Cutting prices and working closely with retailers are valued strategies in a recession, but the way to win over retail buyers is to invest in your brand. Nick Hughes reports
Money can’t buy you love. But it can win you the affections of grocery retail buyers. The Branded Suppliers of the Year 2009 – as voted for by their fiercest critics, grocery retail buyers – were chosen for their willingness to invest in their brands, work closely with retailers and cut prices where necessary. These skills are at a premium during a recession, according to the record number of buyers who took part in our seventh annual poll.
Judged also on their abilities in areas such as account and category management, promotions strategy, in-store execution and NPD, the 16 category winners will now be entered into The Grocer’s Gold Awards at The Dorchester Hotel in London on 17 June. There they will compete for the prestigious accolade of being named the UK’s best branded supplier. As in last year’s shortlist, it is the big brands that will be vying for contention.
There are repeat victories for Procter & Gamble, UBUK, Heinz, Kellogg's, Cadbury, PepsiCo and McCain, as well as a sixth successive victory for Coca-Cola Enterprises in soft drinks. Also in the winner’s enclosure are Allied Bakeries, Kepak, Arla Foods, Princes, Nestlé, Young's Seafood and Unilever, which put last year’s poor showing behind it to triumph in the personal care category.
But whereas last year niche players such as Dorset Cereals and Goswell Bakeries broke the hegemony of the big brands in the minor medal places, this year they have been left in the dust.
“It’s easier for the bigger guys to take a long-term view. They perhaps realise that over 12, 18 or 24 months they may have to take a little bit of a hit by investing in their brands, whereas for the smaller guys that’s going to be a lot more of a challenge,” says Morrisons buyer Craig Simpson.
Nicholas Farhi, associate partner of OC&C Strategy Consultants, agrees. “The bigger players have bigger balance sheets and a much more diverse operation around the globe. They can take a long-term view. They have a lot of people thinking about how to survive the recession and understand that to do so you have to invest in your brand. That investment often takes the form of price promotion rather than marketing.”
Indeed, while buyers acknowledge innovation, category insight and great customer service as important strings to a supplier’s bow, it is the ability to deliver a successful promotional strategy that really singles out the best from the rest. Suppliers that are flexible around promotions also tick the box.
“The ones we graded highly were those that were able to adjust and adapt their strategy to a changing marketplace and changing consumer demands,” says Simpson. “In other words, the suppliers that were able to move away from bogof promotions to more price-led promotions. These include suppliers who, on an ongoing basis, were a little bit more realistic in terms of the marketplace and were thinking about whether they could do without a price increase, or if they could even reduce their price slightly.”
Take the soft drinks category, for instance. Coke excelled thanks to “its ability to work closely on financial plans and deliver a strong promotional offer”, according to one buyer. Scottish & Newcastle, too, won plaudits for delivering “strong price-driven and value-added promotions” on powerhouse brands such as Foster’s, Kronenbourg and Strongbow.
Any fears that product innovation would suffer in the recession appear unfounded, especially among this year’s winners. In ambient meal solutions, Heinz stands out for its ability to deliver consistently strong NPD.
“The Heinz Snap Pots launch was a massive success for our business,” says one buyer. Another praised Heinz for “always listening to the consumer”. “In terms of NPD, we looked for suppliers who moved away from the added-value side of things into more grounded products – products that consumers are looking for on a more day-to-day basis, reflecting value for money,” says Simpson.
Buyers highlight P&G’s Ariel Excel Gel as an excellent recession-busting innovation. “The launch of Ariel Excel Gel was a great execution, with their teaser ads on TV long before they had even shipped the first case,” says one buyer.
NPD hasn’t necessarily dropped off in the past 12 months, says Farhi. It’s more the case that the filter on it has become harsher. “There’s less money sloshing around, so you need to actually make a business case for your product and offer more genuine support for it. But also, NPD will be less about premium and ethical and more about offering value for money.”
Arla Foods’ Lurpak brand is also praised for its innovation, particularly the launch of a 50g mini Lurpak block in November, which saw the company join a growing list of suppliers looking at pack re-sizing as the basis for product innovation. Whether focusing on innovation or promotion, the most successful suppliers appreciate their investment is most effective when retailers are closely involved. Buyers report that suppliers are willing to adopt a more collaborative approach now that times are tougher.
