It’s that time of year when Wholesale Manager gazes into its crystal ball and attempts to gauge what will be the biggest shifts affecting the wholesale industry over the next 12 months.
One issue that can’t have escaped anyone’s attention is the cost-of-living crisis. Rising household energy prices means consumers tightening their purse strings, with a knock-on effect on high streets.
Wholesalers will need to be cost effective, which may mean saving energy in the depot and keeping an eye on staff wages. With consumers trading down, it is likely wholesalers will sell less luxury goods and stock up on value items instead.
Categories like confectionery are viewed as affordable treats and are likely to do well at the expense of luxury categories. Non-perishables and tinned items should see a sales spike, as shoppers seek to reduce waste in the home. Price marked packs are another key item, as they provide shoppers with the assurance of value.
On the foodservice side, wholesalers may want to consider low-cost ingredients, sharing dishes and set menus.
E-commerce is becoming ever bigger, with consumers turning to online shopping and click and collect while demanding their purchased products are delivered faster.
Wholesalers may want to invest in new technology to meet the demands of e-commerce.
Location restrictions have already been placed on products that are high in fat, salt and sugar (HFSS), with TV and online advertising restrictions to be introduced in 2023.
This is likely to trigger a move towards healthy eating. As products such as chocolate, sugar confectionery, crisps and biscuits are moved away from store entrances, end of aisles and checkouts, they are likely to be replaced with items like sugar free confectionery, fruit and veg crisps and popcorn, which should see increased impulse sales.
People will continue to be dedicated to their health and will have a greater awareness of what their diet should comprise, while still seeking value options.
Vaping is another category which is likely to see continued growth. The Government has set a target for England to be smoke free by 2030 and over a million people in the UK have stopped smoking since the beginning of the pandemic, many of whom have turned to vaping.
Wholesale Manager asked some of the biggest names in wholesaling what they anticipate will be the most important emerging trends over the next 12 months and how wholesalers can best be prepared for 2023.
Invest in tech
Kenton Burchell, Trading Director at Bestway Wholesale, says more people will rely on online shopping.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Wholesalers are forward thinking when it comes to sustainability and energy efficiency and share commitment in improving environmental footprint.
Investing in new technology, e-commerce makes it an efficient process when customers want a better service. More people will rely on online shopping or click and collect service.
Use of Experiential Hospitality & ‘Retailtainment’ to boost customer footfall – customers will be focused and engaged in creating a positive and entertaining atmosphere when shopping.
Consumers are becoming more health conscious. Wholesalers will need to review their categories to cater for the trending health-conscious consumer and create new product opportunities for the HFSS regulations.
How will the cost-of-living crisis affect the wholesale sector?
There will be an emergence of competition in the market with wholesalers making sure they will provide the best price and value to their customers.
It will also affect the collaboration of the wholesaler and their suppliers in getting the best value product price for the retailers and their customers.
It will affect the footfall as retailers will feel the strain in maintaining their profit margins when their customers are searching for better value of products. This in effect will lead to retailers searching for cheaper prices in discounters.
There may be a disruption in the supply chain in getting raw materials and getting supplies to the wholesale sector.
What will be the key categories to watch out for?
Crisps and Snacks will be changing as it will be affected by the HFSS regulations.
Brands will create opportunities to reformulate their products.
There will be premiumisation of Wine and Spirits for customers looking for value but good quality products.
Premiumisation of ‘Food to Go’ and Meals are becoming a trend with consumers emulating their hospitality experience at home.
How can wholesalers best prepare for 2023?
Work collaboratively with suppliers to get the best value products for their retailers and customers.
Support their customers on the category tools to help keep them abreast of marketing insights and trends.
Plan a calendar of events and product campaigns in the wholesale to keep customer loyalty.
Do you think online shopping will increase over the next year?
With the cost-of-living increase and the rising price of petrol, consumers will rely on online shopping to save on the cost of travel.
For consumers surfing on the web, it is an easier and more efficient way of shopping.
Emerging new brands makes it easier to reach out to new customers, making online shopping an opportunity to advertise their products and brand.
