The news that convenience store owners in deprived areas of England and Wales will be given financial incentives to buy more fruit and vegetables should have had the wholesale industry salivating at the thought of potential new business opportunities.
But our poll suggests otherwise. In fact more than half of respondents did not agree with the premise of the initiative, which will see the Department of Health hand out £300,000 over the next two years in a bid to combat the obesity epidemic.
One wholesaler says the market should decide whether convenience stores stock fruit and vegetables. He believes that enterprising store owners will find their own answers to the distribution issues.
Another wholesaler was sceptical of the reasoning behind the scheme, which will encourage retailers to buy new shelving, chillers and promotional material, but felt that c-store owners were due a break following the government’s stance on issues such as cigarette displays and supermarket competition.
A third of the wholesalers questioned do not stock fresh produce and of those who currently do, the majority have no immediate plans to increase their range of fresh food, according to the survey.
“Our franchisees offer an excellent range already,” says one wholesaler.
Another, however, notes that fruit and vegetables are increasingly becoming an essential part of the offer.
While more than 50% of respondents do now stock fresh produce, those that don’t have no intention of starting. Wastage is the major barrier to take-up.
One wholesaler says that the structure of his business as a supplier of ambient goods makes it difficult to make the switch to selling perishable products.
Another wholesaler who does stock fruit and vegetables admits that managing stock flow in and out of the business can be challenging.
“Wastage is an issue. We encourage out retailers to shop little and often to reduce their wastage. They can pre-order their requirements to maximise shelf life and their order will be ready for them when they shop,” he says. Other reasons given for not stocking fresh include lack of storage space and insufficient infrastructure, while for others who specialise in areas such as spirits and confectionery, it simply does not fit with their business model and is not something their customers would be interested in buying.
Franchise to experts
Cash & carry wholesaler
We franchise our fresh produce operation to a specialist in all depots except one, where we do it ourselves. Although we do not exercise control of the franchises, they offer an excellent range already so we have no plans to increase the level of fresh produce we sell. As to whether the government should offer convenience stores financial incentives to stock fresh produce, the answer should be no. However, the government is interfering in and damaging independent business in so many ways that we have to welcome any means available to access incentives and to be seen to be co-operative.
Nanny appears again
Cash & carry wholesaler
 Fresh produce is becoming an increasingly important part of the offer and we’re looking at ways of improving our capabilities in this area. Wastage is a problem and can be a barrier to stocking, particularly with the short-life products such as fruit and vegetables. The cash-for-stocking-fruit initiative is yet another example of the nanny state rearing its head. Why can’t we let the market decide? Small stores should encourage sales, create demand, maintain freshness and find solutions to the distribution issues. For their part, cash & carrys and wholesalers should lend their expertise and buying/sourcing knowhow to assist with distribution solutions.
Wastage puts us off
Cash & carry wholesaler
Our business deals predominantly in ambient goods and as such we are not geared towards selling perishable goods such as fruit and vegetables to our retailers. We currently have no plans to stock fresh produce. It would mean a wide-scale restructuring of the business and we’d rather focus on our strengths and keep improving in those areas. Wastage is a major barrier to smaller wholesalers selling fresh produce. You have to make sure the supply chain is extremely fluid. I think it’s a great initiative by the government to offer incentives to convenience stores to stock more fruit and vegetables. It will give them the encouragement to overcome the challenges associated with stocking fresh food.
But our poll suggests otherwise. In fact more than half of respondents did not agree with the premise of the initiative, which will see the Department of Health hand out £300,000 over the next two years in a bid to combat the obesity epidemic.
One wholesaler says the market should decide whether convenience stores stock fruit and vegetables. He believes that enterprising store owners will find their own answers to the distribution issues.
Another wholesaler was sceptical of the reasoning behind the scheme, which will encourage retailers to buy new shelving, chillers and promotional material, but felt that c-store owners were due a break following the government’s stance on issues such as cigarette displays and supermarket competition.
A third of the wholesalers questioned do not stock fresh produce and of those who currently do, the majority have no immediate plans to increase their range of fresh food, according to the survey.
“Our franchisees offer an excellent range already,” says one wholesaler.
Another, however, notes that fruit and vegetables are increasingly becoming an essential part of the offer.
While more than 50% of respondents do now stock fresh produce, those that don’t have no intention of starting. Wastage is the major barrier to take-up.
One wholesaler says that the structure of his business as a supplier of ambient goods makes it difficult to make the switch to selling perishable products.
Another wholesaler who does stock fruit and vegetables admits that managing stock flow in and out of the business can be challenging.
“Wastage is an issue. We encourage out retailers to shop little and often to reduce their wastage. They can pre-order their requirements to maximise shelf life and their order will be ready for them when they shop,” he says. Other reasons given for not stocking fresh include lack of storage space and insufficient infrastructure, while for others who specialise in areas such as spirits and confectionery, it simply does not fit with their business model and is not something their customers would be interested in buying.
Franchise to experts
Cash & carry wholesaler
We franchise our fresh produce operation to a specialist in all depots except one, where we do it ourselves. Although we do not exercise control of the franchises, they offer an excellent range already so we have no plans to increase the level of fresh produce we sell. As to whether the government should offer convenience stores financial incentives to stock fresh produce, the answer should be no. However, the government is interfering in and damaging independent business in so many ways that we have to welcome any means available to access incentives and to be seen to be co-operative.
Nanny appears again
Cash & carry wholesaler
 Fresh produce is becoming an increasingly important part of the offer and we’re looking at ways of improving our capabilities in this area. Wastage is a problem and can be a barrier to stocking, particularly with the short-life products such as fruit and vegetables. The cash-for-stocking-fruit initiative is yet another example of the nanny state rearing its head. Why can’t we let the market decide? Small stores should encourage sales, create demand, maintain freshness and find solutions to the distribution issues. For their part, cash & carrys and wholesalers should lend their expertise and buying/sourcing knowhow to assist with distribution solutions.
Wastage puts us off
Cash & carry wholesaler
Our business deals predominantly in ambient goods and as such we are not geared towards selling perishable goods such as fruit and vegetables to our retailers. We currently have no plans to stock fresh produce. It would mean a wide-scale restructuring of the business and we’d rather focus on our strengths and keep improving in those areas. Wastage is a major barrier to smaller wholesalers selling fresh produce. You have to make sure the supply chain is extremely fluid. I think it’s a great initiative by the government to offer incentives to convenience stores to stock more fruit and vegetables. It will give them the encouragement to overcome the challenges associated with stocking fresh food.
No comments yet