“Sudden trends can be difficult to deal with as a supplier,” explains Matt Jones, Senior Buyer at Reynolds. When a trend takes off sales can double in a month and if you have only contracted for a certain amount, additional volumes can become expensive.”
“Because we work very closely with our customers, in general we find they understand situations such as these. Often, they read the same reports as us. One of the big changes in the foodservice industry in recent times is that there is a lot more openness between suppliers and operators. It’s so important to work together.”
Reynolds encourages its customers to meet growers in the field, so they can understand what is going on, see the problems first hand and discuss potential pit falls. The buyers attend trial days, often taking some customers along too, so they can view potentially new products first-hand.
“Given the competitiveness of the industry our customers operate in, they always require a cost effective product. We source from the UK and Europe to find the best produce at any one time. Products must first be food safe and sustainable, as well as fit for purpose, but a competitive price is also critical. Of course, some of our customers will work to specific accreditations and have unique requirements, which may mean they demand product to be sourced within a certain location. We are able to offer that bespoke sourcing facility given the appropriate notice.”
Rise in food sector
“We make it our business to know what is going on in the market to help our customers evaluate what should be on their menus,” said Tim Cowan, Marketing Co-ordinator. “Our customer development chefs come in and work with our own development chef team to determine what is trending now in fruit and vegetables and how they can best incorporate the produce on their menus. Baby kale is a good example of a product which we have been able to introduce to customers from field-trial stage, and sales are now really starting to build because the leaf genuinely opens up new menu opportunities. Cauliflower is also very hot at the moment, being used in all manner of innovative ways, including blitzing it and using as a rice replacement. Importantly, we also look to have the best seasonal products at any one time, because the interest in seasonality is only going to increase.” Matt: “Street food creates a lot of the trends we are seeing in the eating-out market and we keep a very close watch on this sector. I think that listening to our customers and sharing ideas is one of the reasons we have grown so quickly. If you can determine the trends when they’re at the early stages, you can introduce the right products to your customer, along with creative ideas to bring concepts to life in the kitchen.”
“Trends have changed in the last couple of years. In the past it was almost always about the cuisine of a specific country or region, such as Italian or Mexican. It is now much more about the product or general health-based trends, such as pulses and grains, avocados and brassicas, alongside raw food, juicing, flexitarianism or gluten free.”
According to Matt, there is some demand in the foodservice industry for organics. Not enough yet to justify a comprehensive offering, but interest is growing.
Coping with the climate
Matt: “We haven’t seen what I would call a ‘normal’ season for around three years now. We came out of a winter which was very warm, accelerating plant growth, so some vegetables finished early and some were just short. We then had a cold April, the wettest June in a long time and hail in Europe which destroyed crops. Growers have had to deal with flooded fields and the Diamondback moth in Lincolnshire. The weather is causing relentless problems for growers at the moment and I can’t see the situation improving. In fact, these issues are becoming the norm – you just don’t know where or when they are going to crop up. I have to plan for the unpredictable and having contingency plans in place is now essential for virtually every product, as we can’t afford to leave things to chance. I have been buying produce for 28 years and can't remember having to deal with so many issues than in the last few years. And it’s not just here in the UK that we are experiencing these changes, but throughout Europe. I have to plan two years ahead now to make sure the crops are there when customers want them.”
Currency and Brexit
Matt: – “Whereas retailers can manipulate prices on a weekly basis, we contract our produce for long periods and hedge our funds at the start of that contract. This means we can offer a fixed price to our customers, which provides them with the security and stability they need to protect their margins. So we have not been dramatically affected by the drop in the Pound as of yet.
“When contracts are renegotiated, we will have to look at the value of the Pound at that point. Thankfully, the exchange rate is the same for everyone. We all knew the Euro would fall if the referendum went the Brexit way. It was just a question of by how much. It was the drop in the Dollar which came as a surprise to everyone. Many of the more expensive products, such as asparagus and avocados, are Dollar bought and some people have been caught out.”
Reynolds is the largest independent fresh produce provider in the UK to the foodservice industry and has seen continued growth over the years.
The company is today headed up by Tony Reynolds, a business which started out in 1945 as a market stall in Ridley Road, London - then run by Tony’s grandfather. Tony’s father, David, then took over, before Tony joined the business. It wasn’t until 1988 that the business took the decision to focus on the growing foodservice sector.
From the late 90’s, Reynolds was based in the old Spitalfields market, before moving onto the new market site in 1991. Sales grew rapidly and the business soon outgrew the markets, eventually moving to the current premises in Waltham Cross in 2005.
As well as the National Distribution Centre and Head Office in Hertfordshire, the company also has seven radial sites with more in the pipeline. All in all, Reynolds makes over 13,500 deliveries per week to restaurants, hotels, stadia, schools and other foodservice outlets across the UK.
For more information:
Andy Weir
Reynolds
T: +44 (0)845 6348 260
M: +44 (0)7508 177 077
Email: andy.weir@reynolds-cs.com
www.reynolds-cs.com