Category Archives: Business

Business, Cardiff, Cardiff News, Development, Investment, Investment News

Innovation Investment Capital announces multimillion-pound investment in Transcend Packaging

Innovation Investment Capital Limited Partnership (IIC), the Cardiff Capital Region (CCR) backed fund, has today announced a multimillion-pound investment into Transcend Packaging (‘Transcend’), the Ystrad Mynach headquartered sustainable packaging company. This investment round has been supplemented by additional equity from significant global corporations, including ITOCHU Corporation, one of Japan’s largest companies and a leading provider of pulp and paper products, providing further investment to the overall region.

 

Transcend is a leading innovator of environmental packaging solutions across the food service and beverage sectors. It supports a new sustainable manufacturing landscape, driven by improved recyclability and reusability legislation and net zero targets, with 290 employees, across three locations. Since launching in 2017, Transcend has successfully innovated and disrupted the traditional packaging sector, recently developing a first to market premium polyethylene-free cup, highlighting its significant ESG credentials.

 

IIC’s decision to invest was based on a variety of factors, but the commitment to expand its R&D facilities, production innovation with impressive intellectual property, strong experienced management team and blue-chip customer base all supported the decision.

 

Launched in November 2022 and backed by UK Government funds with an initial £50 million from CCR, the fund is looking to invest long-term capital in innovative, sustainable growth opportunities across the ten unitary authorities in the CCR. Capricorn Fund Managers (CFM) is the Alternative Investment Fund Manager (AIFM), responsible for managing the fund and the overall portfolio and risk management, with PwC supporting CFM in advisory matters, including investment research and sourcing. The Transcend investment is IIC’s third investment, following on from AMPLYFI (the Cardiff-based generative artificial intelligence business) and Mazuma (a Bridgend-based tech enabled accountancy platform).

 

Councillor Mary Ann Brocklesby, Chair, Cardiff Capital Region, commented: “Transcend is an exceptional local growth story that we are looking to help scale to even greater heights. Our investment, alongside other investors, will help encourage further growth and development in Ystrad Mynach and the broader Caerphilly region.”

 

Lorenzo Angelucci, Transcend CEO, added: “We are thrilled to receive this substantial investment from IIC, which underscores the confidence in our vision and strategy but also empowers us to accelerate our innovation and expand our R&D capabilities. With the support of IIC and our new investors, we will continue our disruptive journey in the sustainable packaging industry, furthering our commitment to environmental stewardship and economic growth in the Cardiff Capital Region.”

 

“In only seven years, Transcend has built one of the most innovative and sustainable packaging businesses globally. Its growth to date and future commercial partnerships positions it impressively for further growth”, said Rob Asplin, PwC Partner. “Sustainable packaging is a fast growth market and highlights the desire of the fund to support net zero propositions.”

 

Councillor Sean Morgan, Leader of Caerphilly Council, further added: “We’re delighted to have such a success story on our doorstep, bringing real economic benefits and social value to Caerphilly and beyond.  Transcend Packaging’s success is based on innovation and sustainability and the solutions they are developing here in Caerphilly will benefit the environment and communities in many countries.”

 

“Our Transcend investment fulfils much of the IIC investment criteria, not only by investing in innovative sustainability solutions, but also backing an exciting local business to scale up and encourage other international players to invest in the CCR. The benefits to Ystrad Mynach and the wider region will be felt for years to come,” concluded Lynda Stoelker, Capricorn Fund Managers’ COO and Chair of the IIC Investment Committee.

 

For further information on the Innovation Investment Capital visit http://www.innovationinvestmentcapital.com.

Business

Joloda Enhances Global Footprint in 2024

The global material handling equipment market size was estimated at GBP 182 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030.*

To accommodate this aggressive growth, driven by rapid industrialisation and increased demand for automation in material handling equipment worldwide, Joloda Hydraroll, a world leader in loading solutions, has been significantly expanding its operations. This strategic move aims to enhance the company’s capacity to serve a growing global customer base and further strengthen its leading position in the logistics and transportation industry.

Joloda Hydraroll and Lodamaster Join Forces

This growth began two years ago when the company partnered with Lodamaster to strengthen the conveyor market in the United Kingdom. Through this partnership, Joloda Conveyor Services (JCS), the company’s division responsible for the sales, installation, conveyor repairs and conveyor maintenance, became the first and only distributor of Lodamaster products in the UK. Joloda Conveyor Systems also took on the responsibility for servicing and maintaining all of Lodamaster’s Telescopic Boom Conveyors and integration systems installed in the United Kingdom.

