Glasgow galvanised

It has been a waiting game for the tenants of Blochairn Road, who have been more resilient than most when it comes to building their businesses in the face of uncertainty and providing a consistent, wide-ranging and high-quality offer north of the border.

The city centre site, which opened its gates in 1969, is home to 80 businesses and trades 300,000 tonnes of fresh produce each year, with an annual turnover of £300 million.

The investment in the modernisation of the market is a clear signal that the site has a long-term future as a wholesale market and by the end of the 70-week revamp process, set to kick off in January, the market will have its envelope refurbished - that is, the roof repaired, the walls reclad, the roads and buyers’ walks resurfaced, the electrics rewired and the facilities renewed. At the same time, the whole operation will be made greener and more efficient.

The refurbishment will mark two years since Glasgow City Council created a limited liability partnership (LLP) to rethink market management and open up new funding streams now being used for the modernisation of the site. The in-house design, put together by Glasgow City Council’s Development Regeneration Services and set to be carried out by arm’s-length company City Building, will finally come to fruition by summer 2011.

Graham Wallace, managing director of City Markets (Glasgow) LLP, works on the basis of what he calls the four As - access, availability, affordability and awareness - across the markets, on both the wholesale and retail fronts. His vision for the future market, however, will see the site expand beyond how it is used now to become a flagship for healthy eating and a hub for food initiatives, as well as a long-established trading centre for tenants.

“We are really keen to get started,” he says. “At the same time, we have to make sure that we are engaging with traders and customers to find out what is best for them. We are out there as a stand-alone company and we have to deliver. This is not just about the refurbishment of the market; it is a whole new era in terms of fresh food in the city.”

The revamp process, which is being trialled in a designated area on site, will be carried out in blocks of three to five units to minimise disruption and the impact on trade. As the start date draws closer, a number of focus groups are being held with traders to discuss operational changes including waste management, traffic control, health and safety targets and the option of a gate and entry charge.

Ruth Simpson, chair of the board of City Markets (Glasgow) LLP, maintains that the refurbishment will mean a new start for the market. The process, she says, should boost the profile of the site as the last true fresh produce market in Scotland and make sure it is in good order.

“Now it is up and running, the traders will be able to see for themselves what is happening,” says Simpson. “It will be a positive experience, but we have to make sure that we don’t interrupt their trade while the work is going on. The traders have been patient, but it will be worth it. We would like to see something on site before the end of the year, because we need to see it all-singing, all-dancing as soon as possible.

“I think the process will improve the experience of the market and lead to the realisation of the importance of fresh produce, not just on the market but in the city and beyond.”

The investment will take the market a step closer to realising its long-standing aim of becoming a composite venture, with the existing fresh produce and fish markets taking in a wider food offer, as well as manufacturing and processing.

The wholesale push has been backed up by the opening of a number of new retail and farmers’ markets in the city over the last year or so, with the latest opening in Bell Street in September, to be followed by the proposed reopening of an indoor market in the city’s original market hall.

These are just some of the things happening as part of a wider regeneration of the city ahead of the Commonwealth Games in 2014, which will present both short- and longer-term opportunities for all involved in the food supply chain.

Peter Brogan, managing director of James McKenzie & Son (Fruit Bazaar) Ltd, has been chairman of the tenants’ association for five years and has steered the traders through the lead-up to the refurbishment. The proposed revamp, he insists, should give the Scottish wholesale trade something to build on.

“The redevelopment is very refreshing for us; it will give us something to focus on,” Brogan explains. “We will be able to enhance our position with our customer base and we are looking forward to developing our businesses. In a year’s time, the market will be a showcase - we cannot reinvent the wheel, but we will be better armed to approach new business.

“Glasgow is already famed for its restaurants and the city itself is being regenerated ahead of the Commonwealth Games, so we hope that the redevelopment of the site will help bring more business to us - we might not be up to scratch just now, but we are a necessary tool and we can provide a very good service and high-quality fresh produce.”

