Interview

Paul Hill speaks to Bestway wholesale managing director and new FWD chairman Dawood Pervez

BWI: What are your plans as FWD chairman?

DP: The FWD is an important body in representing the interests of its 600 wholesale members to government, suppliers and beyond. During my two-year term, I would like to see the social and economic contribution of the wholesale sector being recognised, and broadcast to an even wider audience.

I will be looking to encourage FWD members to participate in work in three key areas: planet, talent and trade. This will cover sustainability, recruitment and development, and helping suppliers to understand the opportunity the wholesale channel offers for their brands.

How is Bestway looking to innovate in the wholesale industry?

Our innovative hybrid stores – dual-branded fascia stores within a store where convenience stores have potential to take their licenced sales to the next level by having a Bargain Booze (BB) store within – are being rolled out across the UK. Weekly sales are 55% higher than comparable stores without a BB store and we are leading the way in offering our retail partners unrivalled opportunity.

Sustainability remains at the forefront of depot/store standards. Deliveries are optimised by constantly reviewing frequencies and routes, ensuring the right service for each retailer (while helping our carbon footprint). We’ve continually improved packaging and plastic reduction, working in association with suppliers and retailers, and 95% of all Bestway print and packaging is now recyclable.

The investment and launch of next-gen self-checkout units. These small footprint self-checkouts from Toshiba are amazing and help improve customer flow, take both cash and card solutions and deliver an improved customer experience.

2023 will see the next stage of the Bestway Good Food Project in collaboration with Impact on Urban Health and FWD to make healthier foods sold in convenience stores more accessible. This will be supporting the government’s agenda to reduce obesity, and results from the current stage show a 38% sales lift.

What are your predictions for the future of wholesale over the next 12-to-18 months?

Wholesalers are forward thinking when it comes to sustainability and energy efficiency, and share commitment in improving their environmental footprint. I anticipate even more focus being placed on sustainability with increased commitments to reducing emissions and reaching net zero, alongside science-based targets, which are becoming more important to organisations that are genuine about making a difference.

The value of ‘shopping locally’ will continue to be evidenced.

Not only in meeting general shopper habits, but a growth in consumer understanding of the benefit of shopping locally during the cost-of-living crisis. Increasingly, it will be seen as a great way to save money, reduce waste, minimise travel costs, get exercise, participate in the local community and reduce emissions. Foodservice will also continue to consolidate before the next round of expansion.

Use of experiential hospitality and ‘retailtainment’ to boost customer footfall. Customers will be focused and engaged in a positive and entertaining atmosphere when shopping.

Changes in the behaviour of consumers, who are more health conscious. Wholesalers will need to review their categories to cater for the health-conscious consumer and create new product opportunities for the HFSS regulations.

Consumers are favouring premiumisation products and choosing value and quality.

What are the biggest challenges the industry faces?

The unpredictable and erratic supply issues across the food chain have impacted availability from suppliers. This has had the largest impact on our customers –and consumers.

Resourcing has become an industry-wide concern, with supply chain and staff availability continuing to be two of the biggest issues facing the sector since the outbreak of Covid-19.

Additionally, the sharp increase in banking and credit card fees in recent years is becoming more difficult to ignore, and we are not alone in feeling the pinch that comes with a 200% increase in processing fees in just two years.

The combined cost increase resulting from Brexit, energy bills, inflation and living wage will continue to lead to conditions of poor availability from manufacturers – which not only will affect our business, but, wider than this, the availability of affordable food.

What are your plans for Bestway over the next

12-to-18 months?

Bestway has exciting plans this year, and alongside those plans the company will be continuing to build its retail division while demonstrating that we are the ‘home of choice’ for retailers who want to grow their business.

Bestway will also be reviewing its network strategy to ensure we can provide the best possible service to our customers irrespective of their location.

We will continue to add to our market-leading technology proposition that gives retailers access to a suite of tools designed to help them succeed, alongside key market insights to help them understandtheir customers’ shopping behaviours. l

Claire Williams is the marketing director at Zest Food Partners

Innovation is key to developing the UK food and drink industry, and helps us stay competitive and reach our ambitions. Innovation, provenance, sustainability and health are all drivers that should be considered when creating ranges and menus.

Wholesalers, customers and suppliers are currently facing many challenges and there is no getting away from rising prices and the cost-of-living crisis. Brands need to adapt to make sure they have the right products that offer a convenient solution and deliver standout appeal for chefs and caterers.

At Zest Food Partners, we’re always looking for inspirational and innovative products. We understand our customers well, and working closely with our clients, we bring new ideas to the table, develop products with consumer trends in mind, and help create solutions to meet new and evolving needs.

The pace of foodservice innovation is continuing to increase, so we always have one eye on the future to see what’s coming next. It’s crucial that we capitalise on trends and adapt products, ranges and services accordingly, as well as ensuring our clients are agile enough to respond quickly to what the market needs.

