Booker announces growth plans following Makro merger

23-May-2013 - Last updated on 24-May-2013 at 08:01 GMT

Booker has announced a 3.5% increase in pre-tax profits

Food and drink wholesaler Booker aims to hit £6bn in sales and become the UK’s leading wholesaler following its merger with Makro.

Chief executive Charles Wilson said the company aimed to drive group revenue to the £6bn mark in the next few years. The company has reported a 3.5% increase in full-year pre-tax profits to £4.bn. Sales to caterers increased by 6.2% during the year.

Wilson said he aims for Makro’s operating profits to increase to £10m by the end of the year, based on Makro recording a loss of £16m and group synergies of £26m.
The company acquired rival Makro last year. The acquisition received Competition Commission's clearance on 19 April 2013.

At present only 6% of Makro customers shop at Booker and 10% of Booker customers at Makro.

Both Booker and Makro customers will see improved ranges as the company introduces some of the best performing products in each into branches.

Makro will benefit from Booker’s strengths in their fruit and vegetables, beef, lamb, poulty and dairy ranges and Booker from Makro’s strong deli, frozen fish and frozen offers.

Half of Makro’s 30 sites will also feature a Booker concession accounting for 35% of total branch space and a large delivery area to help cater for the group’s Chef Direct, Ritter Courivand, Classic Drinks and Premier customers. A new format Makro will open in Sheffield this summer.

The company also now has 800 pubs signed up to its Buzz Bar scheme, which offers licensees the opportunity to compete with major multiple managed pub operators by offering them drinks deals, event support material and specials promotions to help them drive customers into their pubs.

The company launched the scheme two years ago, with 500 freehold and free-of-tie pubs initially trialling the scheme.

As a result of the merger Booker also plans to increase delivered business. In the last year the group delivered £1.15bn of products to caterers and retailers. Around 20% of space in half of the 30 Makro sites will be given over to a large delivery space which will enable the company to increase their delivered business.

Booker has also now converted 145 of its 172 branches to the ‘Extra’ format. Five more will be completed this year. The format includes a lighter, brighter business centre and an improved range, prices and service for customers.

The company’s delivered foodservice division Chef Direct launched last year, has won clients including Aramark and Loch Fyne restaurants.