> Delivery D > Teamwork T > aDapTabiliTy a > FrienDly F

Always Delivering what you need to knowJune 2013

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Wow, what an end to the year that was! In a few short weeks we announced the new

Costcutter Supermarkets Group deal, secured a new chilled contract with One Stop, signed a new 5 year agreement with MMRG and refinanced our banking facilities. These deals provide a really strong platform for

Your regular business update from our Commercial Finance Director, Steve Watson…

Business Bites:

It’s the UK’s biggest independent retail trade show and plays a key part in cementing our relationships with retailers and suppliers. For us, it’s the perfect chance to showcase the breadth of our offer. For our suppliers, it’s a platform to market their latest products and NPD, and for retailers it’s a chance to learn about industry trends and developments to help them grow their businesses. This year’s show theme “Right up your High Street” was all about local retailing. Our aim was to show local retailers how they can successfully claim their place at the heart of their communities, despite the challenges they face from the rise of convenience multiples, online shopping and crime.

We also showed retailers a practical take on day-part retailing in the Palmer and Harvey shop, which demonstrated how to increase customer traffic and spend by moving away from conventional category

management to focus on shoppers’ needs by time of day.

Pro-retail 2013 was also a launch pad for a number of key initiatives including:

• Ourfirst-timemoveintofoodservicethrough P&H Direct, offering impulse lines and catering essentials.

• Ourbrandnew‘EasyOrder’iPhoneappwhich revolutionises the way retailers can order with us.

• Ourexcitingnewalcohollicensinginitiative, which guides retailers though thelicensingprocesswithexpertadvicefrom our partner Licensing Solutions. Successful applicants will have the cost of their license reimbursed by us either with a free targeted range of stock or chillers. Should an application be declined, all fees are waived, making it completely risk-free for retailers to apply.

the Big 3 Winners recently announced at the Annual Branch Awards:

Branch of the Year : LeedsMost Improved Branch of the Year : CoventryCompliance & Safety Branch of the Year : Belfast

Congratulations to the winners, for more details, see the full story on The Hub under ‘News’(www.palmerharveyandme.co.uk)

• OuremergenceasoneoftheUK’sbiggest chilled wholesalers, after growing our chilled range by 50% over the past year. We showcased over 80 new products and sampled sushi, deli-style salads and snacks.

Local products are a great way for independent retailers to differentiate their stores, so the Local Producers Village returned to Pro-retail for a second year.Eachproducerwasselectedforthe relevance of their product to the convenience sector; and many of these products are not currently available in any of the major multiples. Unlike last year, all the products on show are available through Palmer and Harvey’s plusextrarange.

We also welcomed Costcutter Supermarkets Group and its members

to the show for the first time, following theexcitingannouncementofourjointventure in March.

On the eve of the first day of Pro-retail we honoured some of the UK’s top retailers and suppliers at our annual Awards Dinner. The winners were celebrated by a 1,600 strong gala dinner crowd, including celebrities such as comedian Jason Manford, musician Jimmy Vali and his band and racing driver Allan McNish.

Pro-retail continues to evolve, with every year more successful than the last. It’s an incredibly important event for us and wouldn’t be the success that it is without your support. Thank you to everyone directly and indirectly involved with the show, for making this our best year yet!

pro-reTail 2013 - our biggesT anD besT show yeT!

After 2 days, over 6,000 visitors (up 7% from last year) and months of preparation, Pro-retail 2013 has come to an end. 230 suppliers exhibited and 40,000 outers were ordered from the show exclusive deals.

Local producer stand

growth, but it will take time for them to pay back. We can’t promise an end to austerity just yet but the future’s looking bright! A reminder.the Costcutter supermarkets Group deal has 3 strands:• Anew8yearcontracttosupplythe

Costcutter Supermarkets Group estate - this will take time to build because they haveanexistingagreementwithNISAwhich runs to July 2014. However, we have already started trading with 23 Costcutter Supermarkets Group stores so we will begin to learn more about how we will work together.

• ThetransferofourMace,Supershopand Yourstore business to Costcutter

Supermarkets Group – this happened on 6th April under a transitional service agreement.

