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    Winter is coming!

    Photo: iStock

    A growing and ageing population every year puts more stress and pressure on the NHS. This year especially, with so many hospital beds and appointment slots still reserved for possible Covid cases, and with the general difficulties of seeing GPs, UK consumers will more than ever depend on their local convenience stores for over-the counter (OTC) solutions.

    “COVID is only likely to further compound this trend as social distancing measures are likely to continue, having a long-term impact on consumer preference to shop local, frequent and small. Deloitte reported that 59 per cent of consumers were shopping more locally at the start of lockdown,” says Claire Campbell, Olbas Brand Manager.

    “It’s much more appealing to consumers to ‘pop into’ their local store for winter essentials and distress products than plan a visit to a major multiple that may involve crowded shopping environments.”

    On top of this, every cough and sneeze will appear more significant and serious to the sufferer than ever before, so reassurance – through stocking the best and widest range of OTC remedies – will be greatly beneficial to your sales. This is another in the growing list of categories where convenience can win.

    OTC remedies can successfully alleviate symptoms of common illnesses without needing a doctor’s prescription. Headaches, fevers and sore throats, blocked noses and coughs can all be dealt with pretty much effectively with what customers can purchase at the corner shop.

    “Beechams has seen its value growth double and its volume of sales triple at the rate of the cold and flu category  over the course of COVID-19,” says Paul Trethewy, Controller for Convenience at GSK.

    “This indicates how the pandemic has put self-care firmly at the forefront of consumers’ minds, as shoppers are wanting to self-treat effectively, and therefore take comfort from multi-symptom solutions. This reinforces the mass opportunity that the cold and flu category holds for Wholesalers and their retailer customers, especially with the upcoming winter season.”

    Winter is coming!

    The public has visibly been taking a more pro-active interest in their own health recently. “This could be seen as a product of the digital age – ingredients and studies are never more than a few clicks away and a growing percentage of commerce is now online,” says Per Rehné, CEO of Clasado Biosciences, which specialises in probiotics.

    The pandemic has intensified this self-education and has changed or concentrated shopping behaviour.

    “We are seeing consumers stock up on essential self-care products, with an uplift in sales of cough and cold products in the lead up to lockdown,” says Elizabeth Hughes-Gapper, Jakemans Brand Manager. “Consumers want to be prepared for winter ailments and have a well-stocked medicine cabinet so it’s likely that we’ll continue to see this trend as consumers look to replenish their supplies throughout the winter.”

    She points out that a mild winter in 2019 together with an increase in healthier lifestyle choices led to a decline in ailments, “specifically a seven per cent decline in coughs and sore throats experienced in March 2020 compared with the previous year.” Now, with more people staying indoors to socially distance and people paying greater attention to their health and hygiene practices, she thinks it means that outcomes could be even better this winter.

    But people still want to be more prepared than ever. Colds and flu and minor pain make up some of the most easily treated conditions through self-medication, presenting a strong opportunity for independent retailers to offer effective solutions to busy shoppers.

    “We are seeing consumers stock up on essential self-care products, with an uplift in sales of cough and cold products in the lead up to lockdown,” says Elizabeth. “Consumers want to be prepared for winter ailments and have a well-stocked medicine cabinet so it’s likely that we’ll continue to see this trend as consumers look to replenish their supplies throughout the winter.”

    This demonstrates a clear opportunity for growth for convenience stores in this sector, making it a crucial category for retailers to get right.

    Proactive health management – a gut feeling

    Colds and flu with dry or chesty coughs, headaches and mild fevers – these are all predictable delights of a centrally-heated British winter.

    This means that typically, the products you need to stock will treat directly these symptoms via OTC remedies. But as we pointed out, an increasing awareness – not just of the importance of one’s own health, but also the interconnectedness of well-being over the whole body – means that further opportunities can exist for merchandising health and medicinal products in Convenience.