Do consumers still love local shopping?
The 2022 Local Shop report stated that around 78% of customers agree that local shops are good for the environment (ACS).
Consumers consider shopping directly from food producers and supporting the local communities to buy their food.
There is an increase in local shopping for those shoppers who are hybrid working. Consumers have grown accustomed to buying locally during the pandemic and this trend continues.
Will wholesalers need to make better use of technology to survive?
Advanced technology will allow businesses to work smarter and streamline processes making it more efficient for the business and their customers.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
With the cost-of-living crisis, more consumers will be relaxing and entertaining at home.
Chilled Ready Meals are important for Meal for Tonight. A survey based on 300 consumers showed that 21% preferred to purchase Chilled Ready Meals for dinner at home (Lumina).
Consumers are also purchasing and treating themselves to premium branded products to have high quality meal deals.
Consumers are opting for the ‘Big Night In’ by replicating their experience when visiting hospitality venues. Consumers will be purchasing premium drinks and food to indulge.
Will healthy eating and wellness be even bigger trends in 2023?
The new government legislation on HFSS will drive and influence a new lifestyle of health eating habits.
Brands will have the opportunity to reformulate their products and adjust to the growing trend to meet those looking for healthier alternatives.
Mindful choices
Catherine Hinchcliff, Head of Corporate Marketing, Marketing & Insights at Bidfood, says consumers want to look after themselves and the planet.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Consumers are making more mindful choices about where they eat or drink out, how often and what they order. Driven by the cost-of-living crisis, a focus on improving personal health and caring for the planet are also factors.
As consumers become more focused on sustainability and helping the planet, appeal is growing for plant and veg-based dishes, local, seasonal and even foraged produce, as well as ethical and sustainable supply chains.
Global flavours and cuisines have very high appeal amongst consumers, as they can make the eating out experience that bit more exciting and adventurous. However, with so much choice emerging in the eating out market, consumers expect something new. We have identified four up-and-coming world cuisines for 2023: Cuban, Sri Lankan, Pan-African and unusual fusions.
There is rising demand for retro food and drink, as consumers look for well-loved classics from their past but revamped with a modern twist to give that sense of nostalgia and comfort. In times of instability, people often look to comfort and familiarity, and which gives chefs the opportunity to be creative and imaginative when tapping into this trend.
Pizza has always been popular, but we’ve seen its appeal grow even more. We expect it to grow further and appear on many menus in 2023. The simple concept of pizza allows for plenty of creativity and can be altered to plant-based, gluten-free and diary-free options.
With the cost of living impacting how often consumers are going out, they want good quality alcoholic drinks that are worth spending money on. We expect tequila and rum to be two popular spirits in 2023.
How will the cost of living crisis affect the wholesale sector?
The cost-of-living crisis is already having an effect on wholesale with rising food prices. The question is, how fast will they continue to rise and for how long? Labour shortages across food production have been driving wage increases, as well as huge hikes in in the prices of gas – making running costs sky-rocket too.
What will be the key categories to watch out for?
Currently there’s a lot of pressure on protein prices such as meat, whereas earlier in the year we saw an increase in oils, wheat and wheat-related products. To counteract the price increases in proteins, substitutions of a similar product that is lower in price can be made, such as swapping trout for salmon or beef to pork. Keeping a menu fluid and changing with the times, in-line with market prices, will also make a big impact along with switching to cheaper ‘own brand’ options.
How can wholesalers best prepare for 2023?
A major focus within the foodservice industry, and expected to grow even larger, is Sustainability or ESG as many are now calling it. As consumers and operators become more sustainability-minded and conscious of their own carbon footprint and food miles they will also expect their suppliers to take their responsibilities seriously.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
There is no doubt that the cost-of-living crisis is causing consumers to venture out less and therefore be more mindful about how they spend their money. But this doesn’t mean consumers will boycott eating out of home. To entice people through the doors operators need to make the experience extra special and emphasise value for money to appeal to the conscious choice consumer. Operators should consider: low-cost ingredients that can be used across the menu; communicating value through menu pricing strategy; offering options at different price points; sharing dishes and set menus.
