The winners of The Grocer’s annual Own-Label Supplier Survey show what it takes to thrive. Alison Clements reports on the star performers, nominated by buyers from the multiples, wholesalers and symbol groups
As Britain’s supermarkets battle to offer best prices and optimum choice, a central element in their firepower is an attractive, competitive own-label offer.
So it is fitting that the often-unsung heroes of own label be recognised. Now in its fifth year, The Grocer’s Own-Label Supplier Survey has asked buyers from the top multiples, wholesalers and symbol groups to name the suppliers that have given the most outstanding service.
Gold, silver and bronze supplier champions in nine product categories have been identified, based on account management skills, product quality, reliability of deliveries, value for money, working relationship, new product development and crisis management.
The one category where we were unable to find any clear winners this year was ambient.
But there was no shortage of genuine praise for suppliers nominated in all the other categories from buying offices across the country. Reacting to the market’s relentless push for greater efficiency and lower prices, manufacturers are striving to keep costs down and buyers recognise this.
However, price alone is not enough. All the medal-winners in this year’s survey offer great prices plus superlative innovation, business planning and category management, according to buyers.
Own-label suppliers need to be more than manufacturers. They must be analysts, designers, business advisors and futurists too.
Proving conclusively such an outlook pays off, Arla takes gold in dairy and yellow fats for the second year running. Simon Stevens, executive director, Arla Foods, says: “We have continued to drive growth through NPD, category management and availability improvement
projects, jointly with our customers.” Nick Slater, senior controller of chilled foods for Nisa-Today’s, agrees and also congratulates Dairy Crest - joint winner of bronze in dairy. “The two companies display strong account management in the convenience sector, and a good mix of lines in their portfolio, both brand and own label
Silver winner Matthews Foods’ investment in state-of-the-art spreads production, coupled with healthy working relationships with clients, gave it the edge over Dairy Crest and joint bronze-winner Robert Wiseman.
Chris Davies, sales director at Matthews Foods, says: “As specialists, we are able to offer a full range of own-label products, in addition to our successful brands, which include Pure and Filippo Berio olive spread.”
Irish giant Kerry Foods beat Tulip and Noon to the top in chilled foods. “Change is continuous in this sector,” says Frank Hayes, director of corporate affairs at Kerry, “so we focus on added-value opportunities.
“This is assisted by ongoing investment in consumer research and category management. In such a dynamic environment, successful category management presents mutual growth opportunities for the retailer and the supplier.”
Naomi Thompson, a provisions buyer at Booker, says Tulip, this year’s chilled foods silver medalist, and runner up in meat, is eager to solve upcoming issues without client prompting. “We rarely have availability problems. Many years of experience also helps Tulip predict seasonal trends, so we can rely on very accurate fulfilment of cooked joints and sliced meats all year round.”
The challenge of supplying frozen food into stores in the right quantities is as formidable as ever, yet the voter response suggests joint winners Oerlemans and Freiberger have reassured buyers in a tough market.
One senior buying controller says: “Overstocking or under-stocking can be disastrous. Oerlemans keeps me informed at every stage.”
Miki Handzar, trading manager for frozen foods at Musgrave Budgens-Londis, says consistency of quality is key. “Oerlemans is proactive in rationalising pack sizes, redesigning for a contemporary feel and working on promotions that will ensure the category has potential to grow.”
Asda’s buying team for frozen praises Freiberger’s delivery efficiency and ability to research the market professionally and react with exactly the right new products.
Champion in meat this year is Grampian Country Food Group, which now processes for all of the top five supermarkets. While Sun Valley and Moy Park triumphed last year, Grampian has shown that its customer-facing strategy is paying off. “This award recognises our one-company, one-team, one-vision approach,” says David Salkeld, group chief executive.
Painstaking attention to the details of customer service ensures some suppliers are consistently outstanding. In household and personal care, Robert McBride has proved itself an unrivalled own-label star, having outshone the competition for the fifth consecutive year.
“Being primarily focused on own label, they can perform well and communicate clearly at every point of the production and supply chain,” says Barry Carter, a category manager at Musgrave Budgens-Londis.
“Offering great management and back-up contact gives them the edge on customer service.”