“We’ve found the big brand owners more inclined to have serious conversations with us,” says Zahir Abdullah, group negotiator at Bestway Cash & Carry. “Whereas in the past they’ve been, dare I say it, a bit on the arrogant side, recently they’ve taken a lot of our thoughts and comments on board and then worked with us on a partnership basis rather than dictating terms. I think they’re wary of losing market share themselves.”
The winners not only communicate effectively with their retail clients but also work with them on brand and category insight. Buyers highlight McCain’s consumer insight as one of the driving forces behind the rejuvenation of the frozen foods category.
“McCain has done a lot to raise the profile of frozen food, both with external marketing campaigns and in-store activity, along with a range of innovation and NPD,” says one buyer.
Commitment to growing the overall category has not gone unnoticed by buyers. Morrisons is working with its suppliers on a joint business planning process with a focus not only on the individual supplier’s products but on the category as a whole, says Simpson.
“We’re seeing more and more suppliers, and particularly the bigger ones, becoming much more honest about how they do things. They are more open because they realise it’s in their joint interests to grow the category. Also, if the plan doesn’t work within six, nine, 12 months, the results are there to be seen and you’re going to lose some serious face,” he says. “The bigger guys, who have bigger information resources and more access to market research information, have done particularly well. They’ve been able to keep up with the market’s pace and have been able to adapt their strategies accordingly.”
Unilever, which was last year criticised for taking an insular approach, won praise in the personal care category for its “good category insight and innovative solutions to the changing environment”.
“We invest heavily in shopper insight and use this to co-develop ways of presenting categories to shoppers,” says Unilever UK marketing director Matt Close. “Investing in these key areas ensures we are always evolving to drive category growth.”
IGD head of commissioned research Anne Bordier says the ability to understand consumer patterns and share this knowledge with retailers will assume even greater importance in coming months. “A lot of companies now are realising the power of shopper insight and in-store understanding,” says Bordier. “And it’s even more important during the recession, because you have to be really careful with your budget. Shoppers are adapting to the recession and changing their behaviour, so it’s even more important than before to understand what’s happening in-store.”
For smaller brand owners, who often have limited access to the market data enjoyed by their bigger rivals, it’s imperative they make the resources they do have work as hard as possible, Bordier adds.
“Of course, it’s easier if you’ve got lots of budget and lots of people, but at the end of the day it’s about understanding what your consumer insight means, and sometimes the smaller guys are better at picking up on these trends, which is why, for example, they picked up on the whole premium trend quicker than the big boys.”
Farhi believes that while the desire for promotional contributions may have played into the hands of big brand owners in this year’s survey, there is no need for smaller branded players to lose heart just yet. “As a small brand owner you have to own your own niche. As long as you have that differentiated proposition, you won’t get delisted. But if you’re the fourth-biggest laundry brand with nothing that the consumer values differently from the top three, then you’re in trouble.”
Sound advice for brands already with one eye on next year’s Supplier Survey.
Alcohol
Strong promotional and marketing support for mainstream brands including Foster's, Kronenbourg and Strongbow and 'heritage' brands such as Newcastle Brown Ale, McEwan's and Scrumpy Jack helped S&N leapfrog Coors Brewers to take top spot in alcohol. One buyer cites its "willingness to invest both time and money, ensuring our retailers are at the forefront of any NPD or category development works" as the reason for choosing S&N.
Ambient Meals
Heinz's NPD platform has barely slowed since recession took hold. The ketchup stable has grown to include Reduced Sugar & Salt and Premium Special Blend, while the launch of Dipping Sauces and Snap Pots breathed new life into the category. "Iconic brands continue to help Heinz cement its domination of the category," says one buyer. Heinz was also praised for taking a category-wide approach to growth, and not just concentrating on its own brands.
Biscuits and Cakes
UB has continued to lead the charge in healthy reformulation. It recently cut satfats in McVitie's Digestives, Rich Tea and HobNobs by 50%. "In 2008, we met customer needs with innovative new products and packaging concepts as well improving the nutrient quality of our portfolio," says Nick Stuart, commercial manager at UBUK. Buyers praised its "focus on the category and support around range reviews, backed by NPD and promotions".
Bread Bakery
Allied Bakeries' ability to deliver key promotions elevated it above rivals Warburtons and Premier Foods. "They have provided us with category support and key promotions to our customers," says one buyer. A £4m Wake Up to Wholegrain ad campaign for Kingsmill generated strong consumer awareness, while Allied's response to the recent inclement weather also impressed. "Excellent availability, even when it snowed," enthuses one buyer.