Will healthy eating and wellness be even bigger trends in 2023?
1 in 3 consumers would choose a smaller portion if they perceived a dish to have too many calories so yes, healthy eating is just as much a trend in 2023. But by making simple menu adjustments like thinking about different portion size options and giving consumers the ability to customise their dishes to reduce calories, consumers have little to fear.
Technology investment
Steve Whitwam, Commercial Director at Harvest, says tech helps wholesalers better understand their business.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Next year in my opinion the biggest trend will be technology investment (example CRM systems) to help understand what’s happening in your business such as statistics and reports. These reports will be able to see customer behaviours, looking at their wants & needs, helping with the way you communicate with them, in a more targeted specific way.
How will the cost-of-living crisis affect the wholesale sector?
The cost of living crisis is driving people to eat out less and are far more likely to only go out for special occasions. This is likely to put a turnover pressure on the wholesale sector with our customers not making as many orders as they were before. The knock-on effect will lead us to have a need to get more buying customers which will ultimately add more costs such as delivery costs, spending more on fuel, drivers, vehicles etc, along with having to factor in the rising food costs across the board in the current climate.
What will be the key categories to watch out for?
The key category to watch out for is ‘value for money’ with consumers being even more cost conscious in the current economic client. Consumers will need to feel they have value which isn’t all about the cost, it’s the whole experience, food, service, environment, toilet facilities, and also will expect to see good dietary choices, sustainability etc. It will continue to be important to our clients to show our loyalty to local growers / farmers etc… which they can then mirror through their establishments to their customers showing they are a sustainable / ethical place to eat and enjoy their experience.
How can wholesalers best prepare for 2023?
A key aspect will be creating multi-tiered, tighter customer relationships with our customers in order to build that trust & relationship even stronger. Another will be offering rationalised ranges of which we will be taking a close look at. Ensuring we have product availability and being stocked up especially in busy periods. This is to avoid customers potentially going to another supplier causing them to start building that relationship with them. Make sure we get it right first time!
Do you think online shopping will increase over the next year?
We are seeing a gradual ongoing rise in customers ordering online and there has been no sign of this slowing down however it is definitely still important to speak with customers on the phone or in-person to keep that human contact.
Do consumers still love local shopping?
Here at Harvest, we have over 40 local producers we work with and are seeing more demand from our customers to extend this. It is important to our customers to support local businesses. Buying local also helps to keep costs down whilst supporting the community.
Will wholesalers need to make better use of technology to survive?
Understanding your business is absolutely key and with increasing labour costs technology will play a key role moving forward.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
We don’t really operate in the at home market but the takeaway trend is still rising so we are making sure we are offering the packaging to our customers for their at home food market which is definitely here to stay at the moment and with the current climate moving forward.
Will healthy eating and wellness be even bigger trends in 2023?
The stress of the nation’s wellness will continue to play a big part in 2023. Consumers are continuing to be calorie conscious of what goes into their bodies and cutting out categories such as gluten to make them feel better. People will still recognise a treat is okay however they want to know if the dish is being responsibly put together in harmony with their bodies. Plant based options will still continue to play a growing role in food habits.
Consolidation looms
Small businesses face economic challenges, says David Longfellow, Chairman of NBC.
What do you think will be the biggest emerging trends in wholesaling in 2023?
David Longfellow, Chairman – I fear it might be consolidation in the supply chain as the challenges of the economy flow through into small businesses. After bouncing back really well from the pandemic smaller business really must get the basic foundations in place to be sustainable. As a group we must continue to work with our supplier partners to gain access to brands and product at fair prices.
James Granville, Vice Chairman – technology can play a great part in improving our customers experience, making it easier to get access to products and pricing “on-the-go” and improving the range and value of the basket spend with wholesalers.
How will the cost of living crisis affect the wholesale sector?
James – in the retail channel we could see a trend towards more convenient, regular shopping whilst money is tight especially during the first quarter when people will still be cautious about energy bills.
