To keep you in the know with what’s been happening in beverages and food logistics, here’s our roundup of the latest stories.
UK concerns over the local pub decline
British pubs continue to close across the UK; although the rate has slowed, the Yorkshire Evening Post reports that 18 are still closing each week.
A total of 431 pubs closed across England from January to June this year. The problem is higher costs for both pubs and consumers. Beer duty, business rates and VAT all contribute to high prices, which means more people are choosing to drink at home instead.
Fortunately it’s not time for final orders yet. The cross-industry group Britain’s Beer Alliance has launched a new campaign to promote pubs and reduce beer duty.
The alliance’s previous campaign “There’s a beer for that” boosted the UK’s beverage economy, so there are high hopes for the latest campaign “Long Live the Local” to turn things around. If you’re interested in supporting the campaign at the Long Live the Local website.
Irish drink sales booming
In Ireland they are seeing a significant shift in drink sales. According to Kantar Worldpanel, the sales increased by 3.1% in 12 weeks.
The main products driving the increase were bottled water and lager, which saw a home sales increase of 27.3% and 11.6% respectively. 7 million pints of lager were purchased.
Drinks sales got a boost thanks to major events like the World Cup and International Beer Day, the latter of which took place on the 3rd of August.
Leeds Trailers‘ quick service and diverse product selection allows you to capitalise on sudden surges in demand like this. Get in touch to see which trailers we have in stock.
Food supply chains calling to the government
The British Retail Consortium claims that securing a Brexit deal with the EU is essential to preserving our current food selection.
According to Supply Chain Digital we import 50% of our food from other countries. Of that, 60% comes from the EU-27.
Without an EU deal this food would be subject to new border controls, invariably leading to delays, waste and failed deliveries without some kind of deal in place. It could also lead to more than 12,000 businesses going bankrupt if no deal is reached.
Crust & Crumb making its mark in Ireland
Northern Ireland food company Crust and Crumb, which produces chilled pizzas, pizza bases and flat breads, has announced they plan to build a new factory in Ireland.
The Ballyconnell facility, which opens this December, will create 80 jobs with €5 million being invested in the facility.
According to Food and Drink Business Europe, the factory’s construction is a direct response to Brexit. By installing facilities in Europe, the company will ensure they will continue to do well after Brexit is completed. We may see similar moves by other companies in the next few years.
Artisan brands taking over the snacking industry
Savoury snacks in Europe are seeing a radical shift thanks customers’ tastes changing. Food and Drink Business Europe reports that cheese snacks from smaller artisan brands are beating out larger, established products.
People are looking for authenticity in their snacks—something that the large companies are failing to provide. In research by Kerry Taste & Nutrition, consumers felt that big brands were artificial and boring. They wanted new, exciting flavours and snacks which contain healthier ingredients.
Consumers are paying more for premium products, with gourmet crisp brands especially popular. The snack market is on the move.
Greggs’ new distribution centre
High street baker Greggs is planning to build a new distribution centre in Wiltshire next year. The move is part of a wider investment programme by the company, which aims to reshape their manufacturing and distribution to drive future growth.
Other major projects include a new manufacturing platform, which will produce doughnuts for the company.
The company has seen a significant jump in revenue this year, with an increase of 5.2% in the 26 weeks to the 20th of June.
They’ve also continued to open new shops around the country, with a grand total of 1,888. This number is expected to climb to 2,500 when their investment programme is completed in 2020.
The Co-op is expanding in Scotland
The Co-op is opening a new £6 million distribution centre at Inverness Business Park. It’s part of their plans to expand the Co-op store network across Scotland.
18 new stores are planned for the area by the end of 2018 (bringing the total number to 365) with upgrades for a further 20 in the pipeline.
The new distribution centre opened on the 9th of August, and will be serviced by double deck vehicles rather than single ones. The aim is to reduce the number of total journeys, cutting CO₂ emissions and saving 1,800 road miles per day.
If you’re supporting the Co-op with their supply needs and need a double deck, we’ve got several available for immediate hire. Visit our double deck page here.
As we’re near the M62 (just outside Leeds), you’ll be back on the road to Scotland with a double deck trailer fast.
Lidl’s fruit and veg waste plan
Lidl is trialling a new scheme to reduce food waste in more than 100 of their supermarkets. Their “too good to waste” boxes contain fruit and vegetables that aren’t at their best (but still good to eat). Each box will contain 5 kilograms of food and cost £1.50.
If this scheme proves popular, it could lead to greater demand for transport of excess food.
This is an opportunity for food logistics experts to offer their services to meet rising demand. If you need additional support for a transport job, you can quickly hire trailers from Leeds Trailers to deal with this new demand.
Aluminium shortage hits Canadian beverage supply chains
Brewers over in Canada are suffering from an aluminium shortage. It’s the result of the trade tariffs imposed by the Trump administration; after these tariffs were confirmed, large soft drink makers stocked up on the material to produce drinks cans.
This meant there was less to go around for smaller companies, leading to the current shortage. The problem is compounded when we consider drinks makers can’t just switch to another material.
Many small companies are locked into using aluminium cans; other options (like glass bottles) aren’t practical for these operations.
With companies like Coca-Cola raising prices in the wake of the tariffs, it’s likely we’ll see the impact in other parts of the world. We expect to hear about more supply shortages if the tariffs continue as they have in the past. And if you’re transporting aluminium, you’ll likely to get an increase in supply enquiries.
When a solid supply chain matters most
Palmer & Harvey had debts of more than £700 million, and delivered to 90,000 stores for brands like Tesco and Sainsbury’s.
McColl’s completed their supply switch in early August.
Working with Leeds Trailers assists you keep flexibility with your suppliers.
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If you’re in food logistics and need a trailer fast we have box and curtain trailers at our Leeds depot.
Take a look at our trailer hire section here, or just give Neil a call now on 01924 420 646 for more information.