The partnership offers superior services by combining Lodamaster’s advanced technology with JCS’s thorough understanding of conveyor mechanics, preventing breakdowns and extending equipment lifespan. Moreover, the collaboration integrates cutting-edge safety features from both companies, ensuring conveyor systems operate efficiently while adhering to the highest safety standards.

Joloda Hydraroll and Forankra Unite to Strengthen EU Loading Solutions

After strengthening its position in the United Kingdom, Joloda Hydraroll turned its attention to consolidating its presence in the European Union. The first step was taken in 2023 when the company announced a partnership with Forankra. The agreement united Joloda Hydraroll’s cutting-edge range of automated loading systems and manual loading solutions with Forankra’s specialised expertise in cargo securing and lifting equipment. The result revolutionised the loading process for businesses across Spain and Portugal, providing them with more efficient, secure, and sustainable logistics operations.

Forankra Group is a leading provider of cargo-securing, cargo optimisation, and lifting equipment, serving various sectors such as road, air, and maritime transportation, as well as industrial and OEM applications.

Forankra Group’s 12 strategically located service centres across Europe and a state-of-the-art production facility in Poland enable it to reduce lead times, offer low-volume customisations, and meet clients’ specific requirements with exceptional precision.

Arrival on the African Continent

Also in 2024, Joloda Hydraroll partnered with S4, a South African company providing end-to-end customised solutions for industrial automation and software. This strategic move marked the company’s arrival on the African continent.

With a team of highly qualified engineers and IT specialists committed to developing innovative products, combined with extensive experience gained both domestically and internationally, S4 provides cost-effective automation and machine-building solutions that are uniquely tailored to meet the specific needs of their clients.

Through this agreement, S4 became the representative of Joloda Hydraroll in South Africa, offering advanced loading solutions to companies in the continent’s largest economy.

 

Scandinavian Market Expansion Through Actiw Oy Acquisition

In 2024, Joloda Hydraroll began the year with its sights set on Scandinavia, announcing the acquisition of Actiw Oy, a Finnish company specialising in automated loading solutions for the unmodified trailer market.

This partnership is particularly advantageous for companies in the FMCG sector in Europe, where trailers can cover exceptionally long distances between factory and warehouse buildings without unloading. Thanks to the union between Joloda Hydraroll and Actiw Oy, these companies can now access solutions such as The LoadPlate® and The LoadMatic®.

The LoadPlate® is a semi-automated system designed for loading containers and standard trucks, capable of handling metal, timber, and intricate cargo. In contrast, the LoadMatic® offers a fully automated solution for loading standard trucks and containers, efficiently transporting palletised and palletless industrial goods.

Launch of Joloda Air Cargo Equipment Marks New Industry Focus

A few months after the joint announcement with Actiw Oy, Joloda Hydraroll turned its attention to the skies, specifically the air cargo transportation industry. In April 2024, the company launched Joloda Air Cargo Equipment.

This new division is responsible for designing, manufacturing, installing, and servicing a complete range of equipment for air cargo handling operations. To achieve this, the company fostered a strategic partnership with Air Tech Innovations, a leading specialist in air cargo handling systems with a particular focus on airside operations. Their offerings include robust automated systems, advanced sortation solutions, and comprehensive turnkey operations designed to meet specific requirements, complemented by specialised software.

Strengthening Latin American Presence

The most recent strategic move occurred in June when Dodona S.A.S., a company specialising in importing and distributing industrial equipment for the FMCG, food and beverage, chemical and packaging, and energy industries, joined Joloda Hydraroll’s Distributor Network in Latin America. This union allows Joloda Hydraroll to increase its penetration and competitiveness in the Latin American market, especially in countries such as Peru, Guatemala, Chile, Argentina, Brazil, Mexico, and Colombia.

The logistics industry is rapidly expanding worldwide, and with over 500,000 loading systems in operation globally, Joloda Hydraroll is in a prime position to help its clients overcome the growing challenges of the industry and enhance the global flow of goods and services.

