Supply Chain ‘In Chaos’ As Tobacco Deadline Looms

Source from:  betterRetailing 05/02/2017

A chaotic tobacco supply chain unable to cope with the final sell-through of branded stock and 10-packs has left retailers unprepared for next month’s deadline.

A senior tobacco industry figure told RN wholesalers are struggling to manage demand as retailers buy up final non-compliant stock.

“People are literally going in to the cash and carry and clearing the shelves – we’re seeing a different demand profile,” they said, adding this was unlikely to be remedied prior to 20 May.

The comments mirror those of retailers from across the UK. Kay Patel – who owns three Best-one stores in east London – said he has faced problems with orders. “We use Booker, Bestway and order from Best-one separately, and each has different stock available – Carlton 19 have just become available from Bestway after being unavailable for months,” he said.

“Planograms have gone out of the window and we’re just putting branded, pricemarked and smaller packs together in the middle of the gantry. When we’re asked ‘what’s the cheapest?’ we just open the gantry.”

Linda Williams, of Premier Broadway in Edinburgh, said she faces similar issues. “There are a lot of gaps in the tobacco room and you don’t always know what you’re going to be able to get.“I need to remerchandise my gantry but I’m going to have to wait until 20 May. People are coming in and asking for 10s so if they’re available we get it – there’s no brand loyalty.”

Responding to the comments Richard Booth, director of trading – tobacco and category management, Bestway Wholesale, said the company’s tobacco rooms were now mostly compliant, calling it “irresponsible” for manufacturers to continue supplying 10-packs. He blamed “fluctuating demand” for some out-of- stocks, however.

A Booker spokesperson said it was working with its branches to ensure staff can help retailers with the changeover.

Meanwhile, Andrew Miller, head of independent field sales at Imperial Tobacco, said the supply chain was running smoothly but added gaps in the market were “to be expected” in advance of the transition deadline. Enditem