Presentation on theme: "DISTRIBUTION OF BRANDS & PRIVATE LABEL IN THE UK - A Suppliers View - Simon Jones Sherriffs Foods, UK 3 rd June 2014."— Presentation transcript:
DISTRIBUTION OF BRANDS & PRIVATE LABEL IN THE UK - A Suppliers View - Simon Jones Sherriffs Foods, UK 3 rd June 2014
NEXT 20 minutes…….. “A view on branded and private label distribution into the UK. Focusing on how both can work together, the varying levels of complexity, requirements of the retailers and some views on how to make it work” Not Just Free From – The marketplace is changing Pricing - Structures and Pressures Trust - Technical and Sourcing Supply - Logistics and Distribution Sales, Marketing & Distribution company based in the UK Over 30 years experience as a management team in the Free From market A business model which allows access across varying levels and departments of the UK retailers for brand and private label products
OUR BRANDPARTNER RETAILER HAVING A MODEL WHICH BRINGS TOGETHER BRANDS & PRIVATE LABEL ALLOWS A FULL CATEGORY DIALOGUE WITH THE RETAILER
THE ROLE OF BRANDS & PRIVATE LABEL CONTINUE TO WORK TOGETHER ACROSS THE FREE FROM CATEGORY. HOWEVER THERE ARE SOME KEY AREAS THAT SUPPLIERS WILL NEED TO TAKE NOTE AS THE CATEGORY DEVELOPS AND MATURES IN THE UK. RETAILERS ARE TAKING NOTE, AND THIS MEANS THAT TO BE SUCCCESFULL REGARDLESS OF BRAND OR PRIVATE LABEL THERE ARE SOME KEY CONSIDERATIONS
ONE OF THE REASONS………………… Source: Mintel UK Retail sales 2008 to 2017 (Forecast)
HOWEVER JUST BY ADDING “FREE FROM” DOESN’T MEAN IT WILL BE SUCCESFUL. THE RETAILER (& CONSUMER) WANTS MORE……… THE BASICS PRICE TASTE QUALITY PACKAGING *Not just for on Shelf* COMMUNICATION ON PACK FREE FROM PLUS + LOW SUGAR LOW FAT FREE FROM DAIRY SUGAR ORGANIC LESS THAN 5ppm
HAS IRELAND STOLEN A MARCH, AND LEADING THE WAY? STORE WITHIN STORE - FOCUSING ON HEALTH, WELLBEING & DIETARY REQUIREMENTS
THE FIXTURE WILL CHANGE - GO BACK 3 YEARS ON WORLD FOODS AND NOW LOOK…… 3 YEARS AGO TESCO TRIALED A WORLD FOODS AISLE IN 50 OF ITS LARGEST STORES TODAY “WORLD FOODS” HAVE A POSITION IN ALL 500 TESCO EXTRA OVER TWO AISLES EACH OF THE UK LARGEST RETAILERS HAVE A WORLD FOODS AISLE AND THE CATEGORY CONTINUES TO GROW & EXPAND THIS WEEK TESCO LAUNCHES ITS HEALTH ZONE A 16 WEEK TRIAL ACROSS 16 BAYS IN 100 OF ITS LARGEST STORES - A SIMILAR STORY TO 3 YEARS AGO????
PRICING – AS THE CONSUMER DIVERSIFIES THE RETAILERS ARE NOT JUST LOOKING AT THEIR OWN CATEGORY £1.20 per item£0.90 per item£2.00 per item£1.50 per item As the consumer for Free From continues to expand retailers are not just looking to align the products in their own category but also across more established categories
TRUST – RETAILERS & CONSUMERS REQUIRE TRUST IN THE FREE FROM CATEGORY – FOR OWN LAEL THE DEMAND CONTINUES TO INCREASE BUT NOW BRANDS ALSO HAVE TO FOLLOW… All Free From brand and private label suppliers now as a minimum have to provide an insight into the validity of the raw material source, manufacturing facility and allergen control process to secure listings within UK retailers. The process for listings lines is not a straight forward one…..BEWARE ITS NOT JUST ABOUT PRICE!
SUPPLY – THE UK SUPPLY NETWORK CAN BE A COMPLICATED PROCESS, PARTICUARLY IN FREE FROM. BE MINDFUL THAT FREE FROM CAN SOMETIMES FOLLOW A DIFFERENT ROUTE TO MAINSTREAM GROCERY “ Slow Moving Lines” Maximising space and supply are top priority for the UK retailer. Free From due to its current nature of diversified brands/suppliers usually mean there is a separate distribution warehouse and network that suppliers are “asked” to buy into… Stage1 Stage 2 Stage 3 Stage 4 Stage 5 Inevitably this leads to additional costs at Stage 2 & 3. However it can provide an open and clear view for both the supplier & retailer on Service Levels
FREE FROM PLUS+ GROWING & DEVELOPING CONSUMER BASE MAINSTREAM FIXTURE FOCUS PRESSURE ON PRICING TECHNICAL FOCUS UNDERSTANDING VALUE CHAIN TASTE, QUALITY, PACKAGING FACTOR IN ADDITIONAL COSTS – TECHNICAL, AUDITS, TRANSPORT