More than 30 Welsh suppliers are taking part in a new programme designed to help food and drink businesses develop their skills and better understand the requirements of working with a major supermarket.
The Welsh Supplier Development Programme has been launched by Asda in partnership with Food & Drink Wales, with the initiative backed by the Welsh Government. It was announced during the Royal Welsh Show.
The programme is designed around practical aspects of retail supply, with participating businesses receiving advice and insight into areas including compliance, marketing, product development, logistics and account management.
Rather than being a straightforward product-listing initiative, the programme is intended to help participating companies strengthen their understanding of how a major supermarket operates.
What participating businesses will learn
The programme will run across three days between August and October, with activity taking place at Asda's Coryton store in Cardiff, its Chepstow depot and the retailer's headquarters in Leeds.
At the Coryton session, suppliers will meet Asda senior directors and general store managers and receive one-to-one feedback on their business proposals.
The Chepstow session will focus on supply-chain and logistics issues, including delivery solutions and the process involved in securing delivery slots at Asda depots.
A final session at Asda's Leeds headquarters will cover areas including finance, trading and Asda's systems.
Those areas may sound operational, but they can be significant considerations for smaller producers seeking to expand their retail business.
Supplying a supermarket involves considerably more than making a product that consumers like. Businesses also need to understand delivery schedules, stock requirements, commercial processes and retailer-specific systems.
Welsh businesses taking part
One of the businesses enrolled on the programme is Tovali Soft Drinks, a Carmarthen-based company that has supplied its dilutable squash to Asda for more than 13 years.
Its participation demonstrates that the programme is not limited exclusively to businesses that have never worked with Asda.
For an established supplier, development opportunities can instead provide a chance to strengthen an existing relationship and gain a clearer understanding of different parts of the retailer's supply chain.
Other businesses taking part include Dragon Cheese, Popty Conwy Bakery, Lowes Pop and Radnor Hills.
A route towards stronger retail capability
For independent Welsh producers, supermarket supply can offer access to a much larger customer base than direct sales alone.
However, increased volume can also create additional demands around production, logistics, forecasting, quality assurance and commercial management.
The Asda programme is aimed at addressing some of those practical requirements.
Importantly, participation should not be interpreted as a guarantee that a supplier will secure a new Asda listing. The stated purpose of the programme is to provide development, insight and support to participating businesses.
That distinction matters because a development programme and a commercial listing are two different stages of the retail relationship.
Strengthening Welsh supply chains
The initiative also forms part of a wider effort to develop the capabilities of Welsh food and drink businesses.
Asda says the programme is intended to help businesses improve processes, develop skills and potentially boost sales, while strengthening relationships within the supply chain.
For participating producers, the immediate benefit will be access to knowledge and advice directly from a major retailer.
Whether that subsequently translates into new listings, increased sales or other commercial opportunities will depend on the individual businesses.
For now, the programme provides a practical example of a major retailer working directly with Welsh suppliers to address some of the challenges involved in developing a food business for larger-scale retail.
Sources
Asda - Asda launches Welsh Supplier Development Programme with Food and Drink Wales
Food & Drink Wales - News and events
