a Savings Calculator to show how much has been saved, based on monthly or annual spending, on a range of everyday categories. The Savings Calculator will generate a personal savings total and provide links to the individual deals.
Launching FedPlus, National President Mo Razzaq said: “In my inaugural speech at the Fed’s Annual Conference in June, I spoke about the importance of providing more benefits to help members make money, save money and make business easier.
“Just four months on, we are delighted to bring you FedPlus. This is an exciting new addition to our ever-growing list of member benefits which brings you quick, at your fingertips access to several offers across a wide range of categories so the money in your wallets and purses goes even further in these financially strained times.”
Members can access the scheme through thefedonline.com website. It went live yesterday (October 31).
FedPlus is managed and run for the Fed by Parliament Hill Limited, which has been providing benefit management solutions for membership organisations for the past 20 years. Top name companies offering discounts include Virgin Experience Days, Nuffield Health, Hotpoint, Halfords, Boots, Curry’s and EE.
Tom Sparke, joint managing director and client services director at Parliament Hill, said: “We are looking forward to working with the Fed to assist them in the fantastic support that it provides for its members.
“The Fed has a strong commitment to supporting its members, which aligns with the Parliament Hill ethos of placing the needs of our clients’ members at the heart of what we do.”
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.