Understanding your customer base is key, and it’s important that wholesalers know what’s selling in their business and are monitoring this against what’s trending elsewhere so that they can adapt to market changes.

Understanding the customer means you can deliver the right product, at the right price, in the right pack format for them.

The conscious consumer is more educated about food than before, so operators are looking to include more British products on their menus. One example is Yallo, a British cold-pressed extra virgin rapeseed oil, which is made with one variety of seed, and offers buyers a compelling value proposition.

The food-to-go market has seen a rapid rise in popularity as consumers’ appetite for convenience grows and they seek portable meals and snacks throughout the day. Pukka has recently launched an innovative hand-held range of slices and sausage rolls, to meet the demands of consumers on the go.

Working in partnership with customers to develop menu solutions and recipe ideas, and sharing valuable insights and market data, will add a lot of value to their business. Encouraging creativity across all parts of the business and ensuring you have a diverse team of people in innovation sessions will also be beneficial.

It’s also imperative that you look ahead to spot opportunities, such as introducing own label or value products to meet a specific price or win a long-term big contract or products that will help operators create experiences, have good margin opportunities and offers something their customers can’t recreate at home.

Brands need to innovate to remain relevant in changing times, and we would encourage both suppliers and wholesalers to be brave and bold when it comes to taking on new products and brew the tea, it saves money for the operator and is better for the planet. Creating this innovative product means any operator can now serve a trendy bubble tea, and it’s a great margin enhancer. ranges. We understand that not everything will work – however, if you’re making data-driven decisions, taking the risk may help you find the next big thing.

With many caterers stretched more than ever due to rising costs, many are looking to provide a value offering while maintaining quality. Add to that the latest staffing crisis, caterers are looking for innovative solutions and dishes that require minimum time to create, so that less-qualified staff can be employed to reduce costs.

Given the rise in the cost of living, starters, small plates and sides will play a key role as eating habits shift, and they’re also well positioned to gain market share as consumers look for more snacking and sharing.

TeaJoy is a great example of this. Ning Ma was making bubble tea in her Asian street-food restaurants. However, it was presenting lots of challenges, such as long preparation and inconsistent flavours. Ning, therefore, developed her own bubble tea concept, where a real fruit-based syrup is infused with authentic jasmine tea. Not only does this speed up the process and require less storage space, but as there is no need to

Innovation in foodservice is more than looking at NPD and new and exciting food and drink brands, though; supporting the people who work in wholesale plays an important part, as well as innovative use of technology, and sustainability.

With customers striving to offer more sustainable choices on their menus, and wholesalers on the road to net zero, it’s important that suppliers look to improve their sustainability credentials and support wholesalers to reach their ambitious targets quicker.

Offering innovative sustainable solutions that are more ethical and healthier for both the consumer and the planet will be looked upon more favourably.

Suppliers need to consider all touchpoints to get key messages out to customers and drive awareness of their brand and product range. Investing in marketing support, incentives that create a buzz, creative sampling initiatives and brand activations to grab customers’ attention will ensure their product stands out and cuts through the noise to drive sales.

With more wholesalers focusing on online ordering for their customers, supporting their online strategies will be key to success. Suppliers need to be having regular communication with wholesalers to monitor online campaigns to understand performance and sales data. Organisations that innovate with their online strategy to support customers will gain a significant competitive edge.

E-commerce, although currently under-exploited in wholesale, will see huge growth in the next few years and it will really help to create a more positive experience for customers.

With the likes of Amazon and other marketplaces, we have come to expect an experience like ones we have in our daily lives as consumers, so there is a big opportunity for wholesalers to stay ahead of the curve and meet changing customer demands.

To innovate in the digital space, we need to access and utilise data across the industry as it helps us to spot opportunities, understand what the consumer is doing and where the challenges are.

It also helps you to remain targeted in your approach and create the right proposition and range for specific sectors. E-commerce platforms can offer a more personalised experience and enable us to remain targeted in our approach so we can create the right proposition and range for specific sectors.

It also helps wholesalers upsell. For example, making product suggestions based on previous buying habits, proposing items that are commonly purchased together, or introducing new products that would work in their business. Having access to insight and data enables us to upsell through automated push notifications, such as order reminders and product promotions.

Innovation in digital and technology is key to enhancing daily operations, and can have huge benefits on improving service, customer engagement and efficiency. Digital-led experiences are required by today’s consumers, so you could create an app or a live-chat function, or introduce a shopping list that remembers your previous order for customers who order the same products each time.

Finally, one of the biggest innovations is chatbots, which have the potential to automate mundane tasks, enhance complex communications and improve customer support. I’m not sure wholesale is ready for it just yet, but ChatGPT is said to be the most disruptive trend and useful hands-on marketing tool for 2023. l

If you’d like more information on Zest Food partners, please contact claire.williams@zestfoodpartners.co.uk