NEWS

NEWS Supermarket counter closures a ‘golden opportunity’ for independent retailers

By Greg Pitcher

Retailers have urged independent food businesses to make the most of their service areas after Tesco announced the closure of 317 of its staffed counters.

The supermarket giant blamed falling customer demand for its decision to remove meat, fish and hot snack kiosks from stores around the country.

It is the latest in a series of similar announcements by large retailers. Sainsbury’s announced in late 2020 that it would not reopen the in-store cheese, cooked meat and nibble counters it closed at the start of the pandemic.

Data from retail insight specialist IGD showed that just 6% of shoppers used an in-store counter in the last quarter of 2021 compared to 9% in the previous three months.

Steven Salamon, owner of Wally’s Delicatessen &

Counters like those at Wally’s are a valuable point of difference

Kaffeehaus in Cardiff, said it could be “very tempting” for smaller retailers to copy some of the larger chains and remove service spaces.

“You could cut down on staff and just have someone on a till,” he said. “But then you are no different to a supermarket.

“The fact we have served counters with goodquality personal service is why people come to an independent.”

Supermarkets often did a poor job with their deli counters, Salamon added, and fine food retailers should focus on presentation and training workers.

“You need staff who remember a customer’s name, preferences and can have a nice chat while understanding the balance when there is a queue of people.”

Antonio Picciuto, owner of Buongiorno Italia in Hertfordshire, said he always made a point to his team that customers had a choice of supermarkets available. “When a client walks into a deli they usually want to be served, inspired, stimulated and presented with choices and opportunities to try something new or of higher quality,” he added.

“Smaller retailers should be looking at their deli counters and thinking ‘how much more quality fresh produce can I put in there? This is a golden opportunity for all in the independent fine food sector.”

Nick Gladding, senior UK retail analyst at IGD, said the pandemic had accelerated a long-term decline in customer use of in-store counters.

“Improvements to the quality and merchandising of pre-packed deli lines means that fewer shoppers see the need to use a counter,” he added.

“At the same time, the expense of running counters, combined with the need to reduce costs to be more competitive, is prompting more large retailers to close them.”

Prince Charles in good spirits as he visits Kent whisky distillery

HRH The Prince of Wales paid a visit to Copper Rivet Distillery in Kent, following an official visit to the nearby Historic Dockyard in Chatham.

Famously a whisky connoisseur, Prince Charles was intrigued by the distillery’s three Masthouse Whiskies, made with Kentish grains grown by local farmers Ryan McCormack and Dale Burden; but, in addition to these exciting English Whiskies, it was the distillery’s commitment to architectural restoration, urban regeneration and to the agricultural community which caught the Prince’s eye.

During his distillery tour, The Prince of Wales set to work as he hammered in the bung for a Masthouse Grain Whisky cask, which the family have offered his Royal Highness as a gift when the whisky comes of age.

copperrivetdistillery.com

Sourced Market closes after going into liquidation

Sourced Market has ceased trading and has been placed into liquidation by its directors, with all three of its remaining retail sites now closed.

The retailer and food-to-go specialist had its flagship outlet at London’s St Pancras railway station, as well as branches at the Leeds Skelton and Cobham motorway service areas, and is understood to have been impacted heavily by a lack of footfall at transport hubs during the pandemic.

An email sent to suppliers, seen by FFD, confirmed that insolvency practitioner Begbies Traynor would be handling a Creditors’ Voluntary Liquidation and that all creditors would be contacted in due course about making a claim.

One producer said that orders had been dwindling in the run-up to the announcement.

They added: “It’s the location of their sites, like at St Pancras, that’s been their downfall with COVID. I know I haven’t been on a train much in the last 18 months.”

Sourced Market had already closed its other sites near Victoria station and in the Barbican area of the Capital.

As FFD went to press, Begbies Traynor had not responded to a request for further comments.

WHAT THEY ARE SAYING ABOUT... TESCO DELI COUNTER CLOSURES

ANTONIO PICCIUTO

BUONGIORNO ITALIA

“This is a golden opportunity for all in the independent fine food sector. A deli counter is our biggest asset and the area of our business where we can differentiate the most from the supermarkets. If we had more room we would be investing in a bigger deli counter.”

“It is brilliant news for indies. Served counters with goodquality service is why people come to an independent. Discerning shoppers who want to be served with unusual products have to come to the delis more. It is a fantastic opportunity. The move may be because customers are now shopping with independents.”

“We don’t see food counters coming to an end – they are just evolving to meet changing shopper needs. For smaller retailers serving more affluent catchments, counters could remain an opportunity. For farm shops, counters should still have a positive future.”

STEVEN SALAMON WALLY’S DELI & KAFFEEHAUS

NICK GLADDING IGD

NEWS Price increases and fewer restrictions may put pressure on fine food sector

By Greg Pitcher

Fine food retailers face pressure to increase their prices at a time when their customers have less money and an increasing range of places to spend it.

Data published by the British Retail Consortium showed that food inflation hit its highest rate for more than eight years in January as supply issues started to bite.

