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Do you really know

We’re the brand that’s spending

£10million driving customers into your shop! NEW Eye-catching Tea Folk pack designs across the range Look out for special ‘PriceMark’ packs

NEW TV advertising plus sponsorship of Channel 5 Family Movies and Heart Radio plus national press and social networking activity

With more than 9.5 million UK households* drinking Tetley at home (more than any other tea brand), we’re the nation’s favourite.

Exclusive: extra £50m turnover for Sugro Mark Watson of Hancocks on plans for expansion Blakemore Foodservice travels to Geordieland

Source: AcNielsen Panel MAT 21st July 2012

So make sure you’re stocking up on Tetley today!

Spotlight on David Gilroy of Bestway Wholesale

The business magazine for cash & carry/delivered wholesalers

•Inconvenientpots, justaddboilingwater! •FREEclipstripsinside casesofFruit&Nut •£2mmarketingcampaign in2012includingTV •Packsize8x60gpot

Breakfast at it’s Peak! www.weetabix.co.uk – For more details call 01536 722181


Winners and losers So it’s all over for another four years – the cheering, the crying, the medal presentations and the fantastic opening and closing ceremonies. But how was it for you, the C&C/wholesalers and retailers in the thick of the action? It depends, of course, on who you ask. Certainly, a poll of those nearest to the east London stadium, conducted by Cash & Carry Management, showed that some of the local wholesale businesses fared badly and that takings, as well as congestion, were nothing like as anticipated. It can be assumed from this that the retail community, acting on travel advice from the authorities, also miscalculated what would happen. What about the suppliers, particularly the major sponsors, such as Procter & Gamble and Coca-Cola Enterprises? Surely the giant McDonald’s in the stadium complex – a food outlet erected specially for the event, and the largest of its kind in the world – made a killing. Other catering operators in the park, given that only a limited amount of food and drink could be carried by spectators into the sporting arena, must also have raked it in. So did Procter & Gamble and Coke consider it an adventure well worth their while, not just by virtue of increased takings during the Olympics and Paralympics, but also by being given the privilege of using the Games emblem on advertising material? I, for one, would certainly like to see the figures. Or is it not simply a case of winning, but of taking part?

How have Today’s been faring – and the other groups? See pp.30–40


4–8 3663 full-year improvement ... Sugro increases buying power by £50m ... Northern Ireland wholesalers link up ... New members for Landmark and Today’s ... North-east council contract for Blakemore Foodservice ... C&C criminal sentenced ... ‘Treat beer and wine separately’ – FWD ... Bestway haulage deal renewed.





top 25 suppliers awards




employment law


petfood update


post-olympics analysis




products & promotions


buying groups





Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford Publishing Director

Mervyn Gilbert editor


Martin Lovell

4,560 July 2011–June 2012

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE Tel (01342) 712100 Fax (01342) 712101 Email mail.winlove@btconnect.com ISSN 1352-254X

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Cash & Carry Management

• September 2012 • 3


IN BRIEF Care homes Country Range Group and the foodservice division of Dr Oetker are sponsoring an initiative to raise money for the Care Professionals Benevolent Fund. A series of charity events includes the ‘Great Care Bake Off’ and the ‘Mad Hatters Tea Party’, which encourages 20,000 care homes across the UK to host a tea party for the CPBF.

Cash back Landmark Wholesale’s Cash Back initiative for Lifestyle Express retailers has so far accumulated vouchers to the value of £110,000. The scheme urges the symbol members to stock the core own-label range and other top-selling products. If they support every ownlabel item and branded product featured, they can earn up to £1,000 a year.

Indian banking Through its majority stake in UBL (United Bank Limited of Pakistan), Bestway Group has been given permission to begin banking operations in India. Group chief executive Zameer Choudrey said: “Bestway has a long history of commercial association with India. In our food wholesale company, we are one of the largest importers of Indian rice and spices to the UK and Europe.”


Better returns for 3663 Improved results for 3663 – which recently acquired Forteith Foodservice (Cash & Carry Management: July) – saw trading profit grow by 2.3% to £35.1m on turnover up by 7.7% to £1.1bn in the year to the end of June. This was despite margin pressures, said Brian Joffé, chief executive of the Johannesburg-based parent company Bidvest Group. “The loss of a major contract (believed to be Compass Group) was offset by new business gains. Free trade volumes rose and trading profit of the catering equipment and fresh food businesses exceeded expectations.” Joffé also reported that Bidvest Logistics returned to trading profit after betterthan-expected sales volume. “Contracts were extended or expanded with major customers, the majority of which are secure for the foreseeable future.” Joffé added that sales of

Improved figures despite margin pressures: Joffé.

Seafood Holdings, acquired in the UK by Bidvest at the end of 2010 for £45m, increased in the first year under the group’s ownership, but trading profit was “below expectation” due to a fall in average customer spend and collapsing salmon prices. Elsewhere in Europe, the DeliXL Dutch foodservice business saw trading profit slump by 47% to 9.7m euros on sales down by 2.8% to

722.7m euros, while trading profit of DeliXL Belgium was “impacted by restructuring costs and tighter margins” (no figures) on sales ahead by 14.8% to 316.5m euros. The Czech Republic and Slovakian foodservice offshoots achieved a modest 1.5% sales growth. A new meat factory due to open this year in the Czech Republic will improve revenue, said Joffé. Bidvest’s Asia-Pacific foodservice business experienced a 20% rise in trading profit to just over R1bn on sales also 20% higher at R23.49bn. The Australian division acquired foodservice wholesaler Foodlink in April. And, as already reported (Cash & Carry Management: December 2011) the group made its first entry into South America by acquiring the Deli Meals foodservice business in Chile. Tel: Bidvest UK 0207-493 4733.

Five add £50m to Sugro In a matter of months, Sugro UK has swelled its membership with five more wholesalers (others are due to follow), with a combined turnover in excess of £50m. It brings group sales to more than £700m.

Exclusive One of the newcomers is Abra Wholesale, of Edmonton, north London. However, it is only the impulse side of this business which is joining Sugro. The main activity will remain within Today’s Group. The other wholesalers

• Cash & Carry Management • September 2012

are: Liverpool-based Brand Choice; Candy Trading, of West Thurrock, Essex; JM & D, of Malpas, Cheshire; and Free Trade Beers & Minerals, of Barking, Essex. Abra Wholesale, which last year moved to a 75,000 sq ft building close to its old site, is understood to be on target for sales this year of around £18m. Under managing director Dee Taya, the dual-purpose wholesaler sells confectionery, soft drinks, baby products, toiletries, OTC medicines, household lines, groceries and pet products. It is also heavily engaged

in exports – largely to Nigeria and Ghana. Brand Choice (aka Ocean Products Distributing) sells residual stock from such manufacturers as Cadbury, Heinz, Premier Foods, Hazlewood and Princes. Candy Trading, which is part of Heley International, of West Thurrock, also specialises in handling residual stock. JM & D is mainly a frozen foods wholesaler, but – from Sugro’s point of view – also deals in soft drinks and snacks. Tel: Sugro UK (01270) 628728.



Ulster wholesalers link Rather than being rivals, two wholesalers in Coleraine, Northern Ireland, are forging close ties, with Lynas Food Service acquiring a majority stake in Aghadowey Food Services. The link-up has resulted in Aghadowey resigning as a member of Country Range Group because that would have clashed with Lynas’ long-term affiliation to Caterforce. Lynas, established over 50 years ago, delivers frozen, chilled and ambient food to over 3,000 customers, not only throughout Northern Ireland, but also in Dublin,

where four of the 40-plus vehicles make daily visits to the Irish city from the company’s hub in Slane, near the capital. The wholesaler, with a staff of 200, operates from a 60,000 sq ft depot which can hold around 3,500 frozen pallets and 3,000 storing chilled and ambient goods. AFS, with annual turnover of £14m, specialises in ambient and chilled products, with 13 vehicles delivering to shops, hotels, restaurants, hospitals, schools and retirement homes in Northern Ireland and the Republic. The company has said it

Another for Landmark Landmark Wholesale has signed its fifth new member in recent months. Established earlier this year, Euro Wholesalers, of Stoke on Trent, originated from an established familyrun retail business. Under the directorship of Buta Kalhon, the company operates as a licensed and impulse wholesaler servicing independent retailers. The plan is to add to the existing 7,000 sq ft depot by opening a 5,000 sq ft storage area. Landmark’s managing director Martin Williams commented: “We have been impressed with Buta Kalhon’s commitment, professionalism and enthusiasm in his new venture and believe that he will add value to the group with volume and distribution of our brands and own brands.”

Three of the other four new operators have already joined Landmark. They are Glasgow-based delivered food wholesaler Lomond Fine Foods; Lynton Exports, of Stoke-on-Trent; and Preston-based GAP Convenience Distribution. The fourth, First Choice Wholesale Foods, of Burton upon Trent, joins early next year. Tel: Landmark Wholesale (01908) 255300.

Free EPoS According to Steve Fox, sales director – retail at Booker, over 500 of the C&C/wholesaler’s retail customers are now benefiting from its free EPoS system, launched in February. Tel: Booker Group (01933) 371000.


will continue to trade under its own name and with the same staff. Tel: Lynas Food (02870) 350600. Tel: Aghadowey Food Services (02870) 868306.

Today’s swoops

Bonded warehouse

Osprey Foods International, of Holt, Norfolk, has joined Today’s Group. The company began in 1990 to supply frozen meat, but then moved into a wider range of frozen foods, as well as chilled and ambient products. More recently it has added soft drinks and alcohol.

Landmark Wholesale member East End Foods, which operates from three Midlands cash & carries – central Birmingham (30,000 sq ft), Smethwick (100,000 sq ft) and the new 120,000 sq ft branch at Aston Cross – has opened a bonded warehouse at the £10m Aston Cross site. Annual turnover of the C&C/wholesale business, which currently stands at around £120m, is expected to grow by £15m a year with the addition of the bonded facility. Tel: East End Foods 0121359 2199.

The diversity of customers includes the military forces, hoteliers, retailers, oil and mining companies, airlines, ships’ chandlers, duty free shops and cruise lines. Its multi-temperature depot can store around 3,000 pallets. Tel: Osprey Foods International (01263) 710155. Tel: Today’s Group (0844) 247070.

‘Drop Sunday idea’ The Government’s experiment with extended retail hours on Sundays has hurt independents but failed to boost the economy and should be abandoned, says the Federation of Wholesale Distributors. Despite hot weather and more tourists, sales have fallen by 0.4% year-on-year. And the number of empty shops increased in every region in Britain, except London, in the first half. “The public have sent a clear message to the Government,” said FWD

chief executive James Bielby. “They don’t want more time in out-of-town retail parks; they want to spend their free time with families and friends within their communities. “The rise in sales of snacks, drinks and party food during the Olympics demonstrates this. There is no economic or social case for a permanent relaxation of Sunday trading rules. It will damage local shops, and consumers have shown they don’t want it.” Tel: FWD (01323) 724952.

Cash & Carry Management

• September 2012 • 5


Gaining greater authority Blakemore Foodservice, a member of Landmark Wholesale, has won its first major contract in the northeast – Newcastle-upon-Tyne Local Authority. The business was previously handled by the ill-fated DBC Foodservice. The two-year deal, worth £1m, comes into effect this month. Deliveries of groceries and canned goods are being made from the company’s modern Wakefield depot to the civic canteen, schools and universities. It is the ninth contract that Blakemore Foodservice has been awarded since May, the others including the London boroughs of Barnet and Newham, the 80-site Perfect Pizza food chain and Roadchef Motorway Services. Total value of these is £18m per annum. The wholesaler’s sales & marketing director Jim Dudley said: “Newcastleupon-Tyne Local Authority is a great win for us as it marks our first significant venture in the north-east region. “Our constant growth and expansion into new territory

reflects the commitment of our employees, who are passionate about advancing our business.” The £130m turnover company, which has other depots in Darlaston and Walsall, has also revamped its image with a new logo, designed in accordance with

Orders are being despatched from the Wakefield depot.

More own-label

Two C&Cs targeted Fowsul Sulleman, who runs an off-licence in Dudley, Worcs, was convicted at Wolverhampton Crown Court last month of using stolen credit cards to buy cigarettes and drinks from two cash & carries. The incidents took place last year – one at the Kingswinford branch of Booker, involving a payment of £4,828 for cigarettes, and the other at Hyperama in West Bromwich, where the


the AF Blakemore group identity. Dudley added: “There are further plans in place to add to our customer portfolio, and this year promises to be one of sales growth – our seventh in succession.” Tel: Blakemore Foodservice (01902) 366066.

shopkeeper bought cigarettes, alcohol and energy drinks valued at £8,299. Sulleman was given a sixmonth prison sentence, suspended for two years, and ordered to carry out 120 hours’ unpaid work. He is also making compensation payments of £300 a month. Tel: Booker Group (01933) 371000. Tel: Hyperama (0115) 985 1300.

• Cash & Carry Management • September 2012

Landmark Wholesale has added grated Cheddar to its Lifestyle own-label range. It comes in £1.65 pricemarked packs (12 x 200g) and in two styles: mild and mature, both of which are available in white and coloured varieties. The product appears in the group’s current promotion, running until 6 October. Landmark has also extended its Lifestyle Value range, which now stands at 41 products. Latest additions are: 250ml carbonated cola, lemonade and orange (25p price mark); 100g fruit & nut chocolate (55p); 40g milk chocolate bar (30p); 100g cooked meats range (£1); 40 antibacterial wipes (£1); and 1.25kg ‘superchunks’ chicken or beef dog food (99p). Tel: Landmark Wholesale (01908) 255300.

