each category holds in our total business. Soft drinks SKU merchandising is based on category value share; volume share;
CATEGORY MANAGEMENT
in association with
YOUR SOFT DRINKS SALES
REVITALISED Ed Smeaton
Aris Poulis
Anna Roddis
“Category management is big on the agenda at Bestway and soft drinks is high up the priority list. We worked on refining our range and concentrating on bestsellers while bringing new trends into the category. Firstly, we reviewed the macro trends for the category, such as growth in water and low sugar/zero sugar drinks, and then reviewed the performance of each product. The review produced a 20% reduction in the range, removing slow sellers and replacing them with products which fit current market trends. Once we outlined the range, the merchandising plan was worked on for depot and stores, ensuring that space is optimised for the right mix of products. Stocking the right range and displaying it in the correct merchandising flow brings fantastic sales and profit increases for our customers.”
“We have rationalised our soft drinks range to maximise the return for the space a product occupies. For example, in our Nottingham depot, we used to have 750 soft drink SKUs, for retail and catering; now we have 616. We work on the basis of one product in, one product out. Products also have a trial period before they become part of our core range. The benefits of stockholding, cash-flow and return on investment for the suppliers, ourselves and the customers are significant, because we can now focus on the right products and activities that have a positive impact to our volume, value and profitability. We are also making a big investment in changing the layout in each of our depots based on the importance each category holds in our total business. Soft drinks SKU merchandising is based on category value share; volume share; the number of customers buying the product, and product profitability.”
“The soft drinks category is very important in depot and Landmark members devote key space to soft drinks supported with a full promotional programme. We have focused on the water category this year in line with category growth trends. We have supported our key water suppliers in their promotional strategies, as well as developing our own-brand water range with the launch of Fruqua in depot. We have also looked at our premium offer, for example bringing Hildon Waters on board with Landmark members. In 2016, we introduced an additional Business Drive to our promotion, called ‘Better for You’ with the focus on healthy products – this promotion lends itself really well to the water category.”
Director of Trading-Retail & Own Label, Bestway Wholesale
Commercial Director, Hyperama Wholesale
1
Soft drinks is an incredibly dynamic category with a diverse customer base and a huge number of trends to cater for, which can sometimes make it a challenge to find the right product range for your depot. However, paying attention to the biggest trends and following a less is more approach by streamlining your range, including the top selling brands in each sub-category, will simplify the shopping process for your customers, while increasing sales at the same time.
2
Regional:
While stocking a core range of top-selling products is essential, it is important to tailor your range according to your customer base. Review your sales data to see what sells well in your area, and stock lines accordingly to respond to the needs of your customers specifically.
3
NPD:
Just like consumers, your customers want to see something new and exciting on offer in depot. However, they tend to shop on autopilot, and most will have a shopping list prepared well before reaching your depot. Stocking NPD in eyecatching displays on the depot floor is a sure fire way to grab the attention of these customers and drive incremental sales.
3 Spotlight on Sugar:
1 Seasonality:
Seasonal trends have a key role to play within soft drinks, and the most successful wholesalers will always have one eye on the weather and be prepared to react quickly. Adjusting your range to cater for seasonal occasions with limited edition ranges, or to respond to changes in the weather, will enable you and your customers to respond and take advantage of seasonal soft drinks sales. The weather should be an especially important consideration as segments geared towards hydration, such as Water or Water Plus (flavoured waters), the fourth biggest growth area in soft drinks1, are often boosted by warmer weather. If you are not prepared for sunny spells, you may lose out on sales as customers seek out drinks that provide immediate refreshment on the go.
2 Events:
Creating theatre with events is just as important in depot as it is in any store or outlet. Unique and eyecatching displays will help you grab the attention of customers and add excitement to your depot floor. Linking dynamic displays of soft drinks to key sporting events such as Wimbledon and Robinsons, or seasonal events like Christmas, can also create fantastic impact both visually and commercially, especially when you can connect them to a special deal or promotion.
KEY CATEGORY STATS
Trading Controller, Landmark Wholesale
WHAT TO STOCK Core Range:
BRITVIC INSIGHT
Biggest Sub-Category by Growth5
Top 5 Brands in Soft Drinks6
1 2 3 4 5
1 2 3 4 5
Smoothies Plain Water Traditional Mixers Water Plus Cold Hot Drinks
Soft drinks has overtaken bread as the No.3 reason driving shoppers into c-stores8
CONVENIENCE PLANOGRAM
“Consider what your customers are stocking to ensure that you are offering the right ranges to meet their needs”
Top 5 Brands in Total Impulse7
1 2 3 4 5
Soft drinks is the No.1 footfall driver to depots9
Nielsen, w/e 31.12.16, 2Nielsen Total Market, MAT Value Sales to 01.10.2016, 3Nielsen Total Market, MAT Value Sales to 01.10.2016, 4Nielsen Scantrack, Value Sales, MAT to 21.01.17, 5Nielsen, Total Impulse data w/e 31.12.16, 6Nielsen, Total Impulse data w/e 31.12.16 (ranked by value sales, excluding private label), Nielsen, Total Impulse data w/e 31.12.16 (ranked by value sales, excluding private label), 8him! 2016, 9him! Wholesale and C-Programmes, 2015, 10Nielsen, Total Impulse data w/e 31.12.16
1 7
Coca Cola Pepsi Lucozade Red Bull Robinsons
In recent years, we have led the industry and taken bold steps to help consumers make healthier choices. In fact, we removed all added sugar from Fruit Shoot in 2014, making it the No.1 No Added Sugar Kids brand2. We also removed all full sugar variants of Robinsons in 2015, cementing our place as the No.1 Squash brand3. In addition, since 2005, all advertising in relation to Pepsi has led with sugar-free Pepsi Max. Today, with over two-thirds of our value sales coming from low or no sugar variants4, Britvic is the leading supplier of low calorie soft drinks in GB and Ireland, selling more low calorie drinks than any other soft drinks company. As the spotlight continues to shine on health, it’s crucial that you promote choice within your depot by offering healthier soft drinks alongside more traditional offerings.
Coca Cola Lucozade Red Bull Pepsi Volvic
Value of Soft Drinks Category in Total Impulse: £2.07bn (+1%)10
Look out for more soft drinks advice from Britvic on www.betterwholesaling.com
