Peter Gilding was joint managing director of JV White (Northern) in Liverpool when, in 1986, he approached his fellow board members and suggested that business might be improved if the company moved to a distribution centre outside the market and attempted to increase its business with the burgeoning supermarkets. The idea was dismissed by his colleagues as unworkable, but, for Peter, the rest, as they say, is history.
That summer, Peter and wife Penny toured France to establish a network of French apple suppliers - most of which remain suppliers today - and Peter Gilding & Co was born. Having added sources around the world, to achieve the objective of handling all of its product portfolio on a 12-month basis, as well as extending its offer to all fruit - except bananas, soft fruit and exotics - it expects a turnover of approaching £40 million by the end of the current financial year.
The continued expansion of its Knowsley premises - unrecognisable now as an old mushroom distribution centre - during the last decade is testament to the potential the company believes the industry retains.
The latest extension is a 2,600 square metre, 5,000 pallet temperature-controlled receipt, handling and distribution centre. The site, had already had 2,300sqm of coldstore added to it during the last 10 years. Capacity was immediately doubled. “We have invested because we need more space, quite simply,” says Peter. “Our customers are growing and we need to grow with them. We also want our customers to recognise the fruit they receive from Peter Gilding & Co is in optimum condition and we have invested in the facilities to ensure that. It is proof of our long-term commitment to the fruit industry and our belief in the future. We have not had to borrow any money to do this either, so we have minimised the risk.”
The coldstore has been running at full capacity since it was officially opened, and there is still land surrounding the site for further expansion, as and when required. The company already handles and distributes products for third parties, and it has just purchased an adjacent factory to transform into a pre-packing facility, a new service that will add yet more weight to its armoury from the early part of 2006.
While it expands physically, the firm has also seen its full-time personnel number reach 36. And a re-evaluation earlier this year has seen the board structure reshaped significantly to address the changing situation of the business. Andrew Gilding, Peter’s son, is now managing director, while Peter has stepped into the role of chief executive. Chairman since 1991 has been Ray Jeffs, former owner of LO Jeffs, which was very supportive as a packer for Peter Gilding & Co in its early days. The board is completed by Penny Gilding, financial director, Martin Hogan, director with responsibility for wholesale markets, Marc Hughes, technical director, and James Nelson, director of supermarket sales. “We have strengthened the board and everybody has an integral role to play - we are not directors in name only,” says Peter.
The range of titles shared amongst its directors illustrates the scope of the business. “We cover the whole spectrum of the fruit industry,” says Peter. “Although we occasionally handle smaller volumes of some fruit because our customers want it, we have largely specialised because we wanted to concentrate on certain fruits and also because we wanted to ensure volume throughput for the coldstore. We also recognise the benefits in doing the things we know how to do well and leaving the rest to others.
“We believe in becoming physically involved in every aspect of business,” Peter tells visitors to the company website, “and in adding value and acting as a catalyst to enhance business relationships and bottom line successes for all.” He adds to the Journal: “While our retail business has become bigger over time, wholesale is still an extremely important part of our turnover and, at certain times of year it can take on an even bigger importance.”
The company has been built through a strong relationship with one, long-established supermarket customer and a number of discount retail chains, but has also maintained its wholesale market sales by providing a service few can hope to match. A good geographical location, just off the M62, and an excellent logistics operation allows the firm to service the distribution needs of its retail customer base, whilst delivering orders of as little as one pallet to wholesale market customers around the UK on a daily basis.
Gilding’s ideas for JV White were possibly a little ahead of their time, but they were founded on a mindset that many will recognise now. “In my mid-40s, I realised that there might just be more to life than standing on a pallet board at 3.30 in the morning in a duffle coat. I’m not knocking that at all, but the business was starting to get more technical and we just weren’t geared up for it. There was an opportunity there - wholesale markets were not getting the right level of service and we thought if we could set up a system which meant we could deliver a pallet a day, we could reduce the risk for our customers, and give them exactly what they want. We don’t just want to supply our customer today, but in a year and five years down the line.”
The long-term vision is combined with a heavy focus on day-to-day consistency of service. “Our success has all been down to the service we offer, which I believe is second to none. We load every evening and will guarantee delivery to any wholesale market in the country by 4-5am the next day. We don’t own our own lorries, but our logistics team has an excellent relationship with our logistics providers, who have been able to build their businesses up around our expansion.”
The company also refuses to serve its customers’ customers. “We can’t be greedy and try to serve everybody. What we intend to do is deliver products and a service that people cannot afford to ignore,” says Peter. “Even if we don’t serve a customer every day, we want them to feel that they need to know what we’re doing.”
Peter adds that central to the business is also the belief that the customers and suppliers should receive the same respect in terms of the level of service they are given from the company and its employees. The principle being that, in looking after the suppliers, the role of keeping the customer base happy is made easier.
The company’s supplier base now stretches far and wide, and its presence in Italy, Spain and Portugal has developed the commercial potential of suppliers in each country. Earlier in its life, within two years of finding its way into the Capespan panellist network, the company had joined its exclusive Millionaire’s Club, and South Africa remains a key source.
Up to 25 lorries of fruit from all sources have been passing through the centre each morning since expansion and, according to Hogan, business with the wholesale sector has picked up considerably with the new capacity. The company separates its wholesale and retail operations, he says: “I’m sure we wouldn’t have expanded this year on the market side if we hadn’t increased capacity. There is generally a natural lull at this time of year, but our customers have been able to use us to look around for more. We can speculate a little more, rather than leaving fruit on the quay because we don’t have the space. We insist on seeing all the fruit we sell and extra space allows us to do that with bigger volumes.
“We want it to be a sustained expansion, of course, but this is not a gung-ho approach. By getting the infrastructure right, we are looking for gradual expansion. There is little point having the right facilities without the right product - and vice versa.”
Hogan says that new routes, particularly to London’s wholesale markets, have opened up in recent years, mainly because of the personal service his company is able and willing to provide. “If people pick up the phone and call us, we respond and when we say we’ll deliver something, it gets delivered - for some wholesalers that straightforward scenario is still quite unusual. The attention to detail has been lost in some parts of the business - but we make it a primary focus.”
According to Peter, success is rooted in logic: “You have got to have your wits about you and always ensure you are one step ahead of everybody else. Invest in your future - stand still and you’re dead.”
While he is certain about the here and now, Peter refuses to make rash predictions about the long-term future. “When I was working in the market, I never thought I’d do anything outside of the market. So who knows what lies 10 years down the road?”
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