Sugro UK is a unique buying and marketing co-operative of over 80 independent wholesale members with full nationwide coverage.
The group combines the buying power of its membership to negotiate the best product pricing and availability with its network of suppliers on behalf of its members.
Through its network of members, Sugro supplies over 16,000 retailers, utilising their dedicated field and telesales staff, with an extensive fleet of delivery drivers and vehicles.
Emma Senior, Managing Director of Sugro UK, who started in the role last July, tells Wholesale Manager how she wants to continue the group’s 16 consecutive years of growth through strengthening relationships with members and suppliers.
Congratulations on being appointed MD of Sugro. Can you tell us where you have worked before and in what roles?
My early career was very much based in the Finance Industry – Banking and Insurance. But 20 years ago, I made the switch into food manufacturing and joined, what was at the time Cadbury Trebor Bassett, now Mondelez. I started in the finance department, but moved across different areas, such as Supply Chain, Export, Field Sales and Front Line Sales. My Sales career has been very much focussed in Wholesale, looking after Buying Groups, Bestway and Booker, but prior to leaving, I worked in the Discounter team, managing Iceland.
What are your goals for what you want to achieve in the role?
This is a very different role for me, essentially, bringing my experience of a huge supplier and ‘sitting on the other side of the fence’. But whilst the trading side is a key focus, Sugro Head Office also encompasses IT, Design and Finance. My aim is to bring continuity to the team in Nantwich and simplify our processes, to ensure we are working as effectively as we can. We have had 16 consecutive years of growth in Sugro and I want that to continue, but it is only through strengthening the relationships with our members and suppliers that we can do that.
Tell us more about Sugro. What does the group do?
Sugro is a Buying Group. We are member owned, with just over 80 Wholesalers, who reach the length and breadth of the UK. The business is due to have its 40th year of trading in 2024, so a key celebration for us. The primary focus when it started was confectionery, but in later years, we have developed our range to incorporate snacks, soft drinks and grocery lines. We do very well in those areas, but still have a huge opportunity to develop further into categories, such as alcohol, chilled etc. In time, we want our wholesalers to be able to buy their total range through us.
What are the benefits to wholesalers of joining Sugro?
Sugro negotiates pricing, promotions and terms agreements with suppliers, on behalf of its members. We produce promotional leaflets, share category advice and NPD on behalf of the suppliers, thus taking that workload away from the Wholesaler and providing streamlined communication to the membership. By joining the group, you have that support and expertise from Head Office.
We also work on behalf of our members, to understand government legislation, such as HFSS and the impact to them.
We consider ourselves as very much a ‘Sugro Family’ and we see this daily, with our members truly supporting one another in numerous ways. This has very much been in our DNA for years and truly makes us stand out as a Buying Group.
What events does the group hold for members?
We have an excellent events calendar, with two trade shows each year, one in the Spring and one in the Autumn. This is a great opportunity for suppliers and members to join together to discuss business plans. We have speakers from the industry to support the events, and include participation from suppliers and members. Our summer event, has been a Day at the Races for many years. Next year, we are moving to a River Cruise in London.
We host an annual Business Convention, which is something I think we are quite famous for. Whilst the backdrop of these events are in stunning locations – Argentina, Dubai, Nepal to name but a few, these are very much business focussed. Suppliers support the event by offering growth incentives for members. Member qualification results in their attendance at the event, along with the supplier. We have seen some fantastic growth over the years due to these incentives, but it is also a great opportunity to hold more formal business meetings whilst on the trip, strengthening the relationships between member and supplier.
How has the wholesale industry changed in recent years?
I am really proud to work in the wholesale channel. The sector has shown in recent years how quick it can diversify through challenging times. Wholesalers on the whole were defiant through the pandemic, examining their business models to ensure they continued to maximise sales and not become a casualty over that period. They adapted their businesses, through changing their product mix, or looking for opportunities to gain new customers. As an example, many switched on direct consumer ordering, and adapted their delivery services to support local communities.
Something else which is pleasing to see, is the diversification of people working in the sector. More women are now seen in the industry vs years ago and I think the area is recognised as a great place to develop your career.
How digital is Sugro as a business, and do you offer any IT support for your members e.g. ordering apps, online support, delivery tracking?
At Sugro we are committed to working with both Members and Suppliers on delivering E-commerce solutions that will give the Group the opportunity to further enhance its digital offering. This has been a key focus for Sugro over recent years and something I feel we are leading on as a Buying Group. Alongside the normal website, we have direct ordering facilities as well as a digital app and web offering, through B2B store.
Our digital App solution is offered free to Members, and amid the vital importance of digital in the wholesale channel, we know it is imperative for our members to remain at the forefront of the move towards full digitalisation.
This year we introduced bespoke segmented marketing features to our centralised member App offering. Members can take advantage of in-platform communications to boost sales and grow basket sizes. The new functionality covers everything, from producing in-platform push notifications, to advertising and creating banners. These communications can be targeted at specific customer segments based on customer type and location. Giving wholesalers the ability to segment their comms and target customers in this way will ensure they can use the digital channel to its full potential.
We are also exploring a number of very exciting projects for 2023 for the benefit of both our members and suppliers, which I am very much looking forward to sharing once established.
What challenges are Sugro’s wholesale members facing at the moment?
Whilst we thought that the pandemic was a difficult period, it is clear to see that arguably even tougher times are ahead. Product supply is affecting everyone in the industry, whether that is due to the hangover of Brexit and Covid, or the implications on raw materials, following the Ukraine crisis. We have seen an unprecedented volume of Cost Price Increases from suppliers, which has a direct impact on wholesalers – from the administrative element, through to the changes in consumer purchasing. Labour shortages across the sector are also continuing to have an impact. Very testing times for our members and suppliers alike.
How will the cost of living crisis affect the wholesale sector?
Wholesalers are impacted in a number of ways. Whether their business is big or small, the implications are huge – energy bills to keep the warehouse going, demands from staff to increase salaries, cost increases from suppliers as I mentioned above, fuel increases for their deliveries, to name but a few.
However, by being nimble, as we know wholesalers can be, I have an enormous amount of optimism. Consumers are likely to rely again on spreading the cost by doing smaller, regular shops in the local community, vs travelling further to do one big purchase. Wholesalers will continue to be adaptable with their product range and the customers they service, in order to maximise sales and come through these challenging times.
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