|
|
|
| Review of operations – Bidvest Europe continued |
|
|
| |
| Differentiation |
Bidvest Europe differentiates itself as a proactive partner that anticipates customer requirements and addresses them through appropriate investment, quality systems and reliable service delivery by experienced, knowledgeable and innovative staff. Our professionalism and scale of operations enable total solutions with the potential to create new efficiencies within our customers’ business.
This value proposition has growing relevance as marketplace pressures and sustainability issues come to the fore. Local sourcing of products and the use of authentic, natural products are increasingly important. Providing comprehensive information on all the attributes of the various products and food groups has become essential. Our service offering is now underpinned by specialist assistance such as kitchen design for our customers.
Bidvest Europe has long been known for its ability to provide a total logistics solution. We are now strongly communicating the message that our solutions “don’t stop with the drop”. |
| |
| Proudly Bidvest |
In the last 12 months, awareness has grown within the British and European markets of Bidvest as a major international player in the foodservice industry. The Bidvest name is carried by all truck fleets and at all companies, including the recently acquired businesses in Belgium and throughout the Netherlands.
The corporate strapline “First for Foodservice” is deployed across the livery in all national markets, from London to Brussels and Amsterdam and through to Australasia, providing a consistent marketing promise and a unifying element in our corporate identity.
Bidvest recognition is positive among large companies and is helpful when forming alliances with suppliers and other parties. |
| |
| Sustainability issues |
Our status as the preferred employer in our sector was underscored in March when 3663 First for Foodservice was listed by the London Sunday Times as one of the United Kingdom’s top 20 “Big Companies To Work For”. We are the only food wholesale distribution company on the list.
In June, the British government and the Institute of Fundraising bestowed a silver award on 3663 for facilitating sustained “payroll giving” by our employees. Focused internal communication has raised awareness of the scheme whereby 6,5% of the workforce currently donates to charity via the payroll system, raising about £25 000 a year.
We receive high sustainability noting as we are the only foodservice company in our markets to achieve ISO 14001 accreditation at every depot. This benchmark for quality control and environmental management indicates that we adopt best world practice to ensure our operations have minimum impact on the environment.
We use bio-diesel in our fleet and are taking measures to recycle cooking oil from our customers and suppliers where possible, and convert it into bio-diesel. By committing to the use of bio-diesel made from used cooking oil we are taking the lead in the use of sustainable fuels.
The processing of virgin oil may reduce dependence on fossil fuel, but has the effect of restricting the acreage used for food production as crops are increasingly diverted for ethanol manufacture. Ultimately, food prices rise.
Our fleet of more than 1 000 trucks has given an industry lead in the sustainable use of used cooking and vegetable oil by concluding supply arrangements with an oil re-processing plant. We currently use 20 000 litres of bio-fuel a week from this plant, all derived from used oil provided by our customers and suppliers.
These arrangements went into operation in the final quarter. We are encouraging more customers and suppliers to collect used oil for recycling and plan to substantially increase our use of bio-fuel from this plant over time.
The “weeding and seeding” of our ranges constantly focuses on product innovation and new formulations to promote healthy eating and improved nutrition. |
| |
| The future |
After a year of consolidation, renewed growth in revenue and trading profit will be sought in 2008.
Food inflation and higher interest rates create challenges in the United Kingdom market, but range management and range extension offer opportunities for further growth while new efficiencies will also be pursued. The possibility of closer integration across the sales teams is being examined in detail.
Strong forward momentum has been built up by our business in the Netherlands. This highly motivated team is poised for further success and will be supported by new investment in depot expansion and an extended central chill facility. Opportunities for acquisition-led growth will also be examined.
The base of our operations in Belgium has been significantly expanded following the Kruidenier acquisition. However, this business is not expected to be earnings-positive for some time as the cost of substantial reorganisation will have to be absorbed. The full-year effect of recent management changes at Deli XL Belgium will be felt in 2008. Some revenue growth has already been achieved. Further gains in market share will be pursued.
Horeca, our Dubai-based foodservice operation, has doubled the size of its business in 18 months and is committed to further growth. The hospitality boom in the United Arab Emirates has shown no sign of abating while new opportunities are opening up in the institutional market, notably the hospital sector. |
|
|
|
|
