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NEWS Calls for new PM to take action to support the independent food sector
By Greg Pitcher
Britain’s new prime minister must tackle the cost-of-living crisis, border delays and skills shortages to protect the independent food retail sector, key gures have urged.
Former chancellor Rishi Sunak and foreign secretary Liz Truss have been competing all summer in the battle to replace Boris Johnson at Number 10 Downing Street, with the winner set to be announced on Monday, 5th September.
Daniel Williams, project manager at Cheshire-based Godfrey C Williams and Son, called for the new PM to tackle household bills “sooner rather than later” with “hard-hitting, meaningful support”.
“I’m convinced that on our current course, we’re hurtling towards a full-fat recession that will seriously damage the independent retail and food producer sector ,” he added. “The implications of disposable income drying up will be deep and far-reaching.”
Nick Carlucci, director at importer Tenuta Marmorelle, said the incoming premier should prioritise resolving the “chaos” involved in buying goods in from the EU.
“Brexit was sold to so many as bringing in vast opportunities,” he said. “The reality is that it has made importing from the EU so much more complicated, timeconsuming and expensive.”
Edward Woodall, government relations director at the Association of Convenience Stores, called for action to lure people into the workplace and reduce the cost of employment.
He added: “We need the new prime minister to take the edge o planned regulatory interventions like restrictions on promoting products high in fat, sugar and salt, and the imminent introduction of a depositreturn scheme. These interventions are poorly timed for businesses and consumers given the volatile economic environment.”
Farm Retail Association chairman Rupert Evans said in ation was “running out of control” and many rural shops would “struggle to keep up”.
He added that the legal minimum wage was “rising too quickly” and the sector was struggling to ll certain roles amid a shortage of skilled workers.
Evans also called for support for renewable power projects to help farm shops mitigate soaring energy bills that he said were of “huge concern”.
Barbara Cossins, co-owner of Dorset’s Rawston Farm Butchery and Shop, said the country was in a “fragile state” as its leadership changed. She called for tighter restrictions on what food could be imported into the UK as well as moves to level the playing eld on business costs.
Truss v unak in fight for o who will be best for independents?
BIRA: Business rate cuts should be new PM’s number one priority
Independent rms have joined some of the country’s biggest retailers in a plea to the next prime minister to slash business rates.
An open letter sent to leadership contenders Liz Truss and Rishi Sunak this summer urged a cut in the levy charged for most nondomestic uses of property.
Business rates were scrapped for retail premises in 2020/21 followed by a 50 per cent cut in 2022/23, subject to certain criteria.
But next year is due to see the rst re-evaluation of business rates since 2017 – when 2015 rental values were used – sparking fears of huge spikes in bills for a sector already struggling with rampant cost in ation.
The Retail Jobs Alliance, told Sunak and Truss that “urgent action” was required to keep many stores open.
“A permanent reduction in business rates for all retailers, regardless of their size, would make a big di erence to retailers’ ability to invest more in shops and stores as well as to create jobs”, it wrote.
“If taxes are to be cut, we think a reduction in business rates should be prioritised.”
Other members of the alliance include the Association of Convenience Stores as well as the Co-op, Greggs, Tesco and Sainsbury’s. Celebrated greengrocer and deli Bayley & Sage is set to open a twelfth outlet on Lancers Square on Kensington Church Street. The shop will open Monday through Sunday between 8am-10pm and will add to the original Wimbledon store’s sprawling growth. Its other stores are located in Parsons Green, Turnham Green, Fulham, Northcote Road, Parkgate Road, Wandsworth, Chelsea, Belgravia and Marylebone, as well as the company’s general store, Abode, also in Parsons Green.
WHAT THEY ARE SAYING ABOUT... WHAT THE NEXT PM SHOULD DO FOR THE FINE FOOD SECTOR
DANIEL
WILLIAMS
GODFREY C
WILLIAMS AND SON
“Revisit a business rates holiday for small and medium retailers; continue Growth Hub programmes that support the development of independent retailers; show some leadership and put the country first. All the infighting and Machiavellian manoeuvres do nothing to strengthen our economy.”
“We need stability after Brexit, covid, Ukraine and the government infighting. A good discussion point would be levelling the playing field so the independent sector can compete with larger companies – offering incentives or reducing business rates for small businesses.”
NICK CARLUCCI TENUTA MARMORELLE
EDWARD WOODALL ASSOCIATION OF CONVENIENCE STORES
“We need to help businesses to invest. Government investment needs to be directed locally, to where people live and food retailers trade. It needs to focus on creating safe, vibrant places to live, work and shop.”
NEWS ‘Exceptionally worrying time’ for retailers as summer trade slows
By Greg Pitcher
In ation and the easing of Covid-restrictions created a di cult summer for many ne food retailers as people cut back on spending or took their cash abroad.
Leading independent businesses across the UK told FFD about tricky trading conditions in July and August.