 

*https://www.grandviewresearch.com/horizon/outlook/material-handling-equipment-market-size/global

 

Business, Business Finance

BCMS Becomes Initium Corporate Finance

Employee-owned Corporate Advisor Rebrands to Reflect Unique Approach to Sell-Side Corporate Finance

Corporate finance advisor, BCMS, which specialises in advising the shareholders of ambitious privately owned businesses, has announced that it is rebranding to Initium® with immediate effect. The move is designed to reflect significant changes in the business over recent years and builds upon its strong Corporate Social Responsibility (CSR) vision and values, as well as the organisation’s impressive track record of high-profile, high-value business sales transactions across multiple sectors.

An employee-owned company, Initium is an independent sell-side corporate finance advisor, providing valuation and growth consultancy services, succession/exit planning advice and business sale transaction advice. The rebrand reflects operational, structural and cultural changes at the business since the appointment of current CEO Jonathan Dunn in 2018. Specialising in advising owner-managed businesses with an enterprise value of at least £10m, Initium’s high-profile transactions have included the £80m sale of Geotek to Judges Scientific plc and the sale of CIA Insurance to Assured Partners in late 2023.

The business transitioned to employee ownership in 2022 when the founders of BCMS sold the business to the employees via an Employee Ownership Trust. This has led all staff to have a meaningful stake in the company’s direction and strategy with the appointment of a diverse leadership team of directors. Alongside Jonathan Dunn, the business is led by Liz Jackson MBE, Debbie Henderson and Andy Denny.

“As we become Initium, we are building upon a 35-year history that has shown us that value goes way beyond the deal itself. We want both our clients and colleagues to experience a more fulfilling and caring journey than you would find anywhere else in the corporate finance industry,” said Jonathan Dunn, CEO at Initium. “We work with ambitious entrepreneurial clients where we can add exceptional value – before, during and after an engagement. For us, our clients and our communities, we strongly believe impact beyond the deal really matters.”

Impact beyond the deal initiatives supported by Initium include paying a proportion of revenues to a range of charitable organisations, with a stated vision to distribute 30% of profits to impact causes by 2030.  The business has a long history of giving back: causes supported include The Snowdrop Foundation – a charity established by the company’s founding family – which supported the construction of the three-storey St Mark’s School in Kakinada, India, and educates over 500 children from the lowest tier of Indian society.

Director Liz Jackson MBE added, “At Initium, we aim to transform, not just transact. For many corporate finance advisors, a business sale transaction is an end point for their relationship with clients. For Initium, it’s just the beginning, as we look to help entrepreneurs find their freedom and new opportunities in the next stage of their lives. That’s why Initium is the perfect name for us: each day is a starting point to unearth something special, to make a measurable and meaningful difference, for clients, colleagues and communities.”

As an employee-owned business, every single Initium employee was involved not just in the strategic decision to change the name, but in choosing and developing the name and brand values, via a series of workshops and sessions. This inclusive, all-hands rebranding process is highly unusual in any industry, least of all corporate finance. It has helped the business to crystallise its vision and values, while also informing the direction and tone of the new brand.

About Initium Corporate Finance

Initium is a specialist corporate finance advisor, partnering with privately owned businesses up to, during and beyond a business sale transaction. A proudly employee-owned business working exclusively on the ‘sell side’, Initium specialises in transactions with a typical deal value between £10m-£100m, and has unlocked over £3bn of value for clients throughout the organisation’s 35+ year history. The advisor has noted expertise in the Healthcare, Telecoms, Media and Technology (TMT), Testing, Inspection, Certification and Compliance (TICC) and the Industrials/Manufacturing sectors.

Initium also assists business leaders on their next-stage strategies via a unique network of over 250 former clients, The Fellows, which helps shareholders to unlock personal and professional development opportunities post sale. In addition, the organisation has been a key player in the development of Diamonds, a network for women-led businesses providing peer-to-peer advice and mentoring to help secure more female representation at the board level of companies of all sizes, across all sectors.

The business was recently recognised as one of The Sunday Times Best Places to Work 2024.

For more information visit www.initium.com

Business, IT Services, IT Support, News, Tech, Tech Services, Technology

Smart CT unlocks access to its expert engineer network across UK and Ireland with Smart Workforce service

FAST-GROWING IT lifecycle services expert Smart CT is helping customers get the best value from their resources with a new service that takes advantage of its network of engineers throughout the UK and Ireland.