• TheestablishmentofTheBuyco.TheBuycoisowned50:50byPalmerandHarvey and Costcutter Supermarkets Group. It does not buy and sell in its own right but will receive an income just sufficient to cover its costs. Its remit is to negotiate the best terms. Palmer and Harvey will then purchase product at the pricenegotiatedbyTheBuycoandwillsellitontobothitsexistingcustomersand Costcutter Supermarkets Group.

Together, these make for a really powerful combination. Masses achieved already but masses still to do. Let’s get to it!

winners

> cost

PDCQs

> quality

P&HDirecthasnowlaunchedits‘iVan’application for the iPad, allowing it to remain one of the best equipped sales forces in theindustry,abletoprovideanexcellentservice, whilst adding value to customers. iVan is used all day every day, to present to customers, organise the territories and manage stock. It is an impressive piece of equipment that looks good, works well and puts us ahead of the game in terms of our proposition to the consumer.

The app has been live on the iPad since the start of the year and is now being used by the entire P&H Direct sales force. Leading suppliers have been equally impressed by the opportunities that this cutting edge technology offers, and to quote one, “the iPad puts real muscle at the point of purchase. The iPad is the future of P&H Direct and is already reaping the rewards of what has been a substantial investment, by increasing efficiencies, creating quality information and most importantly satisfying changing and more demanding customer needs.”

neW iPAD APP An instAnt Hit!

> Delivery D > Teamwork T

new 5 year conTracT wiTh mmrgWe are pleased to confirm that Palmer and Harvey has successfully secured a new 5 year contract with the Martin McColl Retail Group.

one sTop To bigger businessPalmer and Harvey has secured a rolling agreement with One Stop, currently worth over £100m at retail selling price.

One Stop is one of the UK’s largest convenience store chains and is part of the Tesco group. With over 600 shops, open 7 days a week, One Stop aims to meet the needs of all its local customers. The stores arebasedacrossEnglandandWales.

From April 2013, we will supply over 600 One Stop stores with their chilled grocery and food-to-go range, including

sandwiches. Our business will be deliveringtostoresuptosixtimesaweek,with an estimated seven million outers delivered annually.

This incremental business will allow us to focus on strengthening our chilled offer and add a significant number of new lines to the Palmer and Harvey range.

intRODuCinG... OuR FiRst LeAn CHAMPiOnsLast quarter, we revealed plans to roll out lean management practices across Operations, in a strategic move to simplify our operational processes and reduce waste. We are pleased to announce that the first of our Lean Champions have now been identified and training is underway at Coventry and Hemel, with plans to roll out training at Bristol in the near future.

Our newly appointed lean champions are: Danny Sugg, Operations Manager at Hemel; Tony Iles, Transport Manager atBristol;andDaveTysall, Warehouse Supervisor at Coventry. Training sessions have already been delivered to the

management teams at the three depots and thefeedbackhasbeenexcellent.

Danny’s‘leanoverview’trainingatHemelHempsteadwasextremelywellreceived.Sound bites from the events included:

“Very interesting, you can see how you can build this into every department.” - HayleyHindle(HRManager),

“Really gets you thinking.” – Warehouse Supervisor,

“You can already relate to things we are working on, asking ‘why’ rather than always pushing the blame.” - Transport Manager.

Over at Coventry, Dave is now training staff on practical “5S” and visual management, which teaches trainees how to use basic lean methodstomaximiseworkorganisationandstandards within their work environment. Dave comments, “We have been trialling visual management boards for several months, and have seen an increase in productivity”. Coventry was the first branch to introduce lean methods and recently won‘MostImprovedBranch”attheannual,internal branch awards. Julian Streeter (ManagingDirector–Operations)presentedtheBranchAwardsatPro-Retailandwaspleased with Coventry’s success, stating, “We’veseenexcellentprogressatCoventrysince the commencement of the lean programme. The challenge now is to quickly take these learnings and benefits across the rest of the network”.

What is “Lean”?

Lean was pioneered by Toyota in the late 1980s as a way to reduce waste and eliminate steps that don’t provide value to customers.Theultimategoalofleanisto‘do

morewithless’andtoprovideexactlywhatcustomers want, every time, with no waste.