The Consumer Prices Index jumped by 9.4 per cent in the 12 months to June 2022, according to the O ce for National Statistics, with food and non-alcoholic drink prices soaring by 9.8 per cent in that time.
Meanwhile ‘staycation fatigue’ has been blamed for a rise in demand for ights abroad this year as Covid-related travel restrictions nally eased.
Mark Kacary, managing director at The Norfolk Deli in Hunstanton, blamed the economy for a signi cant downturn intrade at his seaside store.
“If we do an average of 140 transactions on a normal summer’s day, we’ve been doing 30 to 40 this year,” he said.
“Both tourists and regulars are coming to the store less and spending less when they are here. People can hardly a ord to do anything even before bills go up over the winter. It is a worrying time.”
Jennifer Horton, owner of The Corbridge Larder, said the Northumberland deli’s sales were 20 per cent lower this July than in the same month a year earlier.
“Given all the hype in the papers about in ation and energy prices, this is not surprising,” she said.
“The café is doing well because everyone still needs an indulgence. And we are busy in the shop – so people are out and about but obviously spending less than they have in the past.”
Some businesses have altered their approach to grow transaction volumes over the summer months.
London cheesemonger Paxton & Whit eld launched a food-togo range ahead of the Platinum Jubilee weekend.
Managing director James Rutter said that despite lowering the average basket value, this range “allowed customers to continue to enjoy artisan cheese on more frequent and a ordable basis”.
“This has considerably driven footfall, inspired brand loyalty and really helped contribute to double-digit sales growth,” he added.
Meanwhile Antonio Picciuto, owner of Buongiorno Italia, said the hot weather had given business a boost.
“Workers are returning to their air conditioned o ces, which has helped our lunchtime trade, and more people are eating al fresco at home; we have seen a big increase in the sale of things like pizza ingredients and deli items,” he said.
Staycation trade fell this year as Britons favoured holidays abroad
IN BRIEF
Borough Market recently published its New Food Policy, setting qualitative and ethical standards to hold its traders and operational teams accountable. The framework, it says, will help it to “provide the opportunity for people of all backgrounds to buy the fresh ingredients and minimally processed products that underpin a healthy diet.”
Planet Organic is set to open its first store outside of London, in Henley. The 2,440 sq ft store will be the first of a string of new launches around the country, as the brand plans to grow its physical footprint from 13 to 50 stores by 2025, alongside a significant expansion of its online operations.
Independent retail trade growth a symptom of in ation, says IGD
A winter of squeezed household budgets will require independent shops to build strong connections with customers, a key gure has warned.
Research rm Cornwall Insight in August predicted that the average energy bill could exceed £350 per month by January. Meanwhile data from the British Retail Consortium (BRC) revealed food in ation of 7 per cent in July.
Although food sales grew by 2.3 per cent in July, according to separate BRC gures, experts warned that serious challenges lay ahead.
Susan Barratt, chief executive of retail data analysts IGD, said the growth in takings was “ attered” by in ation that masked falling sales volumes.
“Shoppers are genuinely tightening their belts by buying fewer items in addition to switching stores and buying more private-label products,” she said.
Andrew Goodacre, chief executive of the British Independent Retailers Association, said he expected “a very di cult trading period” as the weather grew colder, urging retailers to create added-value experiences by “engaging with their shoppers through the power of social media, diverse product ranges and top-quality service.”
Sri Lanka’s Ruci Foods commits percentage of proceeds to sustainable livelihood projects
Ruci Foods is hoping to help alleviate the consequences of Sri Lanka’s ongoing economic crisis by giving away a proportion of its revenue to local charities there.
It will set aside ten percent of revenue generated by its products to support sustainable livelihood projects and community kitchens providing hot meals to the vulnerable.
The company was created to support the country’s growers by paying producers properly and giving professional opportunities to women.
Its range of smallbatch sauces, chutneys, spice and hoppers mixes are created according to traditional recipes, therefore promoting Sri Lankan cuisine and products as well as reinvesting money into the South Asian island’s economy.
The country has been in a state of turmoil since 2019, experiencing its worst economic crisis since it achieved independence in 1948.
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NEWS LACTALIS BUYS ROWCLIFFE-OWNER AMBROSI
The French da iry gi ant Lactalis and t he Ambrosi family ha ve signe d a n a greement to s ell the entire capital of Italian cheesemaker Ambrosi Spa. The agreement includes confirmation of the current m anagement team, w ith t he aim of further accelerating t he com pany’ s internationa l grow th.
ABOUT LACTALIS
The Lactalis Group is a world leader in cheese production, with well-known brands such as Galbani, Parmalat and President. The acquisition of Ambrosi Spa, which operates in the UK through its subsidiary, Rowcliffe, means Italian DOP cheeses such as Parmigiano Reggiano and Mozzarella di Bufala will be added to the Lactalis Group’s range. The group has 85,000 employees in 94 countries, has a turnover of €20 billion and buys more than 20 billion litres of milk per annum.
