SimplyFresh has committed to Bestway, ending speculation about the future of its wholesale supply.
The symbol group has signed a new long-term deal with Bestway Retail, having worked with Bestway-owned Costcutter for the past 14 years.
During that time, however, SimplyFresh has explored alternative supply options, including a brief tie-up with Sainsury’s before the the supermarket giant pulled the plug on its wholesale operations in July 2021. At the time, there were five SimplyFresh stores in the supplied-by-Sainsbury’s model, though it had a target of signing up 30 retailers to the format by the end of the year. The remainder of the 90-plus SimplyFresh estate continued to be supplied via Costcutter.
Since Sainsbury’s exited wholesale, SimplyFresh revealed it had “assessed the market for alternative suppliers” and was always open to conversations. The Grocer learned in August 2022 that Waitrose was one of the potential considerations, but the parties did not come to an agreement.
The new deal will aim to encourage more retailers to join SimplyFresh as well as leveraging Bestway’s dual fascia strategy by tying up with more of its retail brands, such as Bargain Booze and Wine Rack. SimplyFresh will also be able to continue to access the Co-op’s own label range through Bestway’s extended supply deal with Nisa for Costcutter.
“We are delighted to continue our successful partnership with SimplyFresh,” said Bestway retail director Jamie Davison. “We know the SimplyFresh’ retailers really value the offer and support that we provide them with and our focus will be to work closely with [SimplyFresh co-founder] Kash Khera and all the SimplyFresh team to ensure that we enhance this even further.
“Supporting the increased performance of the existing SimplyFresh retailers, as well as introducing new retailers and stores to the estate, is our joint objective and we are very much looking forward to continuing to grow together.”
SimplyFresh co-founder Kash Khera said: “Over the past 14 years, SimplyFresh and SimplyLocal have worked closely with Costcutter and this partnership has been pivotal to our growth and success.
“After a thorough review of our growth strategy and future direction, we are excited to embark on a new phase of our relationship with Bestway and Costcutter.
“This evolution marks a commitment to leverage the exciting opportunities through dual-fascia branding with Bargain Booze and Wine Rack, and the multiple supply routes, further enhancing our collaborative success.
“I would like to take this opportunity to thank all of our retailers for their commitment to our brands, and Jamie Davison in particular, who we have worked with from the beginning, and the Costcutter and Bestway team for their ongoing support to the business.”
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