NEWS

NEWS ‘Much more to be done’ to ensure food & drink sector survives the pandemic

By Greg Pitcher

Key bodies have called for further support for food retailers who remained open through the winter lockdown but su ered a reduction in income as COVID-19 continued to grip the UK.

Chancellor Rishi Sunak announced an extension of business rate relief and the employee furlough scheme in his March Budget, along with fresh loan guarantees and a ra of other measures (see below).

However, Andrew Goodacre, chief executive of the British Independent Retailers Association, said Sunak should have gone further to recognise the impact of the pandemic on food rms.

Cash grants of up to £18,000 were reserved for companies legally forced to close for the rst three months of this year, while full cancellation of business rate bills will only last until June.

“All of retail has been

Pictures: HM Treasury

Industry bodies have called for greater support for food SMEs

disrupted by COVID-19, said Goodacre. “Either by being closed or from lower-thannormal footfall and spending thousands on implementing safety protocols.

“We are pleased to see the rates holiday extended by three months, but we do have to realise that for many retailers it will take much longer than three months to rebuild their business, replenish their cash reserves and develop consumer con dence.”

Association of Convenience Stores chief executive James Lowman said he “strongly welcomed” the measures in the Budget.

But he added: “There is still much to be done to ensure that the business rates system is both t for purpose and fairer for all in the long term, so we again urge the government to take long-term action on fundamental rates reform.”

He also called for grants to be available to shops that had remained open during the lockdown, saying many essential stores in city centres and other locations had been “severely impacted” by the pandemic.

Frankie Dyer, managing director of Barbakan, said discounted business rates and the extension of the furlough scheme would “massively help” the Manchester deli, which has taken a huge nancial hit from widespread closures of its wholesale customers.

“We sell our own-brand goods to hotels, restaurants and cafes who have all had to shut,” she said. “We have bakers on furlough and fewer vans on the road.”

Dyer added that there was more pain in the future for retailers, with Sunak announcing a corporation tax hike from 19 per cent to 25 per cent by 2023.

Antonio Picciuto, owner of Hertfordshire-based Buongiorno Italia, said he hoped the Budget would see independent rms through a tough period. “Every little helps,” he said. “I’m pleased that the business rate relief has been extended and the discounted rate will be introduced as it will be a great help in these uncertain times.”

Seven things the Budget means for ne food rms

Business rate relief extended

Sunak pledged 100% relief from business rates for eligible retail premises in England from 1 April to 30 June this year. This will be followed by 66% discounts for the next nine months, capped at £105,000 per business for most food firms.

Furlough scheme to continue

The Budget confirmed that the Coronavirus Job Retention Scheme would carry on until September, with employers to start contributing to the cost of subsidising furloughed staff for unworked hours from July.

Further grants for closed businesses

Fresh restart grants of up to £18,000 will be available to companies in England forced to close during the latest lockdown. Detail on whether hybrid firms which closed parts of their businesses would be eligible for the cash was awaited as FFD went to press.

New loan guarantees

To prompt new lending, from 6th April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans of up to £10 million to UK firms.

Sick pay rebate extended

Small and medium-sized employers across the UK will continue to be able to reclaim up to two weeks of eligible costs for employee statutory sick pay until further notice.

Staggered VAT payments

Businesses that deferred VAT payments during the first lockdown can use a new scheme to make payments in 11 instalments rather than a one-off hit as initially planned.

Tax relief on investment

For two years from 1st April, companies investing in qualifying new plant and machinery are able to claim a “super-deduction” capital allowance that could slash their tax bill by 25p for every £1 spent.

WHAT THEY ARE SAYING ABOUT... THE SPRING BUDGET

ANTONIO PICCIUTO,

BUONGIORNO

ITALIA

I really hope what the chancellor has put in place for small businesses will be enough for survival for those hardest hit. I really believe we have to get to this time next year before there is any certainty that we, as a nation, have come through this.

I am confident our wholesale business will pick up when hospitality opens – our customers can’t wait to open and the public can’t wait to go for a meal. We have moved to local suppliers because of Brexit and I think people will not be travelling this summer and they’ll be supporting local shops.