To accomplish this, lean thinking changes management focus from optimising isolated areas of the business one at a time, to studying the full flow of services to the customer as a whole in order to createmaximumefficiency.Leanfocuseson the process ofproducts(orservices)comingin, being prepared and then delivered to the customer as one continuous flow across several departments, people and systems. This is otherwise known asthe‘valuestream’ of a business.

Eliminatingwastealongentirevaluestreams, instead of at isolated points, creates processes that need less human effort, less space, less capital and less time to prepare services at far less cost and with much fewer defects or wasted product, compared with traditional business systems. Also, information management(suchasKPIreporting)becomes much simpler and more accurate.

While its traditional roots lie in manufacturing, lean is now widely used in an array of industries, including retail, professional services and government organisations. The number of companies adopting lean practices has increased substantially during the economic downturn as businesses seek ways to beat the recession.

Dave Tysall, Warehouse Supervisor and Lean Champion at Coventry

The Coventry Management Team attend a training session delivered by Dave Tysall

Joe Manzur [pictured], business consultant from

5M Lean Consultants Ltd., has been supporting

P&H wih the deployment of lean practices.

Our new Visual Management Boards measure 5 key areas: Safety, Quality, Cost, Delivery and People,

putting the customer at the heart of everything we do. To show how these 5 measures apply to everything

in our business, we have made them the new categories for our NewsPHlash features.

Martin McColl Retail Group is the leading neighbourhood retailer in the independent managed sector running 1,266 convenience and newsagent

stores. They operate 666 McColl’s branded UK convenience stores as well as 600 newsagentsbrandedMartin’s,exceptinScotland where they operate under their heritage brand, RS McColl. Retail sales in 2012 were £845m, having grown by £165m inthelastsixyears.

We have traded with this important retail partner since 1999 and this new contract secureswellinexcessof£300mworthofannual business for Palmer and Harvey servicing over 900 of their stores. We will be delivering goods across our entire product range to meet the needs of stores and looking to develop other key areas of service to further enhance our total offering.

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How long have you worked for Palmer and Harvey? 13 years in October.

What does your job involve? Driving and assisting the drivers when they come back from deliveries.

What skills do you need to work for Palmer and Harvey? A HGV licence and a sense of humour.

What is the best thing about your job? Beingleftalonetogetonwithit.

What is the worst thing about your job? The start and finish time. I work from 11.00 hrs to 20.00 hrs, and as I live quite a distance away from work, I have to leave the house at 10.00 hrs and I don’t get home till around 21.00 hrs.

What is the worst job you have ever had? Working as a labourer on a building site, as in the winter it could be very cold and wetandIreallydislikedhavingtomixtheconcrete by hand!

What do you do outside of work? Ridemybike(KawasakiZZR1400),drivemy40yearoldMK1EscortanddoDIY.

What did you want to do when you were younger? Beawriter.No,Iwantedtobeanelectrician.

When did you discover you had a talent for writing poetry? After seeing one of my friends going through a very hard time. That friend is now my wife of 14 years.

Have you entered your poems into competitions? No, but I have had a lot of them published in books and I wrote one about Princess Diana when she died. This was framed with a misty lake background and given to Diana’s mother. I got a hand written letter of thanks back from her.

GettinG tO KnOW YOu....

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Gordon StewartDriver at Dunfermline

Cry A Dry Tear

You sit down there with a heart full of hurtAs everyone around you treats you like dirtSo listen to me you’ve nothing to fearNow take yourself home and cry a dry tear.

Look at you now your heart is in tattersBut no-one around you thinks that it mattersSo get yourself ready to change up a gearSit yourself down now and cry a dry tear.

You look to the sky and see all the stars You’ve knocked down the barriers you’ve kicked out the barsLife its so wonderful, so precious and dearLets get you home and cry that dry tear.

Look at the sun so shiny and brightJust like you are full of joy and delightYou’ve gone up that road with all of your fearBut look at you now you’ve cried that dry tear.

Gordon Stewart

What gives you ideas / inspiration to write poetry? Eventsthatoccurred.Sometimesalinecomes into my head and I just build on it.

Do you have a favourite poem? ThefirstoneIwrote(CryADryTear).

Do you have a favourite poet / writer? No, I never read poetry.

What do you aspire to do in the future? Live life to the full. I have just retired from the Territorial Army after 24 years, I served 6 months in Iraq in 2003. I am now learning to play the drums, much to the annoyance of the neighbours and my wife!

