North East united

Total Produce has 34 units in Gateshead, all of which are currently occupied and trading under the Redbridge name.

While it was still Redbridge Holdings it had reorganised three companies - Dan Wuille, William Hardy and Thomas Church - into two Redbridge firms. Since the formation of Total Produce, The Greenery’s Gateshead business has been brought into the fold, and it was re-branded as Total Produce last year. The three companies now have separate customer faces, but the back end of the business is centralised.

Typically for a wholesale market, certain customers still like to feel they are trading with Hardy’s or Church’s. “The plethora of different names is all to do with history,” says Graham Broomhall, operations director of Total Produce’s wholesale division. “At the moment, you can perm any one from five, which is against corporate philosophy that we all should operate as Total Produce. But there are very good reasons to continue to trade as Redbridge.”

At the head of Total Produce’s team in the North East is Alan Shield, who says: “I wanted to buy The Greenery as it would give us a good run of 18 units down that side of the market. Things change in business and in the fullness of time we might all operate as Total Produce, but my main objective is to make money and the right returns.”

Since The Greenery was taken on board in Gateshead, Shield has been charged with bringing three businesses into two, one of which is dedicated to building the foodservice customer base, as well as handling the school fruit and vegetable scheme business for the North East.

The other remains dedicated to the wholesale fruit and veg business in the region. “We had an initial three-year plan for The Greenery, but because of circumstances and the economic climate, we have moved more quickly than expected and we are in year three of that plan now after less than a year,” says Shield. “We effectively had two trading companies and a catering company, and we have brought them together to be more cost-effective, reduce expenses and maintain the turnover.

“I have done this a few times now and I understand the difficulties involved. For the staff at The Greenery, it was not expected.

“At Total Produce, we have our own set of principles and there are things we do as a business that have to be done. I do not let anyone go over that line. It takes a while for people to get used to that, but I think the staff are all aware of my commitment to take the business forward.”

The rest of the Gateshead Redbridge business has not adopted the Total Produce name and, says Shield, he is a little reluctant to go down that route yet. “We have spent so much time and effort building the catering department under the Redbridge name that I think it could prove counterproductive with customers to change at this time.” Old names die hard in the trade and invoices still come in for Total Produce, care of Thomas Church, for instance - a practice Shield encourages.

“We try to keep a point of difference between the trading companies, so Jimmy has potatoes, Andy concentrates on onions on the other side of the market, and we try not to duplicate wherever possible. The only thing that both sides handle at the moment is Chiquita bananas, because I handle the Chiquita account across Total Produce’s wholesale division.”

The Chiquita business has built up rapidly from the initial volume that Shield put through Redbridge, and the Class Extra bananas have garnered a strong following from the company’s stands.

Shield is a miner’s son who chose fresh produce as a more attractive career than the pit.

Apart from a period in the 1960s selling televisions for Granada, he has spent the vast majority of his working life in the wholesale market, initially buying fruit and veg for Joshua Wilson Cash & Carry, one of the largest buyers out of Gateshead at the time, before jumping the fence to manage W Hardy for Geest in the market in 1981.

That company has had various guises and sister operations since, but as manager of Total Produce/Redbridge, Shield will retire next March having spent 28 years with the company. “With the challenges that face us, I wish I was five or 10 years younger,” he admits.

“I feel that Gateshead is a very important part of the Total Produce portfolio of companies,” says Shield. “Something that was taught to me at Joshua Wilson has always stuck with me. The most important thing is return on investment.”

“Cash flow is king,” says Shield, as well as “turnover is vanity, profit is sanity”, and he has based his administration method around those mantras. “We have upgraded our targets, and it was always about return on investment. If you are turning over millions of pounds with no return, why are you bothering?

“My responsibility to Total Produce is to deliver a good return,” he says. “In that respect, my approach has been no different to what I have been adopting here for the last 27 years. And while I have never sacrificed turnover, I have concentrated hard on delivering a better margin.”