The upcoming review of business rates will be crucial in shaping economic recovery from COVID-19, and we have long argued for the system to be designed to promote and reward investment. It is therefore encouraging to see the chancellor sharing our focus on promoting investment through his announcement of the new super deduction.

FRANKIE DYER,

MANAGING

DIRECTOR,

BARBAKAN

JAMES LOWMAN,

ACS CHIEF

EXECUTIVE

NEWS Amazon’s bricks-and-mortar venture ‘not a threat to independent retail’

By Greg Pitcher

Amazon has opened a futuristic food shop in west London o ering deli-style products that customers can choose from the shelves and immediately walk out with.

The online behemoth launched its rst UK bricks-and-mortar Amazon Fresh store on Ealing Broadway, o ering the public the chance to shop for groceries without the need to use checkouts.

Instead, customers download an app onto their smartphones and scan it as they enter the 225m2 shop, and are automatically billed for any products they leave with.

The concept uses cutting-edge technology such as computer vision, sensor fusion and deep learning to detect when products are taken from or returned to the shelves.

Lines include cured meats, deli meats and cheeses across a range of brands that will be available to shop for 16 hours a day, seven days a week.

As well as branded products, the Ealing store stocks Amazon’s own range of goods including meat, poultry, sh, dairy, fruit, vegetables, bakery, freshly prepared meals, hot food, grab-and-go snacks and everyday essentials.

Amazon already operates a number of grocery stores in the US and said it had plans to open further outlets in Greater London.

But Charlie Turnbull – founder of online food marketplace Delishops –said independents had little to fear from Amazon’s foray into food shops.

“I don’t think it will a ect the indies that much,” he said. “It is one more competitor in the already price-competitive multiples sector, which has always been chalk to our cheese.

“Even if they make a go of it, they would have to buy and rebrand one of the big multiples to scale up quickly. Scaling in bricks is a lot slower than scaling in clicks.”

Turnbull said he thought opening a physical store was a strange move from a company that has made its fortune from internet orders. “It’s a weird step for them to take,” he said. “Everyone else is going online, Amazon is coming o ine.

“Plus it is less convenient than their existing o er of order online and it’s with you within 24 hours without leaving your home.”

He added that ne food producers were increasingly looking to place their products with Amazon as online shopping grew in popularity during the pandemic.

“Every producer we are speaking to with an online channel is building sales up,” he said. “For many, it has been a lifeline. They are also looking to get onto Amazon. Up to last March, Amazon was a dirty word to some people.

“Online universal access is what will make our sector more buoyant – and it will encourage more people to explore their local farm shop or deli.”

Amazon’s new physical retail store uses AI to track purchases

IN BRIEF Food hall wins big at awards

Walter Smith Fine Foods

has announced theThe Farm Stratford closure of three storeswas the big winner at in the Midlands. Thethis year’s Farm Retail butcher chain revealedAwards. over Christmas that itsThe Warwickshire Denby Village, Westfood hall took both Bromwich and CoventrySmall Farm Shop of the shops would stop trading,Year and Café of the leaving it with 11 outlets –Year for its restaurant, many of which are withinNourish at The Farm. garden centres.The success follows up on its FRA 2020 Rising Star award. Tracklements hasThis year the gong hired Ben Hallam forfor up-and-coming farm the role of commercialretailers was won by manager, which includesYork-based Minskip identifying new marketFarm Shop. opportunities. HallamLarge Farm Shop of joins the Wiltshire-based the Year was awarded condiment specialist afterto Calcott Hall in Essex, 11 years at dairy firm Yeo while Hampshire Valley. Farmers Market saw success in the Farmers Market of the Year Health food retailercategory. Planet Organic hasStuart Beare, of moved into the hot foodTulleys Farm in West delivery market andSussex, who revived his teamed up with high-endbusiness’s retail offer as service Supper, whichthe pandemic hit last will courier a selectionyear, was handed the of to-go items and sushiLifetime Achievement from two Central LondonAward for his quickstores. thinking pivoting.

Former Waitrose grocery chief takes over role at Fortnum’s

Fortnum & Mason has named former Waitrose food and grocery director Rupert Thomas as its chief commercial o cer.