The Reading company provides parts and engineers to maintain, install, replace and repair business-critical IT infrastructure on behalf of IT suppliers who support an extensive range of organisations – from household brands to industrial businesses – in need of connected devices including networking, servers and other workplace technologies.

Its new Smart Workforce service is aimed at managed service providers or IT resellers whose clients have large numbers of sites and don’t want to commit staff to time consuming tasks that could be better handled by Smart CT’s own engineers.

Smart Workforce allows clients to buy entitlements to call upon the services of skilled and experienced engineers whenever they are needed without having to invest in their own.

Smart CT CEO Andy Morgan said: “Clients who roll out networking or workplace technology improvements across all of their sites might have highly skilled professional service architects and consultants who will have scoped out and designed the new technologies but they don’t want to commit them to deploy the technology.

“Or they might have a dedicated team working on a roll out for a set period of time, but what happens after that when sites close or new ones open up? That resource is no longer there and with large companies with many sites there are these smaller jobs coming in every day.

“We have a skilled network of 40 engineers across the UK and Ireland. With Smart Workforce our clients can purchase a number of entitlements over a year and then utilise them giving them access to extended geographies and increase the efficiency of their internal staff.”

The service is being piloted with a selection of customers and one has signed up to a long-term arrangement immediately. “The benefit to the customer is cost efficiency, because rather than hiring one engineer in the north and one in the south, you get access to someone on the within 5 to 10 business days,” said Mr Morgan.

“You get access to a workforce throughout the whole of the UK and Ireland and guaranteed access within five to ten business days so you can react quickly.”

Find out more about the company’s services at smartct.com.

—

Pictured: Smart CT’s Smart Workforce service gives customers access to its skilled network of 40 engineers across the UK and Ireland

Business, Business News, Wales

More exporting support needed for businesses in Wales

Businesses in Wales who trade globally faced challenges in Q2 of 2024, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

46% of businesses in Wales reported in the survey that their export sales had decreased over the last three months, with 38% stating that their sales had remained constant during this period. Over half (54%) shared that export orders and advanced bookings had also decreased in Q2.

This contrasted with the performance of Welsh businesses who traded domestically. 48% of the firms who took part in the survey trade goods and services in the UK only. Three quarters of these businesses saw sales increase or remain at a constant level over the last quarter and 29% saw domestic orders and bookings increase.

To overcome these challenges, businesses in Wales highlighted access to new markets and new international markets as opportunities to help their business recover.

Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “Wales has so much to offer to the world but, as our latest survey shows, more exporting support is needed. It is imperative that businesses who wish to trade internationally receive the correct support and guidance to connect, trade and thrive on the global stage, whether that is from specialist teams within our Chamber network or through government programmes.”

The Quarterly Economic Survey for Q2 also revealed optimism. Half of those surveyed predict that profitability will improve over the next 12 months, and 59% expect turnover to improve.

There were also small rises in the number of businesses in Wales who increased their investment plans for training, equipment, plant and machinery over Q2.

Paul Butterworth added: “It is heartening to see the positivity of the Welsh business community, particularly the gradual shift in confidence that has allowed some businesses to make plans to invest in their resources, people and skills.

“With inflation now at its lowest level in years, and interest rates hopefully soon to follow suit, we hope that the incoming government will foster an environment of economic stability that puts Welsh business on a trajectory to a higher-growth future.”

Business

Dragons’ Den star Sara Davies and celebrated entrepreneur confirmed as keynote for Brand Licensing Europe 2024

 Sara Davies MBE, the dynamic entrepreneur and youngest female investor on BBC One’s long-running Dragons’ Den TV programme, will present the day two keynote at this year’s Brand Licensing Europe (BLE), which runs from 24-26 September at ExCeL London.

Sara will take to the stage at 12:30 on Wednesday 25 September for ‘Crafty Licensing: Transforming a business through brand licensing’ for a Fireside Chat with the Global Licensing Group.

Sara will talk about her remarkable journey in business, from founding Crafter’s Companion while still at university and growing it into a global arts and crafts business, to meeting the surging demand for creative hobbies during the pandemic.

In the post-pandemic era, Sara recognised the need for a fresh approach to reach new consumers and her keynote address will delve into the strategies and transformative power of brand licensing as Crafter’s Companion expands in a rapidly changing market.

