| Changing Routes to Market |
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The supply of food to the foodservice sector is set to grow over the next few
years. According to the latest forecasts from Horizons, by 2007 distributors will
be selling an extra 6% of food to the out of home market – amounting to an
additional £480 million.
However, the changes will not be evenly spread – the winners are likely to be
contract distributors in particular who will be benefiting from the forecast
expansion of the larger operators.
Alongside this growth in food supply, we will see an expansion of the ranges
supplied by the larger wholesalers – who will be moving much more into non-foods
and services. These developments will be coupled with greater concentration in
the supply chain, as the larger players expand more quickly than their smaller
competitors – both by organic growth and through acquisition.
Predicted changes in foodservice delivery channels
| Delivered wholesale |
+7 |
| Contract distributors |
+9 |
| Cash and carries |
-5 |
| Retail/other |
+6 |
Last reviewed: 06 Mar 2006
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