Looking back...and forward

2009 was an exciting year in a number of different ways.

Firstly, in the early stages we saw a completely different economic situation which changed the reversal of fortune for many businesses in the UK. Interestingly enough, for many businesses the change of fortune was as a direct result of the incompetence of the banking industry in 2008 and the fact that they readdressed their own balance sheet structures by divesting themselves of liability. This meant that in many instances, businesses were asked to reapply for what was already an existing overdraft facility that some businesses only used periodically but was a strong buffer protecting liquidity. With businesses given no choice but to reapply, the inevitable happened and either the facilities were withdrawn or greatly reduced, but there was also a revisit of the charges applicable for such facilities. For those businesses that utilised the facility periodically, they continued to survive but in a more cautious way; for those who did utilise this facility, in some instances banks will have been a main contributor to those businesses closing.

In all of our industry, while the banks were divesting themselves of liability, our particular sector actually required greater finance as we saw our footfall in the stores increase quite dramatically due to the increase and regularity of small cash purchases. However, as the year progressed, we saw new product development and growth of volume. As a business we became very encouraged. We had a strength of performance backed up with supplier commitment and a strong front-of-house activity programme delivered by the Sugro wholesalers and, as the year rolled on, we very much reflected, if not over-performed, what was going on in our sector.

As an observation, it is unfortunate that many of the market research companies continued, throughout the whole of 2009, reporting that the independent sector had declined by 9%. This confused me greatly, especially as my colleagues on the FWD Council were also reporting growth within their businesses and, overall, the general reflection was that the independent sector was performing extremely well during the recession. So how the research companies could continue to show this negative result was baffling. So, Sugro finished the year trading in double digit growth and with very strong working relationships with its suppliers, wholesalers and members.

During 2009, Sugro also celebrated twenty five years as NWCL and this was a time for us to reflect, not only on the present, but an opportunity to reflect on the past and to review opportunities for the future. The celebrations took place in Cardiff at our Annual Conference and we presented a series of awards to individuals in gratitude for the work, the dedication and the commitment they have given to Sugro over the many years.

We presented two awards to suppliers. Firstly to Mr Barry Jackson of Cadbury for the hard work and dedication he has given to Sugro since he became the National Account Manager a number of years ago. He has communicated locally and nationally, worked with us and embraced many of the campaign activities, recognising the commercial opportunities for Cadbury, as well as for Sugro. This recognition is well deserved.

The second National Account Manager was Mr Tommy Dryhurst of Pepsico and, again, he has worked hard and campaigned and developed relationships amongst the wholesalers and central office, and is recognised within Sugro for his knowledge, comradeship and hard work. Once again, we recognised his contribution and rightly deserved it was.

We also presented an award to Mr Michael Clark of Andersons (Wholesale) Ltd in Manchester. Michael has been on the Board of Directors since 1998 and has worked tirelessly in making his contribution, views and influence felt within Sugro. I know I certainly appreciate the work that he has performed and I am sure he will continue to provide that level of contribution for the future and he was recognised for that contribution at our twenty fifth anniversary.

Sugro also recognised the excellent services that we have received from Paul Gawman, the owner of Time Events, the company that continues to organise conferences, conventions and many of our key events. Paul has always provided us with a five star professional service and all of our events are, and have always been, very successful. In addition, we recognised the marketing and design that Corner House performs for our promotional platform. Again, Sugro has been recognised for its professional approach to promotional marketing, and all forms of marketing, and Corner House have certainly played a key part in producing that and rightly deserved the recognition at our twenty fifth anniversary dinner.

Modesty forbids me from saying how wonderful, outstanding and handsome the final person is who was presented with an award but the Board felt that there was a need to recognise the contribution, hard work and the direction in which I have taken Sugro over the last ten years and I greatly appreciate that level of recognition, not only from the Board but also from all of the members.

We have also seen our Government continue to develop ways of making business within our sector more difficult. The debate around obesity; the threat of legislation with the final decision around cigarette display bans; the result of the competition commission and the supermarket reviews and the general reluctance that appears to revolve around the actions in curbing the multiples in the UK food and non-food market. MPs and Government show a drive for deterring the opportunities we hold.

2010, I believe, will be a year not only of political change, but also one that will demand operational, logistical and structural changes in the way that we generally conduct business. The constant alienation of the categories, whether it be carbonated drinks, crisps and snacks, confectionery, cigarettes and tobacco or beers, wines and spirits, every single one of these is fundamentally important to the business welfare of independent retailers throughout the country and yet, every single one of these categories is under attack in some way through Government departments. It was in 2009, and will continue to be so in 2010.

So finally, my review of 2009 is a positive one of good trading, excellent business growth and a strong overall performance for Sugro to spring board into 2010. However, when it comes to 2010, the resilience of the independent sector will continue to demonstrate its entrepreneurial spirit, despite the interference and the constant politics of negativity against our product ranges. It is fair to say that in the next few years our Government and legislation could do more damage in that short period of time than the multiples have in the last thirty five years.

Let us hope that the politicians’ wishes do not come true and that 2010 culls a large number of them so they at least realise that being expendable as a direct result of something that is not necessarily in your control is not a pleasant experience.


Philip Jenkins
6th January 2010