Woodward targeting pub food market
A little healthy competition never hurt anyone, so they say - but there may have been a few food suppliers to the pub trade reaching for the aspirin last year when Woodward Foodservice announced its acquisition of competitor DBC Foodservice.
In theory, the move doesn't change the status quo in the sector. Woodward remains the number three delivered wholesaler, behind Brakes and 3663. However, the expansion sends a clear message that Woodward plans to carve itself a slice of the pub market.
"All the established suppliers have their strengths," says Woodward chief executive Ed Hyslop, "and we believe we're well positioned to offer individual pubs and pub groups the level of service they need."
The merger brought together two companies with diverse backgrounds. Woodward had been part of the Iceland frozen food group, which was bought together with Booker to create the Big Food Group in 1999. When Icelandic owner Baugur split the business in 2005, Hyslop led a management buyout.
Having been involved with the business since it was acquired by Iceland founder Malcolm Walker, Hyslop could see the strengths of Woodward as a standalone business. The offer had been expanded from frozen food to include fresh and ambient products, own label as well as national brands, and "we believe there's plenty of room in the market for a third major player," he says.
"With so much change taking place in the pub trade - extended hours, the smoking ban, and so on, pubs are more focused on food than ever."
Of course, Woodward's former colleagues at Booker have thrown down the gauntlet with the continued expansion of Booker's own delivery operation, meaning the DBC merger brings the added market share needed to help Woodward maintain its position.
DBC was a subsidiary of the Danish Crown Group, established originally as a meat specialist. Danish Crown continues, via its UK subsidiary Tulip, to deliver a range of meat products to the new business.
With the 13 DBC warehouses added to Woodward's 15, "combining the two businesses gives us a fabulous platform from which to grow further and offer additional value to our existing and potential customers." The head office of the expanded business remains at Deeside in Wales.
