It is a familiar tale. A once vibrant and profitable wholesale market has seen traders move on to pastures new or drop of out the fruit and vegetable game altogether. Cardiff Wholesale Fruit Centre has lost a substantial amount of its customers through supermarkets bypassing wholesale in the supply chain and, while the market once consisted of 36 traditional wholesalers, it now comprises only seven.
But as the market has condensed, companies have expanded and specialised, and new forms of wholesale have been welcomed onto the site in the shape of secondary wholesalers and caterers. And the hordes of customers that once queued outside the market gates have been replaced by businesses that serve an average 60 per cent of their customers though deliveries.
The fall in the number of market tenants has not stopped new blood entering the site. Four new businesses have made an entrance into the fruit and vegetable market in the last four years - all of which are declaring success at a time of economic standstill. Established firm Vitacress Sales opened and invested in four units at the site three and a half years ago, and general manager Mike Harrington has not looked back since. “Cardiff market is a good place to work and is not a lot different to any other wholesale market in the UK,” says Harrington, who has worked within various companies on Cardiff Wholesale Fruit Centre for 26 years. “Since the supermarkets brought around dramatic changes in the business, it has been all about moving with the changes and offering a difference, which is what we are trying to do here. We have adjusted to change, and Cardiff market traders send out a lot of deliveries. We are half delivery and half cash and carry, so we get the best of both worlds. Vitacress Sales has invested a lot of money into its units, especially into the wiring and lighting, so we can really show off the products when customers come by.”
And Harrington insists that the recent acquisition of Vitacress and Vitacress Sales by Portuguese company the RAR Group will not have any effect on Vitacress Sales in Cardiff or its staff structure, and he is looking forward to expanding the business. “Catering is now a big part of the market, and we are looking into providing a catering division in the future - we are looking to expand the business,” he says.
Since Vitacress Sales took up its spot on the market, three more companies have taken on sites around the courtyard: caterer H&N Catering, and wholesalers Fresh For You and SJ Bevan Cardiff.
Most of the new companies’ owners have previous experience on Cardiff’s wholesale market, and said that opening a company on the site was an obvious choice.
New wholesale business Fresh For You was set up by Ken Young, who has previously worked for Redbridge, in June last year. The business has expanded rapidly, and has gone from one to three delivery vans and from two to seven staff members in 12 months. “Retailers make up about 70 per cent of my customers, with the remainder being caterers, and I find that smaller retailers want to go to one person to get everything they need,” says Young. “I am really pleased with how the business has gone so far, and the company is proof that there is a future in this trade. In fact, I am looking to double Fresh For You’s projected turnover in the next 12 months.
“I am not a stranger to the market, which makes a difference, as there is a real community spirit here. I have a wider range of stock than others on the market, and that is through having the right suppliers. I stock produce like okra and bird’s eye chillies, which are things that other wholesalers will not take a chance on.”
Young admits that market traders have been disappearing fast over the last 20 years, but believes that the opening of Fresh For You and other new businesses has broken the trend. “Some said that I was mad to open up a new business here, but I have proved them wrong,” he declares.
Neil Boyles, another former Redbridge man, established H&N Catering three years ago with a business partner. Boyles grew the catering business from just one van, and moved the business to Cardiff Wholesale Fruit Centre as soon as the orders started flying in. “We are in a central position here,” he says. “We can supply hotels and restaurants all around Wales and bring in product from places like Bridgend and Bristol. It is just one drop for growers, as they already come into the market. If we had chosen a site out of the market it would have meant paying extra.”
H&N Catering has gone from one delivery van to six in three years, and now has 65 customers on its books. Boyles believes the wholesale market has been pushed forward by the catering industry. “The future of wholesale belongs to the caterers. Anyone can turn up with fruit and veg in a van, but we offer the whole package. We are a one-stop shop on wheels.”
Another newcomer, SJ Bevan Cardiff, grew out of former Cardiff Wholesale Fruit Centre business WR Bishop & Co, and was established two years ago. WR Bishop & Co had been at two sites, Cardiff Wholesale Fruit Centre and a unit in Tonyrefail, since 1976. Two years ago, Steven Bevan and his business partner decided to go their separate ways, and Bevan remained in the Cardiff market site to begin his own business. Bevan did not waste much time, and has already invested in a 785sqft coldstore, a new forklift and extra staff. “There are fewer traders, but because of the way the trade has gone, there are far fewer customers, so it is a good thing really,” says Bevan. “We do very well here, and we do not deliver our produce like a lot of the wholesalers here. We rely on people coming into the market. I believe there is more chance of people buying more product when they come in, and nine out of 10 times a customer will buy something other than the product they have come in for, because it is on display. It is nice to put a face to a voice on the phone, and offer customer service on site.”
