Booker Look To Accelerate Foodservice Growth With Chef Direct
Reporting its third quarter financial results, Booker, the UK's leading food wholesaler, declared total sales in the quarter rose by 7.0% on the same period last year. Non-tobacco sales were 6.7% higher with customer numbers and the average spend per customer improved.
To accelerate its growth into the foodservice market, Booker also announced the creation of "Chef Direct". Chef Direct will serve major foodservice customers from a state-of-the art distribution centre in Didcot. Chef Direct will combine Booker's scale and logistics capabilities with Ritter-Courivaud's expertise in catering and speciality foods. The Didcot operation is currently being fitted out, and Chef Direct will start trading in June 2012.
Charles Wilson, Booker Chief Executive, said: "Amid the challenging economic environment Booker continues to improve choice, prices and service for our customers. Our plans to focus, drive and broaden the Group are on track and we are pleased to be developing Chef Direct to serve major foodservice customers."
Compass have reported continuing growth in its global foodservice business, despite the headwinds of food cost inflation, with reported revenue of £15.8billion (up 9.4%). Richard Cousins, Chief Executive, said: 'Compass has delivered another strong performance this year. Including the impact of acquisitions, revenue has increased by almost 10% and we have delivered organic revenue growth of over 5%. “Our relentless focus on efficiency has continued and, excluding the impact of Japan and restructuring costs, we have increased the underlying margin by 20 basis points. Whilst we are not immune from economic reality, the fundamentals of the business remain strong and our flexible cost base will enable us to respond quickly to any changes in economic conditions. We continue to see many opportunities for further outsourcing in our core food market and support services is adding an exciting new dimension to our growth. We are also placing greater emphasis on the fast growing and emerging markets, where we see real opportunity for further expansion.” Reported revenue has grown by 9.4% in the year and 9.2% on a constant currency basis. After adjusting for the impact of acquisitions and disposals, the company saw good organic revenue growth of 5.4% for the year. Underlying operating profit increased by 9% in the year, with the operating margin remaining flat. During the year Compass incurred around a £15 million profit impact following the Japanese earthquake in March and a higher than normal level of restructuring costs of around £15 million relating to acquisitions. Excluding the impact of these, the operating margin would have improved by 20 basis points. Compass has delivered new business growth of 8.8% throughout the year. The investment made in sales training over the past two years is delivering improved win rates and a more consistent quality of new business. In addition to the good growth in foodservice, Compass is seeing high rates of new business in support and multi-services. International Clients are an important part of our growth strategy and we have again made good progress in this area, winning or extending our global relationships with SAP, Shell, Peugeot and Chevron. Compass has had a good year. Strong organic revenue growth has been driven by good levels of new business wins across the Group and an improvement in the underlying rate of retention. Ongoing cost efficiencies are driving further improvement in the underlying operating margin and enabling the company to reinvest in the business. Infill acquisitions are also making a meaningful contribution to growth. This strong performance is despite the impact of the tragic events in Japan, rising food costs and economic weakness in some of our markets. The fundamentals of the business are working well. Compass remains very positive about the opportunities to grow the business. Whilst the current economic uncertainty is likely to put ongoing pressure on like for like volume in parts of the business, the opportunities to grow the business are very positive and the company’s flexible cost base will enable it to respond quickly and effectively. UK & Ireland Despite challenging economic conditions continuing to impact like for like volumes in Business & Industry, Compass has continued to see some progressive improvement in organic revenue trends in the UK & Ireland business, from a 3.3% decline last year to broadly flat this year. The improvement is driven predominantly by a higher rate of retention where Compass has invested in both the process and the team. There remains an ongoing focus on costs, both to mitigate the impact of reduced volumes and to integrate the recent acquisitions. In the Business & Industry sector Compass has continued to win and retain quality business in both food and support services. For example, it has won a contract to provide security services to Thomson Reuters and retained foodservice contracts with Citi and BNP Paribas, where it will now provide dining and hospitality as well as the staff restaurants. In response to pressure on like for like volumes, driving labour cost efficiencies has remained a focus. Compass has seen good growth in the Healthcare sector, through like for like revenue growth and a focus on retention, although it continues to see pressure on costs as clients look for cost saving initiatives. Its support services capability has enabled it to retain its multi-service contracts with both West Hertfordshire Hospitals and Newham Gateway Surgical Centre. Compass has continued to make progress in the Education sector, illustrated by the retention of key contracts with Westminster City Council to provide catering to 39 primary schools, West Sussex Schools and University College London, where we will be providing an innovative retail solution. The picture in the Sports & Leisure sector remains mixed. The retail and hospitality business at major events has performed well with increased spend per head. However, conferences and events has experienced more pressure from deferral of activities, although there are now some signs of volume stabilisation. With the ongoing desire to focus on core activities Compass has decided to exit or run down a small number of non-core activities in the UK, including providing catering in hotels and mobile food units at sporting events. The overall loss of revenue will be around £70 million. The company has taken a £55 million exceptional cost in the year, which is almost all non-cash, including goodwill of £20 million, other intangible write-offs of £10 million and asset write-downs of £15 million. Going forward, the UK business will be more focused.