Businesses and householders across the UK are braced for a cost-ofliving crisis this spring as taxes, energy and fuel prices and many other bills soar.

Jennie Allen, owner of West London-based deli group Bayley & Sage, said around a third of her suppliers had mooted price increases recently.

“The highest suggested was 10% – they got told no,” she said. “The average is more like 4 - 5 %.

“People are saying they haven’t put their prices

Retailers are under pressure to increase prices

up for two years and they are also hedging their bets against a future of higher labour, distribution and raw-ingredient costs.”

Bayley & Sage will accept a level of increased cost in certain cases while arguing that this should be mitigated by higher volumes and a shifted exchange rate, Allen said.

After two years of keeping its prices stable, the retailer will have to push them up in some areas but Allen is more concerned about increased competition for custom as restrictions fade away after the pandemic.

“People might change their shopping habits but lifestyle will affect us more than prices. We see customers eating out more and going on holidays.”

Andy Swinscoe, coowner of the Courtyard Dairy, said the Lancashire business had been hit with a “flurry” of price increases in recent months.

“We have seen a lot of our suppliers’ prices go up,” he said. “Pretty much every cheese we have has gone up in cost over the past six months.”

The Courtyard Dairy tries to make logistical efficiencies and juggle its costs but ultimately it seeks to maintain its cash margin on a product, so prices for end consumers are rising.

“Our market is quite diverse,” said Swinscoe. “The local community is more price conscious than our tourist trade.

“For those to who we are a one-off treat, I think it will become more challenging if prices keep rising.”

The changing nature of the pandemic also put pressure on demand for fine cheese, Swinscoe added.

“A year ago people were very restricted in where they could spend their disposable income. Now we are competing with people eating out or going to the cinema.”

IN BRIEF

Following the news that this year’s Veganuary was the most popular yet, wholesaler Cotswold Fayre is now offering 300 plant-based SKUs, double the number available in 2021. “Plant-based is now mainstream,” said chilled buyer Ellie Gunn.

cotswold-fayre.co.uk

According to research from NFU Mutual, 90% of visitors to farm shops during the festive period said the biggest draw was the friendly service they receive.

nfumutual.co.uk

Asda workers are moving closer to strike action after the GMB union reported that 70% of staff rejected the supermarket’s latest pay offer.

asda.com

‘Use known value items to influence pricing strategy’

The British Independent Retailers Association said price rises represented a “real problem” for shops this year.

“As well as supply chain inflation we are seeing other overheads such as energy and labour increase significantly,” said chief executive Andrew Goodacre.

“Retailers will have to pass on some of these costs but there is only so much the consumer will pay, especially as shoppers are also facing an economic challenge.”

He encouraged retailers to use small, regular increases to prices rather than passing on the occasional hikes they receive from contracted suppliers in one hit.

“Be aware of known value items (KVIs),” added Goodacre.“These are often the more popular items sold and are often used as a benchmark in the eyes of customers.

“For supermarkets, these items are milk and bread, which is why you will see little inflation on these products.”

He conceded that it was harder for independent retailers to identify clear KVIs but said they needed to do their homework to create a pricing strategy that “reflects increased costs while still looking like good value to the customers”.

Goodacre added that the level of inflation expected this year was higher than that which many retailers will have ever experienced.

International Food & Drink Event returns to Capital

IFE (the International Food & Drink Event) returns to London’s ExCeL on 21st-23rd March.

Over three days, IFE will welcome 30,000 industry professionals to sample the latest products, develop their knowledge on the trends affecting the food and drink sector and network face-to-face with suppliers.

The show runs alongside three other food & drink industry events – IFE Manufacturing, The London Produce Show and Hotel, Restaurant & Catering – together showcasing more than 1,500 suppliers.

New for 2022’s event is a dedicated Vegan & Plant-Based area, reflecting the huge growth of the sector. Additionally, representatives from the Department for International Trade will be on hand to provide guidance on export.

At The Certification Clinic, food & drink brands can receive oneon-one, personalised advice on how to apply for a number of recognised certification schemes.

Those interested in attending can register for a free visitor pass on the IFE website: ife.co.uk

Great Business Opportunity

Popular online retail business ‘The West Country Cheese Co’ goes up for sale Are you looking to invest in an established and successful business in the increasingly profitable cheese industry? ‘The West Country Cheese Co’, known for its show-stopping cheese wedding ‘cakes’, as well as a variety of celebration cakes, gifts, hampers, and even a cheese subscription service. The business has been so successful the husband and wife team have never needed to advertise. They have always been dedicated to exceptional customer service, with hundreds of positive reviews, most of them calling out the team’s dedication and attention to detail. As such, they have a projected turnover this year of £350k with exceptional net profit figures. The West Country Cheese Co is currently valued in the region of £200k. The couple are also willing to consider alternative ways of purchasing for the right candidate if unable to pay the upfront cost, such as an initial deposit payment and monthly repayments. Anybody interested in this fabulous business opportunity should call 01271 379944 or email debbie@westcountrycheese.co.uk for further information.