£10m on expansion Bestway Wholesale Group is spending £10m to expand its Batleys Bestpets chain of specialist wholesale outlets. Operations director of Batleys and Bestpets Martin Race said: “Since the inception of Bestpets in 2005, we have seen considerable growth. The investment, which will be spread over the next three years, will see the addition of major hubs across the country from which to service our many trade customers. “This year, we have already opened in Newcastle and Nottingham and have doubled the size of our Exeter and Luton branches. We are also about to develop an existing site in Glasgow and are looking at options for more space in Bristol.” The website for Bestpets, which operates from 20 branches, accounts for 30% of delivered orders. It’s a percentage that is expected to grow. It is also planned to develop the Pet Retail Club with extra promotional offers and increase the number of sales development managers and depot staff, along with additional deliveries. More delivery vehicles will join the fleet, bringing the total to 35. Tel: Bestway Group 0208453 1234.



Lifestyle achievement BA Cash & Carry, which has branches in Cardiff and Swansea, honoured six of its top Lifestyle Express customers at its 10th annual awards ceremony, held at the SWALEC Stadium, Cardiff, home of Glamorgan County Cricket Club.

Director of the Landmark Wholesale member, Zahier Ahmed, told guests that the C&C/wholesaler was committed to helping secure the future of its independent retail customers. He also traced the development of the company’s

Pictured with BA Cash & Carry directors Zahier Ahmed (left) and brother Tanvier (right) are recipients of the supplier of the year award (left to right): Bill Lattimore, UB Snacks route to market controller; Ian Smith, UBUK snacks field sales manager; and Christian Paul, regional distribution manager, UB Biscuits.

Supply chain talk Sean Negus, business process director of Brakes Group, is one of five people attending a round-table discussion on supply chain standards and problems. It takes place in central London on 26 September. The event, organised by GS1 UK, will also feature Brodie McMillan, logistics director, Whitbread Group; Dennis Dear, director of food trading, Mitchells & Butlers;



Tracey Rogers, md, Unilever Foodsolutions; and Andrew Stinchcombe-Gillies, head of industry development, foodservice, GS1 UK. Tel: GS1 UK 020-7092 3500.

Ahmed brothers honour Eddie Jones.

retail club and the Lifestyle Express symbol group, mentioning such benefits as cash back, ‘on target’ and ‘spend & save’ initiatives, retailer seminars and free EPoS tills. BA Cash & Carry has 120 Lifestyle Express members, of whom 98 sport the fascia. Guest speaker was Tom Fender, of the him! research company, while an industry panel included FWD chief executive James Bielby and Association of Convenience Stores’ commercial director Paul Chamberlain. In addition to the six retailer winners, a 25 years’ service award went to Eddie Jones, shop floor assistant and stock controller. KP McVitie’s received a supplier of the year award for supporting a core range initiative aimed at retail club members. The South Wales wholesaler has a turnover of £100 million, of which 75% comes from cash & carry and 25% from delivered trade. Tel: BA Cash & Carry (01792) 797111.

£1 lines promoted JW Filshill, the Glasgowbased wholesaler supplying more than 160 independent KeyStore outlets in Scotland and the north of England, is rolling out its ‘£1 Zone’ initiative following a trial period. The featured products cover confectionery, crisps & snacks, biscuits, cakes, soft drinks, grocery, pet food and toiletries. They are being promoted on a three-weekly cycle.

Sales & buying director Ian McDonald said: “Consumers are now well-accustomed to seeing dedicated £1 areas in the major multiples and, quite rightly, expect to find similar products in their local convenience store. “We want to give KeyStore retailers a competitive offer so they can provide their regular customers with 100s of everyday products at a £1 price point.” PoS material is available free to all retailers, not just those affiliated to KeyStore. Tel: JW Filshill 0141-883 7071.

Musgrave role Euro Shopper goes national London leads Ireland-based Musgrave Wholesale Partners has announced that Sheena Forde, a former Asda executive, has replaced Michael McCormack on an interim basis as its commercial director. Tel Musgrave Wholesale Partners (00353) 21 4522100.

Booker took an advertisement in the 14 September edition of The Sun to publicise its Euro Shopper range. The insertion featured 26 of the most popular products in the own-label selection. All the items – with an rsp of 50p or less – are also being featured in Premier


and retail club leaflets. The range is also being highlighted in all 172 Booker cash & carries, with the message: ‘38,000 customers can’t be wrong’. The products deliver a minimum 30% POR. Tel: Booker Group (01933) 371000.

Business intelligence specialist Peach Factory reports that August pub and restaurant takings in Greater London were up by 5%, but those outside the capital rose by just 1% compared to the previous corresponding month. Tel: Peach Factory (01704) 550383.

Cash & Carry Management

• September 2012 • 7


‘Differentiate!’ The Government must immediately tackle the growth of beer duty fraud and treat wine separately. Otherwise C&C/wholesalers and retailers will be forced out of business by illegal beer distributors. That’s the message from the Federation of Wholesale Distributors, James Bielby which said that it welcomes the results of the Public Account Committee’s inquiry into HMRC’s alcohol strategy, which seeks to prevent a £1.2bn annual tax loss because of duty fraudsters. The Committee said that the drive to tackle alcohol duty evasion is seriously being hampered by a lack of information, particularly on the scale of the fraudulent trade in wine. While this data is needed

to form a cohesive strategy, FWD chief executive James Bielby believes that delaying action on beer fraud will cost the Treasury millions of pounds in lost duty, and its members millions more in business lost to criminals. He commented: “In the first five months of this year, our members’ sales fell by 12%, at a time when consumers were buying more from their local shops. There is a clear need for prompt action to prevent this enormous growth in illicit supply. “Beer and wine supply chains are very different and should be considered separately. The eight beer brands which account for most of the £500m-a-year duty loss are brewed in the UK by a handful of large suppliers. “With wine, only 1% is produced domestically, and the number of producers worldwide is vast.” Tel: FWD (01323) 724952.

Pictured at the signing are (l to r): Colton director Paul Norman; Bestway Wholesale md Younus Sheikh; and Colton company secretary and director Joan Norman.

Contract renewed Bestway Wholesale has renewed its distribution contract with Colton Commercial for a further five years. The transport company will continue to handle internal distribution between depots as far as Aberdeen in the north to Plymouth in the south. The signing means that the arrangement between the two parties will be

EPoS support for retailers Glasgow-based JW Filshill is using a new, bespoke EPoS system, called RE-SCAN, which it says will help retailers run their businesses more efficiently and maximise sales opportunities. The company supplies more than 160 KeyStore outlets in Scotland and the north of England. These, and other independents, can make free use of the system. RE-SCAN incorporates promotional hosting and retail price management. It can also include stock and ordering functions. Filshill’s sales & buying director Ian McDonald said: “The system is designed


with the independent convenience retailer in mind. There is nothing else quite like it on the market.” RE-SCAN will also enable the wholesaler to maximise product data, enhancing its negotiating power with suppliers. MD Simon Hannah said: “Over the last few years we

• Cash & Carry Management • September 2012

have worked hard at building relationships with suppliers. Sharing information is very much part of that process. “Using the data provided by our RE-SCAN retailers, we will be able to negotiate stronger promotions on their behalf.” Tel: JW Filshill 0141-883 7071.

extended to eight years. Colton, a family-run business with a staff of 68, and established in 1979, operates 54 articulated Volvo lorries from its main site in Barking, Essex, and from Coventry. The company also has contracts with Tate & Lyle, Carlsberg and Tesco. Tel: Bestway Wholesale 020-8453 1234.

Essentials Bestway Wholesale has relaunched its Best-In Economy range as Best-In Essentials. There are 29 lines, each carrying the ‘Great British Value’ message. To mark the change, Bestway is giving retailers the chance to exchange competing lines which they have already bought with six of the Essentials products: baked beans, 12 x 400g; milk chocolate, 10 x 100g; digestive biscuits, 18 x 300g; chopped tomatoes, 12 x 400g; lemonade, 6 x 2-litre; and granulated sugar, 10 x 500g. Tel: Bestway Wholesale 020-8453 1234.



Four-year stretch for 3663 3663 has been re-selected to handle a contract for the Ministry of Justice (MoJ), supplying food and drink to all publicly-run prisons in England and Wales, which number 139. The four-year agreement (the first year alone is valued at £60m), was awarded after a 12-month ‘competitive’ tender process. It covers supplies for both prisoners and staff. As well as committing to cutting food costs, the wholesaler will reduce carbon emissions, provide career opportunities for ex-offenders, support British growers and suppliers and work with both prisoners and staff to develop balanced menus. 3663 has also agreed to

Seen after the contract signing are Ann Beasley, director general of finance & corporate services at the Ministry of Justice, and Andy Kemp, 3663 group sales director.

improve security by reducing the number of inbound deliveries and gate openings. The company has supplied the MoJ since 2007 under different contract arrangements for fresh, chilled, frozen and grocery.

Breakfast for two Country Range Group has teamed up with Kellogg’s in the supplier’s ‘Help give a child a breakfast’ campaign. Until 21 December, the group will donate 75p to the Kellogg’s Breakfast Club Trust for every case of Corn Flakes, Rice Krispies and Mini Max cereal bought by caterers from one of the 14 member wholesalers. The aim is to raise £15,000 to help serve up to 50,000 breakfasts for children in need. A minimum of 20 breakfast clubs will receive a grant of £450 – the typical cost of running one of these clubs for a month. Since 1998, the cereals manufacturer has invested over £2m to set up more than 500 breakfast clubs,

This is the first time the tender process has been consolidated under a single supply contract. The initial arrangement includes the supply of fresh, frozen, chilled and ambient food; after that, there is a possible extended contract for a further four years. Tony Ball, director of sales at 3663, said: “This is the largest government contract we have been awarded in recent years.” Tel: 3663 (0370) 3663 000.

Kidney fund donation

working with charity partner Continyou. Coral Rose, CRG’s marketing manager, told Cash & Carry Management: “It is such a positive cause, and we are very happy to be exclusively partnering Kellogg’s to bring this hugely successful retail campaign into foodservice.” Tel: Country Range Group (0845) 519 6181. Tel: Kellogg’s (0800) 626 0666.


West Country wholesaler L&F Jones, an affiliate of Landmark Wholesale, beat its target for Kidney Research UK by collecting over £55,000 for the charity. Kidney disease has afflicted former members of the Jones family, so it was only fitting that this charity was uppermost in their minds when considering a good cause. The money was raised after the staging of a series of activities throughout L&F Jones’ centenary year. Tel: L&F Jones (01761) 417117.

Cash & Carry Management

Rayburn IT upgrade Manchester-based Rayburn Trading has implemented a Voice Order Picking solution from Sanderson as a means of improving productivity by boosting the speed and accuracy of order pickers. The wholesaler, with annual turnover of £81m (of which 45% is through exports), is a long-term user of Sanderson‘s Swords wholesale solution, which has delivered operational efficiency across the toiletries and household goods business. The new order was placed after Rayburn executives attended an event staged by the IT specialist, showcasing customer and product updates. Michael Pugh, the wholesaler’s IT manager, said: “We were very impressed with how other wholesale businesses have benefited from Swords Voice Order Picking technology, and we could immediately see how the solution would benefit us by reducing costs and increasing productivity.” Tel: Rayburn Trading 0161214 1300. Tel: Sanderson (0333) 123 1400.

Restaurant Show Booker business Ritter Courivaud, Unilever Food Solutions, Nestlé UK, Movenpick Ice Cream and brewer Shepherd Neame are among the exhibitors at the Restaurant Show, being held at London’s Earls Court from 8-10 October. Tel: Restaurant Show (01293) 610230.

• September 2012 • 9


‘Anything is possible’ This month’s article features David Gilroy, operations director of Bestway Wholesale. research tool. However, I’ve thrown my Blackberry in the bin. Thinking and reflecting time is far more important than constantly munching through e-mails.

What most frustrates you in business (and in life generally)? Negativity and politics for the sake of it. Anything is possible and if we work together to secure a common objective it’s amazing what can be achieved. I think the London 2012 Olympics proved that.

If you were able to retire tomorrow, would you, and if so, how would you spend your time? I’d prefer to scale my hours down and work for various enterprises including not-for-profit organisations. I would spend more time travelling, walking, cycling and swimming. I can’t see a time in the future when I’m not working somewhere.

What advice would you give someone starting his/her first job? I’d advise any person starting out to follow their passion. Intensity and passion are the key to success in any venture.

What has been the major milestone or turning point of your career? Being made redundant in 1996 made me reappraise my values and my approach to personal development. I determined to come out of the experience strongly. I did an MBA which was a very rewarding experience and totally transformational.

Who has been the biggest inspiration to you? Two people. My father, the best friend I ever had and a top bloke all round. Unwavering and unconditional support. The late Colin Lythe, my manager at Sainsbury’s, Forest Hill. He instilled in me standards of performance and behaviour that continue to this day to inform my approach to business.

How do you maintain a work/life balance and how have developments in technology affected this? This is a compelling and all-consuming industry and I’ve found that I have to be committed to walking away sometimes and actively spending time with family and friends. Electronic communication has helped me to manage my own time more effectively and the internet is a fabulous


• Cash & Carry Management • September 2012

What type of business would you have gone into if it wasn’t C&C/wholesale? I would have been a journalist. That was my passion and I gave up on it too early. Fortunately I discovered retail, then wholesale. Both have been highly enjoyable.

If you had a million pounds to invest in business, how would you spend the money? I’d invest in an online flower business. There is still a massive opportunity in this sector.

Retail background David Gilroy began his working life in 1972 at Sainsbury’s and Savacentre in various store and field operations roles. He joined Asda in 1986, becoming regional controller, and left in 1991 to take up the role of operations director at Nurdin & Peacock. He subsequently worked in director level positions for Bellbourne Group, Flying Brands (Flowers) and Imagin Europe and then spent three years as a self-employed sales & marketing consultant. He joined Bestway Group in 2005, heading up catering/ foodservice development, before being appointed to his current post of operations director for Bestway Wholesale.



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Brand new eye-catching premium pack design aligned with retail design for easy customer recognition.

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www.mccormickflavoursolutions.co.uk *Based on independent blind taste tests carried out with members of the Craft Guild of Chefs. Participants compared 3 products against a leading competitor’s products, across herbs, spices and seasonings.

Top 25 Suppliers





Coca-Cola Enterprises






Kraft Foods








Imperial Tobacco















Tate & Lyle






United Biscuits






Britvic Soft Drinks









AB InBev



Johnson & Johnson



Accolade Wines



Molson Coors



Red Bull



Kerry Foods



Robinson Young



Premier Foods


Score (max. 30)

(including Professional)




SCORING The scores are adjusted to take into account the fact that not all wholesalers deal with all suppliers. For example, if 100 wholesalers vote, but only 95 deal with a certain supplier, that supplier’s total is divided by 95.


Now in their ninth year, Cash & Carry Management’s AWARDS

Please email your scores to mail.winlove@btconnect.com or post this page (no stamp required) to:

trade and are entirely judged by C&Cs/delivered wholesalers.

Winlove Publications Ltd FREEPOST NAT 15060 PO Box 366 East Grinstead RH19 4BR

recognise and reward the efforts of the best suppliers to the

Top 25 Suppliers August performance

(max. 30 points)

AB InBev Accolade Wines Britvic Soft Drinks Carlsberg

your votes

Coca-Cola Enterprises Diageo GlaxoSmithKline

The top 25 suppliers in England, Wales and Ireland, as voted by readers of Cash & Carry Management, are listed opposite. Each month for the next three months, readers are invited to award each supplier points based on the previous month’s performance. Please consider the following when assessing your top 25 suppliers:

• • •

Operations: deliveries, supplier contact, admin support, complaint handling Support: marketing and promotional activity, advice on merchandising and ranging, customer development Wholesale focus: right products, competitive pricing, appropriate packaging, understanding of wholesale marketplace

Heinz Imperial Tobacco Johnson & Johnson JTI Kellogg’s Kerry Foods Kraft Foods


Mars Molson Coors Nestlé

(including Professional)


Name ............................................................

Premier Foods Red Bull Robinson Young Tata

Company....................................................... Address ......................................................... .....................................................................


Tate & Lyle Unilever United Biscuits

ADDITIONAL QUESTIONS: 1. Which of the above companies offers the best sales development support? ..................................................................................................... 2. Which of the above suppliers is best at gearing promotions to achieving long-term category growth? .............................................................. 3. Which of the above companies provides the best quality representation in depot? ........................................................................................... 4. Which are the top three categories for which price-marked packs work best? .................................................................................................. 5. Are there any categories for which price-marked packs simply do not work? ..................................................................................................


Sales up 10% year on year Hancocks’ managing director Mark Watson talks to John Wood, Cash & Carry Management’s contributing editor, about the company’s strategy of playing to its strengths as a specialist. While many other wholesalers are trying to grow their businesses by expanding their range into new product areas, Hancocks Cash & Carry is achieving impressive growth simply by focusing on the niche it has carved out for itself. Managing director Mark Watson says group turnover topped £100m for the first time last year, reaching a total of £106m, and with sales currently up 10% year on year he is expecting turnover to be about £120m for this year. Many other sectors in the economy are struggling in the downturn, but Hancocks clearly isn’t, “and the reason,” says Watson, “is because we are in confectionery. “We are confectionery specialists. People always carry on eating sweets in good times or bad. In the bad times they will tend not to go out to a restaurant or on holiday, but they will always treat themselves to a box of chocolates or a bag of sweets. It’s a low cost luxury and that’s what we are all about.


• Cash & Carry Management • September 2012

“We have different areas of the business – there’s the cash & carries, we deal with leisure companies like Merlin Entertainment that have got Thorpe Park, Legoland and Alton Towers, and we have our e-commerce site. All areas are doing well.” Hancocks’ 18 cash & carry depots are the bedrock of the business, accounting for about 90% of group turnover. They extend from Glasgow in the North to Cardiff and Bristol in the West and Portsmouth and Croydon in the South, and range in size from 10,000 sq ft up to 35,000 sq ft, with an average size of about 15,000 sq ft. All the depots, together with leisure customers, are served from the company’s central distribution warehouse at its headquarters in Loughborough, with all logistics contracted out to a third party. Not surprisingly for a company in strong growth, Hancocks is actively seeking to open new sites. Watson says:


interview “We want to carry on driving the business forward. I’ve got Overall, Hancocks has around 20,000 customers, accordtwo area managers – one looks after the north and the other ing to Watson. “They range from your one man independent the south – and they are both allocated areas to search for corner shop to convenience stores, discounters, market new sites. There are eight areas we are looking at. traders and specialist confectionery shops,” he says. “We look for sites that are suitable for cash & carries and “Anywhere that sells confectionery is a customer of ours or a whichever one we find first, that’s the one we will open. We potential customer.” don’t say we will go to a certain city and open there first, we’ll To supplement its cash & carry business, last year have quite a few options because it’s all about finding the Hancocks launched an e-commerce site. Watson explains right sites and locations.” He says that they were receiving requests he hopes to open two new depots in from customers to open branches in 2013, one early in the year and the towns and cities where it would not other around September time. be economical, so they decided to An unusual feature of Hancocks’ provide them with this service search is that it is seeking sites close instead. The online site offers about to other cash & carries. Watson 450 products out of Hancocks’ total says: “Because we are a confecrange of 5,000 and, again, delivery tionery specialist, and there isn’t is handled by a third party. The servMark Watson, Hancocks’ anyone else of a similar scale or ice has attracted 8,000 customers even near the scale we are, we don’t since its launch 12 months ago, and managing director see other cash & carries as competialthough there is some overlap with tors. We see ourselves as an additional benefit for an area. areas served by the depots, the vast majority is where “People are travelling to the depots and they need groHancocks does not have cash & carries. ceries and their wines and spirits, and their cigarettes. If they While Hancocks intends to stick to its specialism in visit us as well, and we’ve got all the specialist confectionery, confectionery, Watson says this does not mean its range is it makes it worth their while coming to the area, so we will similarly unchanging; in fact, innovation and new products always site ourselves in busy places where other cash & are the lifeblood of the business. The company is constantly carries are.” on the lookout worldwide for new confectionery products He says the branch Hancocks opened two years ago near and trends and often secures exclusive deals with overseas Purley Way in Croydon is a typical example. Nearby depots companies to become their UK distributor. include Bestway, Dhamecha, Booker and Costco. Roughly 50% of sales are Hancocks own-label lines.

‘We have good quality, value-for-money products that provide a good margin and are different to what everyone else is offering’

The company is constantly on the lookout worldwide for new confectionery products and trends.


Cash & Carry Management

• September 2012 • 15

interview These are items packed for Hancocks and include pick ‘n’ mix confectionery and boxed chocolates for gifting. The other 50% of the sales mix consists of the big confectionery brands, with some snacks and soft drinks, and Watson says that if he was to criticise the big brands it would be for the lack of innovation they are currently bringing to the market. One of the changes Hancocks has experienced over recent years is in the seasonality of the market. Watson states that until a few years ago there would be big sales peaks at Easter and Christmas, but now sales are fairly steady across the year with little extra business at these times. He believes there are two reasons for this: one is that the big branded manufacturers have made substantial cuts in the size of their ranges and the other is down to the activities of the supermarkets. He says: “They will take the likes of Quality Street tins and Roses and they will just kill ’em. We say to our customers ‘if you want Quality Street or Roses, fine, we’ve got them in stock, but you’re never going to be able to compete with a supermarket because they are just using them as loss leaders to get people through the doors’. “We have our own boxed chocolates, and different cartons and bags made up for us, and we say: ‘You need to dare to be different. You’ll never beat the supermarkets on their products but we have good quality, value-for-money products that provide a good margin and are different to what everyone else is offering’.” This year the company is celebrating its 50th anniversary, having been founded by the late Ray Hancock in 1962. His sons, Andrew and Adrian, are still in control of the business. To mark the occasion, two months ago there was a dinner

Own-label products, including pick ’n’ mix and boxed chocolates, generate around half of all Hancocks’ sales.

and party for all 300 members of staff and their partners, and in the business there has been a programme of 50th themed promotions. Watson says: “All through the year we have been doing special promotions, and suppliers have worked with us, all based around the 50th theme. These have been ongoing alongside the general promotions and there has been pointof-sale material carrying the 50th anniversary logo.”

Hancocks’ 18 cash & carry depots are the bedrock of the business, accounting for 90% of turnover.


• Cash & Carry Management • September 2012


employment law

Employment tribunal reforms Human resources expert Cate Ritchie (below) outlines changes to the employment tribunal system. In 2010, the Government undertook to review employment law. During the Resolving Workplace Disputes consultation, the Government underlined its commitment to the early resolution of disputes and the need to modernise the employment tribunal system, making it more effective and efficient. It confirmed that it would introduce financial penalties for unsuccessful respondents and fees for making claims to employment tribunals. Changes effective February 2012

• The maximum compensatory award for unfair dismissal increased from £68,400 to £72,300. The maximum limit on “a week’s pay” for the purposes of calculating the basic award also increased from £400 to £430. Changes effective 6 April 2012

• Employment judges can now hear unfair dismissal cases “sitting alone” instead of a tribunal being made up of a judge and two lay members from industry. This change applies to all cases heard on or after 6 April 2012 and will be reviewed after one year. There will still be some scope for an unfair dismissal case to be heard by a panel of three where there is a factual dispute between the parties or in a claim of discrimination. The payment of expenses to parties and witnesses in respect of their attendance at tribunal hearings has stopped. Tribunals now have new powers to direct that parties to the litigation should bear the costs of witness attendance, where a witness order has been issued. The winning party may claim these costs back from the losing party. The limit for deposit orders has been raised from £500 to £1,000 where the tribunal believes that the case is a relatively weak claim. The cap on costs awards has been raised from £10,000 to £20,000. Such costs are currently awarded in limited circumstances where a party has acted unreasonably or if the claim is found to be vexatious. There is an increase in the qualifying period for unfair dismissal. It increased from one to two years’ service in a job with effect from 6 April 2012. This increase will only apply to those starting a new job on or after 6 April 2012.

• •

submissions in less controversial employment law issues, such as disputes over holiday pay. The Bill proposes a new limit (cap) on the compensatory award for unfair dismissal and penalties for employers whose breach of employment rights has an “aggravating” feature. The size of the penalty is to be determined by tribunals. A tribunal would have the power to impose a penalty of an additional award of up to 50% of any financial award, subject to a minimum of £100 and a maximum of £5,000, where there are “aggravating features” (yet to be defined). There will be a 50% discount (of the penalty) if the employer pays within 21 days.

• • •

So what can we expect in the future? The Enterprise and Regulatory Reform Bill, currently going through Parliament, contains a number of measures designed to simplify the employment tribunal system and to resolve disputes more quickly and more cheaply. These include the following: Both employers and employees will be encouraged to settle their disputes through ACAS conciliation and the use of compromise agreements, now renamed “settlement agreements”. Expect the introduction of a “rapid resolution scheme” whereby experts/legal officers will make decisions on written

• •


Fees for tribunal claims The Government has confirmed that claimants will have to pay to bring an employment tribunal case from summer 2013. There will be two levels of fees: Level One claims include those for breach of contract, a redundancy payment, unauthorised deductions from wages and claims relating to annual leave under the Working Time Regulations. For Level One claims there will be a £160 issue fee and a £230 hearing fee — a total of £390. Level Two claims include unfair dismissal, discrimination, equal pay and the majority of other claims. The issue fee for this level will be £250 and the hearing fee will be £950 — a total of £1,200. Hearing fees will become payable 4–6 weeks prior to the hearing. If a claimant agrees to mediation by the judge, rather than pursuing a full claim, the cost will be reduced to £600. Tribunals will have the power to order the unsuccessful party to reimburse the fees paid by the successful party.

• • •

If you would like further advice on employment tribunals, or wish to talk to Cate about any other HR issue, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Cash & Carry Management

• September 2012 • 17

petfood update

Wet cat food heads the table According to Kantar (July 2011) the petfood category is worth £2.14bn. Wet dog food is valued at £272m (up 1.8%) and dry dog food £172m (plus 3.7%). In cat food, wet is worth £542m (1.6% higher) and dry £134m (up 2.4%). Dog & cat treats are together valued at £226m (up 10.4%). Pedigree, one of Mars Petcare’s leading brands, this month launches its biggest marketing campaign for 10 years, drawing purchasers’ attention to its nutritional credentials. The £4.5 million drive, which highlights four key requirements for dogs’ overall health and wellbeing, carries the strapline: ‘Has your dog had his 4 a day?’. Pedigree will be helping to educate dog owners about nutrition to ensure their pets get the essential requirements they need. The awareness activity includes significant investment in tv advertising. This is being supported by in-store activation. The four key health areas communicated in the campaign are: Healthy teeth and bones. Pedigree Dry Vital Protection contains an active ingredient on the kibbles that is said to help prevent the build-up of tartar as well as a specially designed texture that helps clean dogs’ teeth. All the brand’s wet and dry food contains calcium. Effective digestion. All wet and dry food contains natural fibres that help aid healthy digestion. Skin and coat. All wet and dry food is formulated with key essential oils containing omega 6 to help support healthy skin and a shiny coat. Immune system. All wet and dry food contains vitamin E to help support the dog’s immune system. Brand manager Gemma Howells says: “At Pedigree we believe all dogs should be fed great quality, nutritious food that they love.

• • •


“That’s why we have developed our healthiest-ever products to support four key areas for dogs’ overall health and wellbeing. “Raising the awareness of the importance for dogs to have a healthy balanced diet is something we are extremely passionate about.” Howells adds that the redesigned dry adult recipe includes active ingredient Sodium Tripolyphosphate (STPP), which is proven to reduce tartar build-up by capturing free calcium in the saliva. The new pack design of Pedigree Dry Vital Protection range highlights the health benefits of the product in line with the four key health areas. In-store launch activity communicates the health benefits to consumers, while promotional activity and tailored pointof-sale material is being featured in c-stores. Exclusive to the convenience channel, Mars Petcare’s range of price-marked Pedigree cans, in a case count of 12, are now available for the price of 11. Howells says the new cases will help c-store retailers increase margins. She adds: “Price marks are extremely popular with consumers and are a great way to drive incremental sales, communicating great value for money and delivering a good return.“ The price-marked flash appears across the Pedigree range, including wet and dry food and Dentastix stick at £1.

