NEWS
8 ASIAN TRADER 21 FEBRUARY 2025
The food and drink wholesale
distribution sector generated
£33.6 billion of turnover in
2023-24 with £17.5 billion
coming from sales to mainly
independent retailers, a
report released by wholesal-
ers’ body Federation of
Wholesale Distributors
(FWD) reveals.
“Going for Growth: The
Impact of Food and Drink
Wholesale Distributors”,
highlights the crucial role
wholesalers play in the supply
chain as well as in overall
economy.
Retail businesses account
for 52% of food and drink
wholesalers’ revenue, while
foodservice and caterers
account for 29% and 10%
respectively.
AI and automation hold
significant potential to
positively impact the sector
like in identifying the wallet
share gaps and predicting
reorder needs. However, the
report states that companies
are yet not fully embracing
these technologies, saying “no
distributor has integrated AI
into its operation to a great
extent”.
60% of respondents
indicated they have incorpo-
rated AI into supply chain
management.
FWD reiterates in the
report to reach net zero Scope
1, 2 and 3 emissions by
2040, which will require 90
per cent reduction in
emissions and coordinated
actions across value chains.
Furthermore, the sector
is facing labour shortage
stemming from ageing
workforce, Brexit, images
issues and competition.
Delivery remains the most
common route to customers
with 58% of sales value
fulfilled through deliveries,
40% through cash and carry
and 1.3% click and collect.
The report said food and
drink wholesale distributors
directly contributed £3.5bn to
national output in terms of
gross value, employing 77,000
people. The overall value chain
that it supports employs a total
of 1.5 million people, about
4.8% of the UK workforce.
Channel accounts for over half of wholesaler revenue
Report shows ‘£17.5bn sales
Report shows ‘£17.5bn sales
to independent retailers’
to independent retailers’
Experts have warned over
illegal high-strength nicotine
pouches, saying they could
cause inadvertent overdosing
and harm to teenagers and
young adults.
There has been an
alarming rise in illegal
pouches containing potential-
ly dangerous levels of
nicotine. During the last 12
months, Oxfordshire Trading
Standards has seized more
than 900 packets of non-com-
pliant nicotine pouches from
retailers and launched several
criminal investigations. In
Dorset, 844 seizures were
made by ofcers.
Since nicotine pouches are
new there are no specific
regulations covering advertis-
ing, strength or age restric-
tions.
Instead, they come under
General Product Safety
Regulations which means they
need to be clearly labelled in
English with safety guidelines.
Most pouches contain six
to 20 milligrams (mg) of
nicotine while some products
contain 50mg. However, some
illegal pouches claim to
contain as much as 150mg of
nicotine, although tests
conducted on behalf of Trading
Standards found levels varied
greatly.
The government said new
legislation would stop nicotine
products being marketed to
children and it was investing
£30 million in enforcement.
JTI and BAT said their
products were for over-18s and
welcomed stronger regula-
tions.
The Department of Health
and Social Care said: “Snus is
harmful and illegal to sell in the
UK, which is why we are
cracking down on illicit
retailers by boosting funding
for enforcement on the high
street and at the border.
“Our Tobacco and Vapes Bill
will put us on track for a
smoke-free UK and stop vapes
and nicotine products,
including nicotine pouches,
from being marketed to
children.”
Alarm sounded over rise in
illegal nicotine pouches
Nisa’s charity supported
Nisa’s charity supported
over 360k people in 2024
over 360k people in 2024
Nisa’s Making a Diference Locally
(MADL) charity has cemented its role
as a cornerstone of community
support across the UK in 2024,
achieving incredible milestones and
touching the lives of over 360,000
people.
Last year, MADL donated over £1
million, spread across 1,340 individual
donations, to small charities and
community groups nationwide.
These contributions bolstered food
pantries, enhanced opportunities for
children, strengthened community
bonds, and provided much-needed
winter support.
In addition to MADL’s direct
contributions, Nisa colleagues rallied
behind charitable causes, showcas-
ing their dedication to making a
diference.
Surge recorded in whole
Surge recorded in whole
food sales
food sales
Brits are increasingly leaning towards
cooking from scratch and are ditching
ultra processed food, thus embracing
a much simpler approach to their diet.
Waitrose has reported that its
back to basics for many in 2025 due to
growing awareness around ultra
processed foods, with many turning
away from low-fat, highly processed
products. Whole milk and full-fat
Greek yogurt sales are up 11% and 21%
and block butter sales by +20% as
compared to dairy spreads while
brown rice is seeing +7% more sales
compared to white rice.
PayPoint reports strong
PayPoint reports strong
Q3 performance
Q3 performance
PayPoint Group has delivered
another positive quarter, with robust
performance across its key seasonal
businesses, reinforcing its confidence
in meeting FY25 expectations.
In a trading update for the three
months ended 31 December, the
group reported a 1.9% increase in net
revenue to £53.0 million, driven by
strong performances in its e-com-
merce and Love2shop divisions,
where net revenue increased by 1.9%
to £8.2 million. However, card
payment revenues declined by 5.7%
to £7.8 million, reflecting lower
consumer spending and a challeng-
ing environment for UK consumers.