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The grocery wholesale market in 2006 was found to be worth £17.48bn,
comprising cash & carries (£9.4bn) and delivered wholesalers
(£8.1bn).
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Selling through the supply chain brings both benefits and disadvantages to suppliers. Benefits in that there is no easier way of selling low-value items to large numbers of customers, without the need for a dedicated distribution arm to a supplier business. However, reliance on an independent distributor often eradicates the direct customer relationship, enforcing the need for a strong communications campaign. Wholesalers should not be solely relied upon to promote your product's features and benefits and position your brand front of mind among your end-users.
For many suppliers, the distributor is their largest customer and retaining listings and sustaining price is an ongoing challenge. Firstly distributor partnerships should be struck only with reputable operators with a brand synergy to yours. Only by demonstrating that your brand or product has a role to play in the category – leveraging category growth, driving incremental profit and maintaining demand - will you ensure its continued support.
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Foodservice Experience
The out of home sector is a complex and fragmented marketplace, with more than 260,000 outlets worth an estimated £30bn.
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Retail Experience
Of every £1 spent in the retail industry, 49 pence is spent on the grocery sector, creating a market worth in excess of £123bn. |
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Trade Experience
The grocery wholesale market in 2006 was found to be worth £17.48bn, comprising cash & carries (£9.4bn) and delivered wholesalers (£8.1bn). |
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