‘Whisker friendly’

Within Mars’ Petcare’s cat division, a limited-edition Whiskas feeding bowl has been launched. UK marketing Miranda Sambles describes it as “a shallow, whisker-friendly feeding bowl that won’t irritate your cat at meal times”. The bowl is available free only when consumers buy Whiskas products at participating retail stores. Otherwise, it can be purchased for £4.99. Sambles says: “We understand cats’ natural instincts and find their independent and inquisitive nature fascinating. “We also know that they have sensitive whiskers which can make meal times uncomfortable if they brush the side of the feeding bowl. “By giving away the bowl with every qualifying purchase we are also communicating extra value to cat owners who already spend an average of 50% more in-store than non-pet owners (internal small store shopper research July 2011).” The latest activity is being supported by a £2.4 million drive – including a new tv commercial for the bowl – which starts on 3 October. Latest promotion from the makers of Pedigree dog food. Tel: Mars Petcare (01664) 410000.

• Cash & Carry Management • September 2012


For healthy sales and waggy tails • No. 1 dog food brand* • NEW £4.5m media campaign TV starts September

At Pedigree we believe all dogs should be fed great quality, nutritious food they love and that supports 4 key health areas. That's why you can find all 4 in 1 place with our best ever recipes for healthy sales and waggy tails everywhere.

Don't miss out - contact your Mars representative and stock up now *SOURCE: 52 we 14/7/12 IRI Total outlets

©/®/™ Design Mars 2012

post-olympics analysis

Takings are badly hit What effect did the Olympic Games have on C&C/wholesalers close to the main east London site? Apparently, there were more losers than winners, as Mervyn Gilbert finds out. So livid is Michael Spinks, the eccentric managing director of the food wholesaler that sits closest to the east London Olympics site, that he is considering taking LOCOG (the London Organising Committee of the Olympic and Paralympic Games) to court. “I’m not looking for compensation,” he said. “What I want is an apology.” Spinks is still seething over the fact that he didn’t receive a penny when plans were announced to hold the Games on his doorstep. That was because his EFG foodservice warehouse in Hackney is just a matter of yards outside the zone where businesses were paid to relocate.

But what also bugs him is that a ‘bespoke transport plan’ for the area, drawn up by LOCOG supposedly to help nearby companies cope with the anticipated congestion, proved totally unnecessary. “What we did was plan an alternative route for ourselves and our customers. Our lorries went out at 4am instead of the normal two hours later because we thought that was the right thing to do. As it turned out, this was a ghost town for trading. Our takings were down 40% on a normal fortnight.” Spinks believes – like many other C&C/wholesalers in the Olympics boundary – that there was so much hype about congestion and suggested alternative trading hours that customers were scared to venture into the zone or thought their orders would be affected. “It was obvious from day one that everything would be fine,” says Spinks. “But (because of the organisers’ plans), business was massively affected. I really feel that LOCOG didn’t care if we survived. When he spoke to Cash & Carry Management, he was unconcerned about any adverse effect of the Paralympics on trading.


• Cash & Carry Management • September 2012

And commenting about his legal concerns, he said: “Before I go ahead with plans for action against LOCOG, I want to speak to my MP.” Spinks himself stood as a Parliamentary candidate at the last General Election to protest about the Olympics being held on his doorstep.

Less stocking up Takings were down by 20% at Leyton-based Wanis, the country’s leading Afro-Caribbean food and drink wholesaler. Business development director Kapil Wadhwani said: “With all the planning, we found that customers didn’t really stock up as much as we anticipated. “Although turnover was down, this was mitigated to some extent by extended trading hours. We decided to shift both our opening times for goods inwards/suppliers and our customer opening times. “We opened the cash & carry at 3am and closed at 4pm to enable customers and suppliers to visit us outside of the operational times of the Olympic Route Network (6am to midnight). Normally we operate between 5am and 5.30pm. Where possible, deliveries to customers started some two or three hours earlier than normally.” So did Wanis continue with this plan during the fortnight? Wadhwani commented: “We stuck with the operational hours that we had notified customers and suppliers about because all booking-in, and other arrangements, had been made. “The only difference was that we had to actually operate an extended day shift, closing at 5.30pm instead of 4pm, just to maximise opening hours and make it easier for customers. “Many of them did reduce the number of trips they were


post-olympics analysis willing to make, and this was noticeable in traffic to the cash & carry.” What was the reaction to the change of schedule? “None from suppliers. But many of our customers wanted us to open even earlier – some suggested 1am! Generally, though, the feelings were neutral.” Putting a brave face on things, despite the 20% slide in sales, Wadhwani said: “What a fantastic opening ceremony to the Games. And didn’t GB do well with all those gold medals?”

Impulse lines in demand Bestway Wholesale, whose closest site to the stadium complex is the former Claremont cash & carry in Hackney, experienced hardly anything untoward during the Olympics fortnight, although revenue was somewhat disappointing. Said operations director David Gilroy: “Business during the Games was up by a single digit. “We had no problem with logistics and our transport and delivery system worked well. What we did was stock up well in advance on the key areas and we were able to cope with extra calls from retailers as the days went on. “We sold a lot more impulse products, including soft drinks, water and ice cream.” He claimed that Bestway’s strategy was successful and that the Olympics planning brochure distributed by the company was well received. “All customers who were contacted personally ahead of the Games were given the routes to our branches and the best times to travel. It all seemed to work as planned. “Our web sales and deliveries to customers increased, and our extended branch opening hours worked well for those who wanted to visit.

Michael Spinks, md of EFG: ‘Our sales were down by 40%.’

Kapil Wadhwani, Wanis executive: ‘We experienced a 20% reduction.’


“In Hackney, where we opened 24/7, we experienced strong trade throughout the night. “From the point of view of customers’ sales, as far as we can tell it was very much a mixed bag. Some did well – those close to the stadium, for instance – while others reported a downturn.”

‘Light’ congestion Dhamecha Cash & Carry, whose branches at Wembley, Barking and Enfield, are the nearest to the main Olympics site, reported that congestion was nowhere as severe as anticipated. So much so that the company reverted to normal trading in the second week. However, sales were ‘flat’ during the fortnight. Chief executive Pradip Dhamecha said: “In preparation for the Games, what we did was attend an Olympics workshop to get a better understanding of the potential issues. We also got feedback from customers as to how they thought they would be affected by traffic measures. “Trading times were extended at these three branches – opening one hour earlier and closing two hours later. And at Wembley we arranged for night deliveries. We also liaised with suppliers to adjust delivery times. “All the information was communicated to customers through promotional material, SMS messages and phone calls.” Dhamecha said that apart from the negligibility of traffic problems, everything went according to plan. “Our customers were appreciative of the special arrangements we made to help them overcome the potential traffic issues. On reflection, the fortnight passed without any major problems. And while the congestion was not as bad as predicted, the sales uplift was not as positive as anticipated.”

Bestway operations director David Gilroy: ‘We had a single digit rise.’

Cash & Carry Management

Dhamecha chief executive Pradip Dhamecha: ‘Sales were flat.’

• September 2012 • 21


Achievers Best Service shortlist Wholesalers in Scotland are asked to score each supplier based on its performance in August. AUGUST PERFORMANCE

Deliveries inc Admin (max. 15 points) write N/A if not direct

Supplier Contact (max. 15 points)

Scottish Focus (max. 15 points)

Packaging & Merchandising (max. 5 points)

TOTAL (max. 50 points)

AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Cott Beverages Diageo Dunhill (Haribo) First Drinks GlaxoSmithKline Heineken


Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Kimberly-Clark Kraft Foods


Mars Maxxium Molson Coors Nestlé 1st Choice



(inc Walkers)


(inc Foodservice)

SHS Tayto

(Golden Wonder)

Unilever United Biscuits Whyte & Mackay

Company.................................................. Contact name.................................................. Fax to (01334) 479695


Judging criteria The Scottish Wholesale Achievers category of Best Overall Service now has new criteria that more closely match C&C/wholesalers’ requirements of suppliers. Operators in Scotland awarding points to the top 31 suppliers (see p.22) are asked to consider the issues below. Those wholesalers receiving deliveries from a central depot should not give points for deliveries (including admin support). The scores will then be adjusted pro rata.


For each supplier, if you receive deliveries from your own company’s central warehouse, write N/A

maximum 15 points Order versus quantities delivered Accuracy of paperwork Accuracy of invoices Timescale of deliveries Attitude and helpfulness of driver Effective returns process Helpfulness of staff

4 3 3 2 1 1 1


maximum 15 points Ability to make key decisions Written/oral communications Query handling and problem resolution Frequency of contact Proactive attitude Field resource

3 3 3 2 2 2


maximum 15 points Category/market information Scottish marketing focus No conflicting direct-to-retail sales Dedicated Scottish direct/indirect sales team


4 4 4 3

maximum 5 points Relevant pack strategy Merchandising support Stand-out on shelf

2 2 1 Maximum total marks 50

Any queries, please contact Kirsti Sharratt on (01334) 479695


Cash & Carry Management

• September 2012 • 23

products & promotions

Savoury/sweet KRAFT FOODS – New Cadbury Pretzels combines an established savoury product with coated chocolate. Marketing support includes prefilled units, sampling and outdoor advertising. The 110g bags, which have an rsp of £2.03 and come in outers of 10, join the recently introduced Cadbury Popcorn, as well as other products in the company’s sharing range: Cadbury Dairy Milk Giant Buttons, Clusters, Raisins, Peanuts, CDM Caramel Nibbles, Crunchie Rocks and Bitsa Wispa. The chocolate bags category is worth £324m and is growing at 5.7% year on year (AC Nielsen value sales MAT to 21/4/12). Tel: Kraft Foods (08702) 400861.

Change of look BAT UK – Pall Mall cigarettes, which claim a 4% market share (Nielsen June 2012), now come in improved packaging, a new design and with a quality upgrade. Carla-Maria Streit, brand executive for Pall Mall UK & Ireland, said: “Since day one of this best-selling product being launched in 2007, it has been backed by the retail sector and is widely recognised to be a valuable addition to any gantry. “The packaging evolution provides our adult smoking customers with even greater value.” The contemporary look covers the full product range, with prices remaining the same as those appearing in the March 2012 price list. One of the changes sees the pink pack changing to silver. Tel: BAT UK (0800) 444236.


Caribbean style

New ingredient

SURYA FOODS – The supplier to both the independent and multiple sectors is launching Caymanas Caribbean Rum Cakes, initially with a 100g Golden Mellow Rum variety (rsp £2.49). Further flavours planned for later in the year include Chocolate Rum Cake, Coconut Rum Cake and Ginger Rum Cake. Director Harry Dulai said: “Growing consumer interest in ethnic flavours has led to an increased demand for authentic products. “These cakes offer consumers a great taste of the exotic and a treat for those looking for a little piece of Caribbean sunshine.” The supplier specialises in AfroCaribbean, Asian, Oriental, Kosher, Polish and Halal foods. Tel: Surya Foods (01255) 553652.

BRITVIC – Naturally-sourced Stevia extract has been added to the drench juicy spring water range. The move is being communicated by a Stevia extract logo on the front of the pack. GB marketing director Jonathan Gatward said that the brand would be supported by marketing activity later this year. He added: “The introduction of purified Stevia extract to drench demonstrates our ongoing commitment to giving consumers the option of choosing greattasting drinks with naturally-sourced sweeteners.” Britvic is using the extract alongside the other sweeteners in its portfolio ‘to give consumers options that balance health, hydration and enjoyment’. Drench comes in a 440ml PET bottle and includes orange & passionfruit, cranberry & raspberry and blackcurrant & apple variants. Tel: Britvic Soft Drinks (0845) 758 1781.

Sauce addition UNILEVER UK – Colman’s has expanded its sauces range to include Cranberry Sauce. The newcomer joins the existing varieties of Bramley Apple Sauce, Instant Gravy Paste and English Mustard. Brand manager Laura Gordon Hall said: “The UK condiments market is experiencing strong growth of 4.3%. Colman’s is the brand leader, with a 32% share (IRI June 2012).” Cranberry Sauce (250ml), with an rsp of £1.69, comes in the iconic, square Colman’s condiments jar, with a bright and modern design to reflect a more premium offering. There are six units in a case. Tel: Unilever UK (0800) 731 1597.

• Cash & Carry Management • September 2012

Coffee kits FERNS COFFEE – The company, with over 120 years’ experience of roasting coffee beans and servicing the hospitality trade, has launched a range of pointof-sale kits through its Sassetta brand. They include customer loyalty cards, given out on the basis of ‘buy nine coffees and get the 10th, absolutely free’. The pack also contains branded posters, paper cups, sugar sticks and tabletop cards. “Coffee is one of the key revenue centres for many establishments and there is a necessity for any coffee offer to be of the highest quality,” said managing director Martin Sheridan. Sassetta comes in a variety of blends, grinds and case sizes. Prices start at £12 per kilo. Tel: Ferns Coffee (01256) 355661.


Success with IT Page 2 New Mobile CRM solution to boost customer service

Page 3 Rayburn Trading increases productivity with Voice Order Picking

Page 4 Savage & Whitten drives business growth using Swords


Increase business efficiencies with Sanderson IT solutions Faced with today’s economic and market challenges, increasing numbers of wholesalers and cash & carry operations are showing confidence by investing in Sanderson IT solutions. These solutions are helping them to streamline operations, reduce costs and increase efficiencies to drive their businesses forward. With over 25 years’ experience, Sanderson, the publicly owned UK provider of software solutions to the delivered wholesale and cash & carry industries, continues to deliver its solution to companies looking to maximise the benefits of IT systems and strengthen their operations for the future. The Swords software, from Sanderson, integrates all areas of the supply chain, balancing the demands of sales, purchasing, stock and cash flow. Swords can run all processes and the solution provides essential management information to support business decisions, improve efficiencies, reduce costs and enhance customer service levels.