Redbridge becoming part of the Total Produce fold has simplified some processes, says Shield. “The first thing I noticed was that, under Redbridge, for understandable reasons, I would have to do a two- to three-page report on why I wanted to invest £25-30,000 in the company, and wait for a decision. As Total Produce, that process is much quicker and speed is a tremendous advantage. In the last 18 months, we have invested around £150,000 here, with the other main difference being that it is financed from Gateshead, and not through head office. The commitment from Total Produce is 110 per cent.”

BROOMHALL MANAGES M&A PROCESS

Graham Broomhall, operations director for Total Produce’s wholesale division, explains the acquisition and merger process at the company and how the desire to move forward does not take focus away from the elements of each business that have proved successful in the past.

“Since the acquisition of The Greenery branches in November 2007, we have been working towards the full integration of those businesses within our existing business base,” he says. “But in doing that, we are looking to retain the choice and the options of suppliers and customers. However big the Total Produce brand may be, there are still a lot of longstanding relationships between salesmen, customers and suppliers and the old company names. So we did not want to throw the baby out with the bath water.”

There has been an attempt from the start to manage the switch with customers. “I personally have been to visit a lot of our large customers around the country to tell them how we intend to develop our business,” says Broomhall. “I have received a very positive response.

“Behind the scenes, we have been concentrating on how we can merge the businesses to create greater efficiencies, whether that be in transport, administration or the general running of the business. We look at the area we have in the market, and in some we have stands in various locations, and analyse how we can best integrate what we have to present a better showcase to our customers, and feed that benefit back to the supply base we have.”

Staff retention can be tricky during the often contentious process of merger or acquisition but, to date, Broomhall believes it has been successfully managed. “In very large part, we have retained the staff. In Gateshead, for instance, we have Geoff Warren, Patrick Spoors and the team at The Greenery still in place.

“At the end of the day, there are a limited number of people who can do the job you want them to do in the wholesale markets. And when you have them, the key is to create an environment in which they are able to do it.”

Management of the respective branches has remained independent to the Total Produce structure, but in the back office, administration and finances are centralised within each market. “Clearly, we have TP-ised or Redbridge-ised the systems. One administration team and one bank account makes a lot more sense to us. They compete, but behind it all, they become one. Sales are broken down by salesman, so in simple terms we can be aware of what and who is and isn’t performing.”

The economic situation across Britain has inevitably impacted upon the wholesale trade, particularly as the supermarkets wage a price war. Suppliers around the world are looking elsewhere for margin, but Broomhall says the UK still offers opportunity. “We are all confronted with challenges that were not even on the horizon two years ago,” he says. “What we are seeing is the widespread tightening of belts, but what Total Produce offers to its supplier base is assurity. If you are working with us, we are going to pay you.

“There are different ways to gauge the state of the business, but I always ask our sales guys ‘what are the customers saying?’ and ‘what are their customers saying?’. There are two things at the moment: first it has been a dreadful summer and that has unquestionably had an impact on our business and, second, because of the economic situation, none of our customers are buying more product. Where they would buy 15, they might be buying 14, and we are seeing the effects of that.

“Despite this, our philosophy is to continue to look to extend our portfolio across the wholesale and distributive business - we have not stopped looking to acquire in this economic context.

“It is surprising that we are not seeing businesses closing in greater numbers in this industry really. It illustrates that we are still a trade with a relatively low entry and subsistence level. However large one becomes, it is important to recognise and be aware of the sheer competitiveness out there.

“We are a pretty broad-based business, which I think is a good thing. Some elements will perform better than others at any given time. But wholesale is a sector we know and understand. We like it, and we will maintain a role here.

“At the end of the day, the multiple retailer isn’t going to do everything. I spent a lot of my career in that business and it taught me a lot, but I’m also happy being back in my original home.”

