Why small food firms should shun major retailers

There were so many outlets in the UK for food businesses that they could be successful without going into the big supermarkets, Dan Knowlson, founder of raw and free-from chocolate manufacturer Elements for Life told FoodManufacture.co.uk.

Knowlson decided not to continue negotiations with Waitrose because – despite being “one of the better ones” ​– it was still a supermarket that did not share his values.

“We discussed the possibilities of being stocked in Waitrose with its buyer and it got us thinking about whether it was really right for our business,”​ he told this site.

“If it had worked out it would have been very good for us financially – so that was a big carrot. But there also would have been quite a lot of work and risk involved.”​

Lack of fun and values​

Knowlson feared it would take the fun out of the business and he would end up dealing with retailers that didn’t share his values.

“Supermarkets have their place and their uses, but they undermine the high street and underpay their staff and that’s not who we are.​

“It isn’t just about money for us, it is about getting our product out to people to think about food and health and help support other small businesses. I like going into work every day and it would have killed the fun.”​

Not going down the mainstream retail route also helped Knowlson find clarity and focus for the direction he wanted to take the business in.

“We are very much about supporting small independent businesses that are all battling against the big brands.”​

Elements for Life is manufactured at a farm conversion in Woolley Green, Wiltshire, and stocked in independent stores, online and in specialist retailers – such as Planet Organic.

Changing trends and price war​

Miranda Ballard, founder of meat firm Muddy Boots Foods, said that changing consumer trends and the supermarket price war had meant her product was no longer right for retailers.

“We went careering headfirst into the supermarkets because we were the kids of the Innocent smoothies generation and we’d seen Gü, Tyrrells, Green & Black and Ella’s Kitchen ​[do well] and we wanted to be a national brand … we absolutely thought supermarkets were the answer,”​ she said.

Entering the retailers meant Muddy Boots had to outsource manufacturing at the expense of quality, she said.

“So, we said a polite no thank you to Tesco,” ​she revealed. “We went so completely in the wrong direction with supermarkets because we are meat. So just ask yourself ‘is your product right for upscaling, outsourcing and licensing?’”​

If the London-based firm had gone into Tesco it would have gone bust, Ballard claimed.

The firm does now supply to Waitrose and Ocado, but also sells its product directly to the public from its store in Crouch End, north London. She encouraged other businesses to take this route or sell online instead of going in the retail direction.

Muddy Boots plans to open a new manufacturing facility in Leyton, east London and a second shop by the end of the year. It hopes to have 10 stores by 2020.