Buyers need suppliers who work not only to build their brand but to lift the category and achieve retail objectives.
Asking too much? Not for the top performers in The Grocer's survey of branded suppliers, as Helen Gregory reports
The Grocer has set out to identify the top brand manufacturers for a second year and every winner here represents the very best in the business. That's because they have been chosen by those who have created the most competitive environment yet the buyers.
Judging covered 10 key categories and the criteria for excellence included consistency of product quality, value for money and new product development.
The quality the buyers retail and wholesale consistently pinpointed in their choice of top branded supplier was commitment not only to deliver on time, but to make time to build relationships. A blanket approach from account managers just doesn't wash any more.
Müller is a good example of a company offering the right sort of commitment, according to Somerfield's Jennifer Kirby, head of bakery and dairy buying. "It is a huge brand but it is flexible and focuses on achieving its aims by supporting us."
Müller repeated the runaway success it had in the dairy category last year and was joined on the podium by Arla, Dairy Crest and newcomer North Down Dairies.
Booker's Paul Starr, buying controller for chilled foods and bakery, paid tribute to North Down Dairies for helping it put a plan together to drive Pilgrim's Choice cheese. "North Down Dairies stuck with it and it has driven sales."
The supplier's commercial manager, Alastair Jackson, believes his company's flexibility and ability to react quickly sets it apart from others. "We don't have a complicated reporting line. We are a close-knit team and the account managers have autonomy, which I think the multiples appreciate."
Starr also praises Müller's commitment to the independent sector. "A lot of the manufacturers are geared towards the multiples to a degree, and we understand that, but it's good when they tailor stuff for us too."
Peter Lightfoot, CBC senior trading controller at Nisa, also values commitment to the independent sector and as a result placed a vote for Heinz in the grocery sector.
"We have an account handler who understands the independent sector," he says. "For many manufacturers, business with our sector accounts for only about 4% and we end up dealing with older people in the departure lounge or younger ones who are just starting off.
"But Heinz and the John West division give us representatives who are worthy of the name and proactive."
Heinz's safety-first approach also finds favour with Lightfoot. Not much of its new product development fails, he says.
He adds that manufacturers often used to inform him about promotions in the multiples after the event, but now firms such as Heinz keep him in the loop.
"Manufacturers may favour Tesco but there is a realisation that we can deliver reasonable volume. We are given a fair crack of the whip."
When Nisa revitalised its national promotional programme, it involved Unilever Bestfoods as a category partner. Says Lightfoot: "It has always been a strong supporter and was helpful and proactive."
Booker's senior grocery buyer, Gordon Walker, voted for Heinz and Unilever Bestfoods, and says: "Heinz is adept at managing its brands. It generally launches successful npd which has been well researched with the consumer. It also has a large portfolio which it manages consistently well from a logistics point of view and its service levels are consistently high."
Turning to Unilever, he says: "It has successfully combined its grocery businesses into one which simplifies our contact with them. It has worked with us at developing and fostering a relationship of mutual learning about what our customers seek from Booker. This will prove very valuable in developing our ranges for caterers in particular."
Tony Smith, sales director at Unilever Bestfoods UK, says it is totally committed to driving growth in the grocery trade but that to do this, it must have the flexibility to meet customers' changing needs.
"This flexibility comes from a clear business strategy that manifests itself in commitment to training and developing our people, strengthening our business infrastructure and, fundamentally, by connecting with consumers," says Smith.
This understanding is echoed by Simon Marshall, consumer development director for Lever Fabergé. And it is probably one of the reasons why the home and personal care company has stormed to the top this year joining Kimberly-Clark in joint first place in the household and personal care category.
He points out there is a much stronger business focus on the customer, and in turn on the consumer, than in the past.
And that approach is not confined to the sales team, it runs through the whole business. "Our customers want what we want profitable growth."
He believes it is no longer acceptable to go to the market with the sole idea that the product will grow the brand. It must also help the category.
And the ability to lift the category is why the Co-operative Group's confectionery category manager, Collette Brown, put Masterfoods at the top of her list. It beat close rivals Cadbury Trebor Bassett to take top spot in confectionery and snacks.
Brown says: "Masterfoods gives us a lot of category management support. It doesn't only focus on its own brand, but works keenly for our objectives."
Masterfoods' trade relations manager Sam McElligott, responds: "Our mission is simple to couple our strong performing brands with the best services and support for our trade partners. We continually strive to improve our service by working closely with trade partners to meet their individual needs."
Cadbury Trebor Bassett also has that target well within its sights and customer relations director Chris Morgan says the fact that both its business and the confectionery market has grown is the evidence.
He says Cadbury likes to find incremental growth and that the success of the Dream bar is a good example. "We identified the white chocolate market for adults and added to the size of the white chocolate market."
Coca-Cola is given a special mention for this in the non-alcoholic drinks category narrowly beating Britvic to first place. Stewart Waldie, Nisa's trading controller for soft drinks, voted for the winners which, he says are all proactive, but that Coca-Cola really stands out for its account handling. "It is willing to support and develop our business and has a lot of good new product development it really gets behind us."
Waldie says the soft drinks market is buoyant and has lots of promotions. More emphasis is being placed on chiller cabinets and cross-merchandising.
"Coca-Cola Enterprises particularly ties in with other companies on meal deals and works with us on instore display."
Sue Garfitt, Britvic's director of category planning, says: "We are delighted with the results of this survey and to be recognised by our customers. Britvic works in partnership with customers to drive the market through its Right Choice programme a partnership which provides retailers with the latest knowledge to satisfy their shoppers and maximise the potential profit opportunities from soft drinks."
Being proactive with each retailer is key, says JJ Ryan, director at Green Isle, which joins Birds Eye and McCains on the winners' podium in frozen food for the first time this year.
"We work with each retailer on its category management initiative to meet the differing demands," he says.
Green Isle's Goodfellas frozen pizzas success is due in part to a recent brand relaunch which involved new packaging and upgraded products, and the launch of a stonebake ciabatta variety. Says Ryan: "We're committed to npd and look through the retailer to what the consumer wants and then try to deliver it."
North Down Dairies also works hard on product quality and consistency and Alastair Jackson says the fact it specialises in the mature cheddar market gives it a sharper focus. It is also a pioneer of new products, such as organic cheddar. "If we see a gap in the market we work with our retail partners to develop products to fit."
Buyers certainly appreciate proactive manufacturers who are constantly bringing innovations to market and Lever Fabergé's Marshall believes that innovation is probably more important now than it has ever been. "You're only as good as your last delivery your relationship with your customers is something you have to constantly work on."
Although eight out of 10 new products fail, most of The Grocer's top suppliers, like Kraft, have a good strike rate. This year, as last year, Kraft was alone in being nominated the top branded supplier in the fresh and chilled category. Easton Millar, trade relations manager, says this is because it always has improvement strategies on the go. "To stand still is to take a backward step," he says.
Kraft's brand heritage obviously helps and Millar says customers trust the name. The company is always updating its knowledge of what customers want, which retailers appreciate, he says. "In the cheese sector for example, we are continually developing Dairylea and we've just launched Philadelphia Mini Tubs in response to consumer demand."
Innovation has made the Fabulous Bakin' Boys a favourite with buyers and it was named in the bakery category, along with Warburtons and British Bakeries.
The firm stormed in from nowhere and its md Gary Frank says bluntly: "We've done well because the cake sector is boring, and we're not. Our brand is fun, and so are the products."
The offbeat approach includes company execs shedding the traditional suit in favour of company T-shirts when they meet retailers. But it takes more than T-shirts Frank says the Fabulous Bakin' Boys' strong commercial proposition that helped it to make market inroads. "We have targeted the snacking market and retailers realise they are not getting that from other suppliers."
Somerfield's Jennifer Kirby, head of bakery and dairy buying, is a convert. "The Fabulous Bakin' Boys is a fun company which has a lot of innovative products and a really fresh approach. It also works hard and is particularly good in the snacking area. The cake sector is traditional but it has good ideas to keep it fresh."
Turning to Warburtons, she praises the quality of its products and their popularity with customers. "It never lets us down and is strong on availability." She says British Bakeries is also good to work with. "It is flexible and responsive to our needs."
Booker's Paul Starr, buying controller for chilled foods and bakery, agrees that Fabulous Bakin' Boys is strong on commitment and on innovation. "It does things in a different way and comes up with new ideas, which is very helpful to us. We might not always use them, but if they keep on throwing things something sticks."
Fabulous Bakin' Boys' Frank admits that as a small company it doesn't have the resources to compete on an equal footing with big brands.
But, he says, innovation in the way it runs promotions helps to set it apart. For example, its range of Ice Blue cup cakes produced to coincide with the film Ice Age, went down well in the multiples.
Promotions are important across all categories and a fact of life for most manufacturers. At Kraft they are always worked out thoroughly, says Millar. "Before promotional plans are approved, everything is put through a template and we evaluate how things are going, as well as post-promotion. If something's not right we will replace it."
The beers, wines and spirits category is a key promotional area but one of our winners, Interbrew, emphasises that price promotion is by no means its only focus. Jon Woods, director of sales, grocery retail, says: "We do branded glassware because we know that improves the quality of the experience, and we also have cross-category links with food such as pre-packed curries and crisps ."
Woods admits it was a struggle to get retailers to buy in at first but says they are now more confident of its capability. He says its strong brands portfolio also has helped to build confidence and its development of a more premium category with products such as Hoegarden.
Interbrew says it also makes that extra effort to help the retailer meet demands. Woods recalls: "In the run-up to last Christmas we made 12,000 merchandising calls to the multiples and 200 staff went into store to help them move boxes around. It's all about making that logistical effort."
Another buyer praises Interbrew for being consistent in its objectives. "Other companies have a bi or even tri-annual change of policy but with Stella particularly, it is taking a long-term approach to making the market positive rather than negative. The beer market struggles against wine, but Interbrew is consistent and proactive."
Diageo won the category and Stephen Clarke, Somerfield's buyer for spirits and premium packaged spirits, says it has the brand strength and scale, but more importantly sees the value in working closely with the retailer, providing category solutions in a workable way.
He adds: "It is also proactive and innovative.
"It doesn't bring out anything that won't be successful, which is important to us because it provides credibility and helps grow the category."
Clarke says Diageo is also flexible, particularly when it comes to promotions. "If we can prove a strong case for doing something then it has the flexibility to work with us which, for such a big supplier, is good."
A final mention must go to Young's Bluecrest which followed its success in The Grocer's own label survey with another win in the branded meat, fish and poultry category.
Last year, no one company stood out but this year Young's Bluecrest takes the crown.
Commercial director Jim Cane says its presence in both arenas gives it a good overview. "We just think about fish and talk to consumers, so we understand the total market and develop solutions that are appropriate for either the retailers' brand or our own brand.
"We're not worried about which one they sell because our business is a mixed economy."
Although Young's is synonymous with seafood, Cane says it has barely scratched the surface of the variety of products it can offer. "It's still an underdeveloped business and we have only really started to expand the brand from prawns, scampi and speciality seafood in the last few years."
Anna Fradgley, the Co-operative Group's category marketing manager for meat, fish and poultry, agrees, saying that while the supplier has a strong marketing team there are no strong brands in the category.
"But Young's has a clear idea of where it is and where it needs to go." She says its strength in own label has benefits the Co-op can tap into. "It is our category captain and we use its branded knowledge to develop our own label. It's a win-win situation."
{{ANALYSIS }}
Asking too much? Not for the top performers in The Grocer's survey of branded suppliers, as Helen Gregory reports
The Grocer has set out to identify the top brand manufacturers for a second year and every winner here represents the very best in the business. That's because they have been chosen by those who have created the most competitive environment yet the buyers.
Judging covered 10 key categories and the criteria for excellence included consistency of product quality, value for money and new product development.
The quality the buyers retail and wholesale consistently pinpointed in their choice of top branded supplier was commitment not only to deliver on time, but to make time to build relationships. A blanket approach from account managers just doesn't wash any more.
Müller is a good example of a company offering the right sort of commitment, according to Somerfield's Jennifer Kirby, head of bakery and dairy buying. "It is a huge brand but it is flexible and focuses on achieving its aims by supporting us."
Müller repeated the runaway success it had in the dairy category last year and was joined on the podium by Arla, Dairy Crest and newcomer North Down Dairies.
Booker's Paul Starr, buying controller for chilled foods and bakery, paid tribute to North Down Dairies for helping it put a plan together to drive Pilgrim's Choice cheese. "North Down Dairies stuck with it and it has driven sales."
The supplier's commercial manager, Alastair Jackson, believes his company's flexibility and ability to react quickly sets it apart from others. "We don't have a complicated reporting line. We are a close-knit team and the account managers have autonomy, which I think the multiples appreciate."
Starr also praises Müller's commitment to the independent sector. "A lot of the manufacturers are geared towards the multiples to a degree, and we understand that, but it's good when they tailor stuff for us too."
Peter Lightfoot, CBC senior trading controller at Nisa, also values commitment to the independent sector and as a result placed a vote for Heinz in the grocery sector.
"We have an account handler who understands the independent sector," he says. "For many manufacturers, business with our sector accounts for only about 4% and we end up dealing with older people in the departure lounge or younger ones who are just starting off.
"But Heinz and the John West division give us representatives who are worthy of the name and proactive."
Heinz's safety-first approach also finds favour with Lightfoot. Not much of its new product development fails, he says.
He adds that manufacturers often used to inform him about promotions in the multiples after the event, but now firms such as Heinz keep him in the loop.
"Manufacturers may favour Tesco but there is a realisation that we can deliver reasonable volume. We are given a fair crack of the whip."
When Nisa revitalised its national promotional programme, it involved Unilever Bestfoods as a category partner. Says Lightfoot: "It has always been a strong supporter and was helpful and proactive."
Booker's senior grocery buyer, Gordon Walker, voted for Heinz and Unilever Bestfoods, and says: "Heinz is adept at managing its brands. It generally launches successful npd which has been well researched with the consumer. It also has a large portfolio which it manages consistently well from a logistics point of view and its service levels are consistently high."
Turning to Unilever, he says: "It has successfully combined its grocery businesses into one which simplifies our contact with them. It has worked with us at developing and fostering a relationship of mutual learning about what our customers seek from Booker. This will prove very valuable in developing our ranges for caterers in particular."
Tony Smith, sales director at Unilever Bestfoods UK, says it is totally committed to driving growth in the grocery trade but that to do this, it must have the flexibility to meet customers' changing needs.
"This flexibility comes from a clear business strategy that manifests itself in commitment to training and developing our people, strengthening our business infrastructure and, fundamentally, by connecting with consumers," says Smith.
This understanding is echoed by Simon Marshall, consumer development director for Lever Fabergé. And it is probably one of the reasons why the home and personal care company has stormed to the top this year joining Kimberly-Clark in joint first place in the household and personal care category.
He points out there is a much stronger business focus on the customer, and in turn on the consumer, than in the past.
And that approach is not confined to the sales team, it runs through the whole business. "Our customers want what we want profitable growth."
He believes it is no longer acceptable to go to the market with the sole idea that the product will grow the brand. It must also help the category.