CATERING FACILITY PRIMED FOR EXPANSION

Redbridge supplies more than 900 primary schools in the North East through its new 18-month contract with the School Fruit & Vegetable Scheme and, having already had the contract previously, has invested heavily in eight units at Gateshead specifically to handle the volume of product it entails.

The certification of BRC standard was renewed at the facility earlier this month, and health and safety is paramount, says head of Total Produce North East Alan Shield. “We have developed this for a fast turnaround operation. Fruit moves in and out very quickly - typically anything that comes in on Monday or Tuesday will be cleared by the Wednesday. We don’t procure the product, so we have no control over which products we deliver, but we are committed to doing what we need to do to ensure that four- to seven-year olds are eating excellent fruit.

“Our desire to invest in these types of facilities in a market that is 40 years old, and to bring employment and business here, is another sign of our commitment to the trade in the region.”

The facility is also primed for expansion of the catering supply business, says Shield. “The catering side has not expanded as I would like yet,” he adds. “I was warned that starting something from scratch would be hard work, and it has been. I am always looking to acquire a business that would dovetail with what we have though.”

To increase its logistical efficiency, the company has just switched to 7.5-tonne Mitsubishi Canter trucks, which offer a 3.5t payload, as opposed to a more usual 2.6t payload for similar sized vehicles. “Particularly with the schools business, there can be changes in products and that can make a big difference to weights - the new trucks give us far more flexibility to deal with that in a flexible way,” says David Shield, who heads up that side of the business. “We acquired the vehicles from Bell Trucks, which is also in the market, and that proximity works out very well for us too.”

MANAGEMENT GIVES VIEW FROM TRADING FLOOR

Kevin Marshall (KM), trading manager of what used to be Hardy’s, has worked in the market for 32 years, and trading manager of the ex-Greenery pitch Patrick Spoors (PS) and Total Produce Gateshead deputy manager David Shield (DS), who heads up Thomas Church and the Redbridge school fruit and vegetable scheme operation, have spent their entire working lives on the site. They tell FPJ about the last 18 months and how things run from their points of view.

PS: “The administration side has had a complete overhaul and that has probably been the biggest impact on the business. It is just about finished now though, and things like the improvements to health and safety and vehicles have all been very positive.”

DS: “From a sales point of view, moving the companies together has been a lot slower. We have made small steps and while we compete in the normal sense, it is a good thing that there is still customer and supplier choice. There is also the personality factor and some customers will always prefer to deal with certain salesmen. And the panel structure still has an impact. We have always been very strong with KG berries, for instance, and Kevin has his Well-Pict strawberries.”

KM: “The Greenery was always where it is now, so there has been very little effect on us. Some customers still look at us as separate companies, but as soon as the name kicks in, I’m sure that will begin to change. Most have stayed where they were, as it is very much down to which salesman you get on with. I think we have become more order takers than salesmen over the years, but you have to look after those customers to make sure they come back day after day. You have to get to know what they like, give them that and make sure you do the little things that make the difference.”

PS: “The management and the traders at The Greenery and Redbridge always had a good relationship, compared with the relationships with the other companies on the market. That is just down to the personalities involved.”

DS: “It was a big change of culture for everyone and people are naturally fearful of change. But the key people are all still here. We know that Total Produce wants to sell fresh produce through the wholesale markets and, for me at 36, I know there is a long-term future here.”

KM: “There are less large pallet buyers than there were 10-15 years ago. So if you have a customer, you have to do everything in your power to keep them. You cannot always be the cheapest, and there can always be someone on the market who has something better than you on any given day, but it does not always come down to price. If you give customers the right quality, a fair price and build up trust - which includes telling them when something isn’t right for them - you have a good chance of keeping them.”

DS: “If one of my customers wants something and I have not got it but I know Patrick has, then as one company we obviously point in the right direction and keep them within the company. We are all looking to take a bit more business from our competitors.

