Birds Eye Wall's is scaling down its controversial Wall's Direct delivery network for impulse ice cream. The company said it was cutting its contracted out distribution operation in light of the changes ordered by trade and industry secretary Stephen Byers to free up competition in impulse ice cream. Wall's trading director Colin Alder said the undertakings ­ particularly an interim requirement to offer minimum wholesaler discounts of 22.5% off list price ­ had fundamentally changed the economics of the impulse ice cream sector. "Our assumption is that a huge proportion of people who were serviced through Wall's Direct will no longer want to be serviced by us. They will want to go to where the best deals are. In the current climate we are no longer able to do that." Instead, he said, the country's 200 or so independent wholesalers would now be offering retailers the best commercial package. Some national retailers may elect for Wall's to continue distributing product to their stores. But it will in future use the Wall's Direct number as a customer careline. The move should preempt the results of the OFT's consultation on distribution ordered by Byers to see how best to limit the amount of product Birds Eye Wall's delivers direct to retailers. The OFT is due to report to Byers by Easter. Alder said Wall's had announced the changes in the hope of bringing some certainty back to the market ahead of the all important start of the ice cream season. But he described Wall's Direct as the Rolls Royce of ice cream distribution. And he added: "Our only real concern is whether wholesalers can give retailers the same service that Wall's Direct did. It shook up the wholesale environment. "Now we cannot do that. But it set a benchmark for the standards that retailers will demand going forward." The changes will be phased in throughout April and Wall's will be contacting retailers to explain what is happening. Wall's said retailers would in future be able to dial the Wall's Direct number to ask for advice or to request a visit from a company rep. The company said its field sales force would work alongside wholesalers to provide advice on ranging, merchandising and freezer siting. {{NEWS }}

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