    Clasado Biosciences, made up of nutritionists and food scientists, has developed Bimuno, a prebiotic ingredient that fits in with the growing market for products that focus on the immune system and its interplay with gut health. As well as supplying their prebiotic ingredient to nutraceutical manufacturers around the world, they also produce their own award-winning range of supplements.

    “When we talk about ‘winter remedies’, we are almost exclusively referring to products that market themselves directly as immune support products,” CEO Rehné explains. “This category has been on a steady incline, but the market is seeing much sharper and more pronounced growth as a result of the global Covid-19 pandemic. We are seeing a real change in how consumers are approaching physical health. Products designed to support immune function that were almost exclusively a ‘distress purchase’ are now seeing more proactive use from the consumer.”

    Winter is coming!
    Photo: iStock

    Probiotics are now beginning to be seen as an element in staving off other maladies such as colds: perhaps a healthy microbial profile in the gut fends off other infections. True or not, people are connecting the dots and making their own purchasing decisions.

    “Even in the early throes of the pandemic, the wider immune health category was rising at a compound annual growth rate of over 9 per cent, projected to continue to 2025,”adds Per, echoing Elizabeth Hughes-Gapper’s point. Adding pro-biotics, vitamins and supplements to the pills and powders for a more comprehensive healthcare aisle could be a future winner.

    “Perhaps the most promising consumer trend for the sector is the dawn of gut health awareness. As the science powering health and nutrition develops, consumers are switching on to the central importance of the gut microbiome, and crucially, its interplay with the immune system,” says Rehné. “With over 70 per cent of the body’s immune cells residing in the gut and surging interest in gut-mediated wellness, the gut microbiome is proving to be a key point of focus in supporting the immune system.”

    There is another big change afoot. In the past,OTC remedies have often or mostly been a distress purchase: customers buy them when feeling unwell. But this could be changing as customers start to take preventive action regarding their health and make OTC products part of a normal spend.

    “We are already starting to see an uplift in sales which implies anticipatory purchasing behaviour and a shift towards treating aliments at the first sight of being unwell,” says Claire Campbell.

    “Battling on and working through sickness will become unacceptable, yet consumers will still want to recover quickly with 62 per cent of consumers willing to pay more for faster-working cold and flu products.”

    Soothing, sweet or very strong

    Whatever the evolving theories around the immune system might be, there is a fabulously strong market for traditional remedies that treat coughs, blocked and runny noses, and sore throats. Lozenges and sweets are not just effective, but they are pleasant and comforting, too – just the product to reach for when feeling under the weather..

    “Medicated confectionery is widely recognised as a distress purchase and, as such, offers a huge opportunity for convenience store owners to capitalise on impulse sales during the winter cold and flu season,” says Jon R White, Regional Business Manager for Fisherman’s Friend in the UK.

    Indeed, the convenience and wholesale channels have contributed 29 per cent of all sales of Fisherman’s Friend so far this year – the largest contribution of any single channel (the brand’s sales are up by +2.8 per cent across the total market). This underlines the fact that the way is clear for Convenience to increase its share of the OTC market.

    Fisherman’s Friend, being a defined taste in itself, with its loyal fans, sells year-round. “It is well-known that menthol and eucalyptus can help keep winter ailments at bay,” says White, “but they are also useful at other times, too, for example to relieve symptoms of hay fever, and another strong year of growth demonstrates the brand continues to be an essential must-stock.”

    He makes the important point that it’s essential convenience retailers remain stocked up all year round to make the most of the sales opportunity. After all, aren’t summer colds supposed to be the worst? And don’t forget hay fever, where menthol and eucalyptus are also a charm – hay fever remedies have seen a +8.1 per cent share increase within the convenience channel, says GKS’s Paul Trethewy.

    White also recommends storeowners to track the advance of waves of colds and coughs across the country – this will ensure you have the stock you need when the distress purchases suddenly skyrocket.

    “It is beneficial for convenience retailers to stock a range of products to meet consumer needs. For early signs of sore throats, menthol confectionery is a firm favourite for those looking for a soothing lozenge like Jakemans which is bursting with flavour,” agrees Jakemans’ Elizabeth Hughes-Gapper.

    She stresses that what people often want is a product that allows them to carry on – something that knocks the rough edges off the discomfort they are feeling.

    “Consumers are looking for effective ways to treat their symptoms quickly to enable them to continue with their daily routine as much as possible,” she says. “Independents have a role to play in ensuring that there is a variety of winter remedies available for consumers to easily pick up without the need to go to a major multiple or high street chemists.”

    With increasingly busy lives, there is greater demand for on-the-go solutions particular in convenience retail environments. Jakemans three most popular flavours – Throat & Chest, Honey & Lemon and Cherry – are all available in a handy stick pack format, convenient for use on the move.  Stick packs offer an easy on-the-go solution for consumers looking to soothe the symptoms of a sore throat whilst on the move.”

    To maximise the opportunity, stocking brands that offer good value on-the-go relief will allow retailers to benefit from value and impulse shopping behaviours. “That’s why we introduced Jakemans’ most popular flavours, Throat & Chest, Honey & Lemon and Cherry in a handy stick pack format for soothing relief on-the-go as well as the traditional 100g bag.”

    The idea of relief and treat at the same time is clearly a powerful attractor.

    Winter is coming!

    Fisherman’s Friend won a reputation of being the serious solution to easy breathing (a worldwide reputation: 96 per cent of their production is exported).

    “Menthol and eucalyptus have been used to keep airways clear and breath fresh for many years and our Original Extra Strong variant contains more menthol than competitor brands,” White says. “This helps to ensure continued strong sales outside of the winter season, cementing its position as the UK’s best-selling flavour with an incredibly loyal following.”

    Recently, however, to ensure that all retail customer and consumer needs are catered for, the brand has successfully introduced a wide range of fruity and mint variants – still with the benefits of menthol, but with a subtler, softer flavour.

    “These lozenges have proved a big hit with consumers – as shown by the buoyant sales of our Sugar Free Spearmint variation which launched in the convenience channel last year. In a short space of time, it has already become a popular addition to the Fisherman’s Friend line up, with a rate of sale that suggests it will fast head towards becoming the brand’s second best-selling variant behind Original Extra Strong,” explains White – so if you haven’t yet stocked the new flavours, now could be the time, at 78p for a 25g packet, £2.19 for a 3 x 25g multi-pack or £1.45 for a 45g box.

    “Flavour continues to be a key purchase driver in this sector,” White adds.“That’s why stocking our iconic Original Extra Strong alongside a selection of our fruity and mint variants will ensure a good range of trusted lozenges are available to shoppers with different needs, tastes and flavour preferences”.

    “To maximise the sales opportunity, retailers should consider multiple siting, by placing menthol confectionery sweets in both the confectionery section and with the medicines,” recommends Elizabeth Hughes-Gapper. She says retailers should also look to use SRP (shelf ready packaging) when merchandising and ensure winter ailments solutions are in a prominent position to give them good visibility.

    “At Jakemans, we offer a range of different product formats that appeal to different consumer preferences, such as 100g bag formats that offer great value for money and stick packs for convenience. Our products are also sold in shelf ready packaging and our iconic branding also provides standout on shelf, making it easy for the end consumer to identify our products, supporting impulse purchasing decisions and sales.”

    Another key promotional tool which will benefit retailers is to move their offering from behind the counter and into the aisles and stock up early in the season, as this will build shopper confidence and reassure them that they will be able to access treatments when they fall ill.

    Paul Trethewy says, “With 24 per cent of shoppers admitting to buying healthcare products on impulse, it’s important retailers position their winter remedy products on the shop floor to encourage impromptu purchases and to avoid missing out on additional revenue.”

    Nature’s way

    “We are continuing to see trends in consumers forming healthier habits and seeking natural remedies, with 11 per cent of adults opting for herbal alternatives when suffering from a cold/flu. This figure increases with younger demographics with almost one in five (19 per cent) of 16-25-year-olds opting for natural remedies,” says Claire Campbell.

    The wellbeing and wholeness movement that has grown so widely over the past few years should be reflected wherever possible in merchandising your OTC category. “Products incorporating well-known herbal ingredients will resonate with consumers seeking out more natural alternatives,” suggests Campball.

    “For example, Olbas Oil is made from a combination of pure plant oils including eucalyptus, mint, clove, juniper and cajuput. Its powerful decongestant vapours can help clear even the most stubborn of blocked noses when suffering from a cold.”

    An added advantage of natural products such Olbas Oil is that parents feel less reluctant to use them around children – an advantage that should be stressed in-store.

    “For example,” says Claire, “Olbas Oil is also available in a formula especially for infants aged over three months. So, by displaying this next to Olbas Oil will enable parents to quickly identify the best product for all the family. Adding four drops to a tissue and holding close to the nose, allowing the child to breathe in the vapours, can help bring them soothing and effective congestion relief both day and night.”

    This feeds into the trust that families have in familiar brands and remedies that have sustained family health for many years, together with the renewed interest in health describe by Per Rehné.

    “The cold and flu sector has seen a growth in shoppers across most age groups, presenting a great opportunity for retailers to build their offering in store,” reminds Paul Trethewy. It is a company that makes some of the country’s most trusted and well-known remedies.

    “With the cold treatments sector continuing to grow upwards of +5 per cent, it’s important that retailers are prepared by stocking well-known brands such as Beechams and Piri, that will reassure shoppers when looking for over-the-counter medication,” he says.

    “We’re expecting the impulse channel to be an important provider of OTC cold and flu treatments, so its important retailers are aware of which sectors within the OTC and winter remedies category are thriving, to help equip their stores with the most lucrative sales opportunities.”

    Trethewy says that Beechams’ All-In-One range saw a +1.2 per cent increase in value sales in 2019, and he advises that by stocking a portfolio of Beechams, including powder and liquid products, will enable retailers to cater for multiple consumer needs.

    He recommends Beechams All-In-One Max Capsules (16s) – which saw an +87.3 per cent influx in value sales leading up to and during the COVID lockdown– Beechams All-In-One Liquid (160ml) and Beechams All-In-One Tablets (16s also), together with the ten-sachet Beechams Powder, as the perfect shelf-solution.

    “By stocking Beechams, a product that tackles both cough and congestion, independent retailers can improve their cold & flu offering for consumers,” concludes Trethewy. He adds that wholesalers should anticipate the rise in demand within the channel, and ensure they have a full portfolio of products to meet the demand from retailers, especially in the event of a full second lockdown.

    As an aside, he says that Beechams has seen its value growth double and its volume of sales triple in the cold and flu category over the course of COVID-19, “indicating how the pandemic has put self-care firmly at the forefront of consumers’ minds, as shoppers are wanting to self-treat effectively, and therefore take comfort from multi-symptom solutions.”

    He says that this reinforces the mass opportunity that the cold and flu category holds for both wholesalers and their retailer customers, especially with the upcoming winter season.

    Merchandising campaigns are planned to help awareness and sales. For example, Fisherman’s Friend will invest heavily in marketing again this year, with a continuation of the brand’s fully integrated two-year campaign, ‘Whatever the Day Throws at You’, featuring digital, social media and PR activity. This includes the brand returning to TV screens nationwide to support the winter sales period as part of a £1.5m budget.

    “Our campaign celebrates the brand’s fishing heritage which has been at the heart of the family-owned business since 1865. The timings coincide with the cold and flu season where we traditionally see a spike in demand, and our strong start to the year proves how much sales growth benefits from marketing support,” explains White.

    “At Jakemans,” says Elizabeth Hughes-Gapper, “we are once again supporting the range with our annual national TV and marketing campaign to increase awareness of the brand amongst consumers and thus, supporting sales.”

    OTC remedies are a bright spot in a dark outlook, but they should leave both retailer and customer feeling much better.

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