THE FINE CHEESE CO.
We work with small, independent and traditional cheesemakers who prioritise quality over profit. We can only match our cheesemakers’ commitment to the exceptional, because of our own independence. We want to support other retailers who share these values, and that is why The Fine Cheese Co. brand will never appear in any British supermarket.
First in ne for 30 years: ne cheese, ne charcuterie, ne crackers, ne condiments, ne chocolates...
NEWS Scotland’s drinks sector grappling with the minutiae of upcoming Deposit Return Scheme
By Tanwen Dawn-Hiscox
With less than a year to go, drinks producers, retailers and wholesalers in Scotland are still trying to iron out the detail of the new drinks container recycling scheme due to come into force on August 16th 2023.
One producer told FFD the launch of Deposit Return Scheme (DRS) felt like “the train is in motion regardless of whether people are ready or not,” as many details are yet to be clari ed with the scheme administrator, Circularity Scotland.
Based on an established system in place in Europe, the current plans would see drinks producers add a 20p levy on all beverages sold in aluminium, plastic, and glass containers. This cost would then be passed onto the consumer further down the supply chain as a deposit fee.
Retailers will then be charged with collecting the waste to be recycled, either over the counter or through the use of reverse vending machines (RVMs), in exchange for a handling fee – unless they are able to nd a fellow retailer willing to process the returns.
Scotland is acting as a test bed of sorts for the scheme, as it is still up for consultation in England, Wales and Northern Ireland, with the aim of implementing legislation in 2024 or later.
Should the rest of the UK choose to adopt a di erent system, such as a digital DRS or an environmental producer responsibility (EPR) tax, the country risks being perpetually out of step with the rest of the union.
As it stands, producers may need to print di erent labels to di erentiate between the registered products that will enter the DRS system and those destined to be sent abroad, a costly described as “hugely frustrating at a time like this when there are so many other pressures on the business.”
A number of other sticking points have arisen, namely the obligation for those with an online retail arm to also collect empty receptacles directly from customers’ homes.
For Colin Smith, CEO of the Scottish Wholesale Association, to remove the take back element of the scheme would make it much more workable.
“Let’s have it as a sunset clause, let’s say, we’ll implement DRS and then in three years, review the online take back, see if there’s a solution.”
“Otherwise, it’s going to clog up this scheme, and add physical, monetary and environmental costs, because you’re now asking somebody to go and upli an empty container from a residence. Let’s take it out.”
For retailers, the main questions revolve around whether to process returns over the counter or to install a reverse vending machine in their outlet, which, despite assurances that they will receive compensation for the space used and inconvenience, is likely to cause some confusion.
“We want to be environmentally sustainable because believe it’s a good thing, but are plenty of logistical problems,” said Bill De La Hey, owner of Mainstreet Trading Company.
“When you dial down into it, it’s a lot to bite o when you’re running a small business and you’ve got to deal with all of these issues, like health and safety, what we can and can’t accept, can we refuse large quantities… It takes you away from the shop oor trying to sell stu to people.”
The DRS aims to improve recycling and reduce overall waste
Young Cheesemonger of the Year 2022 open for entries
In a bid to celebrate new talent in of cheese retail, The Academy of Cheese is calling for cheesemongers around the world to enter The Young Cheesemonger of the Year competition.
Open to those under the age of 30, shortlisted applicants will be invited to attend the World Cheese Awards, hosted at the ICC in Wales on Wednesday, 2nd November 2022, and compete against their peers across four rounds. The winner will be announced on the same day at the WCAs. Full details can be found at
academyofcheese.org/ young-cheesemonger-ofthe-year/
DOWN ON THE FARM The latest from farm shops across the country
Located off the A448, between Redditch and t dle o ill find Rough Hill Farm, a small producer of free-range pork and eggs. The adjoining farm shop has recently undergone a sizeable refurbishment, and has now re-opened with an onsite butcher, a refill station and ero waste bins.
roughhillfarmshop. co.uk/farm-shop
Suffolk Rural (the Otley campus of Suffolk New College) will soon give the students at the college, who already have the facilities to
st d agric lt re oristr equine and animal care, a space to grow vegetables and plants to sell in the farm shop.
suffolk.ac.uk/experienceus/our-campuses
Just outside Lewes in Offham is the new and improved Offham Farm
Shop, stocking a variety of homegrown produce and other local Sussex goodies. It is also home to a large butcher’s counter, an in-house smoker and a new café called Flint, serving full Englishes, coffee and cake.
offhamfarm.co.uk
The Chatsworth Estate Farm Shop, known for selling fresh local produce direct from the Estate or from nearby producershas recently opened a farm shop café.
Just off the A6 in Rowsley, the new café will be serving food cooked on site or from the Chatsworth kitchen. The café has been decorated with a variety of artefacts from the house itself.