Thomas is set to lead buying, merchandising and international teams at the luxury retailer from April, taking over from the outgoing commercial director Lucy Williams.

Thomas added: “I’m hugely excited to be joining the Fortnum & Mason family. An iconic British brand, it continues to distinguish itself around the globe with outstanding quality products and exceptional levels of service. It is going to be an important year for the retail and hospitality sectors, and I’m relishing the opportunity of working with the Fortnum’s team to help drive the next phase of growth and innovation.”

In joining Fortnum’s Thomas is following in the footsteps of former Waitrose CFO Tom Athron, who took over from Ewan Venters as F&M CEO last December.

Athron said: “Rupert is a wonderful t with this ambition: a highly experienced and inspirational business leader, he has a great track record of driving growth that is underpinned by a passion for premium brands, bold innovation, and an ability to create unique customer experiences.”

The new CCO le the John Lewis-owned supermarket a er 17 years in January following a shake-up of the leadership team by boss James Bailey.

Cress Co set to expand to keep up with demand

Dunfermline-based The Cress Company is set to create 60 jobs as the fine food distributor expands into a new depot.

Due to continued sales growth in 2020, the Scottish brand’s expansion into the new 78,000sq ft warehouse space will help service its “rapidly increasing customer base”.

Managing Director of Cress Co, Joe Wall believes Cress Co’s growth has been accelerated by the “increased demand for local food and drink and food with more traceability”.

Head Buyer at Cress Co Nikki Castley said: “Demand was coming from new and existing retail customers for more items and that was being driven by customers going to them rather than supermarkets.

“In a strange way, COVID has brought awareness to independent retailers.”

The distributor’s new premises are set to be operational from May, will house its new fleet of dual temperature vans and has capacity for 5,500 pallets of stock.

The Cress Co’s Nikki Castley and Joe Wall

Welsh farmers have known for generations that if you look after the environment, the environment will look after you. That’s the secret behind centuries of sustainable farming practices that have made Wales a producer of high quality lamb and beef.

Compared with some of the intensive systems found in other parts of the world, the ‘Welsh Way’ of farming has a very different story to tell. With high standards of animal husbandry and pasture land management, our family-run farms have helped preserve our unique landscape for generations.

Our farmers work hard to produce lamb and beef of the highest quality. Every animal is fully traceable, and processors are regularly audited.

So you can be confident that if it says PGI Welsh Lamb and PGI Welsh Beef, that’s what you’ll get, with all the quality, passion, and commitment to sustainability that goes with it.

NEWS Sector remains positive despite sharp drop in exports to the Continent a er Brexit

By Tom Dale

Despite delays and some loss of trade, independent food producers and distributors are remaining positive about the future, due to strong existing trade links with the EU and growth at home.

With some businesses largely ceasing trade with the EU, the ONS reporting a £700m drop in food and animal exports to Europe in January, and almost universal interruptions in distribution being reported, businesses speaking with FFD remain sanguine about the future.

Lake District-based Hawkshead Relish exports widely around the world and, while the company has experienced some delays and extra charges, their business with the EU has continued relatively uninterrupted.

“In terms of exports, we’re roughly the same as the same period last year,” said Jonathan Robb, general manager at Hawkshead.

£700m

drop in food exports to EU

Robb said the awardwinning preserve maker exports large volumes to Sweden, including a range of products under a Swedish brand, and these have continued. “There seems to be a bit of tax wrangling and customs charges that the customer has had plonked on them, but they don’t seem too worried about it, so we’re not. They’re shouldering the cost at the moment.”

Distributor Cotswold Fayre lost a large tranche of its trade to Ireland due to the UK leaving the EU, with one customer importing chilled goods cancelling its contract in December and other trade deemed unviable due to “prohibitive” administration costs. Managing Director Paul Hargreaves said that the loss of most of its Irish export market is being more than absorbed by strong growth in the UK. “Ireland was quite a small percentage of our total, and growth on the mainland has been so high that it’s not a huge issue,” he said.

The uptick in domestic sales has meant its suppliers will not have noticed any change in demand from the distributor, said the MD.