David – in the hospitality channel we could see a consolidation of opening hours as costs rise and consumer spending becomes more selective, but people will still want to have social engagement they just might be more selective in where and when. In both instances, we need to make sure we are first choice for supply.
What will be the key categories to watch out for?
David – all wholesalers have a core which they must get right. In addition, finding growing categories such as disposable vaping can often add real cash growth when it is needed.
James – convenience categories such as alcohol, replacing supermarket shopping – but quality is a must!
How can wholesalers best prepare for 2023?
James – get the basics right, range, pricing, availability, with some interesting but safe NPD to add to the mix.
David – get your business as lean as possible, provide the best service levels to your customers, retain your valuable employees, and support the brands that will be there for the long haul.
Do you think online shopping will increase over the next year?
Both – yes, it will, as part of a long term shift from certain types of retailing. Delivered convenience may well be challenged as money gets tighter for certain consumers who took this service for granted.
Do consumers still love local shopping?
Both – they sure do! Our customer base is predominately local, and whilst it is a very competitive market we have every confidence in this remaining strong and resilient.
Will wholesalers need to make better use of technology to survive?
James – yes, where it will work with our customers. Linking our business to our customers more directly, improving access to our range and availability, and encouraging greater basket spend will be a real benefit.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
David – consumers might have to be more choosy, depending upon how the economy performs and the way in which government interventions have an effect. If this happens, then they will demand more for the same so the supply chain will have to make sure the experience works for everyone.
Will healthy eating and wellness be even bigger trends in 2023?
James – I guess so, it certainly must do as a healthy mind and body can certainly help with the pressures on our healthcare services and our role is to ensure that we have the necessary access to ranges that can help people make informed purchasing or consumption decisions.
Shoppers stay in
Consumers will entertain themselves at home, says Guy Swindell, joint managing director of Parfetts.
What do you think will be the biggest emerging trends in wholesaling in 2023?
The forces that are putting pressure on our economy look set to remain into next year. In this environment, we expect that, given the cost pressures shoppers are under, they will spend less on going out and entertaining themselves at home. It will drive more occasion shopping and drive an increase in BWS sales.
Value will continue to be a driver, and we are investing more into our own label to help deliver margin to the retailer while providing value to the shopper. We expect a decline in the weekly shop while people manage their budgets and reduce waste by shopping more frequently as they need items.
How will the cost of living crisis affect the wholesale sector?
A shift in shopper habits will help sustain demand through a tough economic period.
There may well be an effect on luxury items, and we are already seeing people trade down for value ranges. It’s the opposite of the trend we saw through covid, where people traded up due to the extra money they had to spend due to lockdowns.
What will be the key categories to watch out for?
As more people entertain themselves at home, we expect BWS to see strong growth, and as a sector, grocery may come to the fore and create an opportunity for the wholesale channel.
How can wholesalers best prepare for 2023?
Parfetts has always focused on delivering value with great service and availability. These factors will be key next year and beyond. The ongoing availability issues are set to continue due to the large number of suppliers impacted by challenges along the supply chain, such as the energy crisis and Ukraine. The key is to act quickly to mitigate these issues and provide retailers with the support they need to trade profitably.
Parfetts is working hard with partners to address the issues and optimise the situation for retailers. At the same time, retailers will have to be flexible at times to navigate supply chain challenges.
Do you think online shopping will increase over the next year?
Whilst we saw a decrease coming out of covid, there may be a case to argue that people will shop locally in increasing numbers to avoid delivery charges and seek out the best bargains. As a business, Parfetts continues to see online grow as a channel to around 45% of our sales today. It’s about offering the same level of service and value in whatever channel the retailer chooses.
Do consumers still love local shopping?
Local shopping continues to be important. It’s convenient and can be cheaper when you factor in the fuel and parking often needed to shop elsewhere. According to the Association of Convenience Stores, our sector is expected to increase to £48.6 billion by 2025, up £3.4 billion from the total value of sales in the year ending in March 2021.
Will wholesalers need to make better use of technology to survive?
