Supplies of Irn-Bru could be hit this summer after most workers at A.G Barr's Cumbernauld production and distribution centre backed strike action.
Around a dozen trucker and shunter drivers at the company’s Cumbernauld production and distribution centre backed strike action by 83 per cent. Unite, the union representing the workers, stated that it would issue an update on prospective strike action dates in due course after rejecting a pay increase of 5 per cent, with the union saying that represented a real-terms cut of 6.3 per cent due to the rate of inflation.
Unite general secretary Sharon Graham, stated that the company has £52.9 million sitting in the bank, yet management are refusing to share this massive money pot with their workers. We will back our members all the way in their fight for better jobs, pay and conditions.”
Andy Brown, Unite industrial officer said: “Unite’s members emphatically backed strike action due to A.G. Barr’s tight-fistedness. What’s currently on the table is really taking the fizz. It’s totally unacceptable because the company is cash rich. We remain open to resolving this dispute through negotiation but unless there is a significant improvement in the pay offer strike action is on the cards.”
A spokesperson from AG Barr said, “We’re disappointed in today’s decision by a small number of our drivers to take industrial action. We made an offer which we believe is fair and competitive to our HGV1 drivers. It is also in line with what has been agreed with our other employees and we believe we have a responsibility to be fair to everyone.
“We have contingency plans in place to maintain customer service and we will continue to work with Unite representatives to find a positive and constructive resolution.”
The wholesalers have welcomed several measures announced in Chancellor Rachel Reeves's first budget but have raised concern the increase in National Living Wage and Employers National Insurance contributions will add an estimated £110 million in direct wage costs to the wholesale sector.
The wholesalers also pointed out that the lack of clarity on business rates reform means that wholesalers operating large physical premises remain disproportionately impacted by high rates. Without meaningful reform and a set timeline, these businesses will continue to shoulder a heavier burden than those in sectors with minimal property overhead.
Responding to the budget statement, Federation of Wholesale Distributors (FWD) Chief Executive James Bielby stated, “We are pleased to see a number of positive steps in today’s budget that will bolster the wholesale sector. The freeze on fuel duty for another year is a welcome relief for wholesalers facing rising costs, allowing for greater stability in our operations.
“We also commend the government’s commitment to increasing support to combat retail crime, which is essential for protecting wholesalers, but we must ensure that wholesalers are included within this to ensure a safe environment for all businesses in the supply chain.
“Over the coming weeks, we look forward to working closely with the government to ensure that our members, who are central to driving economic growth, are given the support they need within an uncertain economic climate.”
Increase in Employer National Insurance contributions
Wholesale body pointed out that the planned increase in employer National Insurance contributions will significantly impact food and drink wholesalers who are already facing mounting operational costs.
With the Employer National Insurance contribution rate rising from 13.8% to 15.8%, this change represents an additional £30.9 million in yearly NI costs for the sector.
Bielby said, "This increase adds financial pressure on businesses striving to support their workforce while maintaining competitive pricing in a challenging market. We urge the government to set out what support will be provided to wholesalers, particularly the many small businesses that are the lifeblood of the country, to ensure they can continue to invest in their people and operations without compromising their viability.”
Fuel duty freeze and Alcohol duty increase
FWD has also welcomed the decision to freeze fuel duty for another year, which provides much-needed relief for wholesalers who rely on transportation to deliver goods.
Bielby pointed out that this freeze will help mitigate some of the financial pressures facing the sector, allowing businesses to manage costs more effectively.
Delaying the alcohol duty increase until February 2025 provides wholesalers some time to prepare, FWD stated. However, the rise will still present substantial challenges in terms of adjusting prices, managing stock, and maintaining supply chain stability.
Biekby said, "We encourage the government to collaborate with wholesalers to ensure the transition is smooth and that unintended consequences, such as increased costs and disruptions, are minimised.”
FWD has also welcome the government’s increased support to combat retail crime and the commitment to clamp down on organised crime. While these measures are crucial in protecting the retail sector, it is essential that the same level of attention and resources is extended to wholesalers, Bielby said, adding that the wholesale sector plays a vital role in the supply chain, and any rise in retail crime not only impacts its members directly but also has broader implications for the economy and society.
Raising caution in terms of tobacco tax, Bielby stated that the implementation of such measures must be carefully considered to ensure it works for wholesalers as well.
"A tax increase should not drive consumers towards illicit markets, which could undermine the goals of the health agenda and create further challenges for legitimate businesses," he said.
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.”
Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.
The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.
"In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually okay," he said, adding the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will comprise a significantly larger portion of Carlsberg's business in a decade.For now, however, the company is adjusting its marketing.
"In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands," he said.
The world's third-largest brewer behind Anheuser-Busch Inbev and Heineken said third-quarter sales rose 1 per cent to 20.5 billion Danish crowns ($2.98 billion), compared with 20.7 billion expected on average by analysts in a poll gathered by the company.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.
Also on Thursday (31), the world's largest beer maker Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts. AB InBev's third-quarter statement highlighted stronger growth for its more expensive beers, like Corona, which grew 10.2% outside of its home market, Mexico, during the period.
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.
Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.
The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.
The E-Loyalty Extra loyalty scheme will be accessible by retailers via WhatsApp platform and will allow retailers to capture evidence of compliance by simply clicking “take photo” button.
With the addition of another digital enhancement introduced to the group recently – Coupon - based loyalty mechanic, members are now empowered to incentivise and reward customers, driving stronger consumer connections and fostering brand loyalty at a granular level. Retailers can now simply redeem a coupon at the point of check out. Another key digital development within the group is WhatsApp E-Presell which enables Sugro UK’s retail partners to provide advance product volume commitments for new product launches. This functionality is particularly powerful as it ensures that suppliers have accurate forecasts before product launches, enabling better stock availability from day one of product being available on the market.
The ease and speed of using WhatsApp for these commitments simplifies the presell process, ensures accuracy and strengthens relationships across the supply chain.
While other industry players may soon consider introducing similar digital tools, Sugro UK are proud to be at the forefront of enhancing retail-focused digital solutions. This early adoption not only ensures that Sugro UK members remain competitive but also guarantees them access to the best digital tools available in the market. These efforts are part of Sugro UK's ongoing commitment to delivering value to its members and empowering them with innovative solutions for growth and success in an increasingly digital retail environment.
Sugro Head of Commercial and Marketing, Yulia Petitt said: “I am delighted that Sugro UK members are now able to provide photographic evidence of retail compliance and in-store execution to our supplier partners, using a wide range of display and compliance criteria such as planograms, secondary displays, trials, and new product developments (NPDs).These digital features allow members to share real-time proof of execution, enhancing accountability and building supplier confidence. The launch of E-Presell functionality opens a huge digital advantage for the group which will benefit all – members, retailers and suppliers in gaining accurate forecast and ensuring product visibility in store from day one of product being on the market and with the ease of using WhatsApp, the entire pre-sell process becomes a much quicker and easier process to manage for all parties.
"The Group has had 18 consecutive years of growth and, once again, on track to deliver in 2024, with the year-to-date performance of +15% year on year and growth across all categories.” Rob Mannion, CEO of b2b.store, added: “The rate of innovation in the wholesale sector is increasing and these launches are further great examples of that. We’re particularly excited about the developments and different uses of WhatsApp in the industry, with more coming in the pipeline for 2025 – it’s a tool no wholesaler or buying group can afford to ignore because of the level of influence it’s having in the sector and there’s no sign of that direction of travel changing any time soon.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion.