‘Engage with Nestlé to build business together’ – Ollie Richardson

Coffee is holding its own in the convenience channel, with value up slightly (TWC), and Nestle’s Nescafé brand remains the clear leader in pure soluble coffee with a 57.6% share across symbols and independents in the year to date (Circana). What’s more, a quarter of Nestlé’s coffee business goes through the wholesale and convenience channel.

Ollie Richardson: ‘Cash & carries play a vital role in how we bring our brands to life.’

Nescafé Gold Blend is its stand-out best-seller in wholesale, followed by Nescafé Original. Both are available in 95g jars, price-marked at £4.79 and £4.19 respectively.

Other strong sellers in the supplier’s portfolio are ‘2 in 1’ and ‘3 in 1’ packs of six single sachets containing coffee and milk, or coffee, milk and sugar. Last year Nestlé took the decision to reduce the price-mark of these products from £1.10 to £1. “That was a good move, with wholesalers backing it, and these products have performed very well for us, particularly in the current independent retail landscape,” says Ollie Richardson, wholesale & convenience controller.

Nestle’s frothy range, comprising Cappuccino, Latte, and new Caramel Latte, which are price-marked at £2.49, are also popular with shoppers. “The grocery channel in wholesale and convenience is quite challenged but what we’re finding is that the impulsive formats in our range – such as Nescafé frothy and ‘in 1s’ – are doing really well,” he reports.

“They form a focus for us as a business – it’s important that we drive more of our impulsive range to capture shoppers and ultimately help retailers get that extra basket spend.”

The Nescafé product that has been growing the fastest through wholesale this year is its super-premium soluble coffee brand, Azera, available in a 75g £4.49 PMP.

“Consumers are buying into super-premium coffee, and because Azera is a fine ground coffee, they can use it in hot or cold drinks very easily. We had a summer campaign where we showed shoppers they can use Azera to make their chosen coffee drink at home,” says Richardson.

All of the Nescafé products available to wholesalers come in price-marked packs. “In this day and age, getting the shopper’s confidence is absolutely critical, and price-marked packs fulfil that role,” he states.

Currently backing the Nescafé price-marked range is ‘A Chance to Win £1,000’ promotion, which is running until 21 December. There are 12 £1,000 awards, and retailers simply buy a case of Nescafé coffee and text the campaign line to be included in the draw. The incentive is being communicated through trade media, by Nestlé representatives in cash & carries, and through displays in depot and online activity.

“We know that up to 47% of retailers order online through EB2B, so our ecom team are building visibility on online portals and apps to ensure our campaigns are 360 degrees,” Richardson adds.

The ‘A Chance to Win £1,000’ retailer incentive will be followed in the New Year with a repeat of the company’s popular ‘Win a Salary’ consumer promotion in the wholesale and convenience channel. Running from January to March, this will be featured on all Nescafé PMPs and offer consumers the chance to win up to £40,000 in a prize draw, with a further 1,500 cash prizes up for grabs.

Also coming up is the launch of Nescafé Espresso Concentrated. Already a hit in the multiples, this will be available to the wholesale and convenience channel in Iced Classic, Iced Caramel and Iced Vanilla variants. Each 500ml bottle contains enough concentrate to make 16 servings of iced coffee.

“We recognise that household income is stretched but that coffee culture out of home is still performing well,” says Richardson. “If you look at coffee shops, some drinks now go beyond £5, so we’re offering shoppers the opportunity to create that out-of-home coffee experience in home at a significantly lower price.”

In order to maximise the opportunities offered by coffee, wholesalers and their customers need to offer the right range. To help with this, Nestlé provides range recommendations, taking an impartial view of the category and identifying the correct formats, flavours and pack sizes. With a core range in place, wholesalers and their customers are advised to take account of local preferences.

To inform its product development, Nestlé often holds retailer forums. “We will spend time understanding their businesses and some of the challenges they’re facing, as well as any opportunities. Then we will make sure our portfolio is supported with whatever insight we’re getting,” says Richardson.

He urges cash & carries and delivered wholesalers to engage with Nestlé to build business together. “Cash & carries are vibrant places, and they play a vital role in how we bring our brands to life. We can really create some theatre around our brands with digital tower ends and cardboard displays that are ethically sourced as part of our commitment to sustainability and our global journey to net zero emissions by 2050.

“We also do digital mailouts, using WhatsApp, and we educate the wholesalers’ field teams where they have them to pass on the messages to retailers. We recognise the power of e-commerce – it a big focus for us, so we look at things like digital shelf scoring, optimised imagery, naming conventions and, of course, marketing taxonomy. We have a team of people optimising that across our wholesale space.”

Richardson manages 10 national account managers that solely focus on the Nescafé range in wholesale and convenience, and Nestlé also has a 14-strong multi-category regional team. “Both teams have the tools and contacts to help wholesalers get the most out of our brands, and we encourage them to work with us for mutual benefit,” he concludes.