Members from major buying groups such as The Today’s Group, Sugro, Landmark, Horeca and Country Range have invested in the Swords solution, as well as many independent wholesalers. More and more companies are choosing Sanderson: Food and household goods supplier SOS Wholesale has chosen four Sanderson wholesale solutions, including new Mobile CRM, to support business expansion. Mobile CRM enhances customer relationships and maximises operational efficiency by providing information on customers, pricing and stock availability when on the road. Rayburn Trading, a leading toiletries and confectionery wholesaler, placed an order for the latest voice picking

solution, for more accurate order picking. Following a swift implementation, the company is benefitting from fewer picking errors, reducing the cost of returns and credits. Read on page 3 how Voice Order Picking increases picking accuracy and boosts staff productivity. Beer and wine supplier Temple Wines has selected Swords to generate efficiencies in key operational areas such as stock and warehouse management. Temple Wines will benefit from visibility of real-time stock information, helping the company to make informed replenishment decisions and utilise warehouse space efficiently. HT & Co (Drinks) Ltd is the very latest customer to sign a contract for multiple Sanderson wholesale solutions to support its future growth including new Business Intelligence, Voice Order Picking and Mobile CRM. The Sanderson Business Intelligence solution analyses and transforms raw data into valuable business information.

Page 1

Success with IT

Boost customer service with NEW Mobile CRM solution A number of Sanderson customers, including grocery wholesalers SOS Wholesale and AIB Foods, have selected the latest mobile technology to support business expansion. This very latest solution from Sanderson helps to improve customer service and increase sales efficiency by providing 24 hour access to the Swords system via mobile devices. Using the latest technology for smartphones or tablet PCs, the Mobile CRM solution enables staff to work more efficiently whilst away from the office with direct access to the Swords system and essential customer information. Benefits of the NEW Mobile CRM solution: Increases order taking efficiency – with the ability to produce quotes and process sales orders during customer visits.

Enhances customer service – with faster response times to customer requests. Saves time – hold more informed meetings with customers whilst at their premises, reducing follow up actions back at the office. Increases staff productivity – 24 hour access to real-time Swords data enables staff to work remotely and provides business continuity away from the office. Improves quality of customer visits – quickly retrieve invoices and statements, view customer sales history, check stock availability, submit return requests and much more.

Global Liquor Concepts drinks to success with Sanderson New company Global Liquor Concepts, trading as Drinks Direct, has launched its business with the Swords solution from Sanderson, to support and manage operations. Based in Cork, Ireland, Global Liquor Concepts supplies an extensive range of beers, spirits, soft drinks and quality wines to the foodservice industry. The company selected the Sanderson wholesale IT solution, Swords, as the best integrated wholesale distribution system for its requirements. Swords integrates all areas of the company’s supply chain, providing visibility of information across the business and monitoring the performance of key operational areas. Instantly available stock information

Page 2

In addition, the Swords system has introduced flexible pricing options and provides a simple promotions process – making efficient use of administrative time and offering a fast customer ordering service.

is enabling Global Liquor Concepts to make effective and accurate replenishment decisions; optimise warehouse space efficiently and protect essential cash-flow. Customer Services is also benefitting from accurate product and stock information – allowing representatives to provide fast response times and offer alternative products for out-ofstock items.

Thomas Desmond, Managing Director of Global Liquor Concepts t/a Drinks Direct, comments: “We are confident we have given our new business the best start with the Sanderson wholesale solution. The system has established strong operational foundations – especially in our sales and customer service departments. A great strength of the system is its flexibility to grow with our company so we can add functionality as we require it.”

Success with IT

Rayburn automates with Sanderson The latest Sanderson Voice Order Picking solution has recently been implemented at wholesaler Rayburn Trading, to save the company money and improve its productivity by boosting the speed and accuracy of order pickers. Based in Manchester, Rayburn Trading is a long-term user of the Sanderson wholesale solution, Swords, and continues to drive value from the fully integrated system, which delivers operational efficiencies across its toiletries and household goods business. The company looked to extend efficiencies in its warehouse by replacing time-consuming and unreliable paper-based picking with Voice Order Picking technology.

Recently, Rayburn attended a Sanderson customer event which showcased customer and product updates. The company were so impressed with the benefits gained by other Sanderson customers using Voice Order Picking that following a successful reference visit, it immediately placed an order for the solution. Rayburn Trading saw first hand how Swords Voice Order Picking benefits both the picker and the business. The solution leaves the picker’s hands free to pick orders, resulting in a faster picking time and more orders

picked per shift. A further significant benefit is increased accuracy, which reduces picking errors and the costs associated with processing credits, refunds and collecting and returning goods. Voice technology implementation and staff training was swift and executed on time by Sanderson, to deliver efficiencies as soon as possible for Rayburn. Michael Pugh, IT Manager of Rayburn Trading, comments: “We were very impressed with how other wholesale businesses have benefitted from Swords Voice Order technology, and we could immediately see how the solution would benefit us by reducing costs and increasing our productivity.”

Increase sales and improve staff productivity with Web Ordering and Voice Order Picking systems Web Ordering System The Sanderson key fob scanner and web ordering system makes ordering faster, easier and more convenient for your customers. Scans barcodes of the products customers need to re-order and uploads directly to your web ordering system – it’s quick and simple! Increase your sales – customers can conveniently place orders 24 hours a day

• •

“The biggest benefit is increased sales – we are currently averaging £100k of web sales per week.” Fehad Shezad, IT Executive, J.W. Filshill Ltd The web ordering system includes added benefits for customers and for your business. Using the system, customers are able to track the progress of their order, and view promotional offers to increase order quantities, increasing your sales further.

Voice Order Picking Fully integrated with the Swords system, Voice Order Picking technology boosts speed, accuracy and productivity of order pickers.

• How Voice Order Picking benefits your company: Fewer picking errors reduces the costs of processing returns and credits. The Voice Order Picking system gives you an accurate stock reading at any time, supporting stock replenishment decisions. Voice Order Picking further

benefits your company with hands-free picking, reducing warehouse damages.

• How Voice Order Picking benefits pickers: Provides intelligent routing – saving time and effort and increases the number of orders picked.

“Our picking rate went up by 35% last year – and we believe it can improve further this year.” Mark Windebank, Managing Director, Savage & Whitten Ltd

Page 3

Success with IT

Cashing in on technology Independent wholesaler Savage & Whitten has enjoyed a surge in sales in recent years, trebling turnover. Managing growth of this scale calls for an innovative IT solution and Savage & Whitten has achieved that with the Sanderson delivered wholesale solution, Swords. Savage & Whitten is Ireland’s fastestgrowing independent wholesaler. With a turnover of £46m, the 96-employee company recently moved to a new site. The company has used Swords, the specialist delivered wholesale and cash & carry system, for many years – and more recently has invested further to support the company’s expanded business activities. “We run our entire business on Swords, from order placement to final accounts. Swords is a great system for this industry and enables us to stay ahead of the game,” says Managing Director Mark Windebank. Savage & Whitten is proud of the close relationship it has retained with customers. “We have a strong degree of loyalty from customers operating under our Today’s brand,” says Windebank. “We have gained significant market share, growing revenue by between 17-20% during each of the last three years.” Crucially too, it has been able to make internal processes much more efficient: “The Sanderson system has

Publishing Director: Martin Lovell Published by Winlove Publications Ltd on behalf of: Sanderson Sanderson House, Manor Road, Coventry, CV1 2GF Tel: 0333 123 1400 Fax: 0333 123 1401 Email: info@sanderson.com www.sanderson.com/swords

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allowed us to reduce our internal operations costs in the warehouse. It’s also helped us to be much more proactive in terms of sales,” he says. Windebank cites online ordering as a case in point: “Sanderson helped us to develop online ordering within Swords. From a standing start 18 months ago, the web now accounts for 16% of our revenue – around £7.5m. We have budgeted for 20%

support our growing business.” Sanderson worked with Savage & Whitten to specify the solution and appropriate hardware. Voice Order Picking enables warehouse operators to pick orders more quickly and more accurately. “Our picking rate went up by 35% last year – and we believe it can improve further this year,” says Windebank. The installation of voice technology went hand in hand with an upgrade of the Swords stock and warehouse management module, which Windebank believes has driven more gains by making processes more streamlined.

by the end of 2012 and I’ve no doubt this can be exceeded,” he predicts. “I believe we offer a much more professional service than our rivals, because the Sanderson system allows us to operate our business efficiently, accurately and in a very customerresponsive manner.” Savage & Whitten had already improved warehouse productivity and efficiency through Radio Frequency technology. When the company moved to a new location, it decided to upgrade to Voice Order Picking for the new site. “To make certain we were at the forefront and getting most from technology, I wanted us to move to Voice Order Picking to

“The warehouse management software has helped improve the overall running of our facility,” he states. “It has helped us to boost the in-full delivery rate, improving service levels by 2%. This is not just because the picking activity is more efficient, but also because our control of stock is so much better. We now use Swords to manage every item of stock, giving us greater accuracy and full visibility.” Savage & Whitten is using Swords to expand its service offering while retaining the one-to-one feel that customers really value. “Sanderson has helped us to give our customers the choice of ordering by whatever means they find most convenient: by telephone, online or in person. By using Swords to its full potential throughout our business, we’ve been able to drive a three-fold expansion while still retaining the first-class service we are renowned for,” says Windebank.

products & promotions Extra Silver

Charity support OCEAN SPRAY – Ocean Spray is supporting Cancer Research UK’s breast cancer awareness month campaign with an on-pack promotion for consumers to win 50 ‘Ocean Spray Harvest Bouquets’ each day during October. The brand will donate £5 from each sale of the bouquets. To claim one of the 50 floral arrangements being given away daily, consumers need to enter the unique code – found on the promotional packs – either online or by phone. ‘Harvest Bouquets’ will also be available to the public to purchase from Arena Flowers’ online shop (www. arenaflowers.com) at £25 each. Throughout next month, 20% of the purchase price will be donated to Cancer Research UK. Last year Ocean Spray was instrumental in over £25,000 being donated to the charity. This year it is pledging to donate over £50,000 during Breast Cancer Awareness Month. Tel: Ocean Spray (08457) 227222.

New channel PEPSICO/BRITVIC – Pepsi Cherry Max, which was launched exclusively through the grocery channel last year, is now being marketed through the convenience trade. The variant is available in a two-litre bottle and has an rsp of £1.99. Tel: Britvic (0845) 758 1781.

IMPERIAL TOBACCO – The JPS Silver range has been extended with the introduction of superkings 10s and 20s and Blue superkings 10s. Head of consumer marketing Amy Kiss said: “Launched in 2008, the JPS Silver range contains some of the bestselling economy-priced cigarettes available in the UK. Retail sales are increasing monthly. “The economy-priced sector of the market is growing at around 8% year on year. Over 47% of cigarettes in the economy-priced band are above king size.“ The three new skus carry the refreshed global pack design. Rsps for the king size variants are £6.35 for 20 (£6.10 while stocks last) and £3.25 for 10 (£3.12), and for the superkings £6.40 for 20 (£6.15) and £3.28 for 10 (£3.15). Tel: Imperial Tobacco (0117) 963 6636.

Relaunch GLAXOSMITHKLINE – Lucozade Sport Tropical has been relaunched as Lucozade Sport Caribbean Burst. Complementing the Lucozade Exotic range, it is expected to build on the success of the recently introduced Lucozade Energy Caribbean Crush price-marked pack, which has become the third best-performing flavour in the selection (AC Nielsen). Sport Caribbean Burst appears in bright red packaging and a distinctive bottle design. It is being sold through the C&C/ wholesale and impulse channels in 4 x 500ml multipacks and 500ml singles (price-marked 99p) from 18 September. The exotic drinks flavour segment was the fastest growing in UK soft drinks last year (AC Nielsen MAT 24/12/11). Tel: GlaxoSmithKline Consumer Healthcare 020-8047 1434.


Cash for retailers WRIGLEY – The launch of Blackcurrant Airwaves (rsp 45p for a 10-pellet pack) is being marked by a promotion for retailers. Until 27 September, independents are being given the chance to win £100 by photographing themselves with the new Airwaves ‘pocket some pow’ point-of-sale material and emailing it to airwavesuk@bcl.co.uk. Each day, the retailer with the best display will win the cash prize. The new variant is part of a multimillion pound campaign to reposition the gum brand as an all-year-round portable ‘pocket pick-me-up’. Other varieties in the Airwaves range are: Menthol & Eucalyptus, Cherry Menthol and Black Mint. Tel: Wrigley (01752) 752095.

Students drive KEPAK CONVENIENCE FOODS – Rustlers ‘Give Cooking The Finger!’ is a campaign aimed at university students, giving thousands of them the chance to win a free term’s supply of the hot snack. In a targeted campaign, working with selected stores near universities, the supplier is offering retailers pointof-sale material, in-store prize draw forms and money-off vouchers. Marketing director John Armstrong said: “Cooking doesn’t come naturally to many students, especially young lads living away from home for the first time. Rustlers is the perfect solution for them, as it’s quick to cook and really tasty. All they need is a microwave.” As well as in-store activity, BOGOF vouchers will be placed in university freshers’ packs throughout the UK. The campaign builds on Kepak’s ‘One Finger Food’ television commercial, which follows a finger making its way to a microwave to cook a Rustlers burger. Tel: Kepak Convenience Foods (01772) 688300.