“The change Kevin is talking about has really sped up in the last two to three years. The way we procure product has changed; we are not necessarily looking to buy half a truck of something now. If you say you have 20 pallets of strawberries, the customers think they will be cheap, and that does not help you. The product is in and out quicker than ever and there is less room for bravado than there used to be. It is no good having 20 pallets when five pallets give your customers what they are looking for.”

KM: “There was a very strong retail trade here until very recently, but the supermarkets have moved in on the convenience market and that has made a difference. Independents in places like Morpeth and Hexham, where they have been strong, are finding it hard to compete with the Tesco Metros and Marks & Spencer Simply Foods. The multiples do not have to spend years building up the trade, it’s there waiting for them.

“In the past, when a fruit shop in this region closed down, somebody would jump in and re-open it as a fruit shop. Now, less than 50 per cent will stay as fruit shops; the rest are lost.”

DS: “The process that has happened over the last 15 years in fruit and veg has taken shape in the flower industry in the last three years. The volume bunch lines are at the front of all of the retailers, forcing florists to try and compete with one-off designs. This means stocking a broader range in smaller quantities and that is a lot harder to manage.

“The catering industry is extremely aggressive up here. We don’t have the density of population of London or Birmingham, and the good margins really disappeared out of catering 10 years ago. There are companies coming up from Yorkshire to try and get in on the act, and every customer is trying to extend their credit. If the insurers change a company’s credit rating now, we don’t ignore it.”

PS: “It is run down now and there has been a lack of money spent on general maintenance - although Total Produce has spent money on revamping its offices and pitches. We want to see the market being developed, and we have an obligation to our customers, so we don’t want to see it fall into any more disrepair than it already has. But a few years ago, there were 10 companies to share the costs - now we are down to three main wholesalers.

“Talk of a move creates a little uncertainty among the retail customers. We have customers coming here from all over, and they obviously have the choice to go elsewhere. We need to ensure that they have no reason to do that.”

DS: “Moving is not a quick process and I guess it comes down to how you see the market being in 10 years from now. Will a market be the right place for the business? We obviously think and hope so, but it would be great to have a crystal ball.

“There is still a living to be made in the trade. It is a rollercoaster job and I think that’s why most of us are in it. Some days it is the best job in the world, some days you detest it, but it’s always a challenge and it’s never mundane.

“I’ve been coming to the market since I was five and from the start I loved the unique environment and the atmosphere. It was my choice to come here, and there is nowhere like it - a good set of salesmen and porters gets the banter going and the customers love that. You see them every day - some of them more than your family - so you need to love it.”

SHIELD TO RETIRE WITH HOST OF MEMORIES

Alan Shield is due to retire on March 25, 2009. “I have enjoyed all my time in the market - there have been downs, but far more ups, and even at 64, I am as enthusiastic as ever about the business and driving it forward,” he says. “I haven’t backed off at all, still working six days a week, although for the first time in 40 years, I have to admit to the odd Saturday off this year. My mind is still 36 but my body sometimes feels 74.

“There have been some ups and downs in my time, obviously, but far more ups, and lots of great characters. I was on the National Executive for a few years in the 1980s, representing the North East wholesalers and met people like Peter Hayes, who lived to eat, and Dougie Kemp, who was always good fun, as well as Roger Garber, Alick Glass, Christopher Mack and others. In Gateshead, Uncle John Holland, as I called him, was a hell of a wholesaler and I learnt a massive amount from him. There have been some real personalities in the market in my time here, the likes of Richie Greenwell and Tommy Elliott.

“There have been a lot of changes, but the important thing is what you make of them,” Shield adds.

HR IN SAFE HANDS OF BILLINGTON

Catherine Billington is human resources manager for Total Produce and has played a leading role as the wholesale division has expanded through merger and acquisition in the last 21 months.

“It is sometimes not well understood what we do, but I am involved in all aspects of the business, including recruitment, training and development and, unfortunately from time to time, redundancies,” she says. “It is not just about HR - the team is involved with people in health and safety, pensions and payroll, and much more.