With massive regeneration plans underway within the city centre and at Cardiff Bay, and a new stadium for Cardiff City Football Club being built, the Welsh capital is changing every day and attracting tourists and new residents. As this happens, a new wave of businesses, and in particular restaurants, are being enticed into the area.
“Cardiff is up and coming, and is becoming a cosmopolitan city,” says Matthew Burrup, co-founder of Mattfresh, who used to work for Redbridge. “My father and I set up the business seven years ago in Cardiff market to be near the wholesalers and for the facilities, so we can cope with the increasing demand. We have gone from one to two vans since moving here, and we have a warehouse and coldstorage unit, as well as an outlet in Bridgend. We also source a lot of our fruit and vegetables from Rungis wholesale market in Paris for bistro-style restaurants in Cardiff.”
And this wave of positivity within the city seems to be having an influence on Cardiff’s wholesale traders. Stephen Owen, divisional director at Mack, believes the market is doing well through tough times, and can see the positives and negatives. “As the supermarkets have become bigger, the market has declined, but it is turning around with the recent success of convenience shops, farmers’ markets and street markets,” says Owen. “There is a lot more produce available to us now, which is opening up new markets for us. More exotic product is coming into the country. Kiwifruit has become a main offer over the last 20 years, mango over the last 10 years and recently physalis and chillies have become popular. The healthy eating drive has pushed this forward but, as eating habits have changed, traditional lines have remained popular. There has also been a great interest in prepared lines from caterers - you have to diversify to stay in the game.”
Total Produce is also carving its own path in Cardiff, after expanding the business with the acquisition of Bristol Fruit Sales (BFS) and, previously, Redbridge. David Hunter, Total Produce’s general manager at Cardiff Wholesale Fruit Centre, was previously a manager for BFS until the companies amalgamated in June last year. “I have worked at Cardiff market since 1986 and when I started it was a very full market,” he says. “Supermarkets have had the largest impact on the trade over the years, but there is still money to be made and customers to serve. There has only been a shift in direction; at one point, 95 per cent of the market traders served retailers or secondary wholesalers, but now it is more 50:50 between those companies and foodservice. We have a catering department here, and we supply a good deal of prisons and schools in the area.”
Hunter says that Total Produce has seen the price of fruit and vegetables increase over the last 18 months, and he sees this as a sign that wholesale is on the up. “It has been long overdue,” he says. “But getting customers used to the fact that higher prices are here to stay is a different matter. Prices have been relatively cheap for a long time, and they needed to change.”
Peter Broughton Ltd has been trading for 54 years and is still investing in the business. The company has recently installed a large coldstore for its growing salad department and has developed its own catering facility in the last two years. “Basically, it was only potatoes that were delivered 15 years ago, but gradually deliveries have taken over,” says David Johns, who has been the sales manager at the company for 22 years. “It is a very costly way of running things. We have 12-13 vehicles now, and the rising costs have been a nightmare. It is extremely difficult to pass on and the only thing you can do is run a tighter ship.”
Even the credit crunch may bring benefits to wholesale markets, according to some traders. “Trade over the last year has got a lot better,” says Bevan. “With the recession looming, people are watching their pennies a little more. Retailers have stopped topping up at the supermarkets and are coming to us instead. Consumers do not realise how hard independent retailers have to work to keep their stock up, and they offer quality produce and the best prices.”
Another success story can be found at PJS Flowers. The flower and florist sundries wholesaler has been trading for nine years within two, and then later three, units. Like many in the wholesale market, PJS Flowers grew out of an individual trader branching out on his own from another company on the market. Husband-and-wife team Peter and Lestrine Smith opened their company after Peter left fruit and vegetable wholesaler TJ Bird. The only business to specialise in flowers in Cardiff Wholesale Fruit Centre, PJS Flowers enjoys an established customer base and brings more than 100 varieties of flowers into the market a week, mostly from the Netherlands. “Trends have meant that we have moved away from the old-fashioned type of flowers, like the chrysanthemums we used to sell,” says Peter. “There is more of a range of types and varieties available now. It has been a gradual change, but our best sellers are probably roses, followed by lilies. We stock up to 28 different varieties of roses, 17 different lilies and 65 varieties of gerberas, which is another very popular flower.
“The business is doing very well. We deliver more than we used to, because younger florists only want to come into the market once a week or fortnight, and we are in the process of setting up our website, which will include pictures of the flowers available that day and an online buying facility.”
PJS Flowers is intent on improving its business, and last year invested in a coldstore especially designed for flowers from the Netherlands. The company has also branched out from just selling flowers and sundries to hiring out specialist products such as bay trees for weddings and special occasions. “We can stock a lot of different products now,” says Peter. “Whereas we used to get a delivery from the Netherlands twice a week, now we receive a delivery every day. It really makes a difference to florists buying flowers for weddings, as they can have the flowers for exactly the time they want.”