The better use of technology can deliver a better experience for customers, drive efficiency and create growth. It’s a vital part of our business plan and should be considered strategically by every company. Earlier this year, we made a strategic investment in Pixel, a digital agency, because we understand the role tech has to play today and tomorrow.
Will healthy eating and wellness be even bigger trends in 2023?
Whatever the timing and shape of HFSS legislation, people continue to be focused on their health and are increasingly aware of what their diet needs to look like. However, we may see some shoppers sacrifice healthier products due to value considerations over the coming months.
Embrace change
Wholesalers should not be afraid of change, says Debbie Harrison, Joint Managing Director (Trading) at Pricecheck.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Wholesalers will be looking to utilising technology to become more agile and efficient in 2023. For example, inventory management software, which helps track and optimise warehouses and shows visibility over costs of goods sold and other financials.
Data driven decision making will also be key. Business analysts can leverage data and identify opportunities for improvement, spot trends and recognise potential issues and offer solutions.
Those who have not done so already will be looking to shift towards eCommerce. The reality is, buying online is easy and convenient, and that’s what many customers have come to expect, especially during the pandemic. Plus, having a website with a transactional function shows that you are embracing technology and moving with the times.
What will be the key categories to watch out for?
The UK Government has set out its ambition for England to be smoke free by 2030, so we envisage the vaping category will do well in 2023. It is believed that over a million people in the UK have stopped smoking since the onset of Coronavirus, and vaping is a very popular stop smoking aid.
How can wholesalers best prepare for 2023?
The key is not to be afraid of change and to embrace it. Wholesalers need to be investing in the right people to do the job. Employing people with the right skills and experience is a must. However, it’s understandable that for many recruitment may not be something businesses can do for a while, so consider looking at paid-internships, apprentices and graduates and invest in the next generation of talent.
Do you think online shopping will increase over the next year?
As the pandemic slows down it’s likely that the penetration of eCommerce will level out, as consumers get back to shopping at a mix of online and offline retailers. However, overall, online sales make up a big chunk of overall spend and there has been a significant increase in those doing online shopping compared to pre-pandemic levels. And of course, there will be those who didn’t shop online before who are now converted and won’t go back to their old ways.
Do consumers still love local shopping?
Convenience stores and independents are at the heart of communities – perhaps with a newfound regard after the role they’ve played in the past 18 months.
The way consumers choose to shop will always adapt and evolve, but for convenience, community and customer service, there’s nothing quite like local shopping.
Will wholesalers need to make better use of technology to survive?
Definitely. Utilising technology enables wholesalers to be more agile and efficient. Plus, in order to flourish and grow, a business needs to move with the times.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
In these uncertain times in the UK where the cost of living has risen, consumers are cutting back on big expenses and luxuries and are instead looking to treat themselves in a smaller more affordable way. Therefore, small treats like confectionery are big business right now, and we see this trend continuing in to 2023.
Will healthy eating and wellness be even bigger trends in 2023?
This trend is here to stay and is one of the lasting legacies of the pandemic, with a growing number of health-conscious consumers looking for comfort snacks in particular that deliver flavour without the unhealthy fats and sugar.
Plus, the HFSS legislation coming into force next year in England, will bring healthy eating to the forefront. With products such as chocolate, sugar confectionery, crisps and biscuits being moved away from store entrances, end of aisles and checkouts, and likely being replaced with sugar free confectionery, fruit and veg crisps, popcorn etc, it’s likely sales of these impulse purchases will increase.
Selective purchases
Consumers will look for value products and promotions, says Emma Senior, Managing Director at Sugro UK.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Against the backdrop of the cost of living crisis, consumers will become even more selective with their purchases – looking for value products and promotions on core products. We may see a reflection in the market as more people return to the workplace. I don’t believe there will be a dramatic resurgence in ‘On the Go’ behaviour, but some behaviours may return. With value in mind, the demand for meal deals as an example could become evident. As families consider their weekly shop, healthy products may play a more important role. We are seeing a more health conscious society following the pandemic, together with initiatives the Government are putting in place, such as HFSS.
