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NEWS Sugar tax will hit business but won’t solve health crisis, warn fine food producers
By Greg Pitcher
Fine food producers have warned ministers that a blanket sugar tax could have a major impact on their businesses while failing to tackle health problems.
The Governmentcommissioned National Food Strategy has recommended a £3/kg levy on the sale of sugar for use in processed food as part of a campaign to cut obesity, reduce the burden on the NHS and benefit the environment.
Led by catering businessman Henry Dimbleby, the study said the tax – along with a £6/kg duty on salt – would “encourage producers to reformulate their products”.
“Where products cannot be reformulated, and remain high in sugar and salt, the increased cost might be passed on to the consumer,” said the report. “This would make such products less appealing.”
Emma Macdonald, founder of Devon-based fine food maker The Bay Tree, said there was “a lot of detail to be ironed out” in how the sugar tax would work in practice.
“What would be defined as processed food?” she asked. “There must be an exemption for foods that require sugar or salt for traditionalism and shelf life. Jam does not set without sugar, so you are affecting the dynamics of a product if you cut it out.
“And what will be done with the money raised? Will it be spent on educating kids about the importance of the right diet? If we don’t change eating habits, then the tax will not work.”
Ruby Williams, founder of Worcester-based Ruby’s Fudge, said she would be unable to change her recipes without dramatically altering her products, so would have to pass on the cost to retailers.
“I am a very small food producer,” she said. “Profit margins can be very tight. I fear that if the tax is implemented, it would make it much less appealing to the consumer, resulting in sales dropping.”
She called for policy aimed at tackling obesity to be precisely targeted. “I do understand that the nation’s sugar problem needs to be addressed but it needs to be done so in products with hidden sugars.”
A Defra spokesperson said: “What we eat and drink, and how and where it is made is part of our nation’s story.
“It provides employment opportunities, contributes to economies, shapes the landscapes we all value and creates a sense of local pride and identity, right across the UK.
“The Government is considering the recommendations made in Henry Dimbleby’s review and will respond with a White Paper within six months, setting out our priorities for food systems.”
The proposed tax would replace the current soft drinks industry levy
Acquisition will ‘supercharge’ The EPoS Bureau’s offer to indies
The EPoS Bureau has said its acquisition, by the ClearCourse group, will only serve to improve the company’s offer to existing independent retail customers – as well as allow it to offer services to retailers with a smaller footprint.
Founder Nigel Bogle told FFD that accepting the approach from the London-based group of technology companies was a “no brainer”, given the capabilities it would offer.
He added that he would remain at the helm of the Northern Ireland-based business and it would be continuing to focus on the independent food retail market. It already provides point-of-sale and back-office systems to some 200 farm shops, delis, cheesemongers and butchers.
Bogle said that joining the group means that the company will be able to keep existing customers “ahead of the curve”, and it would also allow The EPoS Bureau to cater to smaller delis that it wouldn’t have previously had systems for.
“ClearCourse has payment systems, loyalty systems, membership schemes and other products and services that we will be able to offer to our clients,” said Bogle. “Being part of ClearCourse will supercharge our business.”
theeposbureau.com clearcoursellp.com
In detail: the sugar tax
l The Government would introduce a £3/kg tax on sugar sold for use in processed foods or restaurants and catering businesses. l This would replace the Soft Drinks Industry Levy. l The tax would apply to all sugar and other ingredients used for sweetening. l It would not apply to sugar used in home cooking. l Imports of processed food would be taxed according to sugar content when they enter the UK. l The taxes would be introduced through primary legislation in the 2024 Finance Bill. l There would be a three-year period before implementation to facilitate adaptation. l A series of measures would ensure that low-income households received financial support to prioritise healthy eating, including an expansion of free school meals. l The estimated reduction in sugar consumption would bring the UK up to 83 per cent closer to a target level of 30g per person per day, said the report. l This would reduce the average calories eaten per person per day by up to 38kcal, which could halt weight gain at a population level, according to the paper.
WHAT THEY ARE SAYING ABOUT... THE IMPACT OF A PROPOSED SUGAR DUTY
EMMA MACDONALD
FOUNDER, THE
BAY TREE
“We can use less sugar in our preserves but it will dramatically alter the product –creating more of a compote than a jam, for example – which will change consumer perception. We could end up with a two-tier market of more expensive products and cheaper alternatives that have a different market.”
“The cost would have to be passed on to the consumer, sadly. If sales decline, or shops do not want to take on the price hike, then I would have to put more effort into selling direct to the consumer. I currently supply solely to independent shops, so this could also affect the local economy.”
“A tax on the amount of sugar and salt used in [processed] foods will create a significant incentive for companies to reformulate their products so as to avoid having to put the price up, which would be damaging to their business in the UK’s highly competitive and price-sensitive food market.”
RUBY WILLIAMS FOUNDER, RUBY’S FUDGE
NATIONAL FOOD STRATEGY Report led by Henry Dimbleby
NEWS Speciality suppliers working hard to ensure bumper festive orders are fulfilled
By Greg Pitcher
Fine food wholesalers have acted to calm fears that supply chain staff shortages could ruin the critical Christmas trading period for independent retailers.
