from Peter Backman, MD, Horizons foodservice consultants
Sir; According to 'Foodservice is the way to go' (The Grocer, March 11, p14), wholesalers believe it represents the best opportunity for them to grow.
That may be true based on current foodservice market growth and the growing share of delivered wholesaling. According to our forecasts, delivered wholesaling will increase its share from 53% to 54% by 2009; this translates into a net increase of £786m of additional business. However, the major players increased sales by more than £300m in each of the past two years. If this is maintained, they will increase turnover by £1.4bn by 2009, more than enough to mop up the forecast increase of £786m.
So what makes smaller delivered wholesalers think 'foodservice is the way to go'? Is there enough additional business to allow all of them to grow? My concern is that there will only be room to succeed for a relatively small selection.