Canned Foods
Retail buyers ranked Princes above rivals Heinz and Premier Foods for its strong promotional support of both the convenience and multiple channels. The supplier has ramped up its NPD of late and in January relaunched its tinned pie range in a direct assault on Fray Bentos' dominant share of the £25m market. "They adopted a total category approach, which delivered significant volume and value growth, outperforming the overall market, " says one buyer.
Cereals
Constant innovation, accuracy and a willingness to work in tandem with retailers to grow the category helped Kellogg's defend its cereals crown. "They take a collaborative approach to our individual needs and strategy; a refreshing change from such a large player in this sector," says one buyer.
Kellogg's UK sales director Mike Taylor says: "The economic climate has meant both suppliers and retailers have had to re-evaluate everything they are doing."
Confectionery
There was only one word on buyers' lips this year where confectionery was concerned. Wispa. "They launched the product of the year in Wispa," says one buyer. When asked why vote for Cadbury, another answered succinctly: "Wispa!" The company also won praise for its excellence in marketing and logistics, strong TV advertising on Cadbury Dairy Milk and its willingness to try new initiatives to support retailers' business needs.
Crisps, Nuts & Snacks
Walkers' Do Us A Flavour has proved one of the most innovative marketing campaigns of the year to date, with creations such as Cajun Squirrel flavour crisps generating huge consumer interest. Monster Munch has been given a retro makeover to mimic the 1970s original design, while February's launch of premium crisp brand Red Sky was another bold move. "Exciting NPD, packaging and promotional activity," is the verdict of one buyer.
Chilled Foods
Knowing your customer is the golden rule - and nobody does it better in chilled foods than Kepak. In November the company relaunched its Rustlers range with new flavours and followed it up last month by launching a cut-price Bacon Roll and Hot Dog. Its Ugo's range of paninis has also proved a hit with convenience stores in particular. "Clarity of thought and customer segmentation - known and marketed accordingly," is the view of one impressed buyer.
Dairy and Yellow Fats
Arla's attempt to position butter as the perfect accompaniment to home-cooked food worked a treat as Lurpak cemented its lead over Unilever's Flora as Britain's bestselling yellow spread. The company's strong communications did not go unnoticed by buyers. "Excellence in marketing and very good communication of the brand plan in particular," comments one. Next on Arla's agenda is a £12m campaign for Lurpak celebrating the Saturday morning lie-in.
Frozen Foods
McCain may have benefited from a renewed consumer appetite for frozen foods, but the brand has also played a strong hand in frozen's renaissance. The It's All Good ads highlighted the lower-fat content of its chips, while the launch of the Simply Gorgeous range continued its push into the premium frozen sector. "They have supported the category with a robust package and provided effective and attentive account management," says one buyer.
Household
P&G won plaudits both for its collaborative approach to promotions strategy and its strong category support. "Our promotional calendar is developed in tandem with key accounts, and impeccable in-store execution is an essential element of what we do," says P&G sales director Jon Workman. The company's ShelfHelp initiative is key to its ability to deliver effective merchandising and category information for retailers, he adds.
Hot Beverages
2009 is a big year for Nescafé. Nestlé is pouring £24m into a brand relaunch to highlight its reformulation with more coffee beans for a more intense flavour. Nestlé already has plenty of support among retail buyers. "The supplier is always solutions-oriented and well organised," says one buyer. "I chose Nestlé for the collaborative work done with us to improve sales and grow market share through range, promotion and service," comments another.
Meat, Fish & Poultry
As if securing the services of Rugby World Cup winner Matt Dawson weren't enough, Young's has now won over an even tougher breed - the retail buyer. The brand delivered a 21.4% sales increase last year thanks to stylish presentation, slick ads and focus on sustainability. "I chose Young's because of its ability to react to our needs and strive for industry-leading NPD," says one buyer. The company recently went retro with the launch of Scampi Kievs.
Personal Care
Unilever's strategy to focus on its powerhouse brands has paid dividends in buyers' eyes. NPD around key brands Lynx, Dove and Vaseline has helped grow the personal care category. "We bring market-leading innovation such as Lynx Dark Temptation, Dove Go Fresh and Vaseline Intensive Rescue and then drive consumers in-store with memorable communication campaigns and bespoke point of purchase," says Matt Close, Unilever UK marketing director.
