The Federation of Wholesale Distributors (FWD) has suggested that the government’s lack of support for wholesalers, while giving financial and policy assistance to major supermarkets, risks creating a monopoly in food and drink supply.
James Bielby, Chief Executive of the FWD, said many of its members believe the government is deliberately withholding support from smaller regional businesses trading at a loss to supply care homes, hospitals, prisons and key workers’ children, with “devastating consequences” for regional jobs, diversity of supply, and consumer choice.
“As the government refuses to help anyone other than supermarkets, it’s not surprising that many up and down the supply chain believe it’s a deliberate policy decision to let businesses fail, in the knowledge that the supermarkets will be there to pick up the pieces,” said Bielby.
“The longer the Treasury ignores wholesale, the more believable this becomes. The government have one aim in food supply: to keep the supermarket shelves stocked and every policy from Covid restrictions to Brexit preparations has been introduced with this in mind. Everything else is secondary.
“The government’s commitment to levelling up is revealed as just another catchy slogan – with the supermarkets more powerful and profitable than ever.”
Bielby suggested that the government has “showered the supermarkets” in taxpayers’ money, including business rates relief and grants. He also highlighted that big chains have benefitted from extended opening hours, a halt to competition law, and preferential treatment at the border in Dover.
In contrast, wholesalers took another major hit from the latest shutdown of the hospitality sector and schools, which resulted in millions of pounds’ worth of food going to waste.
Last week, Food Minister Victoria Prentis told the House of Commons Efra Committee she was aware that wholesalers “do not feel as if they have been included in the HM Treasury support schemes,” but added: “It is probably too early to talk about financial compensation.”
Bielby commented: “A full 10 months after the first lockdown, the minister says it’s ‘too early’ to be thinking about support. Tell that to the thousands who have lost their jobs, the businesses who have burnt reserves, and those trading at a loss to supply schools, care homes and hospitals.
“All the rewards supermarkets have been given in recent months while wholesalers have been left out from any specific support is incredibly damaging to food supply to vital services and the diversity of food provision in the UK.
“Supermarkets have long had their eye on expanding into out-of-home food and Government policy is aiding that ambition. When the family-owned regional wholesalers have gone, the supermarkets and Amazon will be all that’s left to supply the hospitality sector as it recovers.”