Neil Johnson (Dunfermline): E-Learning expert!

New E-Learning Suite at Head Office

neW e-LeARninG COuRses FOR ALL stAFFThere are now a series of e-learning courses available for employees to undertake on ournewinternalsite,‘TheHub’ (www.palmerharveyandme.co.uk).Thesecover a wide range of skills, including EmergencyFirstAid,TimeManagementandCustomer Service Skills.

Staff have already been actively making use of these since they were released in April, and at the time of going to print there had been 89 courses completed and 88 part-completed! One employee, neil Johnson (Risk & safety Advisor, Dunfermline),

has now completed all of the courses, and commented “I was very impressed with the quality of the courses I have completed, not too easy and not too hard. I also found the information well presented and it appeared to be a good insight into the relative subjects taken.”

For every course successfully completed, employees receive a CPL certificate. All staff can access the courses, either at work or at home. Further useful courses are in the

44 eMPLOYees AWARDeD FOR GOOD iDeAs Recognising that every good idea makes a difference, Chris has decided to award every employee who submits a successful idea through the Contact Chris scheme with a small prize, including his very own design in heat-changing mugs.

With over 150 ideas already being managedthroughthescheme,existingrecipients include Anthony Prescott (Haydock) who was awarded with the special mug and high-vis waistcoat for his ideatoimprovethewaywemanageBestBeforeEnd(BBE)datesofproducts.

Asaconsequence,anewBBEdatemanagement system is currently being rolled out across the branches.

tim Fender (sweetdirect) suggested having apprenticeships for young people, which will shortly be introduced at a number of branches. norrie McGregor & Bob steele (both Dunfermline), suggested setting up a chilled van sales operation, which remains an ongoing long-term project for the business. Congratulations to everyone else who has received a prize for their contributions to the scheme!

As Chris etherington (Chief exec) commented, “these prizes are just a small token to thank those who have put forward worthwhile ideas to improve our business, in addition to the monthly and quarterly prizes of high-street vouchers. We’ve had some excellentideassincetheschemewassetup some 18 months ago, and it is through employees’ own insights and observations that we can change our business for the better, so please keep them coming!” Chris only needs to accept your idea in order for you to receive a prize, so why not run your latest brainwave past him? You can Contact Chris by sending an email with your idea to Chris@palmerharvey.co.uk or by calling (01273) 648 686 and leaving your idea, name and contact number.

Brendan McMahon (Haydock DCM) presents prizes to Anthony Prescott

Norrie McGregor (Left) and Bob Steele (Right) show off their prizes after being presented by

Phil Rennie (Middle, Dunfermline DCM)

Tim Fender (Sweetdirect) takes a sip from his new mug!

To access the E-learning Courses on ‘The Hub’ (www.palmerharveyandme.co.uk):

• Loginusingyourusername (firstname+surnamewithnospaces)andpassword(6digitemployeenumberfoundonyourpayslip)

• Clickon‘Courses’fromthetopmenubar

• Selecttherelevantcoursebyclicking‘Go’

• Click‘Start’tobegin

• Click‘Quit’tosaveyourprogressandresume at a later stage.

pipeline,suchasaBeginnersExcelCourseandanonlineDSEAssessmentforcomputerusers.

FollowingaContactChrisidea,anE-learningSuite was recently set up at Head Office usingexistingresourceswithinthebusiness,to support employees with independent or work-related learning. Consisting of 3 PCs, this area provides a quiet and comfortable environment to facilitate learning away from the common interruptions in work areas. It is hoped that, if proved popular and successful, other such areas may be introduced across the business in the future.

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> Delivery D > Teamwork T > aDapTabiliTy a > FrienDly F

> quality

The winner of last edition’s NewsPHlash competition was:

Debbie Hope from Customer Care at Fareham

COnGRAtuLAtiOns!

BuiLDinG On OuR KnOWLeDGe FOR A sustAinABLe FutuRe

DAiRY CRest

DunFeRMLine tRAnsPORt teAM eARns nAtiOnAL ReCOGnitiOn

11 employees from 5 different Distribution Centres have successfully passedtheInstituteofEnvironmentalManagementFoundationCertificateinEnvironmentalManagementinWholesaleDistribution.Thecoursecovers all aspects of environmental management including waste, energy, legislation, sustainability and Carbon footprint. This further strengthens our commitment to the environment and sustainability. Well done to all.

