Bestway’s acquisition of Batleys, finally confirmed this week, has already led to dramatic changes within the business, The Grocer has learned.
Batleys’ wholesale petfood enterprise has been sliced in two, with the wholly delivered wing becoming an independent company, L Batley Pet Products.
It consists of seven depots, stretching from Cumbernauld in Scotland to Dartford.
Ian Dyson, Batleys’ former buying and marketing director, has been charged with leading the newly-created business as MD. The remaining 16 petfood cash and carry depots come under Bestway’s control, as do 18 grocery cash and carry units.
The purchase of Batleys has boosted the number of Bestway depots to 49 and takes its potential annual sales to £1.6bn, forging a potent wholesale force.
The Grocer’s Big 30 rankings show it is set to vault past Makro, 3663 and Brakes to become the third largest UK wholesaler and the second largest cash and carry business.
Industry sources said the deal could transform Batleys’ trading practices in several ways. One said: “Batleys is notorious as a low price cigarette merchant. Everyone is talking about whether the new deal will bring prices more in line with the norm.”
He added: “It has never been very strong in booze, whereas Bestway is the best beers, wines and spirits wholesaler in the
country. I would expect Batleys customers will soon start enjoying Bestway’s style of alcohol selling.”
A letter has been sent out to anxious Batleys suppliers, promising to honour all existing contracts. And in answer to the flurry of speculation concerning how Bestway will integrate Batleys, former Batleys MD Len McCormick, who has now taken a back seat as deputy chairman, said the process would be “a case of evolution, not revolution”. Batleys’ depots will continue to trade under the Batleys name, co-ordinated from its current Leeds HQ.
One industry source commented: “Everyone in the industry appreciates the cultures of the two companies are completely different. It seems wisest for Batleys to continue trading separately to keep company loyalty.”
McCormick denied suggestions that retaining the Batleys name was specifically connected with the wishes of founder Lawrence Batley, who died in August 2002. “Everyone felt the Batleys badge was worthwhile keeping - they felt its prestige would be the best way to keep customers’ loyalty.”
Rod Addy
Batleys’ wholesale petfood enterprise has been sliced in two, with the wholly delivered wing becoming an independent company, L Batley Pet Products.
It consists of seven depots, stretching from Cumbernauld in Scotland to Dartford.
Ian Dyson, Batleys’ former buying and marketing director, has been charged with leading the newly-created business as MD. The remaining 16 petfood cash and carry depots come under Bestway’s control, as do 18 grocery cash and carry units.
The purchase of Batleys has boosted the number of Bestway depots to 49 and takes its potential annual sales to £1.6bn, forging a potent wholesale force.
The Grocer’s Big 30 rankings show it is set to vault past Makro, 3663 and Brakes to become the third largest UK wholesaler and the second largest cash and carry business.
Industry sources said the deal could transform Batleys’ trading practices in several ways. One said: “Batleys is notorious as a low price cigarette merchant. Everyone is talking about whether the new deal will bring prices more in line with the norm.”
He added: “It has never been very strong in booze, whereas Bestway is the best beers, wines and spirits wholesaler in the
country. I would expect Batleys customers will soon start enjoying Bestway’s style of alcohol selling.”
A letter has been sent out to anxious Batleys suppliers, promising to honour all existing contracts. And in answer to the flurry of speculation concerning how Bestway will integrate Batleys, former Batleys MD Len McCormick, who has now taken a back seat as deputy chairman, said the process would be “a case of evolution, not revolution”. Batleys’ depots will continue to trade under the Batleys name, co-ordinated from its current Leeds HQ.
One industry source commented: “Everyone in the industry appreciates the cultures of the two companies are completely different. It seems wisest for Batleys to continue trading separately to keep company loyalty.”
McCormick denied suggestions that retaining the Batleys name was specifically connected with the wishes of founder Lawrence Batley, who died in August 2002. “Everyone felt the Batleys badge was worthwhile keeping - they felt its prestige would be the best way to keep customers’ loyalty.”
Rod Addy
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