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NEWS Organic market sees strong growth in indies despite challenging conditions

By Tom Dale

In a year in which FCMG businesses had to deal with the impact of the pandemic, Brexit, supply chain issues and labour shortages, the organic sector continued to grow, with the market breaching the £3bn mark in the UK.

In its tenth consecutive year of growth, the organic market grew nearly four times as much in independents than in supermarkets between 2020 and 2021, according to research by Soil Association Certification.

In the group’s Organic Market Report 2022, it announced that sales of organic products in independents grew 9% (£36.9m) during 2021, from a total market of £409.8m in 2020 to £446.7m.

Meanwhile, in the multiples, sales of organic goods grew 2.4%, while the

ORGANIC MARKET GREW BY IN INDIES 9%

overall organic market in the UK grew 5.2%.

The report also revealed that the pandemic had varied effects on sales of organic products in independent retail.

“Sales in some citycentre retailers have been negatively affected by more people working from home,” said Soil Association Certification business development director Clare McDermott.

However, reduced visits to restaurants during the pandemic led to increased sales of organic wine in independent retail – particularly Malbecs and Proseccos.

Independent retailers who responded to the Soil Association Certification’s survey reported that sales of fresh and chilled organic products – including fruit & veg, dairy, eggs and meat – saw the strongest growth. This is reflected in the overall report as the only product category that saw sales shrink was ambient grocery.

Confirming this trend, wholesaler Cotswold Fayre has seen increased interest in organic products, particularly in chilled.

Ellie Gunn, chilled buyer at Cotswold Fayre said: “We have increased the number of organic chilled lines that we offer by almost 10%.”

Anecdotally, retailers reported that these trends were driven by “younger customers coming into independent stores looking for organic options because they want to eat healthily,” said the report.

The report also stated that the predominant reasons for consumers choosing to buy organic are health and environmental concerns.

The growth of this consumer group is behind independent retailers’ prediction that the sector will continue to grow in their stores by 6% in 2022, as reported by Soil Association Certification.

However, retailers are concerned about availability of organic products, supply chains and the effect inflation may have on sales, said the report.

IN BRIEF

Waitrose has scrapped its offer of free newspapers for loyalty card holders in the latest example of supermarkets cutting costs amid surging inflation. The change caused outrage among some shoppers.

waitrose.com

Owner of Kent Crisps, Laura Bounds has been awarded an MBE, for Services to International Trade as part of the Queen’s New Year’s Honours list.

kentcrisps.com

The Co-op’s food boss Jo Whitfield is set to take a break from the business for four months later this year in order to “support her family”. Whitfield will stand aside in May, with group chief executive Steve Murrells taking over.

Popular deli set for expansion DOWN ON THE FARM The latest from farm shops across the country

Hampshire deli and bistro Thyme & Tides is set to open a second site over the county border in Wiltshire.

The Stockbridgebased business – under the stewardship of Iain Hemming – has been seeking a new location for some time and has found it in a roadside site in Firsdown, Wiltshire, just off the busy A30.

The new store will comprise 40 inside café covers, 1,000 sq ft of retail space, 50 car parking spaces and a half-acre of landscaped green space, giving plenty of outside seating.

Aiming to cater for the local population, the store will be open from 7am7pm, seven days a week.

thymeandtidesdeli.co.uk

Sky Park Farm recently opened a farm shop on its deer farm in West Harting, West Sussex, offering a range of local and seasonal produce, with Made in Our Kitchen frozen meals and its own venison on the butchery counter.

The operation is home to Observation Beehive where visitors can watch bees making honey.

There is also a milk station with fresh cows’ or oat milk where customers can fill their own bottles and The Grazing Rooms restaurant, offering seasonally inspired quality modern British cuisine.

skyparkfarm.com

An old barn at the Wyland Angling Centre near Battle in East Sussex has been converted into a farm shop with further expansion planned for early this year, adding a gift & gardening section and a waterside café – expected in the spring.

Wylands Farm Shop

offers a large variety of local farm produce, including fresh vegetables, game and meat, beer, wine and cider, as well as jams, chutney and eggs.

Fresh bread is delivered

Sky Park Farm

to the site daily.

facebook.com/wylandsfarm-shop

Field of Dreams farm shop in Suffolk has moved to nearby Woolpit so the farm can focus on producing food and providing workshops to benefit the mental health of various groups in the area.

Anyone struggling with their mental health can go along for support through activities on the farm like animal care and growing vegetables.

The polytunnel where the shop used to be is now a therapy area for relaxation, mindfulness and arts and crafts.

fieldofdreamsfarm.co.uk

The Isle of Wight

Farm Shop in Godshill, previously owned by the Brownrigg family – now retired, has recently been taken over by two Island farmers, Andrew Hodgson and Phillip Morris, who are keen to build on the success of their predecessors as well as introducing new lines.

It reopened its doors at the beginning of January

brownriggfarm meats.co.uk

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