Cash & Carry Management

• September 2012 • 29

buying groups

Dawning of a new tomorrow Less than a year in its new Doncaster home, Today’s Group is forging ahead as a separate entity after splitting from its longstanding partner, Nisa, located in Scunthorpe. Yet, as managing director Bill Laird points out, the two retain various links. “At the time of our separation, we became members of Nisa in order to maintain a number of services our wholesalers have enjoyed previously, including central distribution. We also have an agreement to jointly stage events such as our annual Stoneleigh exhibition, which is very popular with both Today’s and Nisa members and which is growing each year.” Laird and his team at the 6,100 sq ft office administer a group that has 163 members operating from 200 depots, with purchasing power of more than £5bn. Some 30 people work at the Doncaster premises, including the latest to join, Anita Oakhill, who this month took over as brand marketing manager after experience in the retail and public sectors. She replaces Rebecca Hopper, who recently moved to Costcutter. Says Laird: “Anita brings a wealth of knowledge to our business at a time when we are developing a number of key initiatives for our members that will deliver for them consider‘In key areas, we have the able commercial advanmost advanced IT systems available in the sector’: tage during the second half Bill Laird. of 2012 and beyond. “Even with the necessary increase in overall headcount to support us as a standalone business, we believe we have the smallest and most cost-effective support team within our sector. “We have retained the longstanding philosophy of operating as a lean, but highly effective, central support function for our extensive and diverse member owners.” Retail (including cash & carry and delivered wholesale) commands an 80% share of Today’s Group’s volume, while foodservice accounts for the remaining 20%. Splitting the retail segment, Laird says that delivered wholesale has 65% and C&C 35%. With such a vast organisation, changes in membership are liable to happen. While, for example, the group has gained by signing Compass Supply Solutions, Residual Brand Management, Sian Trading and Sam 99p in the past year – as well as latest signing Osprey Foods International (see p.5) – it has lost


• Cash & Carry Management • September 2012

Valley Foods in Jersey to Country Range Group, while First Choice Wholesale Foods in Burton upon Trent will move to Landmark Wholesale early next year. “The continued development of our symbol and retail club is one of five key strategies for the long-term growth of our overall business,” says Laird. “We are well on track to achieving 2,000 retail club stores and 500 symbol stores by the end of 2014. We only invite good quality, sustainable and ambitious retailers to become symbol store members. “This is unlike our direct competitors who appear to allow all retailers they recruit to share their brand and fascia. We believe this dilutes the quality of symbol operation and creates cynicism among suppliers and manufacturers who regularly compare our sector negatively to multiple retailers and national symbol operators.” The group is also intent, says Laird, on expanding the number of wholesale members who actively participate in retail development. In this respect, he picks out Birminghambased S&K Cash & Carry which has achieved Group 1 status and has just opened its first Today’s symbol store. Group strategy also includes encouraging members with established retailer affiliate schemes to continue investing in their infrastructure and field teams to accelerate their store development programme. “We also have specialist licensed wholesale members recognising the opportunity to provide a full convenience offer to their retail customers by extending their depots.” Additionally, the group is in the process of introducing an updated Kitchen King range for its foodservice and catering operators. “We have also invested significantly in technology both before and after our separation in order to automate a number of our internal processes and improve the exchange of commercial information with our members,” says Laird. “We have historically been criticised for our lack of IT investment and were regarded as ‘technology averse’ by our direct competitors and a number of suppliers. “In some respects, this criticism was fair. However, it is no longer the case and, in key areas, we have the most advanced IT systems available in the sector. “Our infrastructure in Doncaster is primarily Cloud based and, although we have made many technological improvements, we have considerable scope to introduce more. Indeed, we will be doing this later this year and next.”



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buying groups

Turnover around £300m It was quite a coup for Caterforce when the foodservice group recently snapped up Sterling Supergroup’s leading member, Castell Howell Foods, of Llanelli. That brought another £73m into the Macclesfield-based amalgam’s coffers, swelling group turnover to around £300m. Under managing director Nick Redford, Caterforce is going places. Although it has just seven members, further additions cannot be ruled out. As Redford says: “Membership is a topic discussed at our board meeting as we still have a couple of gaps in our geographic coverage. “But it is important that the group adds the right members as we are extremely cohesive and collaborative.” Castell Howell becomes the group’s second largest member, behind Lynas Food Service in Coleraine, Northern Ireland, which has just acquired a majority stake in fellow Coleraine wholesaler, Aghadowey Food Service (see p.5). That investment has led to Aghadowey resigning from Country Range Group. So what are the criteria when Caterforce considers taking on new members? Says Redford: “We take into account minimal geographic overlap, minimum turnover of £10m, high supplier and customer overlap with existing members and a commitment to fully support own brand.” The group’s “established and very successful” frozen label is Caterforce Cuisine. Shorty, that will be joined by an ambient own brand, Chefs’ Selections by Caterforce. “An initial range of more than 120 products is currently in development,” says Redford. “It covers all the key grocery categories. The first contracts have already been awarded.” Caterforce, whose group turnover is split 50% frozen, 25% meat & chilled and 25% ambient, has invested over £20 milRedford: ‘Minimum turnover of lion in infrastructure new members is £10m.’ improvements in recent years, including the first wind-powered depot operated by Philip Dennis Foodservice in Ilfracombe. The new facility came into force earlier this year. More group developments are in hand for the coming 12 months, although it is too early to divulge what they are, says Redford. The group runs promotions each calendar month, with


• Cash & Carry Management • September 2012

the central marketing department producing promotional material and price lists for members. “The programme with core suppliers now has a 92% compliance level with members,” Redford comments. “The central promotions are complemented by locally negotiated deals so that each member’s publication is entirely bespoke to that operator and is targeted specifically to the customer mix and local markets. “Members have full flexibility with our marketing team. They can select their own paginations, layouts, offers per page and size of brochure, including the option for leaflets to be mailed direct from Caterforce.

Ambient growing “There is a definite growing presence in ambient and, more specifically, soft drinks.” Asked to choose three suppliers with which the group is doing increased business, Redford names Heinz, Britvic and Kara Foodservice, of Whitefield, near Manchester, which specialises in bakery products. Turning his attention to the state of the foodservice sector. Redford comments: “The demise of DBC highlights the need for foodservice operators to have a good mix of business. Becoming dependent on large, increasingly cost-conscious accounts can be dangerous. “Fortunately, the bulk of our business is with over 30,000 small to medium sized independents who are getting better at adding value rather than reducing costs all the time. “The carcase of DBC has been a boost to all foodservice operators – large and small. “While the nationals have taken the big contracts, the independent sector has picked up valuable chunks of business, mainly where we have been the existing primary or secondary supplier.”


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buying groups

The ideas just keep coming! Refreshers, the perennial children’s sweets favourite, is a name that could easily be applied to Sugro UK. The group, whose member wholesalers specialise in confectionery, soft drinks and snacks, is currently steering a course of refreshment – bringing in a series of changes that will enable it to combat the general downturn. At the head of the Nantwich-based amalgam is Philip Jenkins, whose energy, ideas and ‘sweet-talking’ personality are fundamental for progress. Adding to the group’s near-1,500 member Sweetbreak retail group is the fledgling Nearbuy fascia, which is currently being sported by 18 independents, mainly in the south-west. Jenkins and head of retail & business development Ian Irvine see South Wales as the next area for development, and then, perhaps, cities such as Manchester, Birmingham, Bristol and London. They insist, however, that it’s no good having one Nearbuy in a large location and another miles away. It’s by having clusters of fascias in a specific area that the scheme will work.

Different name Northern Ireland is another territory where Sugro wanted to develop the symbol. But because the Nearbuy name already exists there, the badge ‘Sugro Convenience’ is the one that will be used, should the idea be adopted in the Province. The Nearbuy scheme is being accelerated with the help of Nisa, which has recruited the recently-established Sugro Retail Group as a member. Nisa trucks will deliver fresh, frozen and chilled food to those stores, with Sugro wholesalers supplying their other needs. As for the Sweetbreak initiative – where no fascia is involved – Irvine admits that numbers are constantly changing. He says: “In the past two months alone, although we have lost around 200 Sweetbreak retailers, we have secured a net gain over that period of 57. But this sort of fluctuation is an unusual occurrence.” Sugro’s new Acorn buying group is approaching double

digit membership, with many other wholesalers expressing an interest to join. ‘Quidz In’, a scheme focusing on items priced at £1 or under, is another idea that is gaining momentum. On the wholesale side, Sugro UK has 56 member wholesalers, operating from 61 locations. Five wholesalers have been recruited in recent months (see p.4). These have increased group turnover by over £50m to in excess of £700m.

Positive growth Jenkins reports there has been “positive growth” of 12% in the first half and that progress is continuing. But he adds: “I’m very concerned about the liquidity of retailers, who are making payments more slowly, largely due to the fact that their own costs are increasing through wages and margin pressures. “The second half will be a bit more of a challenge, which is of great concern to me.” He highlights the change in emphasis towards value propositions and multipacks. And he is critical of suppliers whom he says “react in a stupid way by bringing in price marking. “This just creates a ceiling of shared margin. It doesn’t mean that another 100 people will walk through the door! Manufacturers must adopt an adequate margin structure.” Among the group’s major suppliers are Imperial Tobacco, JTI, Kraft/Cadbury, Coca-Cola and Britvic. Sugro, whose senior team includes David Milligan as head of wholesale, buying & marketing, will soon bid farewell to one of the trade’s stalwarts, Mike Sonia. He has been head of trading – in effect, buying director – for 11 years. One of his senior roles before that was with M6 Cash & Carry, later taken over by Nurdin & Peacock. Other personnel changes have seen the arrival of Herbinder Kaur (from Palmer & Harvey) as business development manager and Yulia Goodwin (from Boots) as trading manager. The press relations function is now being handled internally by Jayne Davies, who has held a number of senior roles within the group.

MD Philip Jenkins (left) and Mike Sonia, head of trading, who retires at the end of the year.


• Cash & Carry Management • September 2012


buying groups

Constantly changing

Formed in 1972, the group has, over the years, diversified in the way that it operates – from a purely confectionery organisation to one that has involvement in alcohol, tobacco, grocery and, most recently, foodservice. Director Nicky White is the daughter of Julian Loffett, owner of a Birmingham confectionery business who co-founded Confex with wholesaler Sidney Lumley. The group currently has a membership of around 300 and Since the start of 2011, Confex Group has experienced a a staff of 18. period of strong growth, with 23 members joining, bringing This year marked the third annual Confex trade show – total turnover to £1.67bn. “the most successful to date”, says Gittins. And although it recently suffered the setback of losing It featured the inaugural green wholesaler awards, offertwo operators (Eagle Foods and McCartney Food Service), ing the group the opportunity to promote the sustainability with combined turnover of nearly £15m, business developplatform with the help of both suppliers and members. ment manager Tom Gittins says: “When the news broke that “The winners have actually these two companies were won new business through their joining Sterling Supergroup, we accolades, while the sharing of had a number of membership best practice has benefited the enquiries, with the result that we membership as a whole. have just taken on two new “The awards have been members in the Peterborough backed by suppliers for a further area, Adams Cash & Carry and Tom Gittins, Confex Group three years, which confirms their Westminster Foodservice, adding business development manager status through Confex,“ he adds. turnover of £6m. So pleased was the group “Aside from that, there have with the way its conference was handled this year by the been further changes, with some members being taken over Cotswold Water Park Hotel that it has taken the unusual step by other companies. But, for the most part, that larger conof re-booking this venue for the next three years. cern has joined us, so adding to group buying power.” One additional member of the management team is Kish Confex’s most recent newcomer is Peters Foods, of Ramasamy, who is sales development manager, with responCaerphilly, which makes pastry products and has a delivered sibility for visiting members and driving sales through the wholesale operation. Turnover is around £60m. central distribution facility. Updating the group financial and membership situation in Meanwhile Confex awaits the move from its Chipping the first six months of 2012, Gittins says: “Our turnover rose Norton, Oxford, site to new offices at Moreton-in-Marsh, by 11.6% in that period, with foodservice driving growth at Glos. “We have had a prolonged issue over planning perplus 23%. mission,” says Gittins. “We hope it is now completed, and we “Some 47% of our membership is in the retail trade and envisage starting work on the new purpose-built site in the 53% in foodservice, of which 94% represents delivered autumn and moving there in late summer 2013.” wholesale and 6% cash & carry.”

‘Our turnover rose 11.6% in the first six months of 2012, with foodservice driving growth’

Making plans for the next Confex promotion are (l to r): David Lunt, senior business development manager; Chris Wootton, business development manager; Nicky White, director; and Tom Gittins, business development manager.


• Cash & Carry Management • September 2012




Confex, the UK’s most diverse independent wholesale trading group Preferential Trading Terms Over 190 Official Suppliers Wide range of product categories Monthly Promotional Programme Bespoke Product brochures Central Distribution facility with net net pricing No membership fee

Membership enquiries welcome enquiries@confex.ltd.uk Tel 01608 649000


buying groups

Birchall: substantial investment by CRG wholesalers, improved group design and promotions, enhanced telesales structure, more focus on frozen foods and changes in membership.