Soft Drinks
CCE remains untouchable in soft drinks, its depth of research and insight helping it secure its sixth successive category victory. "The key factor is to provide added value to customers beyond simply the price of your products," says Ian Deste, vice president for sales & customer development. "Key elements have included in-depth promotional evaluation to ensure effectiveness of promotions as well as significant investment in shopper and consumer research."
Does premiumisation still matter?
The absence of premium brands from this year's Branded Suppliers Survey suggests that the top end of the grocery market is feeling the effects of the recession most keenly. Last year, both Dorset Cereals and Kettle Chips pushed bigger brands out of the medal places but this year their stock has fallen considerably.
Experts, however, believe that while premium brands may suffer a blip during the recession, the category as a whole should be able to weather the economic storm and emerge stronger for it.
"There are still people who want to buy premium and the long-term trend is for gradual improvement in quality," says Nicholas Farhi, associate partner at strategy consultants OC&C. "Trading up will almost certainly go on after the recession."
Walkers is testing the theory with its new super-premium Red Sky crisps. "Our testing shows Red Sky has potential to broaden the appeal of the premium crisps category," says Ian Ellington, Walkers vice president of marketing.
Kate Waddell, managing director of consumer brands at Dragon Rouge, says price premiums now need to be justified. "I predict that premium brands - where there is a very physical or tangible difference - will win out, or stay firm, in the recession," she says.
Money can’t buy you love. But it can win you the affections of grocery retail buyers. The Branded Suppliers of the Year 2009 – as voted for by their fiercest critics, grocery retail buyers – were chosen for their willingness to invest in their brands, work closely with retailers and cut prices where necessary. These skills are at a premium during a recession, according to the record number of buyers who took part in our seventh annual poll.
Judged also on their abilities in areas such as account and category management, promotions strategy, in-store execution and NPD, the 16 category winners will now be entered into The Grocer’s Gold Awards at The Dorchester Hotel in London on 17 June. There they will compete for the prestigious accolade of being named the UK’s best branded supplier. As in last year’s shortlist, it is the big brands that will be vying for contention.
There are repeat victories for Procter & Gamble, UBUK, Heinz, Kellogg's, Cadbury, PepsiCo and McCain, as well as a sixth successive victory for Coca-Cola Enterprises in soft drinks. Also in the winner’s enclosure are Allied Bakeries, Kepak, Arla Foods, Princes, Nestlé, Young's Seafood and Unilever, which put last year’s poor showing behind it to triumph in the personal care category.
But whereas last year niche players such as Dorset Cereals and Goswell Bakeries broke the hegemony of the big brands in the minor medal places, this year they have been left in the dust.
“It’s easier for the bigger guys to take a long-term view. They perhaps realise that over 12, 18 or 24 months they may have to take a little bit of a hit by investing in their brands, whereas for the smaller guys that’s going to be a lot more of a challenge,” says Morrisons buyer Craig Simpson.
Nicholas Farhi, associate partner of OC&C Strategy Consultants, agrees. “The bigger players have bigger balance sheets and a much more diverse operation around the globe. They can take a long-term view. They have a lot of people thinking about how to survive the recession and understand that to do so you have to invest in your brand. That investment often takes the form of price promotion rather than marketing.”
Indeed, while buyers acknowledge innovation, category insight and great customer service as important strings to a supplier’s bow, it is the ability to deliver a successful promotional strategy that really singles out the best from the rest. Suppliers that are flexible around promotions also tick the box.
“The ones we graded highly were those that were able to adjust and adapt their strategy to a changing marketplace and changing consumer demands,” says Simpson. “In other words, the suppliers that were able to move away from bogof promotions to more price-led promotions. These include suppliers who, on an ongoing basis, were a little bit more realistic in terms of the marketplace and were thinking about whether they could do without a price increase, or if they could even reduce their price slightly.”
Take the soft drinks category, for instance. Coke excelled thanks to “its ability to work closely on financial plans and deliver a strong promotional offer”, according to one buyer. Scottish & Newcastle, too, won plaudits for delivering “strong price-driven and value-added promotions” on powerhouse brands such as Foster’s, Kronenbourg and Strongbow.
