The wholesale sector must work closer together if all partners are to profit in the future, according to the head of the Wholesale Confectionery and Tobacco Alliance. Speaking at the alliance's annual dinner, John Bowden said: "Diversification is not the answer. We need to forge closer relations between suppliers, wholesalers and retailers to create better margins and take on the multiples." Robert Ireland of Coca-Cola Enterprises said his company relied on impulse sales which was why it invested heavily in the sector. But he received a cool response from wholesalers angry at the way CCE is changing trading terms for Coke. Bowden also urged the industry to present a united front when tackling politicians on the key issues of duty rates, smuggling and the impending tobacco advertising ban. He said tobacco was the lifeblood of the wholesale industry, and he called for an end to "damaging legislation made by people without understanding of the effect their decisions have". Gallaher md Barry Jenner said the company wanted to see duty rates dropped by £1 to £1.50 a pack ­ a call ignored by the Chancellor in the Budget. {{NEWS }}

Topics