“The acquisitions and mergers we have gone through in the last 18 months have been very challenging; to do that you have to take more people on and then help to integrate them into the existing business.”

Billington says Total Produce has a “very good policy” on personal development. “The last 18 months have been so hectic it has been hard to move forward with it, but that is where I will be concentrating in the next 12 months. The idea is to get everyone in the company working to the same objectives. HR tends not to be high profile, but we are there to assist the development of the junior and senior management teams, and all of the company’s employees.

“A lot of new people have come into the fold with lots of knowledge, skills and enthusiasm, and this needs to be nurtured and developed effectively.

“Recruitment-wise, at times I set it all up and work alongside the branch managers, but there are also occasions where it is more appropriate for them to handle it themselves. Of course, our role is to ensure that everything is done in accordance with current legislation, so we are there to support the process. HR is a supportive measure, an advisory service.”

Billington was in Gateshead when FPJ visited, to manage the final stage of switching employees into the market from Redbridge to Total Produce contracts. “Merging the companies takes a lot of time and effort, but generally the reaction we receive is very positive,” she says. “People can see that they are getting greater security by being part of a large organisation.

“When you acquire a new business, employee contracts are maintained through the process of TUPE Regulation and that means salaries and other benefits remain the same as before the transfer. But essentially, what people need is security and stability, and it is my job to induct them properly into the company. It has been a huge task, and a big learning curve with so much happening in such a short space of time, but generally speaking I think we have been pretty successful,” Billington says.

“Dealing with culture change is the biggest thing. People are confronted with different business practices and management structures and different personalities. Every one of our branches is managed by people who have a huge amount of experience and, although some staff find change difficult, by and large most people see the need to change as very necessary. The key is to explain positively who and what the company is and where it is going, and most people tend to come on board once they understand that.”

TRAINING ON TRACK

The day-to-day issues of a wholesale market business tend to render staff training an on-the-job affair, but since 1985 Alan Shield has been committed to a programme of training that aims to both retain staff and ensure they make the progress in their positions that moves the company continually forward.

The Making A Difference (MAD) programme, which each member of staff takes part in periodically, was updated in 2003, and is now being redeveloped this year to incorporate Shield’s Good to Great concept, which recognises that everyone in the company should always be striving to achieve the next level of consistency and effectiveness. “Good to Great sums up where we want to be - making Total Produce Gateshead the number-one branch is where we need to be,” he says.

Everyone who completes the course gets a certificate, and it is seen as an important part in the personal development of every member of the team. “The idea has always been to bring everyone in the company together to stress that we are all equally important,” says Shield. “A porter is not just a porter, but can be the most important person in the company if they are the last person a customer sees, and that is something I have always been keen to stress.”

The four-week courses are designed to develop a can-do attitude, he adds, quoting the Henry Ford line, “If you think you can or you think you can’t, you’ll be right”.

“I know I can’t oblige everyone to come, but it has been invaluable to our business. We have a free bar afterwards and a lot of people who can be reticent to put their hand up during a session will be far more willing to talk about things at the bar afterwards. That is when we learn whether we have got it right, address any issues and plan the next week’s session.”

On a roll now, Shield proceeds to train your correspondent’s memory with a tried and tested method that, it must be admitted, worked to a tee. Big trees from little acorns grow, of course, and he adds that the approach of the last 23 years remains as relevant as ever, despite the move to freshen up the training programme in the next few months. “Training is quite simple, once you find the right formula - good business practices do not change,” he says. “If a firm goes skint, the reasons are usually very similar to the last firm that did the same.”

The management team have all also been through the Dale Carnegie business school, which he accepts is not cheap, but more than worthwhile. “I cannot reasonably expect any of my staff to do a job they are not fully equipped to do,” Shield says. “And if you have the common sense to build a good team around you, you must have the common sense to allow them to do the job you want them to.”