The Grocer Gold winner 2008
PepsiCo took the Branded Supplier of the Year honours at The Grocer Gold Awards 2008. The Walkers brand owner triumphed in the crisps, nuts and snacks category before beating off stiff competition from the likes of Mars, Heinz and Dairy Crest to win the overall award. PepsiCo won praise for its pro-active account management and genuinely innovative NPD. "This year we have been focused on developing exciting promotional campaigns including Walkers' Do Us A Flavour and Doritos' You Make It We Play It; reinvigorating brands such as Sensations and Monster Munch; bringing innovation to the market with Red Sky; and supporting our brands with multimillion pound marketing and advertising investments," says Ian Ellington, Walkers vice president of marketing.
“A lot of it is down to economies of scale,” says Simpson. “A lot of the big guys can bang through serious amounts of volume, which is then going to reduce their overall cost base. So Dorset Cereals, a fantastic company with great products, is unfortunately at the wrong end of the market at the moment in the current economic climate, and there are other companies in other categories in similar situations.”PepsiCo took the Branded Supplier of the Year honours at The Grocer Gold Awards 2008. The Walkers brand owner triumphed in the crisps, nuts and snacks category before beating off stiff competition from the likes of Mars, Heinz and Dairy Crest to win the overall award. PepsiCo won praise for its pro-active account management and genuinely innovative NPD. "This year we have been focused on developing exciting promotional campaigns including Walkers' Do Us A Flavour and Doritos' You Make It We Play It; reinvigorating brands such as Sensations and Monster Munch; bringing innovation to the market with Red Sky; and supporting our brands with multimillion pound marketing and advertising investments," says Ian Ellington, Walkers vice president of marketing.
Any fears that product innovation would suffer in the recession appear unfounded, especially among this year’s winners. In ambient meal solutions, Heinz stands out for its ability to deliver consistently strong NPD.
“The Heinz Snap Pots launch was a massive success for our business,” says one buyer. Another praised Heinz for “always listening to the consumer”. “In terms of NPD, we looked for suppliers who moved away from the added-value side of things into more grounded products – products that consumers are looking for on a more day-to-day basis, reflecting value for money,” says Simpson.
Buyers highlight P&G’s Ariel Excel Gel as an excellent recession-busting innovation. “The launch of Ariel Excel Gel was a great execution, with their teaser ads on TV long before they had even shipped the first case,” says one buyer.
NPD hasn’t necessarily dropped off in the past 12 months, says Farhi. It’s more the case that the filter on it has become harsher. “There’s less money sloshing around, so you need to actually make a business case for your product and offer more genuine support for it. But also, NPD will be less about premium and ethical and more about offering value for money.”
Arla Foods’ Lurpak brand is also praised for its innovation, particularly the launch of a 50g mini Lurpak block in November, which saw the company join a growing list of suppliers looking at pack re-sizing as the basis for product innovation. Whether focusing on innovation or promotion, the most successful suppliers appreciate their investment is most effective when retailers are closely involved. Buyers report that suppliers are willing to adopt a more collaborative approach now that times are tougher.
“We’ve found the big brand owners more inclined to have serious conversations with us,” says Zahir Abdullah, group negotiator at Bestway Cash & Carry. “Whereas in the past they’ve been, dare I say it, a bit on the arrogant side, recently they’ve taken a lot of our thoughts and comments on board and then worked with us on a partnership basis rather than dictating terms. I think they’re wary of losing market share themselves.”
The winners not only communicate effectively with their retail clients but also work with them on brand and category insight. Buyers highlight McCain’s consumer insight as one of the driving forces behind the rejuvenation of the frozen foods category.
“McCain has done a lot to raise the profile of frozen food, both with external marketing campaigns and in-store activity, along with a range of innovation and NPD,” says one buyer.
Commitment to growing the overall category has not gone unnoticed by buyers. Morrisons is working with its suppliers on a joint business planning process with a focus not only on the individual supplier’s products but on the category as a whole, says Simpson.
“We’re seeing more and more suppliers, and particularly the bigger ones, becoming much more honest about how they do things. They are more open because they realise it’s in their joint interests to grow the category. Also, if the plan doesn’t work within six, nine, 12 months, the results are there to be seen and you’re going to lose some serious face,” he says. “The bigger guys, who have bigger information resources and more access to market research information, have done particularly well. They’ve been able to keep up with the market’s pace and have been able to adapt their strategies accordingly.”
Unilever, which was last year criticised for taking an insular approach, won praise in the personal care category for its “good category insight and innovative solutions to the changing environment”.
