One of the biggest gripes from the report seems to be the rising cost of town centre parking.  I have just been into Cirencester and paid £1.30 for an hour’s parking, and whilst there saw three traffic wardens giving people tickets – and Cirencester really isn’t that big!  Pretty short-sighted of the local councils to sting drivers from coming to town centres, which in turn encourages them out to out-of-town shopping centres, leaving shops closing and no longer paying their business rates.  It takes a lot of parking charges to make up the annual business rates for a single site.

I have (as always) been asked frequently over the last few weeks how Christmas is going.  I refuse to answer, saying that we have done our part, the shops are heaving with Christmas stock – the key is the next 10 shopping days to Christmas.  Will it be a good one?  I will let you know in January.

Happy shopping!  And do please boycott the large chains where possible!

All Work, No Play….?

Well it is certainly that time of year for us – we have just had our busiest 8 weeks of the year and everything should start to return to sanity soon, just as the retailers start to have their manic time of year. I have been so busy this is my first blog of November, well that will never do, will it?! Or did I hear you breathing a sigh of relief!

The speciality food world is, I think, undergoing something of a transformation at present with a certain degree of re-positioning going on. There is certainly a more hard-nosed approach being taken by certain players, one of whom is telling some of our existing suppliers that they will only continue to sell their products if they stop supplying us. Of course, that isn’t going down too well at all, with the suppliers or us. There is a fine dividing line here. Clearly from the retailer’s point of view it is important to have a choice and not to be forced to use a certain wholesaler for one product they can’t buy elsewhere. From our point of view as a wholesaler it is far easier to put our energy behind a range or a brand if we know we are the only or at least the preferred wholesaler.

Fortunately, due to our openness we are normally the preferred wholesaler, if not exclusive, as we are offering more partnership to the brand owner or supplier than others. We are back to the discussion a couple of months ago raised by the Fine Food Digest, who did promise to publish my reply to that strange article, but seem to have forgotten to do so. Partnership is most definitely the way forward.

In fact I can see there being a further move towards wholesalers who are happy to offer contact with the producers not less. This is due to a move within farm shops and delicatessens to be a little more careful in recent months with their wage bill. There seems to be a move to reduce staff which means that it is more efficient to deal with a wholesaler who charges the same prices as going direct, as the time spent placing orders, receiving deliveries and paying invoices is far less.

The only other option is to ask too much of your staff, which I have possibly been guilty of recently. In a business that is heavily seasonal this is difficult to avoid though as brining in temporary people sometimes causes more trouble than it is worth. So in effect we are invoicing double normal weeks at present with the same team, as well as trying to put together next year’s range – hence the title of this blog. Part of their reward will be a floating Christmas party on the River Thames next month and I am sure we will let of some steam that night!

Overall how do I think the market is at present? The next few weeks will tell, but I am quietly confident that the nation will eat its way out of the economic downturn. I think retailers will have a good Christmas and 2012 will be much more positive than the last few months have been. Wait and see!

Last weekend I went to Jersey at the invitation of one of our suppliers, La Mare Wine Estate, who make the most fantastic product, Jersey Black Butter, as well as making their own wine and distilling their own brandy! Quite an operation!

Whilst there I took the opportunity of visiting a few customers and a few places that hopefully will be customers. Despite Jersey’s reputation for affluence there was a bit of a feeling of doom and gloom there although it didn’t take long to work out why. Waitrose is relatively new to the island and farm shops and delis were definitely taking a while to get used to their new competitor. Of course, on the mainland, we have been used to this for a while, and I am sure in a short time these places will come fighting back. But they have had things their own way for a while and are currently in the process of re-adjusting.

I do wonder sometimes whether Cotswold Fayre acts as a sourcing company for Waitrose. We search the company and the globe for new innovative products only to find them in Waitrose around 6 months to a year later. Still, the same thing happens with our closest competitors, some of whom rarely seem to have any good ideas of their own, but simply approach all our new suppliers as soon as we launch a new range. It is said that imitation is the best form of flattery, but I am not sure it is to the benefit of small speciality brands to have their products involved in a price-cutting war, as this is what seems to be happening within the speciality wholesale world.

As we seem to have grown a reputation for being the leader in the pack some of our competitors have resorted to desperate tactics. For me, selling is the ability to encourage a retailer to take new ranges of products and re-merchandise their store. It is not just taking an order for the same products they already have and just reducing the price. Yet, of late, this is exactly what our northern cousins and also some distant relatives in East Anglia have been doing. Of course, many customers don’t like this strategy at all, and remain loyal to us. However, in these difficult times, being offered silly discounts is too tempting for some.

Whilst in many ways they are powerless to intervene, it is my view that the producers and brand-owners should take a closer look at this, as there is damage being done to some brands which are now being treated as a commodity rather than a brand that needs nurturing, tastings and further activity in order to develop a following. Working on tiny margins makes these things impossible for the wholesaler to organise, so it is really the consumer that is missing out.

It also makes me wonder whether we will see more wholesalers go out of business in the coming months which is generally what happens when companies chase turnover at the cost of margin.

Have a profitable week’s trading!

This time last week I was at what is known as the biggest food show in the world – and certainly if the number of visitors was anything to go by it seemed to live up to its billing. I have never been in a football crowd type jam to get into a food show, and this on a Sunday morning. There were even ticket touts outside the door!

In previous years I have baulked at the idea of a second trip in a year to Cologne (always going to ISM in January) as it is generally an uninspiring and exploitative place, with hotel rates being quadruple the normal simply to fleece those attending the show. However, this year I felt I should go and wasn’t disappointed. I had useful meetings with a number of existing suppliers it was a good use of time, but not only that seeing the innovation in the food sector throughout the world at one event was inspiring. Also to see what other wholesalers were doing in France and Germany made me realise what a long way we have to go at Cotswold Fayre.