Crafter’s Companion entered entertainment licensing in 2023, signing a multi-year deal with Warner Bros. Discovery Global Consumer Products (WBDGCP) covering EMEA, North America and LATAM. The licensed “Fan-Art Like a Pro” range targets kidult millennials and fans of all abilities, with premium art kits to inspire fun, fandom, and creative skills building. Each kit is curated to deliver professional quality results and includes official iconic character art, professional-grade art markers, and expert instructions extending beyond the box via a wealth of inspiring online content and tuition.

BLE attendees will discover how Sara’s team has identified new opportunities, developed a license-friendly range of accessible arts and crafts kits, and navigated the challenges of pivoting a well-established business. New licenses and range extensions are also expected to be announced at BLE.

“Crafter’s Companion celebrates its 20th anniversary next year, which is a huge milestone for us, and the reason we are still here after my lightbulb moment at university all those years ago is because we understand our customers so well – we are our customers,” said Sara Davies MBE.

“We know how important innovation and product development are to retaining our loyal customers throughout their crafting journey as well as the role they play in reaching new pockets of customers to continually expand the business. Brand licensing has been a key tool in this strategy, and I can’t wait to share insight into our experience and meet other retailers, manufacturers and brands at BLE in September.”

Visitor registration is now open for Brand Licensing Europe 2024 – the show’s 25th anniversary.  https://utm.io/ugO2o

Business, Data & Analytics

Proposal for Extension of EU’s “Right to be Forgotten” Law to include news media outlets

In a ground-breaking move to bolster personal rights within the European Union, Mr. Robert Szustkowski has issued an Open Letter to the European Commission, advocating for a significant expansion of the EU’s “Right to be Forgotten” law. This proposal seeks to hold news media outlets accountable as data controllers responsible for the handling of personal information, a change poised to revolutionize digital privacy and reputation management. 

A call for regulatory evolution

In his letter addressed to Executive Vice-President Jourova and Commissioner Reynders, Mr. Szustkowski underscores the urgent need for updated regulations that give the tools to defend personal rights like, among others, reputations and image in an increasingly digital world. The original “Right to be Forgotten” law, introduced by former European Commissioner Viviane Reding in 2012, was a pioneering step in data protection. However, with the rapid advancement of digital information sharing and news dissemination, Mr. Szustkowski calls for a re-evaluation of how personal data and information connected to it are managed and rectified. The primary goal of the initiative addressed to the European Union authorities is to introduce procedures and systemic principles for protecting European Union society against disinformation by giving individuals additional tools to manage and defend their personal rights from defamatory press releases in media.

Striking a balance between privacy and freedom of speech

 Mr. Szustkowski emphasizes that the original framework of the “Right to be Forgotten” must evolve to address current realities. He advocates for a balanced approach that respects both privacy and freedom of speech, asserting that individuals should have the right to remove untrue, undocumented, or irrelevant information that damages their reputation.

The Open Letter places a strong emphasis on safeguarding human dignity, urging for specific measures to protect individuals from misleading information and defamation. Mr. Szustkowski’s own experiences with media defamation in Poland highlight the pressing need for enhanced protections. Despite numerous court decisions in his favour, harmful and false information continues to circulate, demonstrating the inadequacy of existing regulations.

Mr. Szustkowski’s letter outlines several key recommendations for extending the “Right to be Forgotten” to include news media outlets. Most importantly, the author of the initiative claims that news media entities should be categorized as data controllers, making them responsible for the accuracy and rectification of information connected to personal data they publish. The European Commission should establish clear guidelines for media publishers, including legal responsibilities for breaches of the directive. Accordingly, a standardized reporting form should be introduced for individuals to request the erasure of inaccurate or defamatory information and information about personal data breaches should be widely available, raising public awareness and ensuring media accountability.

Mr. Szustkowski’s proposal aims to align media practices with the core principles of fairness, justice, and respect for human rights that form the foundation of the European Union. As the EU contends with external disinformation and internal threats to individual rights, extending the “Right to be Forgotten” to encompass news media outlets is essential for safeguarding the dignity and reputation of its citizens.

 

 

Business, Cardiff, Events

Adapting to change: CEO of The Royal Mint addresses Cardiff Business Club

Cardiff Business Club marked the last event of its 2023/24 season with insights on change, diversification and authenticity as Anne Jessopp CBE, CEO and Deputy Master of the Mint at The Royal Mint, addressed the Club.