“We invest heavily in shopper insight and use this to co-develop ways of presenting categories to shoppers,” says Unilever UK marketing director Matt Close. “Investing in these key areas ensures we are always evolving to drive category growth.”
IGD head of commissioned research Anne Bordier says the ability to understand consumer patterns and share this knowledge with retailers will assume even greater importance in coming months. “A lot of companies now are realising the power of shopper insight and in-store understanding,” says Bordier. “And it’s even more important during the recession, because you have to be really careful with your budget. Shoppers are adapting to the recession and changing their behaviour, so it’s even more important than before to understand what’s happening in-store.”
For smaller brand owners, who often have limited access to the market data enjoyed by their bigger rivals, it’s imperative they make the resources they do have work as hard as possible, Bordier adds.
“Of course, it’s easier if you’ve got lots of budget and lots of people, but at the end of the day it’s about understanding what your consumer insight means, and sometimes the smaller guys are better at picking up on these trends, which is why, for example, they picked up on the whole premium trend quicker than the big boys.”
Farhi believes that while the desire for promotional contributions may have played into the hands of big brand owners in this year’s survey, there is no need for smaller branded players to lose heart just yet. “As a small brand owner you have to own your own niche. As long as you have that differentiated proposition, you won’t get delisted. But if you’re the fourth-biggest laundry brand with nothing that the consumer values differently from the top three, then you’re in trouble.”
Sound advice for brands already with one eye on next year’s Supplier Survey.
Alcohol
Strong promotional and marketing support for mainstream brands including Foster's, Kronenbourg and Strongbow and 'heritage' brands such as Newcastle Brown Ale, McEwan's and Scrumpy Jack helped S&N leapfrog Coors Brewers to take top spot in alcohol. One buyer cites its "willingness to invest both time and money, ensuring our retailers are at the forefront of any NPD or category development works" as the reason for choosing S&N.
Ambient Meals
Heinz's NPD platform has barely slowed since recession took hold. The ketchup stable has grown to include Reduced Sugar & Salt and Premium Special Blend, while the launch of Dipping Sauces and Snap Pots breathed new life into the category. "Iconic brands continue to help Heinz cement its domination of the category," says one buyer. Heinz was also praised for taking a category-wide approach to growth, and not just concentrating on its own brands.
Biscuits and Cakes
UB has continued to lead the charge in healthy reformulation. It recently cut satfats in McVitie's Digestives, Rich Tea and HobNobs by 50%. "In 2008, we met customer needs with innovative new products and packaging concepts as well improving the nutrient quality of our portfolio," says Nick Stuart, commercial manager at UBUK. Buyers praised its "focus on the category and support around range reviews, backed by NPD and promotions".
Bread Bakery
Allied Bakeries' ability to deliver key promotions elevated it above rivals Warburtons and Premier Foods. "They have provided us with category support and key promotions to our customers," says one buyer. A £4m Wake Up to Wholegrain ad campaign for Kingsmill generated strong consumer awareness, while Allied's response to the recent inclement weather also impressed. "Excellent availability, even when it snowed," enthuses one buyer.
Canned Foods
Retail buyers ranked Princes above rivals Heinz and Premier Foods for its strong promotional support of both the convenience and multiple channels. The supplier has ramped up its NPD of late and in January relaunched its tinned pie range in a direct assault on Fray Bentos' dominant share of the £25m market. "They adopted a total category approach, which delivered significant volume and value growth, outperforming the overall market, " says one buyer.
Cereals
Constant innovation, accuracy and a willingness to work in tandem with retailers to grow the category helped Kellogg's defend its cereals crown. "They take a collaborative approach to our individual needs and strategy; a refreshing change from such a large player in this sector," says one buyer.
Kellogg's UK sales director Mike Taylor says: "The economic climate has meant both suppliers and retailers have had to re-evaluate everything they are doing."
Confectionery
There was only one word on buyers' lips this year where confectionery was concerned. Wispa. "They launched the product of the year in Wispa," says one buyer. When asked why vote for Cadbury, another answered succinctly: "Wispa!" The company also won praise for its excellence in marketing and logistics, strong TV advertising on Cadbury Dairy Milk and its willingness to try new initiatives to support retailers' business needs.
