Even the number one in this year’s ranking of The Big 30 has been hit - but there’s a lot to fight for, reports Ronan Hegarty
Last year was tough for the wholesale sector. If it wasn’t fuel prices, it was the minimum wage, red tape, or the impact of rogue traders on the fringe. And let’s not forget the competition from the multiples.
Certainly, neither Palmer & Harvey McLane nor Booker will look back on 2005 with much fondness, despite retaining the number one and two spots this year. P&H fared better of the two with flat sales of £3.53bn, but Booker’s sales fell 7.5% to £3.23bn as it restructured following its decoupling from Iceland.
Like most of those involved in our second annual The Big 30, they are predicting tougher times ahead - but also insist there is cause for optimism. P&H MD Graham McPherson says: “We anticipate continued growth at 4% despite tough conditions.”
But Booker has more ground to make up. Last February, it was left to its own devices after Baugur’s takeover of the Big Food Group. Alongside a rationalisation programme, its major shareholders began looking at ways of refinancing the group after a Baugur spokesman admitted Booker was not in as good a condition as it had thought when it first took over the company.
This prompted the arrival of former M&S man Charles Wilson as Booker’s new chief executive in October. Wilson admits there is some way to go yet to turn the business round. “2004/05 was a difficult year. However, we came through Christmas with the best availability the company has had and our product offer is improving.”
His comments reflect the fighting spirit in The Big 30 as a whole. Despite the pressures, many companies were in growth last year with seven hitting double digits.
In the past, The Grocer’s The Top 50 Independent Retailers table has been seen as a shopping list for the multiples. While Tesco and Sainsbury may not have been eyeing last year’s The Big 30, it looks as if fellow wholesalers were. The biggest changes to the list this year took place as a result of wholesalers buying fellow operators. The first of these came last January with Bestway’s £100m takeover of Batleys. The deal made Bestway the UK’s second-biggest cash and carry operator with much wider national coverage. Its 49 depots produced sales of £1.3bn last year and sent Bestway up the table from sixth to
fourth. It is expected to post turnover close to £1.6bn in its first set of results since merging, putting it in a position to challenge foodservice specialist Brakes for third spot in The Big 30.
Coming from further back in the list, a spate of acquisitions has propelled delivered wholesaler Blueheath from 30th position to the lofty position of 19th. The 108% growth in company turnover is the result of its purchase of both AC Ward & Son and Wrexham-based CTM Wholesale.
Last year AC Ward was 25th on our list while CTM was ranked in our Bubbling Under list at 34. Blueheath’s turnover is now £146m compared with the £70.2m it registered last year.
One of the biggest upshots of the deal was that buying group Landmark lost out on Blueheath’s membership, which it had for the past two years. Both CTM and AC Ward were affiliated to Nisa-Today’s through their memberships of secondary buying groups Sugro and Key Lekkerland respectively.
Understandably Martin Williams, MD of Landmark Wholesale, was less than impressed by Blueheath’s move. However for Rodney Hunt, Today’s Group md, this has been a major coup. Hunt says: “Blueheath is certainly a wholesaler that is ambitious and going places and we are delighted to welcome it is as a member.”
The other winners in this year’s list are London-based Hothi Cash & Carry, foodservice giants Brakes and Scottish wholesaler JW Filshill. Greater emphasis on alcoholic beverages has helped Hothi boost its sales 45% to £100m. This has moved it from 29 to 24 on our list.
At number 18, JW Filshill’s sales grew 14% to £156m, while the other wholesalers which enjoyed double-digit growth were T&A Symonds and BA Cash & Carry.
While many of the traditional wholesalers on our list such as Blakemore Wholesale and Henderson Wholesale have embraced the growing importance of foodservice, this year’s list also boasts a record number of specialist foodservice providers.
As well as the nationwide operators Brakes and 3663 First for Foodservice, which each command turnover of more than £1bn, The Big 30 now also includes Chinese wholesaler Wing Yip and Hertfordshire-based DBC Foodservice.
Over the page, we examine whether or not this can be an area for traditional wholesalers to capitalise on.
But in the battle of this year’s big foodservice providers, Brakes has once again come out on top.
As well as winning The Grocer Gold award for Best Wholesaler last June, it has consolidated its position at number three in the table.
