Sugro reports strong growth

Sugro achieved like-for-like growth of 12% for the year to the end of November, despite a very tough start to the year, according to managing director Philip Jenkins.

He said multipack activity on countlines by the multiples early in the year had compromised the independent wholesale supply chain, with deals such as five Mars bars for pound;1 (20p per bar) and four Cadbury Dairy Milk for pound;1 (25p per bar) leading to retailers buying from multiples rather than wholesalers.

However, he said the business still achieved growth in the first quarter and this had increased through the year as suppliers reduced support for the multiples and invested in Sugro’s Quidz In range.

Jenkins said Quidz In, which enables independent retailers to offer confectionary and snacks multipacks for sale at pound;1, was the first and still the best offer of its kind in the sector.

He said it enabled independents to compete with discount stores and that its value for money offer was vital in the current economic climate.

He added that there had been substantial demand for the Quidz In range and he expected that this to continue throughout 2012 while the economy remained tight, but that demand from consumers would wane when the economy improved.

See page eight for more about Sugro’s plans to restructure the group in order to drive growth.

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