Crisps, Nuts & Snacks
Walkers' Do Us A Flavour has proved one of the most innovative marketing campaigns of the year to date, with creations such as Cajun Squirrel flavour crisps generating huge consumer interest. Monster Munch has been given a retro makeover to mimic the 1970s original design, while February's launch of premium crisp brand Red Sky was another bold move. "Exciting NPD, packaging and promotional activity," is the verdict of one buyer.
Chilled Foods
Knowing your customer is the golden rule - and nobody does it better in chilled foods than Kepak. In November the company relaunched its Rustlers range with new flavours and followed it up last month by launching a cut-price Bacon Roll and Hot Dog. Its Ugo's range of paninis has also proved a hit with convenience stores in particular. "Clarity of thought and customer segmentation - known and marketed accordingly," is the view of one impressed buyer.
Dairy and Yellow Fats
Arla's attempt to position butter as the perfect accompaniment to home-cooked food worked a treat as Lurpak cemented its lead over Unilever's Flora as Britain's bestselling yellow spread. The company's strong communications did not go unnoticed by buyers. "Excellence in marketing and very good communication of the brand plan in particular," comments one. Next on Arla's agenda is a £12m campaign for Lurpak celebrating the Saturday morning lie-in.
Frozen Foods
McCain may have benefited from a renewed consumer appetite for frozen foods, but the brand has also played a strong hand in frozen's renaissance. The It's All Good ads highlighted the lower-fat content of its chips, while the launch of the Simply Gorgeous range continued its push into the premium frozen sector. "They have supported the category with a robust package and provided effective and attentive account management," says one buyer.
Household
P&G won plaudits both for its collaborative approach to promotions strategy and its strong category support. "Our promotional calendar is developed in tandem with key accounts, and impeccable in-store execution is an essential element of what we do," says P&G sales director Jon Workman. The company's ShelfHelp initiative is key to its ability to deliver effective merchandising and category information for retailers, he adds.
Hot Beverages
2009 is a big year for Nescafé. Nestlé is pouring £24m into a brand relaunch to highlight its reformulation with more coffee beans for a more intense flavour. Nestlé already has plenty of support among retail buyers. "The supplier is always solutions-oriented and well organised," says one buyer. "I chose Nestlé for the collaborative work done with us to improve sales and grow market share through range, promotion and service," comments another.
Meat, Fish & Poultry
As if securing the services of Rugby World Cup winner Matt Dawson weren't enough, Young's has now won over an even tougher breed - the retail buyer. The brand delivered a 21.4% sales increase last year thanks to stylish presentation, slick ads and focus on sustainability. "I chose Young's because of its ability to react to our needs and strive for industry-leading NPD," says one buyer. The company recently went retro with the launch of Scampi Kievs.
Personal Care
Unilever's strategy to focus on its powerhouse brands has paid dividends in buyers' eyes. NPD around key brands Lynx, Dove and Vaseline has helped grow the personal care category. "We bring market-leading innovation such as Lynx Dark Temptation, Dove Go Fresh and Vaseline Intensive Rescue and then drive consumers in-store with memorable communication campaigns and bespoke point of purchase," says Matt Close, Unilever UK marketing director.
Soft Drinks
CCE remains untouchable in soft drinks, its depth of research and insight helping it secure its sixth successive category victory. "The key factor is to provide added value to customers beyond simply the price of your products," says Ian Deste, vice president for sales & customer development. "Key elements have included in-depth promotional evaluation to ensure effectiveness of promotions as well as significant investment in shopper and consumer research."
Does premiumisation still matter?
The absence of premium brands from this year's Branded Suppliers Survey suggests that the top end of the grocery market is feeling the effects of the recession most keenly. Last year, both Dorset Cereals and Kettle Chips pushed bigger brands out of the medal places but this year their stock has fallen considerably.
Experts, however, believe that while premium brands may suffer a blip during the recession, the category as a whole should be able to weather the economic storm and emerge stronger for it.
"There are still people who want to buy premium and the long-term trend is for gradual improvement in quality," says Nicholas Farhi, associate partner at strategy consultants OC&C. "Trading up will almost certainly go on after the recession."
Walkers is testing the theory with its new super-premium Red Sky crisps. "Our testing shows Red Sky has potential to broaden the appeal of the premium crisps category," says Ian Ellington, Walkers vice president of marketing.
Kate Waddell, managing director of consumer brands at Dragon Rouge, says price premiums now need to be justified. "I predict that premium brands - where there is a very physical or tangible difference - will win out, or stay firm, in the recession," she says.
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