Meanwhile, even though 3663 First for Foodservice recorded a sales increase of 8.5%, Bestway’s takeover of Batleys pushed it down one place into fifth spot.
This is symptomatic of the growing importance of foodservice to the wholesale sector. Indeed as well as the companies on the list, two foodservice operators also just missed out, Enfield-based JJ Foodservice and Hunt’s Foodservice.
Other wholesalers that can expect to make a run for next year’s list are Elbrook, Hancocks, and Vitality Group. Despite a 4.9% drop in sales Elbrook still came close with sales of £73.8m, while sales of confectionery specialist Hancocks rose 4.6%, taking its turnover to £64.6m. North London wholesaler Vitality came in with sales up 10.3% to just under £50m.
The overall success of the companies on these lists shows that the wholesale sector is very much alive and kicking.
And there are still plenty of people in the sector who are ready to invest and innovate. This year rising costs including a further above-inflation hike in the minimum wage may well cause pain. However, these are all challenges The Big 30 have faced before and will expect to overcome once again.
>>Does cash and carry have a future?
The Big 30
>>palmer & Harvey McLANE claims the top spot again
CompanyOfferEmployeesDepotssales (K)% Y-0-Y Change
1Palmer & Harvey McLaneDelivered wholesale3,793153,533,2980.1
2Booker Cash and carry8,3001733,228,000-7.5
3Brake BrosFoodservice7,537581,600,00023.1
4Bestway HoldingsCash and carry, delivered wholesale4,109491,320,00022.0
53663 First For FoodserviceFoodservice5,200421,290,0008.5
6MakroCash and carry6,355331,100,0000.0
7CostcoCash and carry4,00017953,3879.1
8Blakemore WholesaleCash and carry, delivered wholesale, foodservice1,39510536,0003.4
9Musgrave Budgens LondisDelivered wholesale5704520,0002.0
10Dhamecha FoodsCash and carry3015270,9005.0
11Henderson WholesaleDelivered wholesale3831232,0007.4
12AG Parfett & SonCash and carry5166219,0004.7
13Capper & CoDelivered wholesale4902216,4944.9
14J&J HaslettCash and carry, delivered wholesale3729193,0006.0
15DBC FoodserviceDelivered wholesale86611191,157-0.7
16James Hall & CoDelivered wholesale5941188,1273.0
17CJ Lang & Son (incl Martex)Delivered wholesale, cash and carry, foodservice6145156,000-3.0
18JW FilshillDelivered wholesale2751155,59014.0
19BlueheathDelivered wholesale2293146,000108.0
20Appleby WestwardDelivered wholesale2012142,000-16.0
21WH & HM YoungDelivered wholesale2001130,000-7.0
22TRS Cash & CarryCash and carry, delivered wholesale1903117,000-6.0
23HyperamaCash and carry2203104,0000.0
24Hothi Cash & CarryCash and carry441100,00045.0
25United Wholesale (Scotland)Cash and carry, delivered wholesale130297,0006.0
26East End Foods*Cash and carry, delivered wholesale280393,8521.8
27T&A SymondsDelivered wholesale132190,23210.0
28DCS EuropeDelivered wholesale110187,0007.4
29BA Cash & CarryCash and carry154284,34312.8
30Wing YipCash and carry, delivered wholesale309479,4336.8
FIGURES provided by companies or *TAKEN FROM COMPANIES HOUSE. SYMBOL GROUPS AND BUYING GROUPS ARE NOT COUNTED, ALTHOUGH THEIR MEMBERS ARE
Bubbling Under
>>contenders for a place in the top 30 next year?
CompanyOffersales (£K)
31 Elbrook Cash and Carry Cash and carry 73,773
32 JJ Foodservice Foodservice 71,648
33 Hancocks Cash and Carry Cash and carry 64,698
34 Vitality Group Cash and carry, delivered wholesale 49,541
35 Tyne Tees Cash & Carry Cash and carry 44,800
36 Bellevue Cash & Carry Cash and carry, delivered wholesale 40,825
37 Maini Wholesale Cash & Carry Cash and carry 40,000
38 Lowries Cash and carry, delivered wholesale, foodservice 30,000
39 Hunt’s Foodservice Foodservice 26,000
40 L&F Jones Cash and carry 13,017
Last year was tough for the wholesale sector. If it wasn’t fuel prices, it was the minimum wage, red tape, or the impact of rogue traders on the fringe. And let’s not forget the competition from the multiples.
