Transcript presentation Sherrifs Foods

DISTRIBUTION OF BRANDS &
PRIVATE LABEL IN THE UK
- A Suppliers View Simon Jones
Sherriffs Foods, UK
3rd June 2014
NEXT 20 minutes……..
“A view on branded and private label distribution into the UK. Focusing on how both can
work together, the varying levels of complexity, requirements of the retailers and some
views on how to make it work”
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Not Just Free From – The marketplace is changing
Pricing - Structures and Pressures
Trust - Technical and Sourcing
Supply - Logistics and Distribution
• Sales, Marketing & Distribution company based in the UK
• Over 30 years experience as a management team in the Free From market
• A business model which allows access across varying levels and departments of the
UK retailers for brand and private label products
HAVING A MODEL WHICH BRINGS TOGETHER BRANDS & PRIVATE
LABEL ALLOWS A FULL CATEGORY DIALOGUE WITH THE RETAILER
OUR BRAND
PARTNER
RETAILER
THE ROLE OF BRANDS & PRIVATE LABEL CONTINUE TO WORK TOGETHER ACROSS THE
FREE FROM CATEGORY.
HOWEVER THERE ARE SOME KEY AREAS THAT SUPPLIERS WILL NEED TO TAKE NOTE AS
THE CATEGORY DEVELOPS AND MATURES IN THE UK. RETAILERS ARE TAKING NOTE,
AND THIS MEANS THAT TO BE SUCCCESFULL REGARDLESS OF BRAND OR PRIVATE
LABEL THERE ARE SOME KEY CONSIDERATIONS
ONE OF THE REASONS………………….
46%
UK Retail sales 2008 to 2017 (Forecast)
561
512
469
425
£ million
61%
385
278
213
308
342
229
2017
2008
Source: Mintel
HOWEVER JUST BY ADDING “FREE FROM” DOESN’T MEAN
IT WILL BE SUCCESFUL. THE RETAILER (& CONSUMER)
WANTS MORE………
THE BASICS
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PRICE
TASTE
QUALITY
PACKAGING
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*Not just for on Shelf*
COMMUNICATION ON PACK
FREE FROM PLUS +
• LOW SUGAR
• LOW FAT
• FREE FROM
• DAIRY
• SUGAR
• ORGANIC
• LESS THAN 5ppm
HAS IRELAND STOLEN A MARCH, AND LEADING THE WAY?
STORE WITHIN STORE - FOCUSING ON HEALTH, WELLBEING &
DIETARY REQUIREMENTS
THE FIXTURE WILL CHANGE - GO BACK 3 YEARS ON WORLD FOODS
AND NOW LOOK……
3 YEARS AGO TESCO TRIALED A
WORLD FOODS AISLE IN 50 OF ITS
LARGEST STORES
TODAY “WORLD FOODS” HAVE A
POSITION IN ALL 500 TESCO
EXTRA OVER TWO AISLES
EACH OF THE UK LARGEST
RETAILERS HAVE A WORLD FOODS
AISLE AND THE CATEGORY
CONTINUES TO GROW & EXPAND
THIS WEEK TESCO LAUNCHES ITS
HEALTH ZONE A 16 WEEK TRIAL
ACROSS 16 BAYS IN 100 OF ITS
LARGEST STORES - A SIMILAR
STORY TO 3 YEARS AGO????
PRICING – AS THE CONSUMER DIVERSIFIES THE RETAILERS
ARE NOT JUST LOOKING AT THEIR OWN CATEGORY
£1.50 per item
£2.00 per item
£0.90 per item
As the consumer for Free From
continues to expand retailers are not
just looking to align the products in
their own category but also across
more established categories
£1.20 per item
TRUST – RETAILERS & CONSUMERS REQUIRE TRUST IN THE FREE
FROM CATEGORY – FOR OWN LAEL THE DEMAND CONTINUES TO
INCREASE BUT NOW BRANDS ALSO HAVE TO FOLLOW…
All Free From brand and private label suppliers now as a minimum have to provide an
insight into the validity of the raw material source, manufacturing facility and allergen
control process to secure listings within UK retailers. The process for listings lines is not a
straight forward one…..BEWARE ITS NOT JUST ABOUT PRICE!
SUPPLY – THE UK SUPPLY NETWORK CAN BE A COMPLICATED PROCESS,
PARTICUARLY IN FREE FROM. BE MINDFUL THAT FREE FROM CAN
SOMETIMES FOLLOW A DIFFERENT ROUTE TO MAINSTREAM GROCERY
“ Slow Moving Lines”
Maximising space and supply are top priority for the UK retailer. Free From due to its
current nature of diversified brands/suppliers usually mean there is a separate
distribution warehouse and network that suppliers are “asked” to buy into…
Inevitably this leads to additional costs at Stage 2 & 3. However it can provide an
open and clear view for both the supplier & retailer on Service Levels
Stage 3
Stage1
Stage 2
Stage 4
Stage 5
TASTE, QUALITY,
PACKAGING
FACTOR IN ADDITIONAL
COSTS – TECHNICAL,
AUDITS, TRANSPORT
FREE FROM PLUS+
UNDERSTANDING
VALUE CHAIN
GROWING &
DEVELOPING
CONSUMER BASE
MAINSTREAM
FIXTURE FOCUS
TECHNICAL
FOCUS
PRESSURE ON
PRICING
THANK YOU….
Simon Jones
+44 1327 815 850
[email protected]