At the event sponsored by Hugh James, Jessopp discussed the recent redevelopment that the Mint has undergone since her appointment in 2018, and following the 35% decline in coin usage through the pandemic.

Highlighting the change in society and industry by asking attendees to raise their hands if they had used coins today, this week, or this month, she went on to say that they have been redefining what it means to be a Mint, building a portfolio of businesses with a £1.9 billion revenue annually.

Before delving into the Mint’s change, she discussed her personal change, from a career in HR to becoming CEO of The Royal Mint. Anne Jessopp stated: “The Royal Mint was like a teenager deciding what to do when it grew up.” To diversify its offering, they had to understand what made the organisation unique, understand the core values held by employees and customers, and understand the capabilities they have, along with those they don’t.

By implementing these steps, The Royal Mint has diversified in absolute marketplaces through product innovation, such as precious metals investments and collectables, and grown into new markets entirely. Jessopp discussed their partnership with Canadian clean tech company Excir, to scale up patented chemistry to extract gold from electronic waste, and their new jewellery line, where their recovered gold is already being used.

She closed by highlighting the importance of job retention through their period of diversification and change, as the organisation will decommission its Overseas Currency business later this year. All 230 employees have been offered new roles in their new industries, be it in the jewellery making section, collectable coin creation, or electronic waste recycling. She stated that people are the most important part of a business, discussing those open to change and those who push against it, but highlighted the importance of them all when it comes to a period of redevelopment.

Anne rounded off by highlighting their overarching goal – to remain authentic to who they are throughout the transformation.

Cardiff Business Club will return for its new season in the autumn.

Business, Business Advice

UK SME manufacturers fuelling FMCG growth, but maintaining distribution poses challenges as unit sales decline

…UK SMEs now hold 15.1% value share of the market…

 Circana, the leading advisor on consumer complexity, has today revealed new research highlighting the critical role of data for Small to Medium Enterprise (SME) manufacturers in the UK FMCG sector. While the research indicates that their innovation (NPD) is fuelling growth, retaining distribution remains the linchpin for sustained success in response to large manufacturers who are intensifying sales promotions. It urges SMEs to leverage data strategically to secure their position and compete effectively against industry giants.

Despite easing inflation and lower interest rates, growth in the FMCG market has slowed. Large manufacturers are increasingly relying on volume share as the primary pathway to growth, with sales promotion as the key enabler.

Alex Lawrence, Senior Strategic Insight Director at Circana, emphasised the significance of SMEs to overall growth: “Fuelled by innovation, SMEs are disproportionately contributing to market growth, providing 22 per cent of all NPD value sales (vs. their 15 per cent value share) in the last 12 months. They are however more vulnerable in the Major Multiple Grocer Channel (MMG) – a cornerstone for sustained growth.

“But with the MMG channel accounting for 85% of FMCG market value retaining and building distribution in this channel is the key to sustaining growth. SME products will tend to have lower rates-of-sale, increasing their risk of de-list making retailer range reviews and refreshes a crucial battleground for SME manufacturers.

“With pressure on volume share growing, SME brands must develop a competitive advantage.”

SMEs making waves

SMEs – defined for the purpose of this research as manufacturers with less than £100M turnover across all categories – have made significant strides. In the past 12 months, they have contributed £20.1Bn to total store sales, experiencing 7.3 per cent growth. Over the last 13 weeks, SMEs maintained share growth, up 0.2 percentage points from last year. Currently, SME manufacturers hold 15.1 per cent value share, while large manufacturers account for 49 per cent and private label for 36 per cent.

Notably, SMEs played a pivotal role in NPD value sales, contributing 22 per cent (compared with their 15 per cent value share) to drive overall market growth.

Outlook, risks, and opportunities

While SME manufacturer growth mirrors the overall market slowdown, there’s a crucial difference; SME unit sales declined over the last 13 weeks. Further analysis of the top 500 brand value share winners across total store confirmed that 94 per cent of brand winners gained volume share, making this growth crucial in the current climate.

It shows that large manufacturers have turned to sales promotion to drive volume share and compete with private label. That coupled with their scale and larger budgets, means they have been able to secure additional store displays, most notably in non-food sectors. This in turn, helps them to sell more goods without risking a reduction in profits from the increased sales promotion investment.