The buy-local and British drive is also having an impact on the market, although some wholesalers are finding it hard to source Welsh produce due to the industry declining.
Most of the vegetables Bevan stocks are British, and he believes that the buy-local trend will become very important in the future. “Most of the veg I get in comes from small farmers in Lincolnshire and Hereford,” he says. “I have visited them myself and some of them have been to visit the market. We tend to specialise in onions and potatoes, so the UK seasons are important.”
Vitacress Sales has been pushing forward British produce as a selling point, according to Harrington. “With the price of fuel going up, local and British food makes a lot of sense financially,” he says. “We have a small customer base that is trying to source local and British, especially our customers in west Wales. They want to support local and supply locally. There is also a move towards local food in Cardiff, but more so for quality.
“In the summer we have access to great British soft fruit from west Wales, as well as swede, cauliflower and cabbage pretty much throughout the year.”
Caterers have seen a similar pattern. “This year, a lot of restaurants have started to ask for local produce and have become very concerned about food miles,” says Burrup. “It is difficult to source, but we do get a good deal of potatoes from Pembrokeshire and asparagus from Ross-on-Wye in season, which is classed as local.
“We also work with a small producer in Bridgend, but we need more growers. People are moving into Cardiff city, but the trade is not ready for it.”
Supplier to top-end restaurants H&N Catering has seen more of an interest in fine-quality produce. The caterer stocks more than 130 lines, including fruit and vegetables, dairy products, dried goods and oils. “We sell a lot of micro cress, but our best sellers are new potatoes, fine beans, iceberg and onions,” says Boyle. “There isn’t any growth in wholesale apart from the catering side. The way forward is to get involved with catering.”
But even though the market is doing well, could it flourish better in improved surroundings?
Although the site was a welcome change back in the 1960s, things have obviously changed a great deal in more than 40 years. The 31-unit central square design, although maintained, has become empty and outdated over the years, say the traders.
The fact the courtyard is not covered is a bone of contention that many of the tenants brought up. Most traders are crying out for a buyers’ walk. “I would like a new market,” says Johns. “It has been discussed many times. It is a valuable site that developers have their eye on. We would be more than pleased to relocate and have a dry buyers’ walk to work under.”
Well-established company Mack would be firmly behind the market relocation if the opportunity arose. “I would love to see the market move and become covered,” says Owen. “The fact that it is not covered can be very damaging to the produce, and the market also needs to be more welcoming to customers.”
Many think that something needs to be done to the market’s structural environment, and that the surroundings are affecting the trade. “It is not good for the tenants, the produce or the customers to have an open-air market,” says Harrington. “It is hard enough to recruit people as it is, and people just don’t want the early starts. The market is too big for our needs and is outdated -some of the buildings are in a bit of a state. Even though we have spent a lot of money on our units here, we would be willing to move to a purpose-built facility.”
Mattfresh remains optimistic, but acknowledges that there are problems with the market’s design and accommodation. “It is a good place to be, but the market itself is getting a bit old now,” he says. “I think that we all need a purpose-built unit.”
Bevan is certain that the market needs a new lease of life, and hopes that something is done about its state soon. “The market needs to be covered,” he explains. “Everything gets soaking wet when it rains, which is particularly bad news for onions. The tarmac needs re-doing on the square as there are a lot of potholes, and it is a pain for the delivery vans.
“And, even though we have good transport links here, it would be an advantage to be at a new site nearer the M4 and the city centre. We are living in the dark ages here.”
Even though PJS is doing well, Peter says that if the economic climate were different, he would happily move out of the wholesale market altogether. “We were looking to move out of the market completely last year,” he says “But in the economic climate, we found it impossible. It would be good to open whatever time we want.”
In what some may say is a sign of the times, Cardiff Wholesale Fruit Centre no longer has a tenants’ association since the suspension of the South Wales Fruit and Potato Association three years ago. Instead, the board of directors of the market take into account any needs the tenants may have. The majority of UK wholesale markets all have active and successful tenants’ associations, so do the tenants at the Cardiff site feel that there is something missing from the market?
The answer to this seems to divide the well-established traders and the new kids on the block. “It is important to have a tenants’ association,” says newcomer Burrup. “Fresh For You, H&N Catering and ourselves are all quite young, with owners in their 30s and 40s; we are just starting out, so we need a voice.
“With Cardiff improving every day and new restaurants opening in the city, more customers are approaching us. We want to push our business forward, and you would not bring a prospective client to this market; the place would let the business down.”
Mike Prescott, company secretary of the market authority, says that any regeneration or relocation of the market would be a decision for the board. “The whole of Cardiff is seeing a regeneration,” he explains. “New developments and roads are being built and Cardiff Bay, just out of the city centre, is under construction. But everything is current and up to date at the market and any decision would have to be made by the board.”