Certainly, neither Palmer & Harvey McLane nor Booker will look back on 2005 with much fondness, despite retaining the number one and two spots this year. P&H fared better of the two with flat sales of £3.53bn, but Booker’s sales fell 7.5% to £3.23bn as it restructured following its decoupling from Iceland.
Like most of those involved in our second annual The Big 30, they are predicting tougher times ahead - but also insist there is cause for optimism. P&H MD Graham McPherson says: “We anticipate continued growth at 4% despite tough conditions.”
But Booker has more ground to make up. Last February, it was left to its own devices after Baugur’s takeover of the Big Food Group. Alongside a rationalisation programme, its major shareholders began looking at ways of refinancing the group after a Baugur spokesman admitted Booker was not in as good a condition as it had thought when it first took over the company.
This prompted the arrival of former M&S man Charles Wilson as Booker’s new chief executive in October. Wilson admits there is some way to go yet to turn the business round. “2004/05 was a difficult year. However, we came through Christmas with the best availability the company has had and our product offer is improving.”
His comments reflect the fighting spirit in The Big 30 as a whole. Despite the pressures, many companies were in growth last year with seven hitting double digits.
In the past, The Grocer’s The Top 50 Independent Retailers table has been seen as a shopping list for the multiples. While Tesco and Sainsbury may not have been eyeing last year’s The Big 30, it looks as if fellow wholesalers were. The biggest changes to the list this year took place as a result of wholesalers buying fellow operators. The first of these came last January with Bestway’s £100m takeover of Batleys. The deal made Bestway the UK’s second-biggest cash and carry operator with much wider national coverage. Its 49 depots produced sales of £1.3bn last year and sent Bestway up the table from sixth to
fourth. It is expected to post turnover close to £1.6bn in its first set of results since merging, putting it in a position to challenge foodservice specialist Brakes for third spot in The Big 30.
Coming from further back in the list, a spate of acquisitions has propelled delivered wholesaler Blueheath from 30th position to the lofty position of 19th. The 108% growth in company turnover is the result of its purchase of both AC Ward & Son and Wrexham-based CTM Wholesale.
Last year AC Ward was 25th on our list while CTM was ranked in our Bubbling Under list at 34. Blueheath’s turnover is now £146m compared with the £70.2m it registered last year.
One of the biggest upshots of the deal was that buying group Landmark lost out on Blueheath’s membership, which it had for the past two years. Both CTM and AC Ward were affiliated to Nisa-Today’s through their memberships of secondary buying groups Sugro and Key Lekkerland respectively.
Understandably Martin Williams, MD of Landmark Wholesale, was less than impressed by Blueheath’s move. However for Rodney Hunt, Today’s Group md, this has been a major coup. Hunt says: “Blueheath is certainly a wholesaler that is ambitious and going places and we are delighted to welcome it is as a member.”
The other winners in this year’s list are London-based Hothi Cash & Carry, foodservice giants Brakes and Scottish wholesaler JW Filshill. Greater emphasis on alcoholic beverages has helped Hothi boost its sales 45% to £100m. This has moved it from 29 to 24 on our list.
At number 18, JW Filshill’s sales grew 14% to £156m, while the other wholesalers which enjoyed double-digit growth were T&A Symonds and BA Cash & Carry.
While many of the traditional wholesalers on our list such as Blakemore Wholesale and Henderson Wholesale have embraced the growing importance of foodservice, this year’s list also boasts a record number of specialist foodservice providers.
As well as the nationwide operators Brakes and 3663 First for Foodservice, which each command turnover of more than £1bn, The Big 30 now also includes Chinese wholesaler Wing Yip and Hertfordshire-based DBC Foodservice.
Over the page, we examine whether or not this can be an area for traditional wholesalers to capitalise on.
But in the battle of this year’s big foodservice providers, Brakes has once again come out on top.
As well as winning The Grocer Gold award for Best Wholesaler last June, it has consolidated its position at number three in the table.