McBride is good at matching what the big brands are doing in terms of innovation, says Clive Wilson, non-food grocery buyer at Booker. “To do that well in detergents requires an excellent knowledge of the manufacturing processes. It’s a very specialised area, and McBride has done well to invest in the right people and technology.
“They can react very quickly to instigate new processes.”
Mike Handley, chief executive of McBride in the UK, believes good people make the ultimate difference. “It’s fantastic for our truly world-class team to be recognised in this way,” he says. “We innovate all the time and invest constantly in new processes, new product development, and packaging design. It’s wonderful to win but it’s also important for retail buyers to realise all this capital investment does not come for free.”
Innovation is key, agree buyers. Booker’s Wilson says bronze winner LPC is breaking new ground. “LPC consistently provides us with good-quality toilet tissue and kitchen towel, successfully following fast-moving market trends and developing innovative products.”
He says LPC’s excellent Just In Time delivery is outstanding. “We have worked very closely on a number of supply-chain initiatives, with cost savings to the benefit of both parties.”
Carter at MBL commended silver winner Robinson Young highly, too. “They are very responsive to our every requirement.”
Retailers gravitate toward suppliers willing to look at the bigger business picture. Taking silver last year in soft drinks inspired Cott to go for gold. Translating its experience of the wider branded drinks market to the needs of own label has won it many fans.
Jon Burton, trading controller at Landmark, rates Canadian-owned Cott Beverages for innovation and reliability. “It’s an impulse market and Cott understands that, reacting quickly to trends.”
Andrew Murfin, MD of Cott Beverages, says its worldwide corporate mantra is ‘quality, service and innovation’, and this is the guiding principle across all operations. “These standards also shape our approach to category management. We believe that by working closely with the retailers, understanding and tailoring our offer to their overall brand strategy, we will get the best results for everyone.”
Traditional confectioners Toms Confectionery and Monkhill Confectionery were, respectively, the gold and silver confectionery winners this year. Joshua Hetherington, confectionery and snacks category market manager at the Co-operative Group, says: “Toms has been willing to take on research and report back on what we need to do to compete better in volume sweets. I’ve also appreciated the contribution the Toms team makes to NPD. And correct advice on the right pack sizes can really help improve sales.”
Niels Petersen, MD at Toms, agrees NPD is vital, as demonstrated by its ventures into sugar-free sweets, and jellies flavoured with natural colours and flavours. “We have informed the supermarkets of the Continental trend to natural ingredients in children’s confectionery, and they are happy to pick up on that,” says Petersen. Lean costs, highly efficient production, coupled with flexibility and polished customer service are the qualities that landed Toms gold for the third year.
Scottish Courage finds itself the most respected own-label alcohol supplier in this year’s survey, having called time on last year’s top winner Glenmorangie. Halewood International and Bottle Green were the silver and bronze runners, now able to toast the success of their proactive client relationships.
“One of Halewood’s big strengths,” says Bob Rishworth, Halewood’s marketing director, “is the ability to react to customers’ ideas and concepts speedily, and work with them through all aspects of the brief from design to delivered product”.
Forward-thinking suppliers thrive on challenges, although some at the top of their game are concerned the pressure on price - particularly the one-dimensional nature of internet auctions - threatens innovation, and could stifle proactive qualities.
As Handley at McBride warns: “Companies like this will only be able to continue doing what we do so well if we are allowed to make enough capital to keep investing in the intangibles. Investment is being put at risk by intense downward pressure on price, and a refusal to take those vital costs into account in negotiations.”
This supplier champion’s plea to the industry? “We want to keep up with the branded market and stay at the top of our game, but we can’t do it on thin air.”