Hugh Bird of wholesaler TJ Bird & Sons is on the board, and the company is one of the main shareholders on the market. He says: “The market is a prime location for development and a valuable site in the city centre. In the event of a developer making an offer, I am sure it would be sold. The remaining traders could move to a smaller site and it will probably do everyone a favour.
“Over the last 40 years, the site has helped the wholesale trade here and the building has worked well. It is a little bit dated now, but it has done its job. We would all like to be under a covered roof, but there is not enough money in the industry to do that here.”
Hunter, another member of the market board, says that the decision lies with the three main shareholders - one of whom is a property developer with no connection to the fruit and vegetable trade. “There has been lots of talk about the site being sold for the last 15 years, but we are still nowhere near it,” he says.
With plans up in the air and discussions failing to determine anything certain, could Cardiff Wholesale Fruit Centre follow the fate of its previous tenants and disappear completely?
Boyles thinks so. “I would like to see more units open and bring more competition, but it has become a ghost town,” he says. “I do not believe that this market will be here with these traditional traders in three years’ time. It has become so small, and companies will have to relocate and condense.”
As with all wholesale markets in the UK, problems are rife at Cardiff. “A reduction in trade has made it more competitive, and it does not help that customers are watching their pennies at the moment,” says Young. “If I was not competitive I would not have started the business. Service, quality and competitive pricing are all essential in this business. Times are tough and overheads are high.
“There is a wave of concern in the air. If your customers cannot pay now, it is only going to get worse for them.”
And escalating fuel costs are also having an impact on the market’s traders. “As companies increase their number of vehicles and the price of fuel goes up it is getting hard,” says Harrington. “But it is something that we all have to accept and make the best of. Vitacress Sales tries to stop the price increase from reaching the customers as much as possible, but our customers are very aware of the situation and understand.
“We have all got to tighten up and make sure the businesses run efficiently. A good price is one thing, but high-quality service and good produce is just as important.”
Nevertheless, Cardiff Wholesale Fruit Centre has an energy and enthusiasm that is hard to miss. The community spirit that has been created by a small amount of traders is something of a rarity. “We all work together, and I have had a lot of support from businesses within the market,” says Young. “They have stocked me and bought from me when I have needed them to. It is great to have that support after 20 years working within various companies on the market.”
H&N Catering believes it benefits from being within Cardiff Wholesale Fruit Centre. “Even though we only deal with deliveries, we want to be part of the market,” says Boyles. “We support next door [Fresh For You] and help out with shortages. Some wholesalers want to get on and only help themselves, but I had a working relationship with Kenny before we both started our businesses.”
Bevan also appreciates the friendly environment at Cardiff Wholesale Fruit Centre. “There is a lot of community spirit here, and there are quite a few characters on the market,” he says. “Everyone gets on well. We are all trading against each other, but everyone tries to help out and lend produce when it is needed.”
An important part of the Welsh fruit and vegetable industry, Cardiff Wholesale Fruit Centre supplies south-east Wales, west Wales, and central Wales directly from the Cardiff site. And, although a secondary market exists in Swansea, it is supplied directly from the wholesale market. But will Cardiff Wholesale Fruit Centre be able to keep up with the fast-improving Welsh capital?
Owen remains positive. “There has always been a wholesale market in Cardiff and there always will be,” he says. “Trade has been pretty good recently, so we will see.”
Bird also senses that change could be in the air. “I am positive that there will be a fruit and vegetable industry in the city in the future,” he says. “But it might even end up consisting of just two or three big wholesalers - no matter what, we hope to be one of them.”
BUSINESS IS BLOOMING
PJS Flowers customer Heather Mayor is a flower arranger, and has been coming back to the wholesaler for seven years.
“The business has really grown and you can get all types of flower varieties, and the staff are very helpful,” she says. “Peter really knows his stuff and advises which flowers are better for you at that particular time, which saves a lot of time and money.”
FACING UP TO THE CHANGES
Michael Edey runs a secondary wholesale business that delivers directly to retailers around Wales, and has been a customer at Cardiff Wholesale Fruit Centre for more than 30 years. Edey has seen dramatic changes over that time, but maintains that the market still has an important place within Cardiff.
“This market once had more than 30 traders, but now there are only a few traditional outlets left and a lot of the units have shut,” he says. “There is not enough money in fruit and vegetables for the independent retailers anymore. The supermarkets have taken the tradition out of the industry. We warned them 20 years ago that they would take the trade away from the wholesale markets.
“Lots of the retailers, especially convenience store owners, will not come to the market early in the morning. It is through deliveries that the wholesale market is surviving and carving a new place in the industry.”
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