However, some producers are ceasing trading with the EU altogether due to the complications with deliveries and the extra administrative burden borne by exporters. One independent British sauce producer who wished not to be named told FFD that before the referendum, the brand had built up a good volume of sales to the EU representing around 12% of its total turnover, but that had dropped to around 7% by the end of 2020 and has now plummeted to 2%.

“Shipping mixed-pallet orders of £1,000-£,2000 is no longer viable for any food producer,” said the anonymous source. “The e ort and paperwork associated with what business we have kept make it unviable and we expect to lose it all in April a er the rule tightening.”

Robb said that, while the mood at Hawkshead is optimistic about the future of trading with the EU, the tougher conditions make attracting new customers di cult and visits to foreign trade shows less appealing.

IN BRIEF

Walter Smith Fine Foods A new food hall and has announced the wine bar could soon closure of three stores be opening in a former in the Midlands. The fire station in Worcester. butcher chain revealed According to Worcester over Christmas that its News, the owner of the Denby Village, West city’s Bottles wine bar is Bromwich and Coventry behind the development, shops would stop trading, which will also include leaving it with 11 outlets – luxury apartments. many of which are within garden centres. Tracklements has hired Ben Hallam for the role of commercial manager, which includes identifying new market opportunities. Hallam joins the Wiltshire-based condiment specialist after 11 years at dairy firm Yeo Valley. Health food retailer Planet Organic has moved into the hot food delivery market and teamed up with high-end service Supper, which will courier a selection of to-go items and sushi from two Central London stores.

Distributor RH Amar is adding a number of new positions to its sales and marketing teams, as it embarks on a new threeyear growth strategy. It has extended the remits of channel controller Karen Jones and brand controller Sam Higgins and hired Jenny Shipton as marketing controller. The UK has topped a new European Junk Food League Table, complied by meal box specialist HelloFresh. After surveying more than 15,000 people in nine countries across Europe, the company found that Brits eat junk food six times per month on average, twice as much as the European average.

Deal set to take Cotswold global DOWN ON THE FARM The latest from farm shops across the country

Cotswold Fayre has begun a partnership with a leading exporter of British produce.

The distributor will be supplying Ramsden International with selected lines from its 4,000-strong range of speciality food and drink products. The awardwinning exporter ships to 133 countries worldwide.

Paul Hargreaves, CEO of Cotswold Fayre, said: “This partnership is great news for us, and you could say, a marriage made in heaven! While we have done a small amount of export business over the years, it makes complete business sense to partner up with an industryleading exporter like Ramsden International – and we’re excited to get started. Food hall Macknade is launching a new food village to offer a street food-style experience. Offering pizzas, light lunches and drinks every day and acting as a hub for independent food businesses Thurday to Sunday, the venture will include Indian cuisine from Karara, CalifornianMexican street food by California Cravings and a fusion menu from Silver Birch Fine Foods.

macknade.com

The Middlewick in Glastonbury is not just a farm shop producing and selling its own, locally sourced, and organic products, but it’s now a space to unwind.

Holiday bookings are now being taken for The Middlewick’s range of accommodation, which includes cottages and glamping cabins. Or you can relax with a ‘spa & stay’ or detox retreat weekend and be pampered in the business’s new shepherd hut spa treatment rooms, set in a meadow garden.

middlewickholiday cottages.co.uk/ middlewick-farm-shop

Macknade Food Village

near Uckfield achieved success with its ‘Buy a Bundle’ scheme, delivering over 350 bundles of asparagus to local hospitals & care homes and it is repeating this with its new ‘Buy a Banger & Support the NHS’ scheme.

Customers can donate whatever monetary value they wish and Brockwell’s will add 25% to the donations made, pack its handmade sausages and deliver them to local hospitals.

southbrockwellsfarm. com

A brand-new Norfolk farm shop has opened its doors.

Located in Lakenheath,

Tina’s Country Kitchen

Farm Shop not only offers delivery but stocks a range of locally sourced fresh fruits, vegetables, meat dishes, breads and crafts and serve a fabulous range of homemade cakes, soups, and sweet treats.

tinascountrykitchen. co.uk

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