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"“Although I supply Tesco, Morrisons, Sainsbury’s, Asda and Waitrose, I have quite deliberately kept my distribution through the big supermarkets at a modest level. I fear that if I get too reliant on them, they will begin to push me around,”"
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"“While I recognise that doing business with the big chains can be very profitable, I sleep better at night knowing that they represent only 30 per cent of my business.”
Mallinson believes that however attractive the returns can look on paper, many artisans are naive about what a supermarket deal can mean.
“I think it’s great that the multiples are embracing speciality food, but in my experience, maintaining a decent profit can be hard when you are put under constant pressure to go as cheap as possible.”
“The multiples are constantly on the look-out for price reductions and can afford to be more tenacious than you are. However many crates or pallets they say they will order in future, if you aren’t making a decent profit now, you have got your sums wrong,” he adds.
While short-termism is a perennial concern – “there’s no room for sentimentality in business and if a supermarket decides to de-list you tomorrow, you’ll have to deal with it,” says Mallinson - a more insidious issue is imitation.
“There is a danger that artisan producers are used as unpaid new product development houses. Whether your product is a unique chutney or a new truffle chocolate, you may find that the supermarket mimics your idea, sticks an own-label on it and sells it at a cheaper price.”"
Mallinson believes that however attractive the returns can look on paper, many artisans are naive about what a supermarket deal can mean.
“I think it’s great that the multiples are embracing speciality food, but in my experience, maintaining a decent profit can be hard when you are put under constant pressure to go as cheap as possible.”
“The multiples are constantly on the look-out for price reductions and can afford to be more tenacious than you are. However many crates or pallets they say they will order in future, if you aren’t making a decent profit now, you have got your sums wrong,” he adds.
While short-termism is a perennial concern – “there’s no room for sentimentality in business and if a supermarket decides to de-list you tomorrow, you’ll have to deal with it,” says Mallinson - a more insidious issue is imitation.
“There is a danger that artisan producers are used as unpaid new product development houses. Whether your product is a unique chutney or a new truffle chocolate, you may find that the supermarket mimics your idea, sticks an own-label on it and sells it at a cheaper price.”"
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