On course for £285m Country Range Group members outperformed the market over the past 12 months, with year-on-year branded turnover up 20% and own-brand sales 17% higher, says managing director Colin Birchall. That gives projected turnover this year of around £285m. “Many of our members have substantially invested in people, premises and vehicles, while, from a group perspective, we have improved the design and impact of monthly promotions, implemented a group-wide telesales activity programme, given a higher focus to frozen food and increased the number of Country Range branded products, with a further 50 launched this year.” Birchall adds that, with some 700 products already in the range, much of the group’s NPD is focused on frozen lines. “We have enjoyed particular success this year with individual desserts and frozen whole gateaux. But growth isn’t just coming from new products; as a result of our recent packaging redesign and telesales focus, sales of our spreads range are up by more than 30%. “We also recognise that delivering the right product at the right place, right time and at the right price is no longer enough, and that wholesalers need to differentiate. Our Stir it up magazine, now in its fifth year, has therefore become an invaluable tool for giving caterers added value and encouraging loyalty.” Another development is the launch of Key to Nutrients (K2N), the group’s bespoke nutritional software system. Birchall says this has contributed to growth, and that it is now offered by 10 member wholesalers (there are 14 in the group). “This low-cost multi-functional software benefits all types of caterers with functionality that includes nutritional evaluation, menu costings, stock control, individual diary tracking and management control.” He adds: “With the benefit of specific local service combined with the points of difference offered by CRG, members


• Cash & Carry Management • September 2012

are attracting new customers and adding value for existing clientele.” A new member of the group (as reported by Cash & Carry Management: July) is Valley Foods, of Jersey, with annual turnover of £4.5m. It officially joins at the start of the new year. Referring to further CRG expansion, Birchall says: “Following its acquisition last year of ICS in Northern Ireland, Henderson Foodservice became a member on 1 January, and it is now fully integrated into the group, participating in marketing and promotional activity. It is already offering its customers over 500 Country Range brand products. “There were further developments in Ireland recently with Lynas (a Caterforce member) purchasing a major shareholding in Aghadowey Food Service, which made it untenable for CRG to continue their (Aghadowey’s) membership (see News p.5).

South-west member “We are delighted to welcome new member Caterfood, of Paignton, South Devon, which has joined us this month. There will undoubtedly be many benefits for both parties from this association, which we look forward to exploring together over the coming months.” Caterfood, owned by the Felton family, supplies cleaning products, and frozen, chilled and ambient foods, delivering across Cornwall, Devon, Somerset, Dorset and parts of Gloucestershire and Wiltshire. What about next year? Birchall comments: “There will continue to be further dynamics in 2013, starting with Valley Foods becoming a full member. “The CRG policy of supporting strong regional wholesalers has resulted in a substantially increased share of the UK independent foodservice market, while group operational structures and disciplines provide strong hassle-free routes to market for our branded supplier trading partners.”


buying groups

Celebrating 40 years Landmark Wholesale has come a long way since its founding fathers sat down and discussed the idea of forming a group 40 years ago. Members have come and gone – either they failed to make it in the cut and thrust that is C&C/wholesale, been taken over by other operators, joined other consortia, or like the mighty Bestway, decided to go it alone. Then there are the names: originally Landmark Cash & Carry Group, the organisation later merged with SPAR’s Consort C&C operation (which was itself once called Value Centre). But the name Landmark has survived, albeit with the suffix Wholesale to reflect its changing emphasis and wider involvement in C&C/wholesale, particularly in foodservice. With a turnover of £2.5bn and operating from modern headquarters in Milton Keynes, Landmark Wholesale derives 40% of group revenue from foodservice, with such giants in its ranks as Country Range Group and JJ Food Service. Long-established cash & carry members are headed by Blakemore and Parfetts.

New members Over the past months, the group has added foodservice specialist Lomond Fine Foods, of Glasgow, Lynton Exports, of Stoke-on-Trent, and Preston-based GAP Convenience Distribution, part of SPAR wholesaler James Hall. And early next year, First Choice Wholesale Foods, of Burton upon Trent, will join them. These movements reflect the changing face of buying groups as C&C/wholesalers seek ways of making life easier in the tough economic environment, either by switching allegiance or joining an amalgam for the first time. Landmark Wholesale is as aware as any group that

chopping and changing is part of the scene. So much so that it regularly seeks out operators who might be discontented with what they have. It is, of course, a situation that faces other groups, so the winners this year could just as easily lose out in the following 12 months. The group is led by managing director Martin Williams, whose team includes trading director John Searle, business development director Chris Doyle and finance director Andrew Thewlis.

Sales mix Retailers account for nearly 46% of member wholesalers’ customers but almost 62% of sales, while caterers – 22% of the clientele – command 9.4% of turnover. The rest is represented by foodservice. Aside from the myriad of branded products that are handled by the group and its members, own-label plays an important role in the mix. Landmark Wholesale’s in-house range is headed by Lifestyle – not just a retail own-label, but also the name that identifies the retail fascia programme. There is also the Lifestyle Value selection of grocery and non-food products; for caterers there is Caterers Kitchen and for licensed traders there is the Prince Consort spirits range and Scandia and Joseph Jones lagers and beers.

A handful of the vast selection of own-brand products from Landmark Wholesale.


Cash & Carry Management

• September 2012 • 39

buying groups

More expected A lot of changes have happened at Sterling Supergroup in just a matter of months – not only in terms of its membership, but notably its split with Landmark Wholesale, where it was an associate member. The ending of a partnership that went back more than 20 years came at the end of February. The Maldon (Essex) group had been developing its Sterling Caterers Essentials range (now worth around £22m) and felt it could do so under its own steam, particularly as it had no need of the Landmark Caterers’ Kitchen portfolio.

Sterling’s chief executive Vanessa Cooper (pictured) said at the time of the division: “Our business interests have changed considerably and our requirements in terms of support from branded suppliers are very different now.” Sterling, founded as Independent Cash & Carry Group (later simply ICCG) by five Midlands-based wholesalers in 1966, was for years a largely retail oriented group. More recently, it has established a growing presence in the foodservice sector. However, that involvement took a considerable knock when its largest foodservice wholesaler, Castell Howell Foods, decided to switch to Caterforce, taking with it some £73m worth of buying power. The departure came soon after Lomond Fine Foods, of Glasgow, and Lynton Exports, of Stoke-on-Trent, both switched to Landmark. Although these defections meant that Sterling’s group turnover took a near-£100m knock, the group weathered the storm – albeit partially – by announcing that two foodservice wholesalers have joined: Eagle Foods, of Peterborough (turnover £13m), and McCartney Food Service, of Boston, Lincs (£1.7m). Cooper also hopes to reveal shortly the names of other wholesalers who have signed up with the group. Commenting on the membership changes, she says: “We remain strong in the foodservice arena. Our members are in strong growth and we have a strong brand in Sterling Caterers Essentials.” Group turnover is currently around £340m.


• Cash & Carry Management • September 2012

Turnover of £415m from 21 members Fairway Foodservice has a membership of 21 wholesalers operating from 26 sites. The group was founded in 1984 by five frozen food wholesale distributors. Heading the team at the Hipperholme, Halifax, head office is chief executive Chris Binge, who has been in the hot seat for 10 years. The website gives total turnover as £415m, adding that this is based on an exchange rate of 1.2 euros to the pound. That is relevant because several of its members operate in the Irish Republic – Allied Foods, in Cork and Dublin; and Musgrave Foodservices in Dublin. The overseas membership also includes Europfoods, based in Alicante in Spain and with five depots, and La Collette Foodservice, of St Helier, Jersey.

Latest recruit Fairway Foodservice’s newest member is First Choice Foodservice, of Burton upon Trent, which joined just a year ago. The group’s members in total operate more than 200 refrigerated vehicles and have combined cold storage capacity of well over two million cu ft. In-house brands include the Fairway label, covering high volume commodity products such as chips, vegetables and bakery products. Also available from the group is Fairway Classics, which includes shepherd’s pie, lasagne, scampi, apple pie and lemon meringue pie. Supplier exhibitions are held twice a year. At last year’s September event, almost £300,000 worth of business was transacted in a single day.

For further information: Caterforce (01625) 440188 Confex Group (01608) 649000 Country Range Group (0845) 519 6181 Fairway Foodservice (01422) 319100 Landmark Wholesale (01908) 255300 Today’s Group (0844) 247070 Sterling Supergroup (01621) 856300 Sugro UK (01270) 628728


OTC MEDICINES The October 2012 issue of Cash & Carry Management will include a feature on OTC Medicines

To advertise in this issue, contact David Ford on (01342) 712100


Preparing responses to Government consultation documents

Struggling to get the right candidate for your job vacancy? Lobbying Reach every cash & carry and delivered wholesaler in the UK free of charge Representation at the Scottish Parliament

www.cashandcarrymanagement.co.uk Legal Updates


Easy-to-read trading law compliance updates for directors

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sales/marketing & brokerage

Category knowledge Using an outside agency as a sales resource can be priceless, as many companies will testify. SHS Sales & Marketing, whose sales last year broke the £300m barrier for the first time – with ‘exceptional growth’ on behalf of Mars, WKD, Reckitt Benckiser, Johnson & Johnson, Beiersdorf, Shloer and Bottlegreen – has continued the upward trend in the present 12 months. Sales director Marcus Freer says: “We have a reputation with buyers for our extensive category knowledge, which includes grocery, confectionery, beverages, household and healthcare.” He adds that the SHS team has a wealth of experience across all channels, particularly independents and cash & carry/wholesale. “Our strength is in three areas: strong business relationships, category development expertise and a commitment to developing and supporting the people in our business.” Freer says that brand owners are continually looking for ways to simplify their structure and streamline processes in order to devote more time to ‘future proofing’ brands through NPD and consumer marketing. Marcus Freer “We enable brand owners to concentrate on key priorities, such as developing NPD, while we drive sales and offer solutions in areas such as national account management and field sales, logistics and business support. This effectively reduces complexity, enhances performance and provides a tailored cost solution.” SHS Sales & Marketing’s range of services includes: sales, customer marketing, customer services, logistics, invoicing, credit control, risk management, quality assurance and category development/insights. Says Freer: “We work with 20 brand owners, who represent multiple fmcg brands. We also offer support across the fmcg market, with specific expertise in the ambient grocery, alcohol, soft drinks, hot beverages, confectionery, healthcare and household categories.” He adds that the company has a fully integrated structure that enables contact at head office, depot and retail club/symbol fascia level. “We work collaboratively with C&C/wholesalers to give clear strategic direction based on insight that allows us to make accurate sales predictions and advise them on what to stock, while reassuring brands of the correct route to market that will deliver results.


• Cash & Carry Management • September 2012

“Because of our diverse portfolio of brands, cash & carry/wholesalers benefit from a single SHS Sales & Marketing point of contact that is able to negotiate across a range of categories, including ambient grocery, alcohol, soft drinks, hot beverages, confectionery, healthcare and household products.” Freer adds that the company offers category focused account management, meaning that brand owners benefit from a sales team with specialist understanding of the needs of the C&C/wholesale channel. “There is also a dedicated trade marketing team which One of SHS’s latest gains. works with brand owners to develop successful brand plans. The insights gathered by the marketers also provide the necessary insights to drive category development.” Asked for examples where SHS Sales & Marketing has made a difference, Freer cites Mars Drinks. “In March, we managed pack changes to 50% of the range, ensuring that no stock losses were suffered by the brand owner during the transition. We were instrumental in advising the company on the right pack size that would appeal to the independent sector, and we then ensured a smooth transition within the trade.” The key changes that were implemented included a reduced case size from 12 to eight, reduced bottle sizes and the introduction of sports cap bottles. “This had an immediate impact,” says Freer, “with sales in the 13 weeks since the change increasing by an average 46% per week.” Another case study he alludes to is that of Chewits. “The sales team recognised that, by creating a pricemarked pack, it was giving not only the brand owner, but also the independent channel, a clear advantage and point of difference over discounters. The PMPs which were rolled out in July will make a tangible change to independents, given that this is a very strong consumer offer at a great price point. “We have also been working alongside Brand Phoenix in promoting their lower alcohol wine offering to the independent sector over the past year, and we have developed bespoke merchandising material to promote this in cash & carries. “Additionally, we are currently working with Johnson & Johnson on a project to deliver new PoS material. And our repackaging ability allows us to create prefilled shippers and shelf trays for J&J’s winter medicine skus that are bespoke to C&C/wholesale.”


Much more than you think SHS Sales and Marketing offers the depth of expertise and understanding of the cash and carry channel required to build great brands and get them to market. With our vast range of services we create outstanding sales, customer marketing, end to end logistic solutions and powerful business support for Brand Owners.

Find out how we can support your brand at wheregreatbrandsgrow.com T: 01452 378500 E: info@sales-shs.co.uk

sales/marketing & brokerage Double-digit growth Michael Robinson, managing director of specialist non-food distributor Robinson Young, says it is still achieving doubledigit growth figures for many of its manufacturing partners, despite the tough economic climate. And, as a measure of its confidence, within the last 12 months it has invested in the pharmacy sector. This proves, he adds, that at a time when the market is changing rapidly, the out-sourcing of sales, marketing and distribution is a highly effective route to market. “Our partners have the benefit of our 40 years of non-food expertise, which spans a wide range of categories across all key channels, in both brands and own-label. “Having a partner such as Robinson Young, which has the size, experienced sales teams, established buyer relationships and understanding of customer needs across many channels can provide the crucial competitive advantage needed to grow.” The non-food specialist provides full coverage of all main sectors, including major multiples, cash & carries, wholesalers, convenience, discount, foodservice, hardware and DIY. Last November, after investing in contract sales organisation Powermed Plus, it also started to give full coverage to pharmacy. Says Robinson: “This was a major and crucial investment, allowing us to offer brand owners an even wider service. We now have the coverage, knowledge and expertise to drive business in the categories of household, health & beauty, foodservice and stationery.” With Robinson Young managing the sales, logistics, warehousing, stock planning, invoicing and credit control, manufacturers can focus on their core business strengths, such as consumer marketing and product development. “Our formula is a simple one,” says Robinson. “We understand and fulfil our customers’ needs better than anyone. We aim to give fantastic service, second to none, delivering higher results for everyone. “Using a shared costs and resources model significantly reduces duplication and, therefore, cost of sales and logistics in the supply chain, making out-sourcing more cost-effective than a manufacturer supplying alone. “Many sales & marketing companies fall by the wayside, but 40 years of achievement and growth proves that we have

Robinson Young’s key brands Household: Zip, Bizzybee, Zoflora, Safewrap, Scotchgard. Health & beauty: Clarityn, Covonia, Settlers, Bodyform, Wilkinson Sword, Tena, Collection. Stationery: Energizer, Velcro Post-it, UHU, Varsity, Rhino, Uniball, Armor Catering/foodservice: Caterpack, Finesse, Scotchbrite, Solo.


