What next for Woodward?
A little healthy competition never hurt anyone. Still, there may have been a few food suppliers to the pub trade reaching for the aspirin last September when Woodward Foodservice announced its acquisition of competitor DBC Foodservice.
In theory, the move doesn't change the status quo in the sector. Wood-ward 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 Woodward needs the extra market share added by the DBC merger in order to 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 and the head office of the expanded business remaining in Deeside, Wales, Hyslop says: "Combining the two businesses gives us a fabulous platform from which to grow further and offer additional value to our customers."
A nation of complainers
As if pubs needed telling, the myth of stoic customers eating leathery steaks and half-frozen lasagnes without a word of complaint is just that - a myth.
New research carried out for Woodward shows that three-quarters of consumers have complained when eating out over the past year. Their top gripes include waiting too long for a meal to arrive, wrong orders, poor service and lukewarm food. Just 23 per cent said they had found no reason to complain. The research was carried out by TNS for Woodward's annual FoodStyle report.
When people were asked about the situations that have annoyed them enough for them to complain when eating out over the past year:
- 40 per cent said they had waited more than an hour for their meal
- 35 per cent said they were given the wrong food
- 31 per cent had complained about poor service from waiting staff
- 31 per cent said their food wasn't hot enough.
Ed Hyslop says: "Our expectation levels have risen in line with the frequency of our trips to the local pub or restaurant. We expect good service and quality food, served on time.
"The vast majority of caterers get it right - otherwise the growth in out-of-home dining wouldn't be happening. But our research shows that us Brits are more vocal than once thought and we regularly complain."