Dairy and yellow fats
Gold: Arla Foods
Silver: Matthews Foods
Joint Bronze:
Dairy Crest/Robert Wiseman
Household & personal care
Gold: Robert McBride
Silver: Robinson Young
Joint Bronze: LPC/SCA
Alcohol
Gold: Scottish Courage
Silver: Halewood International
Bronze: Bottle Green
Frozen Foods
Joint Gold:
Oerlemans Foods/ Freiberger
Silver: Green Isle Food Group
Bronze: Garden Isle
Frozen Foods Chilled Foods
Gold: Kerry Foods
Silver: Tulip International
Bronze: Noon Foods
Meat, fish and poultry
Gold: Grampian Country
Food Group
Silver: Tulip International
Bronze: no overall winner
Soft drinks
Gold: Cott Beverages
Joint Silver:
Gerber Foods Soft Drinks/
Silver Spring Mineral Water Co
Bronze: Princes Soft Drinks
Confectionery
Gold: Toms Confectionery
Silver: Monkhill Confectionery
Bronze: Glisten Confectionery
dairy and yellow fats gold winner
Arla Foods
“Arla has had a good new product development programme, a clear promotional policy and has been very proactive on category management.”
Nick Slater, senior controller of chilled food, Nisa-Today’s
Soft drinks gold winner
Cott Beverages
“Everybody has to be competitive on price but what else can you bring to the party? We believe consistency of quality and category management are increasingly important in providing leading-edge own-label product.”
Andrew Murfin, managing director, Cott Beverages
Household and Personal Care gold winner
Robert McBride
“The values that keep winning prizes for us are unfortunately exactly what are being threatened by today’s internet auction negotiating culture. Retail buyers need to realise that in the end you get what you pay for. If you don’t pay, all those areas of excellence will disappear, and with them top-class own-label product will go.”
Mike Handley, chief executive, Robert McBride
Frozen foods Gold winner
Oerlemans Foods/Freiberger
“Freiberger is an excellent all-rounder and achieves 100% inbound service levels. When it comes to introducing exciting new product, they normally do it quickly, and get it right first time.”
Amanda Farrell, marketing manager for frozen, Asda
Confectionery Gold Winner
Toms Confectionery
“The strategy we set out in 2002, to offer an all-encompassing one-stop shop for sugar confectionery for the leading retailers, is now a firm operational reality. Delivering efficiency, flexibility and reliability as well as competitively priced product have secured this good reputation.”
Niels Petersen, managing director, Toms Confectionery
Meat, fish and poultry Gold Winner
Grampian Country Food Group
“I am delighted for the people of Grampian who have engaged so enthusiastically our consumer-facing strategy.”
David Salkeld, group chief executive, Grampian Country Food Group
Supplier champions
Quote unquote
>>category winners of gold, silver, bronze
As Britain’s supermarkets battle to offer best prices and optimum choice, a central element in their firepower is an attractive, competitive own-label offer.
So it is fitting that the often-unsung heroes of own label be recognised. Now in its fifth year, The Grocer’s Own-Label Supplier Survey has asked buyers from the top multiples, wholesalers and symbol groups to name the suppliers that have given the most outstanding service.
Gold, silver and bronze supplier champions in nine product categories have been identified, based on account management skills, product quality, reliability of deliveries, value for money, working relationship, new product development and crisis management.
The one category where we were unable to find any clear winners this year was ambient.
But there was no shortage of genuine praise for suppliers nominated in all the other categories from buying offices across the country. Reacting to the market’s relentless push for greater efficiency and lower prices, manufacturers are striving to keep costs down and buyers recognise this.
However, price alone is not enough. All the medal-winners in this year’s survey offer great prices plus superlative innovation, business planning and category management, according to buyers.
Own-label suppliers need to be more than manufacturers. They must be analysts, designers, business advisors and futurists too.
Proving conclusively such an outlook pays off, Arla takes gold in dairy and yellow fats for the second year running. Simon Stevens, executive director, Arla Foods, says: “We have continued to drive growth through NPD, category management and availability improvement
projects, jointly with our customers.” Nick Slater, senior controller of chilled foods for Nisa-Today’s, agrees and also congratulates Dairy Crest - joint winner of bronze in dairy. “The two companies display strong account management in the convenience sector, and a good mix of lines in their portfolio, both brand and own label
Silver winner Matthews Foods’ investment in state-of-the-art spreads production, coupled with healthy working relationships with clients, gave it the edge over Dairy Crest and joint bronze-winner Robert Wiseman.
Chris Davies, sales director at Matthews Foods, says: “As specialists, we are able to offer a full range of own-label products, in addition to our successful brands, which include Pure and Filippo Berio olive spread.”
