More than 1,000 independent stores are now benefitting from unique and higher-margin brands supplied by Wessex Distribution, according to founder Andy Logan.
The supply-chain expert revealed Wessex Distribution’s success since it was founded in 2017 with four reps. “Suddenly, we’re at 32 reps nationwide,” Logan told Better Retailing.
Stores visited can buy stock immediately. They are then able to reorder via drop shipment or further visits.
“It’s a back-to-basics approach that focuses on supporting independent stores,” Logan explained to Better Retailing.
“We use reps that stores trust because they’ve known them for years. We work together to get new brands onto shelves.”
What new products does Wessex Distribution offer?
Wessex Distribution highlighted its launch of the UK’s “only pure US tobacco” cigarette brand – Graysons. The value-tier packs retail at £12.65. They are stocked by 1,020 stores, of which 100 actively sell it to customers at the counter. More than one in four of these active sellers are now ordering at least two outers per week.
Logan said a competitive price and an unrivalled margin is the secret to success.
“Stores actively sell it because the £12.65 recommended price gives them 10% margin,” he explained.
“That’s around double the profit per pack compared to what they get at cash and carry.”
The founder revealed a similar launch of a roll-your-own tobacco brand named Wild Horse is coming soon through Wessex Distribution. Logan also mentioned Nuso, which Wessex Distribution launched in the UK six months ago “to compete with Iqos”. The heat-not-burn tobacco product gives stockists a 23% margin on each £5.10 pack sold – more than double the market average. Unlike with Iqos, retailers get the device free with every outer to give to shoppers.
The outers also feature a mix of flavours. This enables stores to stock a good range without tying up too much cash.
Other companies Wessex Distribution has worked with include vape distributor Phoenix 2 Retail, tobacco brand Davidoff, Aquapax, Kingsley Beverages and Panchos Datos tequila.
An opportunity to get new brands on convenience store shelves
Challenged on why stores need brands like these from outside of the big cash and carries, the founder told Better Retailing: “Cash and carries do a good job with brands people know, but not so well with brands people don’t know yet.
“If you walk into a major wholesaler as a new brand, they’ll take a £50,000 listing fee. We invest funds in the independent sector, such as through trade incentives.”
Asked how Wessex Distribution ensures the brands are right for stores, Logan said they are tested in independent shops in the UK and Ireland first.
He added: “We always engage with the supplier, look at whether it’s compliant, whether it’s from a secure source, and whether it’s a good match.”
Email your store details and number to editorial@newtrade.co.uk to speak with Wessex Distribution
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