Lawrence commented: “For FMCG SMEs, securing premium secondary display location with high gate fees is expensive and sales promotion will likely be from the product shelf location, greatly increasing the risk of margin and profit loss. As a result, range and distribution is a much more crucial battleground for smaller brands and an aspect of the marketing mix where SMEs need to establish a competitive advantage to drive growth in the second half of the year.”

Circana issued the following advice to SME manufacturers:

  • Retaining and gaining distribution for existing products: Use robust and granular data in your range reviews and refresh processes to demonstrate your market and competitor SKUs and illustrate growth contribution and opportunities to retailers. Find out more via: https://insights.circana.com/page/waiting-list-liquid-data-go-uk
  • Collaborate: Add an extra data level to be able to converse with retailers about having secondary display locations.
  • Innovate: Continue driving NPD to capture consumer interest, maintain relevance and seek out emerging innovation opportunities.

 

About the survey

This research was carried out in June 2024 (and analyses trends across the 1 June 2023 to 1 June 2024 period) using Circana’s EPOS panel in the UK, where Circana collate store census data from the Major Multiple Grocers and combined this with a mixture of census and sample data from UK convenience retailers to create UK covered market EPOS read.

 About Circana

Circana is the leading advisor on the complexity of consumer behaviour. Through unparalleled technology, advanced analytics, cross-industry data and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand and outpace the competition. Learn more at www.circana.com.

 

Business, Employment, FInance, Pensions

What are the political parties’ pension policies and is it enough?

With the general election fast approaching, political parties in the UK have set out the steps they propose to take with regards to pension schemes in their manifestos.

When in government, the Conservative party used the Autumn Statement and Spring Budget to announce their plans to make pensions more productive for the UK economy.

In April, the party applied the triple lock in full to the state pension for 2024-2025 (an 8.5% increase) and confirmed the abolishment of the lifetime allowance, while also proposing measures such as a pension ‘pot for life’ and the consolidation of small defined contribution pension funds.

The Conservative party has reaffirmed its commitment to the triple lock in its manifesto, introducing the ‘Triple Lock Plus’ which ensures that both the state pension and the tax free allowance for pensioners always rise with the highest rate of inflation, earnings or 2.5%.

The majority of the other political parties, from the national Labour and Liberal Democrats parties to the regional parties Plaid Cymru and the SNP who do not have devolved control of pension policy, are also committed to the triple lock.

The exceptions are Reform UK, who did not specifically mention the triple lock within their ‘Contract with the People’, and the Green Party who suggest that they would replace it with a double lock system linked to inflation and earnings, moving to a flat rate of pension tax relief in line with the basic rate of income tax.

Stuart Price, partner and actuary at Quantum Advisory, said: “Pensions are a key policy area for political parties as most voters will receive the state pension and employees are contributing to workplace pensions throughout their professional life.

“The increase in the state pension earlier this year thanks to the triple lock was welcome news for pensioners – a demographic likely to turn out for elections. The triple lock was especially welcomed by those who rely on this as their main source of income and is also an increasingly popular policy decision amongst adults over 40, with a recent survey by My Pension Expert revealing that over half (51%) of respondents stated that a commitment to maintaining the triple lock would significantly influence their voting intentions in the general election.

“Therefore, it is not surprising that many of the political parties across the country have stated within their manifestos that they will retain the triple lock. It is interesting to note that proposals to reform pension schemes are also being highlighted.”

Labour intends to review the pensions landscape and adopt reforms to ensure that workplace pension schemes take advantage of consolidation and scale, increase productive investment and boost the country’s growth. Green finance is also high on the party’s agenda, with a requirement for pension funds to develop and implement transition plans that align with the Paris Agreement, a plan also echoed in the Liberal Democrats and Green Party’s manifestos.

Other suggested reforms include the Liberal Democrats investing in helplines to ensure quicker responses to queries and underpayments for the state pension, the Green Party working closely with the higher education sector to tackle challenges regarding the Teachers’ Pension Scheme and Reform UK aiming to review pension provision and minimise the complexity of the system.

Stuart Price added: “Reforms to pension systems are good political strategies to enable growth and economic prosperity. However, what we really need is a full review of our pension system as it is clear that the younger generation are not saving enough, which will lead to huge problems in the longer term. The only real answer in my opinion is a legislative increase into the minimum contributions required under auto enrolment legislation from say, an 8% total to at least 12%. From what I have seen this is not mentioned in any of the political parties’ manifestos, which is disappointing.”