Leading suppliers insisted they were able to handle the bumper deliveries required to stock up shops ahead of a huge festive season, despite a national recruitment crisis involving lorry drivers and production workers.
Bosses at supermarket giants Tesco and Iceland have warned of possible empty shelves this December as the food supply chain grapples with a massive shortage of key workers.
The recruitment crisis has largely been attributed to migrants returning home during COVID-19 lockdowns and being unable to return because of changes to visa rules post-Brexit. Organisations including the Federation of Wholesale Distributors, the Food and Drink Federation and the National Farmers’ Union in August urged ministers to create a new 12-month visa to help tackle the shortage.
Paul Hargreaves, chief executive of Berkshirebased fine food wholesaler Cotswold Fayre, told FFD “everyone is worried” about supply chain shortages.
“Goods that go out on the pallet network are running late,” he said. “The potential issue is goods coming into our warehouse, which is starting to have an impact on our fulfilment levels. If something is three days late coming in then it obviously has a knock-on effect.
“We are working hard on this most days and it is a headache,” he added. “The drivers on our contracts have been given a pay rise. There is massive pressure and it is not going away before Christmas.
“All our customers want goods in early. September is looking huge, bigger than October. But we should be OK as long as the problem doesn’t get worse.”
Nick Carlucci, sales director at Tenuta Marmorelle, said the importer had worked hard to bring a large volume of Christmas produce over from Italy before the country’s traditional August shutdown. “We took the same approach that we took with Brexit – getting stock in early,” he said. “We have a lot of customers who want Christmas products in quite late this year, early November, after Hallowe’en, as any occasion is a big occasion since lockdown. But we have it in the warehouse already.”
The firm has purchased its own delivery vehicle and is looking to add to its fleet.
“We are very confident of fulfilling our orders in the run-up to Christmas. I would just urge retailers to get their orders in early and speak to their suppliers –keep them in the loop.”
Supermarkets have warned of possible empty shelves at Christmas
IN BRIEF
Walter Smith FineNew research has Foods has announced revealed that 69% of the closure of consumers believe three stores in the supermarkets are Midlands. The butcher responsible for chain revealed reducing plastic over Christmas that usage. Additionally, its Denby Village, 65% don’t think there West Bromwich and are enough plastic-free Coventry shops would options on offer for stop trading, leaving it the products they buy with 11 outlets – many despite 86% trying to of which are within avoid plastic. garden centres. Glebe Farm, producer of PureOaty oat milk has won its infringement case against plant milk giant Oatly. A judge last month dismissed all claims of trademark infringement and passing off. Glasgow-based wholesaler Greencity Wholefoods has started delivering to retailers on an electricpowered tricycle in a bid to reduce diesel pollution in the city.
Tracklements has hired Ben Hallam for the role of commercial manager, which includes identifying new market opportunities. Hallam joins the Wiltshirebased 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
‘Christmas is at risk’ warning
A key figure in the food sector has described staff shortages as “extremely serious” and warned that “Christmas is at risk”.
“Without government action, it is going to get worse,” said James Withers, chief executive of industry body Scotland Food and Drink, on social media in August. “Food supply chains are at breaking point.”
Withers told FFD the impact of Brexit and the pandemic on staffing levels would “be felt across all food retail”, adding that independents faced reduced choice “particularly across red meat, seafood and bakery – key sectors for a successful Christmas trading period”.
He urged retailers to maintain strong communication with customers and suppliers.
“We’ve heard of suppliers going over and above to deliver direct to store,” he said. “That may be critically important if haulage firms prioritise the big accounts.
“A lot of Scottish artisan producers are based in the highlands and islands and at the end of a courier run so will appreciate getting advance notice of what stock is needed.”
Withers called for measures including a temporary visa to allow more overseas staff into the country to tackle the staffing crisis.
Food and Drink Federation Scotland wrote a letter to home secretary Priti Patel in August calling for an easing of migration rules.
First product registered under new UK GI scheme
Last month, the first new food product to receive protected status under the UK’s new GI scheme, following the end of the Brexit transition period with the EU, was announced.
Gower Salt Marsh Lamb joined Stilton cheese and Melton Mowbray Pork Pies, among others, in receiving protected Geographical Indication (GI) status.
The new, independent GI schemes were launched after the end of the transition period and are designed to ensure that popular and traditional products from across the country can obtain special status to mark out their authenticity and origin.
With the registration complete, the meat produced from lambs born and reared on the Gower Peninsula in South Wales has gained full protection and recognition as a Protected Designation of Origin (PDO).
The protection has been given as Gower Salt Marsh Lamb producers were able to demonstrate that the meat’s characteristics are “essentially and exclusively due to its particular area of production”. l For more information about both the UK and EU schemes, turn to page 12.
NEWS Springvale Foods targets more acquisitions after buying Hider’s wholesale operation
By Michael Lane
Suffolk-based Springvale Foods has said that its recent acquisition of Hider Food’s wholesale operation will not be its last as it targets further growth in the independent sector.
