‘Caterforce has the potential to be a £1.5bn turnover business’ – Mullineux

Caterforce is not only growing ahead of the market, it also continues to offer suppliers the most cost-effective route to market compared to other buying groups, insisted managing director Gary Mullineux (above) at the organisation’s conference earlier this month.

The event, which had the theme ‘Delivering Success’ and was held at Wembley Stadium in London, attracted a total of 350 members, suppliers and central office staff.

“Caterforce this year will deliver turnover of £800 million. That’s 8% like-for-like growth year on year and is more than double the market performance, according to the latest IGD report,” he stated. “Since 2019, we’ve grown by 41% versus the market at 25%, and we expect that to continue – achieving £900 million in the next two years. That’s genuine, organic, like-for-like growth.”

He continued: “We over-indexed in frozen and under-indexed in ambient and chilled. Caterforce has a market share of 6% but our market share within frozen is actually 11%, and if we can increase our ambient, chilled and non-food categories to perform the way our frozen category does, Caterforce has the potential to be a £1.5 billion turnover business.”

Mullineux reported that the group’s members have boosted the number of customers they service. “Our biggest growth sector has been schools, which have increased by 20% year on year – which is about £13 million in additional sales. However the profit sector is still a key part of what we do: restaurants and coffee shops/cafés are still our two biggest sectors. Across our total customer base we are delivering 1.3 million cases every single week.”

Highlighting the benefits that the organisation offers suppliers, Mullineux said: “Caterforce offers full coverage across the whole of the UK and Ireland, with the fewest distribution points compared to any other buying group, which means we are the most cost-effective route to market. Our average turnover per wholesaler is nearly double that of our closest competitor and six times bigger than our smallest.”

So what’s next for Caterforce? “We’re open to the idea of new members but they must be the right members – they must add quality to our group,” he insisted. “We’re not about adding members for the sake of it: they must be the right fit, with willingness to invest in their business and desire for growth.”

He said that the organisation will continue to invest in central services and its own-brand range, and it will offer more digital assets. Group marketing director Lucy Boland announced that brand impact campaigns will be enhanced through the launch of several new initiatives for suppliers next year. These include animated web banners, publicity on members’ social media channels, and recipe pages on members’ websites.

Caterforce chair Matt Lewis: ‘Rest assured, our members are committed for the long haul.’

Emphasising the important part that suppliers have to play in Caterforce’s success, Matt Lewis, chair of Caterforce and managing director of Castell Howell, said: “The onus to deliver success rests upon our members and, by extension, upon you, our suppliers.

“What we require from you is not merely competitive pricing, product quality and reliability – these are the fundamental expectations. The most distinguished suppliers are those who drive innovation not only through product development to support our customers but also by offering solutions to their challenges; also through better use of existing products to increase sales.”

Commenting on measures announced in the Budget that affect the hospitality industry, he added: “We all support paying hard-working people in hospitality and the supply chain a fair wage,” he said. “However we must confront the reality surrounding the new Living Wage and national insurance contributions. It is now more vital than ever that we support our customers through their challenges.”

On that note, Lewis said that, following the Caterforce conference, the organisation is donating £20,000 to The Burnt Chef Project, a non-profit social enterprise that provides mental health support and education for the hospitality trade worldwide.

Caterforce wholesalers support their fellow members too, he pointed out: “During my tenure as chair of Caterforce, I have encouraged collaboration between our members – there are many examples of shared learning. Not only do we procure goods but we genuinely want all members to flourish and grow by offering help and support.

“Caterforce is a unique group of truly independent family businesses where values and culture truly mean something. In the ever-changing market, one group remains strong, remains reliable and provides real stability – that’s Caterforce. Rest assured, our members are committed for the long haul,” he concluded.

At the conference, several awards were presented to suppliers in celebration of excellent performances over the previous 12 months:

Best Service Levels
Extons

Sustainability Champion
Nestlé Professional

Best Business Relationship
Stokes Sauces

Data Insight
Unilever

Marketing Excellence
Kellanova

Most Innovative Product
d’Arta frozen superfood/grain salads

Own-Brand Supplier
Caterers Choice

Branded Supplier of the Year
Premier Foods