| Best Practice Guidelines: supplier profiles |
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| Monday, 15 October 2012 14:43 |
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A year on from the introduction of the Harpers Best Practice Guidelines, we hear from signed up suppliers about what they're doing to back the initiative and how they'd like to see it develop in the future. Below two suppliers pledge their support.
Raymond Reynolds Why have you signed up to the Best Practice Guidelines: As a specialist importer, independent merchants have always been one of our main channels of distribution. So, in the company's 20 year history, we have always tried to have a transparent and close relationship with independent buyers with whom we trade. What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? Our own Code of Practice (which covers all the Best Practice Guidelines too) has really helped in two specific ways. Firstly, when meeting merchants we haven't dealt with before, it gives them reassurance that we understand the platform on which they trade. Secondly, it means we can How would you like to see suppliers' relationships with independent merchants develop in the future? I think every merchant and supplier would like to increase efficiency to both segments of the supply chain, but not at the expense of what every good merchant holds most dear: the ability to assemble a range which is their own. Suppliers have a duty to recognise the individuality of each client, and try to develop their relationship with a combination of creativity and solid guidelines.
HispaMerchants Why have you signed up to the Best Practice Guidelines? We have signed up because we were already doing most of what is required due to the nature of our business and how we operate. Being specialists in South America and Spain, our nature and our portfolio are suited for the independent and on-trade sectors which is where 95% of our sales go. This means we rarely run into conflicts of channels.
We have taken the guidelines on board and gone through each point with our sales team, making sure we're all aware of each specific pledge. Our existing philosophy of communication has been enhanced by giving it a specific structure
How would you like to see suppliers' relationships with independent merchants develop in the future? We have a really open relationship with our customers. What is really positive about signing up to the guidelines is that it clears the water on these issues and a new customer-supplier relationship can start from half a mile further than the start line.
Indigo Wine
Why have you signed up to the Best Practice Guidelines? Ben Henshaw, director: We signed up to the guidelines because we saw they were trying to address issues arising from the changing way in which wine was being retailed in the UK, and to support one of the most important parts of our customer base - the independent wine merchant. There is nothing better for a customer than walking into an indie, chatting to the passionate staff, maybe having a taste and walking away with a new find.
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? BH: We regularly discuss which wines are destined for which types of business, although being reasonably small ourselves means we don't have some of the conflicts larger importers might face. We have also looked at our pricing for certain channels in order to keep indies competitive.
How would you like to see suppliers' relationships with independent merchants develop in the future? BH: It is a two-way thing. If smaller specialist importers continue to support indies on pricing, helping with tastings and sourcing amazing new hard-to-find wines, hopefully they will continue to choose our wines over a larger competitor. Clearly the temptation to offer short-term bargains through selling large production bin ends (rather than giving the customer something authentic and interesting) must be avoided to build and maintain a loyal customer base.
Patriarche Wine Agencies
Why have you signed up to the Best Practice Guidelines? Belinda Stone, marketing manager: We were among the first companies to sign up to the Harpers Best Practice Guidelines and the decision to do so was easy because the criteria fit the way we already work.
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? BS: We take pride in the relationships we have with our customers, which is both honest and transparent, but we're a small team so getting that message out to all the independent retailers we'd like to be working with isn't easy. Being a small team also works in our favour though, because it means internal communication is easier and the possibility of cross-channel conflict is small. It's important to remember that to get this right our decision for channel management starts with our producers way before we talk to customers. Doing things that way round not only helps to avoid potential problems out in the market but manages expectations from an early stage and reduces the chance of sudden pressure to shift stock.
How would you like to see suppliers' relationships with independent merchants develop in the future? BS: We're keen to continue to support the guidelines and hope that once word really starts to spread about their existence the independent sector will be equipped with a list of suppliers they can trust, as well as improve the reputation of suppliers in general, which can too often be tarnished by the mistakes of one or two less fastidious companies.
Grupo Codorníu UK
Since we set up in the UK in 2001, Grupo Codorníu has always championed the independents. Signing up to the Best Practice Guidelines has endorsed our existing approach and given us the impetus to communicate this more effectively.
