King maker

Wholesaler King has had to change to meet the needs of the independent publican, says Phil Mellows

As the trend from tenanted to managed houses has swung into reverse and the independent publican is once again in vogue, the repercussions have travelled well beyond the licensed trade itself.

When non-food wholesaler Autobar relaunched itself as King UK 18 months ago, it found that it would have to change more than the organisation's name to keep pace with the demands of the pub industry and improve its relationship with local licensees.

"The business was impeccably designed to handle big contracts, which at that time accounted for 95 per cent of our work," explained commercial director Ian Johns.

"It brought efficiencies, but it was not what the independent trade was looking for. They wanted a flexible local service. They wanted same-day delivery, which we couldn't cope with, and they wanted to agree a deal on the spot over the table, and our systems weren't allowing that to happen."

That independent trade was growing, outside of King's control. Along with individual licensees, many small pub groups had appeared which it also needed to relate to. The 95 per cent contract business is now down to 70 per cent.

So when Autobar became King, the name bringing it into line with the rest of the business in Europe, it took the opportunity to develop King Express and give it its own computer system and a sales force with more autonomy to negotiate deals in the field.

There are now King Express depots in Glasgow, Manchester and Edmonton, North London, plus a depot in Plymouth which already existed to handle the large number of freetrade accounts in the West Country.

They are equipped to deliver the same day in most cases, at worst the next day, while the core King business works to a 48-hour deadline.

Express employs 24 field sales staff whose job it is to walk the streets and identify new sources of business.

"The situation has demanded that we think outside the box," Ian continued. "Our general managers are entrepreneurial people and, within certain parameters, they now have the freedom to do their own deals."

More King Express depots are in the pipeline and the company's aim is to serve every independent operator in this way within three years.

King's customers will continue to include the major groups of course, its massive telesales team making and taking 12,000 customer calls a day.

The other major change at King has been the arrival of the internet. Electronic trading is described by Ian Johns as a "slow burn" opportunity, but its new website - www.king-uk.com - is "a very important investment for the future".

"So far it is still a tiny percentage of our business but it is undoubtedly the way forward," Ian said. "Every month brings more activity on the site and conversion to online ordering is increasing. I believe that most of our contracts will eventually trade electronically."

Larger clients, notably Yates Group, have their own personalised access to the site with a customised catalogue and shopping list that reminds them of their regular orders.

"Another expression of our partnership with customers," Ian added. "Already we have accounts where all the business is done over the web."

King is one of the partners on Bulmers' Pubserve site, a link that is now "starting to work," according to Ian.

"There are a lot of myths about internet trading," he said. "I don't really believe, for instance, that licensees want to place orders at 3am.

"But these days, if you want to deal with the big chains they won't even talk to you unless you give them the facility of ordering on the internet - even if they aren't set up to do it themselves yet."

Another development is King's "virtual stock facility".

This involves the company acting as distribution manager for suppliers and comes into play when, for instance, a firm has more crockery lines than King could possibly stock at its own depots.

When an order comes in it is electronically split three ways. Fast-moving lines are handled by local depots, slow-moving lines go to the King hub depot in Rugby and that order for fancy plates is transmitted to the manufacturer.

The crockery is picked up from the factory, assembled with the rest of the order and everything is delivered together within 48 hours.

King is now working on an extension of this, "ghost stock", which is delivered direct by the manufacturer without the wholesaler having to actually handle it.

In contrast to the fast-changing logistical solutions, there is little dramatic change to report in the products that are delivered.

"I'm not aware of new products at all," said Ian, surprisingly. "There are adaptions of existing products, the 'new, improved' stuff, but the licensed trade is still fairly conservative.

"The move to stylish glassware generally hasn't happened. It is all still nonics and tulips and the habit of drinking straight out of bottles has hit the market."Ian sees more potential on the food side, however.

Demand for tableware and cutlery is on the increase as publicans develop their food operations, and he tips takeway food as the next opportunity, with licensees ordering disposables such as sandwich packs and plastic cutlery.

King is also working with the style bar end of the market in tailoring products to match a concept or mood.

"We make a point of understanding exactly what kind of an effect the client is looking for, and we can then help them achieve their own identity, by helping with logos for instance," he said.

King's presence in other parts of Europe also helps it to source the more unusual demands. "Basically, I like to think that whatever the trade wants, we can go and get it from somewhere," said Ian.

There is no chance of King moving out of its business in cleaning products, kitchen utensils, glassware, toilet rolls and every other conceivable product that isn't food or drink.

"We specialise in non-food items and we will not go into chilled foods or other such markets," said Ian.

"We live by our promise and don't believe in trying to shoe-horn eveything into one delivery."

Case study:​ Babble, Berkeley Square, London

King UK was instrumental in supplying bespoke items for new central London style bar Babble.

As well as delivering the usual glassware, disposables, crockery, tableware and kitchen equipment, Chris Davies, manager of King Express London, also commissioned specially-made bread baskets and cheese boards.

The individually hand-made willow bread baskets were sourced from one of King's suppliers in Scotland according to a specification from the bar's general manager, Sophie Morrison.

"The theme of the bar is modern and rustic and it is imperative that we find items to reflect that theme," said Sophie. "Babble is a new concept with a new kind of image so wherever possible we want to use one-off, original items."