Lucozade Ribena Suntory Ltd is helping wholesalers to increaes sales of soft drinks and enery drinks through core range, NPD and data writes Tan Parsons.
Lucozade Ribinea Suntory Ltd is growing soft drink sales ahead of the market at 4.2%. The supplier has executed a project at Bestway’s Lewisham depot, working closely with general manager Sohail Rana and his team. It focused on core range and NPD, using the depot’s data to imrove ranging, merchandising and above all to grow sales.
Lucozade Ribena Suntory Ltd uses data to grow depot sales
- Back the key brands: give the bestsellers space before secondary brands. They drive more profits. Optimise product ranges, make sure you are stocking the core products that will deliver the bulk of your sales
- Support insight-led NPD: new products help drive excitement into the soft drinks category. Ensure you are stocking a range of products that cater for the wide range of consumption occasions and varying demographics
- Secondary display/off shelf: this creates excitement, greater visibility and gives retailers an additional reason to buy
- Drive brand visibility with Point of Sale: use PoS to disrupt the customer
- Pass on promotions to the retailer: promotions represent value and give the retailer a reason to come back
Core range accounts for more than 80% of Lucozade Ribena Suntory Ltd’s sales and it is vital wholesalers get the correct balance of top sellers and NPD. Just 29 SKUs make up more than 50% of sales in a category of more than 900 SKUs, so it’s vital wholesalers stock fast-moving products like Lucozade Energy Orange 380ml, Lucozade Sport Orange 500ml, and Ribena Blackcurrant 500ml. Bruce Alexander, impulse sales director at Lucozade Ribena Suntory Ltd, says: “Growing sales in wholesale is really about focusing in on core range first and foremost.”
The soft drinks supplier has recently launched Lucozade Energy Reduced Sugar Cloudy Lemonade and Ribena Orange & Guava. The launches have been activated
in depot with comprehensive PoS including floor stickers, pallet displays and banners.
“While stocking the core range is
important, you need the interest and excitement of NPD to add value for the category,” says Alexander.
With 90% of sales at Bestway Lewisham coming from cash & carry, in-depot theatre is crucial and the recent Ribena and Lucozade displays have boosted category sales. “We only launched Lucozade Energy Reduced Sugar Cloudy Lemonade in
August so it’s brand new to the category and really taps into the health drive for 25 to 34-year-olds who are looking for a healthier alternative to full sugar drinks,” says Alexander.
Lucozade Ribena Suntory Ltd has used sales data from Bestway Lewisham to refine the range of soft drinks in the depot, and to achieve a much better category proposition overall.
The supplier has a dedicated wholesale development executive who calls every
week to work with the depot team on their range, NPD and merchandising, and to keep them informed of new initiatives.
The depot is monitoring sales uplift on a monthly basis following completion of the project, but Mr Rana estimates sales had an immediate double-digit jump.
“It’s a growing market and we wanted to make the category more successful in this depot,” he says. “We sat down with Lucozade Ribena Suntory Ltd and drew up a plan, which we executed together to grow turnover. Working with them has been a very good experience – they have been very supportive and very proactive. They listen to new ideas and work with us very closely.”
Working together: How Bestway and Lucozade Ribena Suntory Ltd are growing sales
Bruce Alexander, impulse sales director, Lucozade Ribena Suntory
“For the past few months we’ve been working with Bestway Lewisham general manager Sohail Rana and his team to take the sales data from this particular depot and refine the range, the location and the space to get a much better category proposition. Our company motto, Yatte Minahare, translates in English as ‘Go for it!’ and means that we strive to pursue business with a bold and enterprising spirit, and that’s exactly how we’re approached this project in collaboration with Sohail Rana.”
Sohail Rana, general manager, Bestway Lewisham
“In-depot displays are crucial for our trade because a lot of customers come with a shopping list and these displays have increased impulse buying. When they see nicely presented displays with PoS they buy more, even if it’s not on their agenda. I estimate that since completing this work with Lucozade Ribena Suntory, our sales have immediately gone up by 10%.”
Arasaratnam Karthik, retailer, All Wines, Lewisham
“The Lucozade display looks very nice and when I saw it I wanted to take one case. I think it will be a good product for my customers – it looks really nice.”