And the ability to lift the category is why the Co-operative Group's confectionery category manager, Collette Brown, put Masterfoods at the top of her list. It beat close rivals Cadbury Trebor Bassett to take top spot in confectionery and snacks.
Brown says: "Masterfoods gives us a lot of category management support. It doesn't only focus on its own brand, but works keenly for our objectives."
Masterfoods' trade relations manager Sam McElligott, responds: "Our mission is simple to couple our strong performing brands with the best services and support for our trade partners. We continually strive to improve our service by working closely with trade partners to meet their individual needs."
Cadbury Trebor Bassett also has that target well within its sights and customer relations director Chris Morgan says the fact that both its business and the confectionery market has grown is the evidence.
He says Cadbury likes to find incremental growth and that the success of the Dream bar is a good example. "We identified the white chocolate market for adults and added to the size of the white chocolate market."
Coca-Cola is given a special mention for this in the non-alcoholic drinks category narrowly beating Britvic to first place. Stewart Waldie, Nisa's trading controller for soft drinks, voted for the winners which, he says are all proactive, but that Coca-Cola really stands out for its account handling. "It is willing to support and develop our business and has a lot of good new product development it really gets behind us."
Waldie says the soft drinks market is buoyant and has lots of promotions. More emphasis is being placed on chiller cabinets and cross-merchandising.
"Coca-Cola Enterprises particularly ties in with other companies on meal deals and works with us on instore display."
Sue Garfitt, Britvic's director of category planning, says: "We are delighted with the results of this survey and to be recognised by our customers. Britvic works in partnership with customers to drive the market through its Right Choice programme a partnership which provides retailers with the latest knowledge to satisfy their shoppers and maximise the potential profit opportunities from soft drinks."
Being proactive with each retailer is key, says JJ Ryan, director at Green Isle, which joins Birds Eye and McCains on the winners' podium in frozen food for the first time this year.
"We work with each retailer on its category management initiative to meet the differing demands," he says.
Green Isle's Goodfellas frozen pizzas success is due in part to a recent brand relaunch which involved new packaging and upgraded products, and the launch of a stonebake ciabatta variety. Says Ryan: "We're committed to npd and look through the retailer to what the consumer wants and then try to deliver it."
North Down Dairies also works hard on product quality and consistency and Alastair Jackson says the fact it specialises in the mature cheddar market gives it a sharper focus. It is also a pioneer of new products, such as organic cheddar. "If we see a gap in the market we work with our retail partners to develop products to fit."
Buyers certainly appreciate proactive manufacturers who are constantly bringing innovations to market and Lever Fabergé's Marshall believes that innovation is probably more important now than it has ever been. "You're only as good as your last delivery your relationship with your customers is something you have to constantly work on."
Although eight out of 10 new products fail, most of The Grocer's top suppliers, like Kraft, have a good strike rate. This year, as last year, Kraft was alone in being nominated the top branded supplier in the fresh and chilled category. Easton Millar, trade relations manager, says this is because it always has improvement strategies on the go. "To stand still is to take a backward step," he says.
Kraft's brand heritage obviously helps and Millar says customers trust the name. The company is always updating its knowledge of what customers want, which retailers appreciate, he says. "In the cheese sector for example, we are continually developing Dairylea and we've just launched Philadelphia Mini Tubs in response to consumer demand."
Innovation has made the Fabulous Bakin' Boys a favourite with buyers and it was named in the bakery category, along with Warburtons and British Bakeries.
The firm stormed in from nowhere and its md Gary Frank says bluntly: "We've done well because the cake sector is boring, and we're not. Our brand is fun, and so are the products."
The offbeat approach includes company execs shedding the traditional suit in favour of company T-shirts when they meet retailers. But it takes more than T-shirts Frank says the Fabulous Bakin' Boys' strong commercial proposition that helped it to make market inroads. "We have targeted the snacking market and retailers realise they are not getting that from other suppliers."