Coming back to the UK after a feverish time in Germany I was greeted on the news with the record unemployment figures – more people are out of work now since 1994. Throughout this recession I have constantly said our sector has not been affected – indeed at Cotswold Fayre we seem to have benefitted, always being 20% or more up each quarter on the previous year’s equivalent. I have noticed in the last couple of months a few signs that we are beginning to feel the pinch. Not really in turnover levels – although the last quarter showed less than 20% growth, but in two areas – payment and penny-pinching!

Our customers are taking longer than ever to pay, and the excuses to not pay seem to be getting worse. Our average payment time is 5 days longer than a year ago and 10 days longer than 2 years go. In a business of our size that makes a massive difference. Our suppliers are being less flexible than ever and our customers slower to pay than ever. It’s not a good combination and I know most of us in the sector are experiencing the same. There is no real excuse for retailers to pay at 75 days when they have money in their till when the customer buys something rather than having to invoice them and wait. It is time there was a more united front and we spoke out against late payers.

Secondly I have noticed more customers ringing and asking for credits for the tiniest things. Until recently if there was a broken packet of biscuits within a case the retailer opened the packet and used them for tastings for their customer’s benefit. And some good retailers will still do this. However we have found recently credits being requested for the most ridiculous things. We recently had a customer refusing to pay their monthly account of over £750 because they were still waiting for a 61p credit! Surely the time they spent on this 61p was worth more than 61p – if not we are all in trouble!

Another Cotswold Fayre Connect event this week – in Oxfordshire, where we are pleased to welcome customers from that area to a tour of Wessex Mill, and to a talk on using social media to benefit their business. If I don’t’ see you there, have a good week.

Since my first foray into the confectionery market ten years ago, the sector has changed remarkably, particularly in the UK. There is a huge variety of both sweet and chocolate brands and the market has increased in sophistication beyond belief. The number of artisan chocolate brands, for example in the south of England has gone from one or two to more than ten within the last 10 years. From a country that used to import most of its chocolate products this is encouraging. When I was a kid it had to be Swiss or Belgian chocolate, now it is almost more special to buy a loved one chocolates from the UK.

I remember well my first visit to ISM in Cologne and being amazed at the variety of confectionery on offer from Europe, whilst virtually the only busy stand on the UK Pavilion was one selling bras and knickers made of refreshers! I am pleased to say that the UK seems to have made strides in a more positive direction in innovation and sophistication with the confectionery sector!!

A few years ago artisan producers started introducing more unusual flavours into chocolate whether in bars, novelty shapes or Easter eggs. We saw the arrival of vanilla, chilli, cardamom, and even salt and pepper. These products and flavours are still around, and more are emerging. Possibly some but manufacturers are maybe trying just a bit too hard, but this partly comes from the market almost reaching saturation point and some manufacturers have to produce something different to stand out from the crowd. Having said all that, the quality of some of these chocolate bars is far higher than it was only a few years ago, and on a personal note, I just love the kick from the chilli after I have enjoyed a mouthful of chocolate.

Another of the fastest growing trends in recent years, almost reaching exponential proportions has been the growth in retro sweets. Hope and Greenwood pioneered this trend, and have since been followed by several lower priced copy-cat brands. However these newer brands sometimes miss the charm, fun and playfulness that Mr Greenwood and Miss Hope bring to the retro sweet market. It is not just about the products, such as flying saucers, sherbet dips and lover hearts, but the way they are presented and the story behind the products.

However, many of these retro products are still using E number and artificial colours in their products whilst the market in our sector is demanding sweets that are free from artificial flavours and colours. Even though the colours aren’t quite as vivid, it is essential that these manufacturers move with the times if this trend is going to continue growing.

The premium trend is more recent and there’s been a huge increase in awareness of what constitutes quality confectionery, and an increase in the supply base too. David Hill, MD of Confectionery Sales & Marketing Consultancy, Cocoda Ltd says “It’s as if the bar has been raised so that brands like Lindt or Green & Blacks, which were considered premium and even exclusive 10 years ago, have since become the entry point for premium.” Hill says, “While these will always be terrific products and brands, over this period, there has been an explosion in awareness and brands at a higher level such as Hotel Chocolat, Chocca Mocca, James, up to and including brands like Paul A Young, l’Artisan du Chocolat and Melt”

Some customers are now happy to pay over £3 for a 75-100g bar of chocolate whereas the most anyone would pay a few years ago was around £1.50 - £2.00. I have been approached by many producers of chocolate bars within the last year and there is a danger of proliferation without generating the volumes needed to run a successful business. It is important to distinguish between truly artisan products here and branding companies that are simply putting their own design on chocolate bars that are all produced in the same factory in Italy or Switzerland.

Finally let’s consider the ‘ethical’ trend that seems to cover the greatest spread of USPs. David Hill again, “These are much ‘softer’ and tactile cues. Organic, fair trade, provenance, single estate all lie within this category”. There are many examples covering these trends; Summerdown Mint has an unrivalled provenance story and Prestat’s support of the ESOKO scheme are just 2 examples, but it is wrong to assume this is only relevant to chocolate confectionery. The Natural Candy Shop range is entirely free from artificial flavours, colourings and preservatives and a new sugar confectionery range called ‘Jealous’ which says “everything from Happy Birthday, to I Love you, Happy Diwali, Hanukkah and Eid” addresses the ethical needs of many consumers.

So, clearly, it is important to stock products that exhibit one or preferably more than one of the trends talked about here. If I have one tip it would be to ensure that you include some brands that have some degree of marketing behind them that will drive some volume, as well as the brands that customers may not have heard of, but will buy on appearance and interest.