Irish giant Kerry Foods beat Tulip and Noon to the top in chilled foods. “Change is continuous in this sector,” says Frank Hayes, director of corporate affairs at Kerry, “so we focus on added-value opportunities.
“This is assisted by ongoing investment in consumer research and category management. In such a dynamic environment, successful category management presents mutual growth opportunities for the retailer and the supplier.”
Naomi Thompson, a provisions buyer at Booker, says Tulip, this year’s chilled foods silver medalist, and runner up in meat, is eager to solve upcoming issues without client prompting. “We rarely have availability problems. Many years of experience also helps Tulip predict seasonal trends, so we can rely on very accurate fulfilment of cooked joints and sliced meats all year round.”
The challenge of supplying frozen food into stores in the right quantities is as formidable as ever, yet the voter response suggests joint winners Oerlemans and Freiberger have reassured buyers in a tough market.
One senior buying controller says: “Overstocking or under-stocking can be disastrous. Oerlemans keeps me informed at every stage.”
Miki Handzar, trading manager for frozen foods at Musgrave Budgens-Londis, says consistency of quality is key. “Oerlemans is proactive in rationalising pack sizes, redesigning for a contemporary feel and working on promotions that will ensure the category has potential to grow.”
Asda’s buying team for frozen praises Freiberger’s delivery efficiency and ability to research the market professionally and react with exactly the right new products.
Champion in meat this year is Grampian Country Food Group, which now processes for all of the top five supermarkets. While Sun Valley and Moy Park triumphed last year, Grampian has shown that its customer-facing strategy is paying off. “This award recognises our one-company, one-team, one-vision approach,” says David Salkeld, group chief executive.
Painstaking attention to the details of customer service ensures some suppliers are consistently outstanding. In household and personal care, Robert McBride has proved itself an unrivalled own-label star, having outshone the competition for the fifth consecutive year.
“Being primarily focused on own label, they can perform well and communicate clearly at every point of the production and supply chain,” says Barry Carter, a category manager at Musgrave Budgens-Londis.
“Offering great management and back-up contact gives them the edge on customer service.”
McBride is good at matching what the big brands are doing in terms of innovation, says Clive Wilson, non-food grocery buyer at Booker. “To do that well in detergents requires an excellent knowledge of the manufacturing processes. It’s a very specialised area, and McBride has done well to invest in the right people and technology.
“They can react very quickly to instigate new processes.”
Mike Handley, chief executive of McBride in the UK, believes good people make the ultimate difference. “It’s fantastic for our truly world-class team to be recognised in this way,” he says. “We innovate all the time and invest constantly in new processes, new product development, and packaging design. It’s wonderful to win but it’s also important for retail buyers to realise all this capital investment does not come for free.”
Innovation is key, agree buyers. Booker’s Wilson says bronze winner LPC is breaking new ground. “LPC consistently provides us with good-quality toilet tissue and kitchen towel, successfully following fast-moving market trends and developing innovative products.”
He says LPC’s excellent Just In Time delivery is outstanding. “We have worked very closely on a number of supply-chain initiatives, with cost savings to the benefit of both parties.”
Carter at MBL commended silver winner Robinson Young highly, too. “They are very responsive to our every requirement.”
Retailers gravitate toward suppliers willing to look at the bigger business picture. Taking silver last year in soft drinks inspired Cott to go for gold. Translating its experience of the wider branded drinks market to the needs of own label has won it many fans.
Jon Burton, trading controller at Landmark, rates Canadian-owned Cott Beverages for innovation and reliability. “It’s an impulse market and Cott understands that, reacting quickly to trends.”
Andrew Murfin, MD of Cott Beverages, says its worldwide corporate mantra is ‘quality, service and innovation’, and this is the guiding principle across all operations. “These standards also shape our approach to category management. We believe that by working closely with the retailers, understanding and tailoring our offer to their overall brand strategy, we will get the best results for everyone.”
Traditional confectioners Toms Confectionery and Monkhill Confectionery were, respectively, the gold and silver confectionery winners this year. Joshua Hetherington, confectionery and snacks category market manager at the Co-operative Group, says: “Toms has been willing to take on research and report back on what we need to do to compete better in volume sweets. I’ve also appreciated the contribution the Toms team makes to NPD. And correct advice on the right pack sizes can really help improve sales.”