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? Most importantly, we have reviewed our channel strategy for each of our brands so we can offer independents a range of wines exclusive to their market. We have also increased our dedicated regional sales team over the past year and plan to continue to expand this over the next few months. We offer independents an extensive support package, which includes tastings, training, winery visits, regional PR, winemaker dinners, and help with marketing and events as well as promotional price support. Finally, we have developed our portfolio of wines so that we can offer the independent sector a more comprehensive range.
How would you like to see suppliers' relationships with independent merchants develop in the future? We see a positive future for the independent sector - selling wine to customers face to face is still the best form of retailing. Our aim is to continue to strengthen our relationships with independent customers and work in partnership with them to help them realise their long-term business goals and achieve mutually profitable sales.
Why have you signed up to the Best Practice Guidelines? The debate that began last year raised some important issues. It quickly became clear there was a lot of misunderstanding on both sides and communication from suppliers to the independent retailers needed to be improved - the Best Practice Guidelines have been an ideal vehicle to facilitate this.
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? We already had much of the strategy in place regarding portfolio segmentation, targeting certain wines at certain sectors and giving many wines "protected status" for the independents - however, we weren't being effective enough in communicating this to the customers. Therefore they weren't sure where it was safe to tread within our range and, at the same time, as a supplier we were frustrated that wines being safeguarded for the independents weren't always being supported by them. The biggest change we've therefore made is in ensuring our sales team have this information updated on a weekly basis and, even more importantly, that they ensure our independent customers have this information.
How would you like to see suppliers' relationships with independent merchants develop in the future? I think it's all about open and honest communication with quick feedback, for example, if we're targeting the wrong wines at the independents then let's hear that quickly and clearly, then we can change course, sell those wines elsewhere
Why have you signed up to the Best Practice Guidelines? De Bortoli Wines UK has signed up to the Best Practice Guidelines to convey to the independent sector that its business is fundamental to us. We have a very clear brand strategy for specific channels of distribution and signing up to the guidelines allows us to clearly market this message to the trade.
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? We have always been very open about where certain brands are channelled, according to each market sector. We have created a price list specifically for independent merchants. We have reduced our minimum order and improved our credit terms. Our trade stand at the LIWF specifically sets out the distinction between our multiple brands and those offered to the independent sector. We are very open with our customers about our strategies. As a company, De Bortoli has strong family values and a culture of always striving for better, which is reflected among all employees in the UK team and other export offices whose missions are to help and support their independent customers.
How would you like to see suppliers' relationships with independent merchants develop in the future? Fostering and promoting a culture of trust between each other; communicating any changes in strategy in a clear and timely manner; all by encouraging and expecting honest feedback between merchant and supplier.
Why have you signed up to the Best Practice Guidelines? WWA was one of the first companies to sign up because we recognised immediately the value of the charter. Such transparency and clear guidelines could only benefit the independent sector, and improve business relations between independent merchants
What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? WWA supplies the independent sector uniquely so we were already following the guidelines designed - and go further: we do not supply restaurants directly and we do not supply private customers directly. If we receive good reviews for our wines we always name check our independent customers as stockists, rather than WWA. We see supporting sales by using an efficient PR machine to help create pull-through as an important service.
How would you like to see suppliers' relationships with independent merchants develop in the future? I would like to see more open dialogue by a working party comprised of suppliers and independent merchants to develop the ideas for the joint business plan that WWA started with our group of independents in August. We need to be looking at how we can work closer together to build a stronger independent merchant category. Cavendish Wines Why have you signed up to the Best Practice Guidelines? Cavendish Wines wanted to be a part of Harpers' Best Practice Guidelines to give us greater credibility within the independent sector. We were already abiding by a lot of the guidelines that were set out but we felt as a business a seal of approval was required to endorse our claims. A major factor for us was that the independents themselves played an important role in finalising the guidelines and therefore by working with them on the project we were able to better understand their needs and how we can play a bigger part in their business. If we can help them achieve growth we can all be a part of something greater. What steps have you taken to meet the guidelines (or have in place already that comply with the guidelines)? How would you like to see suppliers' relationships with independent merchants develop in the future?
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