Dairy Crest is one of Britain’s leading dairy product companies, with a turnover of £1.6b in 2011, and employing over 5,000 people nationwide. they are also a major supplier for Palmer and Harvey, supplying 53 product lines from across their range, and they are currently in the process of launching a new cheese snack product!

Did you know?

Following a large post-war drive to increase national dairy produce, by the 1960s there developed a 70-80 million gallons of surplus milk per year. As a result, The Milk MarketingBoarddecidedtousethissurplustomanufacturebutterandcheesefortheretailandcateringmarkets.Thisbrandbecomesknownas‘DairyCrest’...

In the fifty years since, the company has continued to grow and now owns a variety of household dairy products, including the no.1 cheese brand Cathedral City, no.1 dairy spread Clover and no.1 flavoured milk drink FRijj.

The company sources some 2 billion litres of raw milk every year for its products, which is transferred throughout its network of 13 dairies, manufacturing and distribution sites nationwide.

What’s new?

In response to consumer demand for a children’s snack made with real natural cheddar that is fun and engaging for kids, Cathedral City developed the Chedds product range.

The latest variation are the Chedds Cheese & toasties, with each pack, consisting of sixslicesofmildCathedralCityCheddarandsixpiecesofMelba toast, and available in cases of 12. Like all Cathedral City products, Chedds contains no artificial colours, flavours or preservatives – perfect for fun, healthy eating.

The new format of Chedds Cheese & Toasties will give the kids snacking brand broader appeal, specifically targeting the convenience shopper.

Adam Mehegan, Senior Shopper Marketing Manager, Dairy Crest comments: “Chedds has already added value to the kid’s cheese snacking category by attracting new shoppers and by encouraging existing shoppers to spend more. We want to help the convenience sector share more of this success by launching a format that is more relevant to the convenience shopper’s missions and basket size”.

EaglE EyEAlways watching for your safety

> safety

If you would like to contact Newsphlash with any feedback and story ideas, or to apply to be part of the editorial team please send an email to: newsphlash@palmerharvey.co.ukand include your name and contact details.

Debbie won an invitation to a future Palmer andHarveyPolePositioneventatBedfordAerodrome, where she will get the chance todrivesupercarssuchastheBMWM3,theAriel Atom and the two-seater Le Mans, as well as the single-seat Formula 2 cars.

Debbie chose the correct answer to this question:Q.HowmuchwillGroceryAidspendonwelfaresupporttothose in our industry in this year?a)Closeto£300,000 b)Closeto£3M c)Closeto£30MThe correct answer is b) Close to £3M – well done to all those who got it right.

Left to right: Rhys Thomas (National Transport Manager), Norrie McGregor (Transport Manager, Dunfermline), Phil Rennie (DCM, Dunfermline), Barry Edwards (Assistant National Transport Manager), Patrick Cobb (FTA Contract Manager).

DunfermlineDepothasbeenawardedtheprestigiousnationalFTA(FreightTransportAssociation)RoadworthinessAwardfor2012.Thehighlycompetitiveawardisgiventorewardexcellentvehiclesafety,conditionandmaintenancestandards.InMarch,NorrieMcGregor(TransportManager,Dunfermline)receivedtheawardfromPatrickCobboftheFTA contract management team. Mr Cobb commented, “I am delighted to present this award to the Dunfermline Depot which over the past 12 months has shown consistent and outstanding results. The whole company has put a lot of hard work and emphasis in the last two years on reducing the amount of vehicle defects and improving driver defect reporting which has resulted in a dramatic drop in vehicle defects. The maintenance team,especiallyintheDunfermlineDepot,haveobviouslyworkedextremelyhardtoachieve these results and deserve the recognition for all their efforts”.

POLEPOSITIONPERFORMANCE DRIVING MASTERCLASS

AT BEDFORD AUTODROMEWITH ALLAN McNISH

I have great pleasure in inviting you to our exclusive ‘Pole Position’ Performance Driving Masterclass with Allan McNish – Twice Le Mans 24 Hours Winner and former Formula 1 driver – on Sunday 15th and Monday 16th May 2011.