Back on Blochairn Road, the promise of much-needed investment has encouraged forward-thinking companies to invest in their facilities and in their offer in order to boost trade and secure the long-term sustainability of the market.

Total Produce is the biggest firm on the market and serves a full range of customers, from secondary wholesalers and retailers to the foodservice and public procurement sectors, making some 40 per cent of the total turnover.

Gerry Price, regional director for Scotland and North East England, says he is looking at the different areas of the business and how it works in order to work around challenges. “As a company, we have kept ahead of the game,” he says. “The most important thing is that we listen to and look at what our customers want from the market. We have plenty of experience here, but things are changing and we have to make sure we change with them.”

The firm operates in two forms on the market, with the former Greenery business trading as Total Produce and the Fyffes Redbridge venture continuing to trade under its original name. The company, which has 10 units on the market and employs 50 staff, has continued to grow by taking over two family-run businesses, starting with D Coyle & Sons three years ago and more recently, McAllister & Dunlop in May.

“We have managed to increase our market share by focusing on existing business and by acquisition, which has kept us on the right track,” says Price. “At the same time, this has allowed us to attract some of the better staff in the market.”

The firm is well known for dealing in a wide range of popular brands including Olé melons and Goldfinger citrus from Spain, Scotian Mac Reds from Canada, Belexport apples and pears from Belgium, Smash and Legend top fruit from France, Fruitlink Bramley apples from England, Central Scotland mushrooms and Eagle onions from the Netherlands.

“We have developed some very strong trading relationships with our supply chain over a number of years,” says Price. “This would be a mixture of direct imports and working in tandem with importers and marketing their produce. At the same time, we are committed to working with local growers and are always interested to hear from new suppliers.”

But no one has been immune to the difficulties of the last 12 months, from the effects of the economic downturn and the exchange rate to seasonal ups and downs across a number of categories.

“Everyone is being more careful about what they are buying and selling, and the last four months have been as tough as they have ever been,” Price explains. “However, we are positive about the marketplace as a whole. We have to play to our strengths, but we know we have a long-term future and we have long-term plans. We have been trying our best to support our customers to keep them trading and we have had to be flexible in the way we operate.”

And similar signs of forward-thinking can be seen across the market, with a number of firms striving to put themselves in the best position for the future and capitalise on the renewed investment on the site.

Alastair Bokla, director of Pilmuir Holding Group, is a strong example, having set up prepared salad company Presalco five years ago, followed by procurement operation Fruvegco shortly after, before buying out Graham Nicol Dow two years ago. The three businesses came under one roof this year, with substantial investment to clean up the premises, install refrigeration and IT systems, as well as to build offices and a training room.

“We are trying to do the job right, to be a solution rather than a firm where customers can get this and that,” says Bokla. “We have invested a lot of money in this site, in the premises, in refrigeration and in IT. The business has grown through increasing the product range and partnerships with growers, such as Scotherbs, for which we market a range of products. It has been a lot of hard work and we have been told that we are mad to invest as we have done, but now we have to focus on taking the business forward. There are no guarantees in the wholesale trade, but we are trying to position ourselves as companies to consider.”

Another good example is TR Caledonian Fresh Produce, which has branched out into a chain of retail outlets in order to diversify its portfolio. Hassan Hussain, who runs the business with his brother Altaf, opened Garden Fresh Exotics in Glasgow this year and has four more stores planned in the major Scottish cities. “We are very busy here,” he tells FPJ. “These stores are a new project for us and we are trying to cover Scotland, specialising in Asian fruit and vegetables in Asian areas. Trade is still going strong, so we cannot complain.”

Across the market, the traders are generally positive about the prospect of the upcoming revamp and many are taking a step back to consider their businesses at this juncture. How the market’s revamp will play out remains to be seen, but tenants are already looking beyond the 70-week construction phase to what the refurbishment will mean for the last true wholesale market in Scotland.