The deal, announced in August, has seen Springvale integrate Hider’s catalogue of brands into its own, as well as taking on its existing wholesale customer base.
“This won’t be our last acquisition,” Springvale MD Darran Goody told FFD. “We want to continue, having done three and been successful with two.”
Springvale also recently acquired Mercia Foods and Moordale Foods’ third party wholesale division.
“It was very much part of our strategy in the next three years to do another one,” said Goody, adding that the business was “always looking” for the next opportunity to grow.
While Springvale already delivers nationwide to some 2,500 independent retailers and carries around 4,000 lines, Goody said that purchasing Hider does raise the profile of the business.
“I remember being out repping on the road 10 years ago and Hider was a pain for me, they were the number one wholesaler. I think this has given us credibility – I know they haven’t been doing so well recently – and it’s an opportunity for us to increase our presence in the fine food market.”
Hull-based Hider will continue to run its dried fruit & nut import operation and produce the Butler’s Grove range – which includes preserves, chutneys and pâtés – that it acquired in 2018. These ranges will be available to independent retailers through Springvale, which has already received plenty of enquiries for the dried goods.
Goody told FFD that the deal will mean that existing wholesale customers have an even wider selection of brands to choose from – with Springvale seeking to secure more exclusive lines – while new customers can expect next-day delivery and 97% fulfilment.
“We’re not the cheapest in the industry, we realise that, but if we can fulfil your order to 97%, we can guarantee you 20% extra revenue from having fully stocked shelves,” said Goody.
Hider’s wholesale operation had endured a tough couple of years in the run-up to its sale, which included a major setback in implementing a new IT system that caused cashflow and fulfilment issues, as well as the impacts of Brexit and the COVID-19 pandemic.
Springvale Foods MD Darran Goody, left, shakes on the deal to purchase Hider’s wholesale business with Duncan Hider
springvalefoods.co.uk hiderfoods.com
IN BRIEF
Walter Smith Fine The ACS (the Foods has an-Association of nounced the closure of three stores Convenience Stores) has launched a free guide for retailers in the Midlands. that offers practical The butcher chain advice on how to revealed over maintain wellbeing for themselves and their Christmas that colleagues. its Denby Village, acs.org.uk West Bromwich and Coventry Waitrose has shops would stop announced its largest trading, leaving it with 11 outlets launch of vegan and vegetarian products to date under its new – many of which Plantlife and GoVeggie are within garden centres. labels. The launch features 36 new meatfree products, 24 of Tracklements has which are vegan. hired Ben Hallam waitrose.com for the role of commercial manager, UK Net Zero Business which includes Champion Andrew identifying new Griffith MP has called for retail businesses to market opporcome forward to be nettunities. Hallam zero champions as part joins the Wiltshireof the Together For Our Planet Business Climate based condiment Leaders campaign.
Tributes paid to Steve Croot DOWN ON THE FARM The latest from farm shops across the country
Tributes have been paid to a popular Derbyshire farm shop owner following his sudden death last month.
Steve Croot, cofounder of Croots Farm Shop with his wife Kay, died at home on Sunday 15th August after being taken ill.
In a statement, the family said: “Family, friends and the whole team at Croots Farm Shop are devastated by the loss of Steve, who was known for his passion for local produce, his support for the community and his dedication to helping charities. In accordance with family wishes, Croots Farm Shop remains open as normal.”
Croot is survived by his wife, Kay and their children, Nicole and Jamie. Torbay Coast and Countryside Trust (TCCT) has extended Occombe Farm Shop to three times its former size, creating a larger space to showcase West Country produce.
The shop stocks 6,000 lines, including fresh and wholefoods, wines, spirits, beers, ciders, baked goods, deli items and gifts, as well as incorporating refillables, recycling and minimising plastics.
The remodelling of Occombe Farm Shop is part of TCCT’s scheme to regenerate the farm as an all-weather, year-round attraction. Shopping local at Occombe Farm Shop supports TCCT’s upkeep of Torbay’s natural heritage.
countryside-trust.org.uk/ explore/occombe-farm
A new farm shop on the Somerset Levels recently opened its doors.
Charlie Walford, one of the founders of the new Upton Bridge Farm, said: “I started selling my beef online to the public and was asked by a few customers if I could supply more products. I then started thinking that there’s nowhere local that I felt provided a good selection of products from the Somerset Levels, so the idea of the shop was born.”
With exception of a few products, everything in the shop is produced within eight miles of the farm.
uptonbridgefarm.com
Farm shop owner, Algy Garrod, has created a pop-up campsite at Old Hall Farm – comprising 20 teepees – following the rising demand for staycations.
New regulations allowing farmers in England to operate a campsite without planning permission for up to 56 days were extended to the end of this year in an attempt to bolster farmers’ income and encourage domestic holidays.
algys.co.uk
Young wallabies can be found roaming among the black swans at the newly opened The Barn at Grange Farm, in Wigan.
After construction work was delayed due to the pandemic, The Barn is finally open over two floors of a converted barn.