Somerfield's Jennifer Kirby, head of bakery and dairy buying, is a convert. "The Fabulous Bakin' Boys is a fun company which has a lot of innovative products and a really fresh approach. It also works hard and is particularly good in the snacking area. The cake sector is traditional but it has good ideas to keep it fresh."
Turning to Warburtons, she praises the quality of its products and their popularity with customers. "It never lets us down and is strong on availability." She says British Bakeries is also good to work with. "It is flexible and responsive to our needs."
Booker's Paul Starr, buying controller for chilled foods and bakery, agrees that Fabulous Bakin' Boys is strong on commitment and on innovation. "It does things in a different way and comes up with new ideas, which is very helpful to us. We might not always use them, but if they keep on throwing things something sticks."
Fabulous Bakin' Boys' Frank admits that as a small company it doesn't have the resources to compete on an equal footing with big brands.
But, he says, innovation in the way it runs promotions helps to set it apart. For example, its range of Ice Blue cup cakes produced to coincide with the film Ice Age, went down well in the multiples.
Promotions are important across all categories and a fact of life for most manufacturers. At Kraft they are always worked out thoroughly, says Millar. "Before promotional plans are approved, everything is put through a template and we evaluate how things are going, as well as post-promotion. If something's not right we will replace it."
The beers, wines and spirits category is a key promotional area but one of our winners, Interbrew, emphasises that price promotion is by no means its only focus. Jon Woods, director of sales, grocery retail, says: "We do branded glassware because we know that improves the quality of the experience, and we also have cross-category links with food such as pre-packed curries and crisps ."
Woods admits it was a struggle to get retailers to buy in at first but says they are now more confident of its capability. He says its strong brands portfolio also has helped to build confidence and its development of a more premium category with products such as Hoegarden.
Interbrew says it also makes that extra effort to help the retailer meet demands. Woods recalls: "In the run-up to last Christmas we made 12,000 merchandising calls to the multiples and 200 staff went into store to help them move boxes around. It's all about making that logistical effort."
Another buyer praises Interbrew for being consistent in its objectives. "Other companies have a bi or even tri-annual change of policy but with Stella particularly, it is taking a long-term approach to making the market positive rather than negative. The beer market struggles against wine, but Interbrew is consistent and proactive."
Diageo won the category and Stephen Clarke, Somerfield's buyer for spirits and premium packaged spirits, says it has the brand strength and scale, but more importantly sees the value in working closely with the retailer, providing category solutions in a workable way.
He adds: "It is also proactive and innovative.
"It doesn't bring out anything that won't be successful, which is important to us because it provides credibility and helps grow the category."
Clarke says Diageo is also flexible, particularly when it comes to promotions. "If we can prove a strong case for doing something then it has the flexibility to work with us which, for such a big supplier, is good."
A final mention must go to Young's Bluecrest which followed its success in The Grocer's own label survey with another win in the branded meat, fish and poultry category.
Last year, no one company stood out but this year Young's Bluecrest takes the crown.
Commercial director Jim Cane says its presence in both arenas gives it a good overview. "We just think about fish and talk to consumers, so we understand the total market and develop solutions that are appropriate for either the retailers' brand or our own brand.
"We're not worried about which one they sell because our business is a mixed economy."
Although Young's is synonymous with seafood, Cane says it has barely scratched the surface of the variety of products it can offer. "It's still an underdeveloped business and we have only really started to expand the brand from prawns, scampi and speciality seafood in the last few years."
Anna Fradgley, the Co-operative Group's category marketing manager for meat, fish and poultry, agrees, saying that while the supplier has a strong marketing team there are no strong brands in the category.
"But Young's has a clear idea of where it is and where it needs to go." She says its strength in own label has benefits the Co-op can tap into. "It is our category captain and we use its branded knowledge to develop our own label. It's a win-win situation."
{{ANALYSIS }}
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