An introduction to

The UK Health Sector

HSM Credentials

Area of Expertise - Works specifically in

the Health Channel Cliff Moss – Has held a number of key industry

positions including Consultant to some major Brand Owners, and was Managing Director of Green & Black’s

Turnover Responsibility - brands now represent a turnover of over £35m retail sales

Health Sector Credentials A Brand Sales Management Company

Green & Black’s Heath & Heather Tea Rowse Honey Cauldron Foods LifeStream Trilogy Aqua Oleum Toms of Maine

Since 1995 – currently employs a team of 15 people and has a close collaborative relationship with key industry figures

Channel OutlineHealth Food Trade

Holland & Barrett £280 million (approximately)

Independents £250 million (approximately)

40% Food - 60% Non Food (Value)

No TNS or other sector data

Market Size

H & B Group is the major player in channel with 516 H & B stores 31 GNC Stores 69 De Tuinen 19 Natures Way (Irish Stores)

1100 independent stores but few other chains 1 Wholefoods Market, 5 Fresh & Wild 5 Planet Organic Wyedean – 15 Stores

Independent market served by 18 main UK wholesalers (2 Irish wholesalers)

Sector Summary

Wholesale Network

The Health Store

Infinity Foods

Community Foods

Suma Wholefoods

Rainbow

Granary

Essential Trading

Good Food Distributors

Goodness Foods

Tree of Life

Green City

Highland Wholefoods

Wholefoods Wholesale

Juniper

Marigold

Lembas

Munster Wholefoods

Queenswood

Health Food Wholesalers

CLF Distribution

The Health Store

Infinity Foods

Community Foods

Holland & Barrett GNC

Suma Wholefoods

Rainbow

Granary

Essential Trading

Good Food Distributors

Goodness Foods

Tree of Life

Green City

Highland Wholefoods

Wholefoods Wholesale

Juniper

Marigold

Lembas

Munster Wholefoods

CLF Distribution

Many wholesalers supply stores in

other wholesalers ‘natural’ territories

Queenswood

Pitman Agencies

Sales Coverage -Territory

The Health Store

Infinity Foods

Community Foods

Suma Wholefoods

Rainbow

Granary

Essential Trading

Good Food Distributors

Goodness Foods

Tree of Life

Green City

Highland Wholefoods

Wholefoods Wholesale

Juniper

Marigold

Lembas

Munster Wholefoods

Queenswood

Many Wholesale

rs Inter-trade

CLF Distribution

Pitman Agencies

National – Tree of Life, The Health Store, CLF Distribution

Workers Co-operatives – Essential Trading, Infinity Foods, Suma, Green City, Highland, Lembas

Religious Based – Goodness Foods, Community Foods

Other Regional – Queenswood, Rainbow, Granary, Marigold, Good Food Distributors

Wholesaler Categories

Supplements and Food Tree of Life The Health Store CLF Distribution Marigold (some mainly natural)

Food or Supplements?

Supplements or Food?

Foods Community Foods Queenswood Rainbow Granary Marigold Good Food

Distributors

Foods Essential Trading Infinity Foods Suma Green City Highland Lembas Goodness Foods

Listing Fees – most now charge a listing fee for inclusion in price books

Promotional Activity – all wholesalers actively run promotional activity for which they charge

Magazines – some have own magazines to support products

Goody Bags – some will arrange sampling

Wholesaler Cost of Entry

Wholesaler Benefits Instant access to shops though price books One delivery point per wholesaler One invoice point More financially sound than some stores

Wholesaler Disadvantages Loss of Margin – although most wholesalers discount Loss of direct contact with stores Sale or return

Wholesalers or Shops Direct?

Holland & Barrett

One buyer – 566 stores! Multiple of the Health Sector High Margin Expectation compared to

multiples due to distribution and volume costs

Stock Trial – currently H & B look to the supplier for free of charge stock instead of listing fees!

One buyer – 566 stores! Committed to listing 500 new products

per year Business split into 5 Zones for ranging

varies by category Buyers only recommend products

Trading Meetings decide on Listings

Why Consider the Health Sector?

Health Sector benefits

Great place to start ! – many brands have started here – Green & Black’s, Jordans etc

Gives a brand Heritage and substance – selling in the Health Sector helps to maintain brand heritage

First for New Trends – many trends start here Organic Fairtrade Free From

But……. Difficult Transition for Multiple Based Brands

Brand Building

Brand Building in the Sector

Allow Time to Grow – its not instant sales like the multiples!

Be Innovative – new products not ‘me too’ PR – be active to drive customers to your products Talk to the shop owners – direct salesforce

activity is the key Keep Promoting in Wholesalers – many

independent stores buy products on deal! Keep ahead of the market

Wholefood – Organic – Fairtrade – where next?

The Health Sector Products

Most Importantly Know your Consumer!

You

May

Just

Get

there!

The End

Healthy Sales & MarketingRidges Court Industrial ParkOkehurst LaneBillingshurstWest SussexEngland01403 786460