How will the cost of living crisis affect the wholesale sector?
This will have a huge impact on the Wholesale Sector, whether it be consumer/retailer behaviour or how Wholesalers themselves manage their business. Cost effectiveness will be key, whether that is how to save energy in a warehouse, to being choiceful around products they sell, right down to how much staff are paid. With labour shortages still an issue in the industry, this becomes an even greater challenge for a Wholesaler – wanting to attract the right calibre of people, but unable to afford hikes in salary.
What will be the key categories to watch out for?
Trusted brands tend to do well in a recession. Categories such as confectionery are seen as an affordable treat for the family vs spending money on luxury items. Tinned products and non-perishables are also key, with consumers seeking offers and preventing less waste in the home. Price mark packs on any category should continue to do well, as consumers seek value.
How can wholesalers best prepare for 2023?
Stocking the right range is key for wholesalers. Focus on the core brands and best sellers to ensure continuity in sales. Be mindful of government initiatives and take advantage of any support packages the government has to offer businesses. We have some excellent wholesalers in the market who are not afraid to change their business model and I hope to see further success of this in 2023.
Do you think online shopping will increase over the next year?
I think online shopping will continue to be a huge part of retail purchases. With people moving back into the workplace and reverting back to old habits, I would expect the growth of online shopping we saw in the pandemic to start to plateau though.
Do consumers still love local shopping?
As we saw in the pandemic, this is a real opportunity for our local retailers to do well. As fuel prices continue to rise and consumers being more cautious as to how to spend their money, local shopping could become more attractive, if the right range is available. Equally, we see that retailers have improved their offer in store, thus attracting the local community to stay close to home, walking to do the shop vs driving.
Will wholesalers need to make better use of technology to survive?
Any opportunity to automate systems and cut costs will undoubtedly help wholesalers, so yes, I see this as being ever more critical against the current financial backdrop. Equally, competition is huge out there, so Wholesalers willing to evolve with technology and operate in a more efficient way, will fair better.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
I think consumers will become more selective as to how they spend their social time. I would expect a longer period than usual of staying in, following this year’s Christmas celebrations. Sharing packs of confectionery, drinks and snacks will become even more attractive for families to enjoy together.
Will healthy eating and wellness be even bigger trends in 2023?
The government continues to push forward with health initiatives, such as HFSS and DRS in Scotland. So, yes, I would expect to see more innovative solutions from suppliers, such as reduced calorie/sugar formats.
Cost of living crisis
Wholesalers must be proactive, says Stuart Smith, Merchandising Director at Sysco GB.
What do you think will be the biggest emerging trends in wholesaling in 2023?
Rather than emerging trends, we are likely to see an extension of the issues that we are already facing.
For example, how will the impact of the cost of living crisis affect consumer behaviour?
We are likely to see further changes next year, so wholesalers need to be proactive and work with customers to ensure that they can maximise any opportunities that exist.
Similarly, labour shortages are likely to be here for some time to come, continuing to impact operations in kitchens. Wholesalers need to keep innovating to create product ranges that support a lower-skilled and time-pressed workforce.
While not an emerging trend, sustainability continues to rise up the agenda as customers move towards more sustainable meal solutions.
How will the cost of living crisis affect the wholesale sector?
The cost of living crisis will have a demonstrable impact on the hospitality sector, as consumers adapt their behaviour in line with their disposable income. We’ve already recognised that we have a role to play in helping operators with the challenges, including offering 10% cashback from August right through the Christmas period and the launch of our price fighting Simply Steak range to help keep this chef’s favourite on the menu.
We will continue to look at how we can provide the products and solutions that support customers next year.
What will be the key categories to watch out for?
Centre of plate will be important to create value for consumers. It will therefore be critical to provide a range of cost effective, quality products that will help keep main meals affordable, while at the same time providing operators with solutions for the premiumisation of starters and sides to drive profitability.
It will also be vital to offer solutions within categories, so low skilled products and solutions to help customers cope with staff shortages and changing demand.
How can wholesalers best prepare for 2023?