Pizza & Pasta Industry Still Striving for Excellence Depite Tough Times
Britain's pizza, pasta and Italian food industry continues to go from strength to strength with more restaurants than ever attaining gold and platinum awards for the increasing standards of their service and cuisine in the Pizza Pasta & Italian Food Industry Awards.
While the big names of the industry, including Pizza Hut, Prezzo and Domino's Pizza, were all recognised at the glittering awards dinner, numerically it was independent pizza, pasta and Italian food businesses that dominated proceedings.
The skills and enthusiasm of some of the country’s leading pizza chefs were also on display at the final of this year’s Pizza Chef of the Year competition, where a variety of pizza creations were presented to the judges. Ulimately the overall prize went to Tony Macera from Divito’s Pizzeria in Hamilton, Scotland, who presented the judges with a four cheese Parma ham with olive pizza.
The awards were presented as part of the Pizza, Pasta & Italian Food Industry Awards Dinner 2011 which was held at London's Lancaster Hotel.
The awards, which were attended by leading figures from across the pizza, pasta and Italian food industry, are now in their 24th year.
Says PAPA Director Jim Winship: "In these tough economic times, it is good to find an industry that is still striving for ever greater excellence and it shows in the reports we received back from judges visiting restaurants and delivery outlets this year. The level of innovation shown by contestants in the Pizza Chef of the Year award is also a reflection of the creativity in this market."
A winners were:
Whitworth Bros. Flour Pizza Chef of the Year Winner: Russell French, Solway Foods, Manton Wood – White Crab, Sweetcorn, Caviar, Samphire and Mozzarella Pizza
Bel UK Boursin Cheese Pizza Designer of the Year Award Winner: Russell French, Solway Foods, Manton Wood – Smoked Salmon, Spinach and Boursin Pizza
New Ingredient of the Year Award Foodservice Category: Highly Commended: Rondanini – Sliced Finocchiona Winner: Leathams Wild Mushroom and Truffle Paste
Italian Restaurant of the Year Award
Chain Award Winner: Prezzo
Pizza Restaurant of the Year Award
Chain Award : Winner: Pizza Hut
Business Innovation Award: Jalopy Pizza, Bridport (Tel: 07791182023)
Chain Pizza Delivery Chain Award
Industry Recognition Award Winner: Firezza National Winner: Domino’s Pizza
Manufactured Pizza Product Award
Everyday Pizza Product Category:
Highly Commended: Aldi Carlos Totally Topped Spinach, Ricotta & Mushroom Pizza Highly Commended: Asda Takeaway Fiery Feast
Winner: Asda Fresh Deli American Sizzler Pizza
Indulgent Pizza Product Category: Winner: Tesco Finest Woodfired Rostello Ham, Garlic Sauteed Mushrooms and Italian Mascarpone Pizza
Winner: Tesco’s Finest Woodfired Limited Edition Italian Prosciutto and Margherita Palletta
Manufactured Pasta Product Award Retail Category
Highly Commended: Giovanni Rana Fusili Fresh Pasta and Parmigiano Reggiano Fresh Pasta Sauce Highly Commended: SuperValu Supreme Beef and Italian Red Wine Mezzelune Highly Commended: Tesco Finest Italian Slow Cooked Steak in Chianti with Pasta
Winner: City Kitchen Asparagus and Pea Ravioli
Foodservice Category Highly Commended: TICCO Beef Ragu Girasole Winner : The Fresh Pasta Company Dolcelatte® and Walnuts Tortelloni
Frozen Pizza Multiple Retailer of the Year Award
Winner: Morrisons
Frozen Pizza Convenience Store Retailer Award
Winner: The Co-operative
Chilled Pizza Multiple Retailer Award (Sponsored by Northern Foods)
Winner: Asda
Chilled Pizza Convenience Store Retailer Award (Sponsored by Pizza and Pasta Magazine)
Winner: The Co-operative
Pasta Multiple Retailer Award
Winner: Sainsbury’s
Pasta Convenience Store Retailer Award
Winner: The Co-operative
The PAPA Award
Winner: Alan Rogers, formerly Sales Director with Glanbia Cheese, now retired
Reporting its third quarter financial results, Booker, the UK's leading food wholesaler, declared total sales in the quarter rose by 7.0% on the same period last year. Non-tobacco sales were 6.7% higher with customer numbers and the average spend per customer improved.