HEADLINES THIS WEEK:

– BESTWAY ‘TESTING’ NEW BRANDS FOR CO-OP PHARMACY
– FIO’S CASH & CARRY DIRECTORS DISQUALIFIED FROM TRANSPORTATION OPERATIONS
– JJ FOOD SERVICE POSTS 65% PROFIT INCREASE

BESTWAY TO RELOCATE CO-OP PHARMACY HEAD OFFICE

Bestway Group’s £620 million purchase of the Co-op Pharmacy, which came into effect on 4 October, will be followed soon by the announcement of a new Manchester head office for the acquired business, which has more than 770 branches and a staff of 6,500.

Under the terms of the deal, the new owner can, if it wishes, operate under the Co-op name for 12 months. It is currently in the process of unveiling a new identity.

It is already ‘developing and testing’ new brands for the chemists’ chain.

A statement issued by Bestway said: “We expect to confirm the new name for the business before the end of the first quarter of 2015.”

At this stage there is no hint that any of the branches will either be closed or be converted into Best-one food outlets.

Group chief executive Zameer Choudrey said the group now has an annual turnover of around £3.6 billion and a global workforce of 33,000, with almost 12,000 in the UK.

Tel: Bestway Group 020-8453 1234.

FIO’S CASH & CARRY BRANDED UNTRUSTWORTHY BY TRAFFIC COMMISSIONERS

Fio’s Cash & Carry, which runs a dual-purpose business in Tottenham and Peterborough, has been refused permission by traffic commissioners to operate any vehicles weighing more than 3.5 tonnes.

The company has also been warned about ‘serious problems’ regarding the maintenance of its fleet and the number of hours worked by its drivers.

The two directors, Artur Zoga, who heads the Tottenham unit, and Hakan Kocak, who runs the Peterborough depot, have been disqualified from any involvement with transportation for six months, with effect from 26 October.

“After that period,” said a spokesman for the traffic commissioners, “they can apply for a traffic licence again. But their history will be taken into consideration.

“We do not have the power to stop Fio’s trading, but they cannot do so using the vehicles involved.”

A statement issued earlier this month on behalf of the traffic commissioner for London and south-east said the company has been using vehicles which they were ordered not to use in April.

When the directors failed to keep a promise at that time that improvements would be made, and continued running transport illegally, traffic commissioner Nick Denton called for a second inquiry.

He told the C&C/wholesaler’s directors that he “could not trust the business to get things right in the future”, adding that if the company failed to survive, it would be because of the directors’ “lack of real action”.

Both branches have an area of around 48,000 sq ft, with the Tottenham unit being housed on a site once occupied by Venus Wines.

While the north-London depot primarily trades as a cash & carry, with minimal delivered trade, the Peterborough depot derives about 40% of its income from delivered customers, Kocak told Cash & Carry Management.

Both specialise in drinks. Tottenham, which serves maily licensed retailers, also sells some food, while Peterborough does a considerable amount of exporting – licensed products as well as Eastern European food.

Reflecting the ruling by the traffic commissioners, Kocak said: “We were using five vehicles, but now we are operating with just three. We have been kept waiting for some time by the hire company to obtain improved vehicles.”

When asked what Fio’s turnover is or which branch has the greater income, Kocak claimed he did not have this information. He referred Cash & Carry Management to Zoga, who failed to respond to any of our calls.

Fio’s Cash & Carry 020-8801 6282.

PROFIT INCREASE DELIGHTS JJ FOOD SERVICE

JJ Food Service achieved pre-tax profit of £7.5 million for the year ended 31 March, compared with £4.5 million for the previous 12 months. However turnover was down from £185.5 million to £182.7 million.

While expressing his delight at the 65% rise in profit, managing director Mustafa Kiamil commented on the sales decline: “This is in line with the general market place and reflects our ongoing commitment to pass on savings to our customers.”

The Enfield-based wholesaler, which recently said it was expanding its customer base to include gastro pubs restaurants and hotels, is forecasting a 46% rise in profit next year to £11 million.

Tel: JJ Food Service (0843) 309 0991.