Meanwhile, even though 3663 First for Foodservice recorded a sales increase of 8.5%, Bestway’s takeover of Batleys pushed it down one place into fifth spot.
This is symptomatic of the growing importance of foodservice to the wholesale sector. Indeed as well as the companies on the list, two foodservice operators also just missed out, Enfield-based JJ Foodservice and Hunt’s Foodservice.
Other wholesalers that can expect to make a run for next year’s list are Elbrook, Hancocks, and Vitality Group. Despite a 4.9% drop in sales Elbrook still came close with sales of £73.8m, while sales of confectionery specialist Hancocks rose 4.6%, taking its turnover to £64.6m. North London wholesaler Vitality came in with sales up 10.3% to just under £50m.
The overall success of the companies on these lists shows that the wholesale sector is very much alive and kicking.
And there are still plenty of people in the sector who are ready to invest and innovate. This year rising costs including a further above-inflation hike in the minimum wage may well cause pain. However, these are all challenges The Big 30 have faced before and will expect to overcome once again.
>>Does cash and carry have a future?
The Big 30
>>palmer & Harvey McLANE claims the top spot again
CompanyOfferEmployeesDepotssales (K)% Y-0-Y Change
1Palmer & Harvey McLaneDelivered wholesale3,793153,533,2980.1
2Booker Cash and carry8,3001733,228,000-7.5
3Brake BrosFoodservice7,537581,600,00023.1
4Bestway HoldingsCash and carry, delivered wholesale4,109491,320,00022.0
53663 First For FoodserviceFoodservice5,200421,290,0008.5
6MakroCash and carry6,355331,100,0000.0
7CostcoCash and carry4,00017953,3879.1
8Blakemore WholesaleCash and carry, delivered wholesale, foodservice1,39510536,0003.4
9Musgrave Budgens LondisDelivered wholesale5704520,0002.0
10Dhamecha FoodsCash and carry3015270,9005.0
11Henderson WholesaleDelivered wholesale3831232,0007.4
12AG Parfett & SonCash and carry5166219,0004.7
13Capper & CoDelivered wholesale4902216,4944.9
14J&J HaslettCash and carry, delivered wholesale3729193,0006.0
15DBC FoodserviceDelivered wholesale86611191,157-0.7
16James Hall & CoDelivered wholesale5941188,1273.0
17CJ Lang & Son (incl Martex)Delivered wholesale, cash and carry, foodservice6145156,000-3.0
18JW FilshillDelivered wholesale2751155,59014.0
19BlueheathDelivered wholesale2293146,000108.0
20Appleby WestwardDelivered wholesale2012142,000-16.0
21WH & HM YoungDelivered wholesale2001130,000-7.0
22TRS Cash & CarryCash and carry, delivered wholesale1903117,000-6.0
23HyperamaCash and carry2203104,0000.0
24Hothi Cash & CarryCash and carry441100,00045.0
25United Wholesale (Scotland)Cash and carry, delivered wholesale130297,0006.0
26East End Foods*Cash and carry, delivered wholesale280393,8521.8
27T&A SymondsDelivered wholesale132190,23210.0
28DCS EuropeDelivered wholesale110187,0007.4
29BA Cash & CarryCash and carry154284,34312.8
30Wing YipCash and carry, delivered wholesale309479,4336.8
FIGURES provided by companies or *TAKEN FROM COMPANIES HOUSE. SYMBOL GROUPS AND BUYING GROUPS ARE NOT COUNTED, ALTHOUGH THEIR MEMBERS ARE
Bubbling Under
>>contenders for a place in the top 30 next year?
CompanyOffersales (£K)
31 Elbrook Cash and Carry Cash and carry 73,773
32 JJ Foodservice Foodservice 71,648
33 Hancocks Cash and Carry Cash and carry 64,698
34 Vitality Group Cash and carry, delivered wholesale 49,541
35 Tyne Tees Cash & Carry Cash and carry 44,800
36 Bellevue Cash & Carry Cash and carry, delivered wholesale 40,825
37 Maini Wholesale Cash & Carry Cash and carry 40,000
38 Lowries Cash and carry, delivered wholesale, foodservice 30,000
39 Hunt’s Foodservice Foodservice 26,000
40 L&F Jones Cash and carry 13,017
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