Niels Petersen, MD at Toms, agrees NPD is vital, as demonstrated by its ventures into sugar-free sweets, and jellies flavoured with natural colours and flavours. “We have informed the supermarkets of the Continental trend to natural ingredients in children’s confectionery, and they are happy to pick up on that,” says Petersen. Lean costs, highly efficient production, coupled with flexibility and polished customer service are the qualities that landed Toms gold for the third year.
Scottish Courage finds itself the most respected own-label alcohol supplier in this year’s survey, having called time on last year’s top winner Glenmorangie. Halewood International and Bottle Green were the silver and bronze runners, now able to toast the success of their proactive client relationships.
“One of Halewood’s big strengths,” says Bob Rishworth, Halewood’s marketing director, “is the ability to react to customers’ ideas and concepts speedily, and work with them through all aspects of the brief from design to delivered product”.
Forward-thinking suppliers thrive on challenges, although some at the top of their game are concerned the pressure on price - particularly the one-dimensional nature of internet auctions - threatens innovation, and could stifle proactive qualities.
As Handley at McBride warns: “Companies like this will only be able to continue doing what we do so well if we are allowed to make enough capital to keep investing in the intangibles. Investment is being put at risk by intense downward pressure on price, and a refusal to take those vital costs into account in negotiations.”
This supplier champion’s plea to the industry? “We want to keep up with the branded market and stay at the top of our game, but we can’t do it on thin air.”
Dairy and yellow fats
Gold: Arla Foods
Silver: Matthews Foods
Joint Bronze:
Dairy Crest/Robert Wiseman
Household & personal care
Gold: Robert McBride
Silver: Robinson Young
Joint Bronze: LPC/SCA
Alcohol
Gold: Scottish Courage
Silver: Halewood International
Bronze: Bottle Green
Frozen Foods
Joint Gold:
Oerlemans Foods/ Freiberger
Silver: Green Isle Food Group
Bronze: Garden Isle
Frozen Foods Chilled Foods
Gold: Kerry Foods
Silver: Tulip International
Bronze: Noon Foods
Meat, fish and poultry
Gold: Grampian Country
Food Group
Silver: Tulip International
Bronze: no overall winner
Soft drinks
Gold: Cott Beverages
Joint Silver:
Gerber Foods Soft Drinks/
Silver Spring Mineral Water Co
Bronze: Princes Soft Drinks
Confectionery
Gold: Toms Confectionery
Silver: Monkhill Confectionery
Bronze: Glisten Confectionery
dairy and yellow fats gold winner
Arla Foods
“Arla has had a good new product development programme, a clear promotional policy and has been very proactive on category management.”
Nick Slater, senior controller of chilled food, Nisa-Today’s
Soft drinks gold winner
Cott Beverages
“Everybody has to be competitive on price but what else can you bring to the party? We believe consistency of quality and category management are increasingly important in providing leading-edge own-label product.”
Andrew Murfin, managing director, Cott Beverages
Household and Personal Care gold winner
Robert McBride
“The values that keep winning prizes for us are unfortunately exactly what are being threatened by today’s internet auction negotiating culture. Retail buyers need to realise that in the end you get what you pay for. If you don’t pay, all those areas of excellence will disappear, and with them top-class own-label product will go.”
Mike Handley, chief executive, Robert McBride
Frozen foods Gold winner
Oerlemans Foods/Freiberger
“Freiberger is an excellent all-rounder and achieves 100% inbound service levels. When it comes to introducing exciting new product, they normally do it quickly, and get it right first time.”
Amanda Farrell, marketing manager for frozen, Asda
Confectionery Gold Winner
Toms Confectionery
“The strategy we set out in 2002, to offer an all-encompassing one-stop shop for sugar confectionery for the leading retailers, is now a firm operational reality. Delivering efficiency, flexibility and reliability as well as competitively priced product have secured this good reputation.”
Niels Petersen, managing director, Toms Confectionery
Meat, fish and poultry Gold Winner
Grampian Country Food Group
“I am delighted for the people of Grampian who have engaged so enthusiastically our consumer-facing strategy.”
David Salkeld, group chief executive, Grampian Country Food Group
Supplier champions
Quote unquote
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