For your information, the itinerary for this VIP event is as follows:

Sunday 15th May

From 2pm Check in at Luton Hoo Hotel, Golf & Spa, The Mansion House, Luton, Bedfordshire, LU1 3TQ. Tel +44 (0)1582 734437 www.lutonhoo.co.uk (location map and directions enclosed).

6.45pm Pre-dinner drinks

7.30pm Dinner

Monday 16th May

7.00am onwards Breakfast

7.45am Meet in hotel lobby to depart in convoy for Bedford Autodrome, Thurleigh, Bedford, MK44 2YP

9am Performance Driving Masterclass

4pm Depart Bedford

I look forward to seeing you at Luton Hoo, but in the meantime, if you have any further questions please do not hesitate to contact Maribel Coles on 01273 222186.

Yours sincerely

Martin JanesDirector of Multiple Sales Palmer and Harvey

Encs

C O M P E T I T I O NPOLEPOSITIONPERFORMANCE DRIVING MASTERCLASS

AT BEDFORD AUTODROMEWITH ALLAN McNISH

I have great pleasure in inviting you to our exclusive ‘Pole Position’ Performance Driving Masterclass with Allan McNish – Twice Le Mans 24 Hours Winner and former Formula 1 driver – on Sunday 15th and Monday 16th May 2011.

For your information, the itinerary for this VIP event is as follows:

Sunday 15th May

From 2pm Check in at Luton Hoo Hotel, Golf & Spa, The Mansion House, Luton, Bedfordshire, LU1 3TQ. Tel +44 (0)1582 734437 www.lutonhoo.co.uk (location map and directions enclosed).

6.45pm Pre-dinner drinks

7.30pm Dinner

Monday 16th May

7.00am onwards Breakfast

7.45am Meet in hotel lobby to depart in convoy for Bedford Autodrome, Thurleigh, Bedford, MK44 2YP

9am Performance Driving Masterclass

4pm Depart Bedford

I look forward to seeing you at Luton Hoo, but in the meantime, if you have any further questions please do not hesitate to contact Maribel Coles on 01273 222186.

Yours sincerely

Martin JanesDirector of Multiple Sales Palmer and Harvey

Encs

POLEPOSITIONPERFORMANCE DRIVING MASTERCLASS

AT BEDFORD AUTODROMEWITH ALLAN McNISH

I have great pleasure in inviting you to our exclusive ‘Pole Position’ Performance Driving Masterclass with Allan McNish – Twice Le Mans 24 Hours Winner and former Formula 1 driver – on Sunday 15th and Monday 16th May 2011.

For your information, the itinerary for this VIP event is as follows:

Sunday 15th May

From 2pm Check in at Luton Hoo Hotel, Golf & Spa, The Mansion House, Luton, Bedfordshire, LU1 3TQ. Tel +44 (0)1582 734437 www.lutonhoo.co.uk (location map and directions enclosed).

6.45pm Pre-dinner drinks

7.30pm Dinner

Monday 16th May

7.00am onwards Breakfast

7.45am Meet in hotel lobby to depart in convoy for Bedford Autodrome, Thurleigh, Bedford, MK44 2YP

9am Performance Driving Masterclass

4pm Depart Bedford

I look forward to seeing you at Luton Hoo, but in the meantime, if you have any further questions please do not hesitate to contact Maribel Coles on 01273 222186.

Yours sincerely

Martin JanesDirector of Multiple Sales Palmer and Harvey

Encs

CoMpetItIon

Dairy Crest are giving away the chance to catch all those precious family moments on a digital camera worth £150.Tobeinwithachanceofwinningthisexcellentprize, answer the following question and send your answer to newsphlash@palmerharvey.co.uk, providing your name, location and contact details.

Q. What strength of Cathedral City cheese is used to make Chedds Cheese & toasties?

a) Mild

b) Medium

c) Mature

Competition closes at midnight on 21st June 2013 and the winner will be announced the following week.

Back row, left to right: Joe Fox-Roberts, John Burland, Stuart King, Shelley Murphy, Steve Gearing, Kevin Busch, Chris Howarth, Garry Holland (trainer)Front row, left to right: Artur Siwakowski, Neil Johnson, Luke Corden