Supply chains are under more pressure than ever before and ensuring a robust and broad product offer, maximising the fresh, frozen and ambient offer, to ensure that wholesalers can meet evolving customer needs in a changing marketplace will be vital to their success.
At the same time, wholesalers will need to be conscious of sustainability which is increasingly important, particularly on transportation, packaging, and product.
Do you think online shopping will increase over the next year?
Yes, we have seen a continued rise in online ordering over the past few years, which we expect to continue. We have invested heavily in our award-winning website to ensure that it helps customers to find the right products easily and improve the shopper experience.
Do consumers still love local shopping?
Foodservice could have a role in helping to keep high streets alive. With bricks and mortar shops in decline, there are some fantastic sites available for operators, which will help drive footfall and support local economies
Will wholesalers need to make better use of technology to survive?
Technology is already playing a crucial role in our business at every stage from the farm to the delivery. We have introduced proprietary software in our depots and deliveries and are using technology to offer a more bespoke offer to customers. Technology will play a vital role in the future of wholesale.
Will consumers stay in more and will there consequently be more products aimed at in-home consumption?
It is likely that consumers will go out less and it is therefore essential that wholesalers can offer a product range that maximises take-away and delivery options, but that also boosts revenue when they do go out, enabling operators to make the most of all sales opportunities.
Will healthy eating and wellness be even bigger trends in 2023?
Healthy and sustainable eating will continue to be important, but with consumers likely to have less money in their pocket, affordability will become more significant. What is key is for wholesalers to have a wide range of products that will help operators navigate the uncertainty of the next year.
Staying nimble
Independent wholesalers are nimble and can react quickly to market changes, says John Kinney, Managing Director, Unitas Wholesale.
What do you think will be the biggest emerging trends in wholesaling in 2023?
While the last couple of years have been challenging, as a channel we have pulled together and supported our members. We now face a new set of challenges in the form of the cost-of-living crisis, energy price rises, continued staff shortages, supply issues due to the ongoing war in Ukraine and the prospect of a recession early next year – despite all of this as a Group Unitas is performing very well.
Our On Trade and Foodservice members are performing well with many continuing to demonstrate record sales levels and our retail business remains buoyant. All that said, we can of course see evidence that consumers are cutting back on their discretional spending and being much more careful in terms of what and how they buy. This will impact our members and their customers.
While consumers cut back on the frequency of out of home eating and drinking or treats in their shopping basket, it is important that we have the correct ranging in member depots to meet those needs, which may be different to the ranges offered today. Our wholesale membership is nimble and can react quickly to meet these needs, which is an advantage over other major national players.
How will the cost of living crisis affect the wholesale sector?
We appreciate that rising prices, energy and fuel costs are having a major impact on the wholesale sector and as such we are continuously analysing pricing and pricing structures to make sure they are fit for purpose throughout the distribution chain. As an example, we are working with suppliers to ensure that our wholesale member margins and those of independent retail customers are not negatively impacted as s result of price increases on price marked packs particularly in the impulse category.
What will be the key categories to watch out for?
Value and Own Label, Protein, Vegetarian/Vegan, Health and Wellbeing, Lo&No alcohol, Reduced Risk and American Candy.
How can wholesalers best prepare for 2023?
Independent wholesalers are nimble and can react quickly to market changes, as we approach 2023 it is therefore important that wholesalers across Retail, Foodservice and On Trade are agile and listening to what their customers require from them.
Will wholesalers need to make better use of technology to survive?
Technology will continue to play an important role in wholesalers’ businesses. As a business we continue to support our wholesale members with the continued development of our Digital Excellence Academy (DEA) which is a key strand of our digital agenda, and we are committed to supporting this type of initiative with our wholesale members.
By partnering with experienced operators within the wholesale sector who offer expertise in their chosen areas, we are able to support our members with market leading insight and valuable tools to drive their future digital strategy.
Through the DEA Unitas has launched a variety of educational tools covering topics such as Cyber Security, Social Media, B2B transactional platforms for Retail and OOH all critical at a time when more and more people are placing on line orders.
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