• Cash & Carry Management • September 2012

‘We can provide the crucial, competitive advantage needed to grow’ Michael Robinson, managing director, Robinson Young a successful formula that works for manufacturers and buyers alike.” Robinson’s words are supported by the infrastructure, systems, facilities and a highly-trained back-up staff. Efficient low-cost warehouses provide countrywide coverage and market-leading logistics, and a recent £650,000 investment in a state-of-the-art ERP system will help Robinson Young to achieve even higher levels of service and efficiency. Dedicated in-house marketing teams for each of its four divisions complement manufacturers’ own marketing teams. Robinson comments: “We help bring ideas to market, developing and adapting messages to each audience, each channel and each customer, meeting both our partners’ and customers’ objectives. “The best distributors are those who are continually evolving to cope with the changing market and changing customer needs, while providing new and additional services to meet the needs of the brand owners. “We believe that this is a vital part of their success. With such a proven track record, we will continue to be the champions for many of the leading non-food brands of the future. Those that consider out-sourcing will increasingly have an advantage over their competitors.” Almost into the last quarter, Robinson reflects on a successful year in which his organisation has invested in a new sector and a new fully-integrated ERP system, enhancing the service it provides to its partners and customers.


Your brands will flourish in our hands 40 years of success and expertise in Non-Food Sales, Marketing, Logistics and Warehousing across all major channels and sectors. Now including coverage of the Pharmacy channel

Robinson Young To find out how we can grow your business contact: Michael Robinson, Managing Director. 01284 766261 / m.robinson@ry.tm

THE NON FOOD SPECIALISTS Robinson Young Limited. Ibson House, Eastern Way, Bury St Edmunds, Suffolk. IP32 7AB. tel: 01284 766261 www.robinsonyoung.co.uk

sales/marketing & brokerage

‘Largest specialist’ DCS Europe claims to be the largest specialist distributor serving the cash & carry and delivered wholesale sector. Part of the DCS Europe group of companies, launched by Denys Shortt in 1994, it is a leader in health, beauty & household goods. The day-to-day direction is in the hands of Richard Jorden, group commercial director, who says: “DCS distributes on behalf of blue chip suppliers Procter & Gamble, Unilever, Colgate Palmolive, SC Johnson, PZ Cussons, L’Oreal and Osram. “We ensure their brands get the best support in C&C/wholesale by operating a low cost business model. “Customers are able to achieve better terms with DCS than they could achieve by buying direct from the supplier. And, by combining their requireBetter terms with DCS than buying direct: Jorden. ments for several different brands on one order, they achieve massive economies through reduced stockholding and handling costs. Their administration is simplified and they just pay one invoice. “More importantly, they get all the benefits of dealing with the suppliers direct in the shape of promotional activity, marketing and a host of added-value extras.” Jorden continues: “DCS provides independent advice on how the market is developing. We are category champions for our customers and we have a vested interest in developing their sales, because when they win, so do we, as do our supplier principals.”


• Cash & Carry Management • September 2012

He asserts that the company excels by providing executions that are unique to the sector and bespoke to DCS. “We have taken ideas from retail multiples who exploit the off-shelf promotion opportunity and provide numerous display solutions that we know deliver incremental sales for customers. By making their floor space work harder, we help them maximise the impulse buy from what are essentially everyday shopping list items.” Jorden cites the company’s recent addition of the SC Johnson range of professional cleaning products. “DCS has been working with SC Johnson in the supply of retail packs to wholesalers and cash & carries for many years, but, since January, we have been sole supplier for the professional range into the sector. “In discussion with customers, it became apparent that the brands, while successful in retail, were not performing as well in the foodservice sector. “To help customers create some theatre in order to attract the professional user, we have devised a range of display executions, including full and half pallet displays, pallet wraps and a freestanding display unit, each tailored to specific packs within the range. “In addition to the display units there are posters, banners and a canopy for rack end displays. We also have shelf strips for the fixture. There will also be some price activity agreed locally. Additionally, we are targeting decision makers directly by advertising in foodservice publications.”

Category management Jorden says that part of the DCS added-value package is a category management service, with the latest market data used in conjunction with customer sales-out figures. “Planograms can also be provided and implemented by our merchandising team who work with distributor principals on range audit, promotion execution & compliance and, of course, merchandising. “The relationship with customers is such that we work as one with depot staff on replenishment, display and order generation, thereby providing support and advice on every visit.” Jorden continues: “Of course, we don’t just work for the big brands. A number of more specialist, or niche, suppliers have come to DCS for our category expertise and our low cost model. We apply the same principles for large or small so that all can benefit.” In addition to Shortt and Jorden, the DCS management team includes Andy Carling, head of central buying; Bill Smith-Coats, head of central sales; and David Hughes, category & business analyst.


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WAREHOUSING & DISTRIBUTION • Sales and distribution for blue chip brands • ISO 9001 and BRC accreditation for warehousing • State-of-the-art 280,000 sq. ft. warehouse achieving 99% service level • Economic nationwide delivery from 300 cases to full truck load

• 60,000 sq. ft. factory with 12 filling lines producing various Health & Beauty products • BRC accreditation for Consumer Products - quality products made to EU standards • Full service, own brand contracts, production under licence and contract fill • Proud to be able to say ‘Made in England’

• Category expertise in Health, Beauty and Household • Customer reach includes e-tail, grocery and fashion retail, pharmacy and DIY, wholesale, Cash & Carry and High Street Discount



• A 30 strong sales force deliver Nationwide coverage and a flexible, collaborative approach to the supplier - customer relationship

• Using our in-depth market knowledge and all of the in-house added value services expected of a major brand DCS work with brand owners to harness the opportunity of their products • Solus UK Marketing, Sales and Distribution for Bio-tex, Vax, Orabrush and the Dogs Trust Grooming Range • Talk to DCS about where we can take your brand portfolio

• Pack manipulation and bespoke packaging • Visually brilliant presentation via point of sale display solutions • All designed in-house they deliver proven incremental sales

• Market insight and data analysis • Category management, range review and planograms • Field merchandising, audit and POS display services

• Household professional pack size supply to the Foodservice Industry • DCS are distributors for S C Johnson Professional’s leading brands Mr Muscle, Duck, Brillo, Glade and Pledge • Procter & Gamble Professional – Ariel, Fairy, Bold and Daz Laundry Detergents and cleaning brands Fairy, Hederol, Deepio, Flash, Viakal and Febreze • Nilco cleaning range from James Briggs

• Dedicated sales team for High Street Discount customers • Sector specific expertise • Talk to DCS about the discounter opportunity

sales/marketing & brokerage

Tanya Pepin and Mike McGee.

Making data count When Mike McGee was managing director of Landmark – before that role went to Martin Williams – he proved on countless occasions how much value he attached to data in running a successful group. Not surprising, as his formative years culminated with a degree in economics, statistics & politics – all useful stuff for his progression to Del Monte Foods, the former cash & carry operator Lonsdale & Thompson and the Sinclair Collis vending division of Imperial Tobacco. More recently, he has kept close tabs on the C&C trade by helping to set up, with present md Ivan Durkin, Smarter Trader (now STL Technology Solutions), which has accounts with some of the leading groups and individual operators. Now McGee, together with business partner Tanya Pepin, is pursuing a different course by running The Whole Sale Company and sister concern, Sales Excel. Pepin herself has a background in government, commerce and marketing. At one time, she also worked for Landmark in activities such as the group’s loyalty scheme, preparing promotional leaflets and in the information department. When McGee amicably left Smarter Trader, he and Pepin “took the data business with us and integrated it with a charity consultancy to form JPA.” He continues: “The idea was that charities, more than most sectors, needed to leverage their information effectively for clients and donors. ”It didn’t turn out that way, as we were very busy with the commercial side and charities generally are not the most forward thinking organisations. ”We were approached by SalesOut with a view to purchasing us about two years ago and eventually agreed. We were conscious of the fact that all our systems would need upgrading at some point, so it made sense for this to be done to an industry standard, with SalesOut dealing with the C&C/wholesalers that we didn’t.” McGee and Pepin worked for SalesOut until March this year, at which point they decided to do their own thing.


• Cash & Carry Management • September 2012

Says McGee: “Our view was that many suppliers bought data either because they felt they should and/or because it is used defensively internally – not to actually use it for commercial advantage. “We felt there was a great need to inform and direct sales forces to C&C depots where there was most opportunity, identified by data analysis. Presently, most sales forces work on geographic coverage with fixed journey cycles, often calling on branches where they know they will get an order, which they would probably secure by phone. “Our belief is that this valuable sales resource should be concentrated where a supplier’s share is below the norm, promotions are not effective enough and customer distribution is low.” So what does McGee and Pepin’s business do? “The Whole Sale Company,” says McGee, “is a data consultancy business, while Sales Excel is our data and sales force venture with Alan Ramsay Sales & Marketing and client account director Ian Smith, who was formerly with Heineken. “Basically, what we offer is a consultancy to help suppliers use the data they buy more effectively. We don’t do a lot with cash & carries; what we are is supplier focused. But that situation might change to some extent at some stage.”

Buckingham-based Working from offices in Buckingham, The Whole Sales Company operates, says McGee “on a very reasonable daily rate” adding: “The data driven sales force is an all-inclusive cost of data analysis/sales force callage/results reporting, based on the scope of the project. That means what data sets the supplier purchases, where the focus is, and so on. “We give suppliers a return on the data they purchase, help them understand a particular sector and re-establish a face-to-face relationship with C&C/wholesale depots based on information. This leads to a better business with effective listings, promotions and new product development.” McGee continues: “What we are not is data providers. That is something these companies do very effectively in their own fields. We help companies use the data, with particular focus on sales execution.” The consultancy currently has four clients, whose identities McGee prefers not to divulge. He adds: “Being pretty new, we are making lots of pitches for new business.” In addition to what The Whole Sale Company is already doing, it is developing “an interesting new service which is currently on test. Because it’s early days, we are not prepared to talk about it just yet.” Asked for his views on the state of the C&C/wholesale sector, he says he is unwilling to comment. “I can relate to the biblical story of Lot’s wife – never look back! I have been out of the trade – well, sort of – for long enough now for my opinion not to matter. Mind you, it probably never did! “What I would say is that it is a tough sector that does not get the recognition it deserves. But sometimes, it doesn’t help itself. That’s as far as I would go.”


Do your sales need more

direction? Is there a dis-connect between the wholesale EPOS data you purchase and your wholesale sales force? Are both working together to deliver the ROI that they are capable of ?

For further information call 01296 711011 or visit www.sales-excel.co.uk

Sales Excel is a combined force of data analysts and sales professionals, fully experienced in identifying sales opportunities within EPOS data and actioning them in a wholesale environment to grow your business.

sales/marketing & brokerage

Father John Kerr and son Michael, who head The JFK Partnership, one of Scotland’s leading food brokerages.

National and Scottish brands The JFK Partnership has responsibility for a strong portfolio of national brands, which are complemented by leading Scottish labels. The company has the sole Scottish brokerage for Compton’s Gravy Salt and the Symington’s range, including Campbell’s, Crosse & Blackwell, Aunt Bessie’s, Ragu and Chicken Tonight. It is also handling the newly launched Elgorriaga biscuit selection, a favourite with holidaymakers in Spain.

‘In the current recession, with food price inflation and margins ever tightening, the fixed cost sales option is a medal winner’ Michael and John Kerr, JFK Partnership For three leading Scottish producers, The JFK Partnership has wider responsibility: Hamlyn’s of Scotland Scottish Porridge Oats and Oatmeal; Nisha Enterprises’ Golden Cross snacks, and Nisha’s nuts and confectionery; and the Scotts Foodservice range of jams and marmalades. Buchanans in Northern Ireland, which produces cereals, pulses and dried fruit, completes the client partnerships. Nisha Enterprises’ acquisition of the Millar brand earlier this year saw the building of a new sweets factory in Livingston.


• Cash & Carry Management • September 2012

This led to the iconic Millar Pan Drops, Mint Imperials and other favourite varieties being launched to what JFK describes as ‘a keenly awaiting market’. Director Michael Kerr, son of founder John, who set up the business 25 years ago, says: “The welcome reappearance of Millar’s sweets has enjoyed the marketing equivalent of a hero’s welcome.” Michael believes that there is no word which better describes the role of the broker in today’s grocery trade than “partnership” and he and his father have taken this as their slogan, operating as an integrated part of each client’s sales team. John believes that the company’s ‘all sectors of Scotland’ coverage of grocery, foodservice, confectionery and specialist retail enables it to develop its clients’ brands to their full potential in a marketplace in which every supplier is finding it increasingly difficult to deliver regular sales coverage at a viable percentage cost of sales. The father and son team told Cash & Carry Management: “In the current recession, with food price inflation and margins ever tightening, the fixed cost sales option is a medal winner.”

For further information: DCS Europe (01789) 208000 The JFK Partnership (01343) 541496 Robinson Young (01284) 766261 SHS Sales & Marketing (01452) 378500 The Whole Sale Company (01296) 711011




Some things are even better together. Caravan and Sweet Charity are merging. Because by joining forces we can help even more grocery people facing hardship. So to help them and the 4,500 people we currently support, let’s all work together. For more information visit www.caravan-charity.org.uk, www.sweetcharity.net or call our dedicated helpline on 08088 02 11 22.

From factory to store we’re your charity. Caravan is the trading name of the National Grocers Benevolent Fund, A Registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England and Wales No 4620683. Sweet Charity is the working name of The Confectioners Benevolent Fund. A Registered Charity Reg. No 1109578 & SCO38665 (Scotland). A company limited by guarantee registered in England and Wales No 5425493.

Profile for Cash & Carry Management

September 2012  

Cash and Carry Management Sept 12

September 2012  

Cash and Carry Management Sept 12

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