Wholesaler focus: Supply and demand

IT USED to be so simple. Customers came in for a pint and a fag, had a selection of perhaps three flavours of crisp and two kinds of sandwich to choose from, and went home when the law told them to.

The shopping list of products for the average pub was fairly brief and static, and the service levels offered by the local cash & carry or delivered wholesaler were similarly uncomplicated.

How times have changed. The smoking ban is simply the latest in a whole raft of changes which have assailed pubs. These include those imposed by law, including extended opening hours, as well as those driven by changing consumer tastes.It is the latter which tends to bring about more fundamental changes, while at the same time being harder to pinpoint.

To take just two examples, compared to a generation ago pubs now sell considerably more wine, both in terms of volume and variety, and offer a much wider range of food styles, from curries to couscous.

Beleaguered licensees would be justified in asking what help suppliers are offering, and certainly the wholesalers would argue that they have upped their game in terms of both product range and the wider support package.

Ron Hickey, director of catering development for cash & carry group Booker, says: "On the smoking ban, we've taken on board the lessons learnt with customers in both Scotland and Wales.

"In general, those who've introduced food or been able to put in an outdoor facility, or taken other action such as improving entertainment, have found that trade is better."

For those who take no action, there is a real danger of what Ron calls 'creep' - a gradual loss of customers and trade. "They don't see it straight away. Some of our customers in Scotland in particular failed to notice a week-to-week decline - one Tuesday night would be a bit quieter than the last, until nine months on his trade was 15 per cent down," explains Ron.

Booker has been actively taking these lessons learnt, both good and bad, out into the pub trade through its network of catering development managers. With more than 50 of these specialists out in the field, more than double the number year-on-year, many pubs will have had a visit with advice on growing the business.

Again taking the experience of Scotland and Wales into account, the product areas which have grown sales through Booker include both predictable and less obvious lines. At the entry level of food, packaged snacks such as muffins and flapjacks have joined crisps in the pub armoury.

"Confectionery isn't the most obvious product for pubs, but many ex-smokers are looking for a sugar rush, and the increase in family trade has also been significant," says Ron. Easy-to-prepare food such as burgers, which can be microwaved and garnished in-house with a salad, are seeing a sales increase, and Booker has expanded its range accordingly. Coffee and desserts are also seeing improved sales.

"Smokers often want to rush off after the main course, thinking they'll have a cigarette with a coffee at home. Pubs are investing in these areas to persuade customers to stay longer." Cleaning products have also seen a big sales spike. "Frankly, pubs stink," says Ron. "It may be the carpets, it may be the toilets, it may even be the customers."

With many pub 'virgins' likely to be curious and planning an early visit to their smokefree local, Ron believes a thorough clean-up should be an early priority for pubs.

In helping pubs to ensure that they have access to all the products they need, cash & carry group Makro points out that the wholesale cash & carry market is a one-stop shop. Along with cleaning and hygiene requisites, and other products to help deal with the effects of the smoking ban, publicans can also browse the food ranges from snacks right through to top-of-the-range dining occasions.

Makro has been following customer trends since the smoking ban was implemented in the Republic of Ireland two years ago. Kenny Jacobs, Makro customer manager, says: "We have seen significant increases in food business over that time. There was an increase from 62 per cent of adults in 2002 to 66 per cent in 2005 that ate a meal in a pub in Ireland."

Closer to home, "cocktail products and speciality beers have increased in Wales and Scotland following the ban. White spirits such as gin and rum have increased as more female customers visit pubs, as well as customers looking for a more premium drinking experience," Kenny adds.

Makro has a team of more than 40 customer relation managers geared up to advise and support pubs in relation to the ban or any other business issue.

Delivery or cash & carry?​

There is, of course, a long running debate in the foodservice industry between delivered wholesalers and cash & carries. Anne Mulcahy, channel marketing manager at Brakes, argues that convenience and choice are key to the company's offer.

"As a delivered wholesaler, we offer product diversity with over 15,000 own-brand and manufacturer products, all developed with our customers' needs in mind," she argues. "Our product range offers diversity to suit the individual needs of the publican."As one example, Brakes offers a range of about 50 different types of sausages. On the face of it, one might question the need for quite so many, but the diversity of the trade and the range of menu occasions suggest differently.

Brakes bangers range from pre-cooked pork fours through to a chilled venison, pork and red wine sausage. "Whatever your establishment or your customer base, Brakes will have a suitable product," Anne says.

Range and quality are constantly reviewed, and improved where necessary, with around 300 own-brand products launched last year.Anne adds: "Understanding the needs of the publican ensures our products are able to add value to their business, whether it be by reducing waste, enabling them to deliver high quality meals with a limited skill or staff level, or even just through a common sense approach when it comes to product development.

"For example, our Brakes own-brand baked beans are slightly more al dente than others, enabling them to remain in a bain marie for longer without going soft."

While many pubs still take the tried-and-trusted telephone route, Brakes is seeing an increase in the number of licensees ordering online. This enables pubs to click on a product to get a description, photo and nutritional information. Orders made before 4.30pm are delivered the next day, but flexibility of online ordering fits the working patterns of pubs, allowing orders to be placed at night after closing.

Anne says: "Because our products are only for the foodservice market and we understand the needs of our customers, many of them are ready to serve to save a publican's time and money. Many of our desserts are pre-portioned for convenience and portion control, for example."

Brakes runs 60 or 70 promotions every month, giving customers the option to get deals on products they already buy, or try new products which can feature on menus as specials.

"Such promotions offer publicans better profit margins as they can still charge the full price for meals or run their own special offers to encourage customers to try something new."

Brakes believes the smoking ban offers opportunities for pubs to look at new meal occasions and different customers. "The smoking ban in itself will encourage families into pubs as parents will not have concerns about smoky environments so looking at catering for families will be essential," Anne says.

"Breakfast is a great opportunity, whether sandwiches or a full English, though the challenge is how to get customers in to your establishment earlier in the day."

A strong hot beverages offer is an opportunity to sell pastries or put in place a light brunch menu which can make a pub attractive to the post-school run mums who fancy a coffee and a chat. Encouraging these customers into the pub at this time of day may prompt them to return when meeting friends in the evening or even