The new glory days

“Borough may be best known for its retail food market now,” says director of the Trustee’s Association, Simon Tattersfield, “but we are equally proud of the historic wholesale market.” Fruit and vegetable trading has been operating on the current site for over 250 years, originally filling the entire market hall.

Today, the seven remaining traders mainly operate in the Jubilee market, which is next in line for an upgrade. The refurbishment of London’s oldest market has picked up pace with phase I finally completed after delays, and retailers and wholesale traders will soon reshuffle. Tattersfield says: “The market is already looking a lot brighter because of the sections of new glass roof and the fresh paintwork. The historic cast iron portico is now on site and ready to house its new permanent stallholders from the retail market, and a new British restaurant, Roast, has been signed to the market in November and will open in spring,” he says.

“We have also negotiated historic new lease agreements with the traders - wholesalers have been granted leases for six years and retailers for three years, providing secure tenure for a longer period than leases granted annually, based on a tradition dating back 250 years.”

Borough market has become one of London’s best-known food havens since the retail market opened in 1998. To celebrate the success of the retail market, the trustees launched the Borough Market book last week, From Roots to Renaissance, to celebrate the market’s history, present and future. Chairman of the board of trustees, George Nicholson writes in the introduction: “This book is intended as a milestone and signpost - a cause for celebration is the physical renewal of this ancient market... and expression of hope that Borough Market is on its way to becoming one of the best markets in Europe.”

However, with the success of the retail market comes the demise of the wholesale trade, attributed to the expansion of supermarkets in the UK, forcing out independent retailers - the bread and butter trade for the wholesalers.

Chris Denning is the market manager and oversees daily market operations, He says the wholesale market has suffered because of there is less competition and choice. “The plan is to improve the wholesale market facilities but it is limited by location and the tendering and contractual process is behind.”

The trustees are supporters of the wholesalers and believe that the retail and wholesale trade can’t be seen as separate entities. Tattersfield says: “To some extent they are reliant on each other and most of the wholesalers have their own retail stalls or supply others.”

Phase II refurbishment will require the trustees to sell property to fund the process, as the market is a registered charity governed by 10 acts of parliament and is prohibited from borrowing funds. Tattersfield says: “The cages in the retail market are based on the wholesaling idea. Wholesale is the soul of Borough market and no one more than I is keen to find new traders. But the refurbishment is restrictive and the Jubilee market area only allows for two or three more traders.

“What makes Borough stand out from other markets is that others are run by local authorities that don’t reinvest in the markets. But Borough is based on structures and governance.

“If other markets can be let loose of local authorities, they would find a completely new lease of life. We have a different relationship with the wholesalers because we are a registered charity. The wholesalers are also stakeholders and we need to make Borough market as transparent as possible.”

ROWE BOAT ON CALM WATERS

“We work five days but we could fit trade into four days now,” says Geoff Rowe, specialist trader in mushrooms and salad produce.

Rowe has been in the sector for 31 years and says previously, he would sell 1,500-2,000 chips a day of mushrooms and had 15 UK growers supplying him.

Now there are only two UK growers and he has to look to Belgium and the Netherlands for produce. “I am tempted by Polish mushrooms,” he says, “as the quality can be exceptional and the prices are competitive. But I know what volumes I can sell to my regular customers and I don’t have the passing trade.” Years ago says Rowe, he’d sell 100 boxes of best mushrooms and mixed at 50 pence each.

“Sometimes mushrooms are still sold at prices similar to 25 years ago, 50-100p a box.” Button cups have always been good sellers, and demand for flat has increased.

Mushrooms make up only 25 per cent of the lines as Rowe expanded into salads when an Italian supplier approached him to sell cucumbers. “I have the whole range of salad lines as well as herbs, which I source from the UK in the summer and Italy and Spain in the winter,” says Rowe. “The herb category has evolved as people recognise herbs now. I have introduced potted herbs recently and supply some retailers here. Herbs account for 15 per cent of my business.”

Rowe echoes the concerns of the other wholesalers with respect to the renovations and the decline in the wholesale trade.” In order to service our customers, we need to introduce more wholesalers. Trade this year has been quieter and prices haven’ changed. Customers are declining because of the lack of traders.

“Previously there were eight companies selling mushrooms and I would sell 100 per cent to grocers. Now only 30 per cent of my customers are greengrocers, 15 per cent are caterers, and I can’t see this changing. The trustees have done a fantastic job with the retail market but we still need mass to supply customers. I am interested in having access to retail trade and have applied to the trustees but was declined - but I will reapply.”

C&C’s GOT RIGHT TOUCH

Stand manager at C&C Group, Peter Robertson, has been working in the market for 20 years. The majority of customers are small retail traders and restaurants based in south-east London. “Customers can’t see the offer Borough makes them; they can get all they want here and logistics are easier with no charges involved - if they knew, we could pick up more trade from the other markets. We deal with customers one-to-one here,” he says.

“Our customers are changing - greengrocers are not being replaced, so we need to concentrate on personal touches with the customers. We now sell a bit of everything, like a one-stop shop. At this time of year we have dates, figs, and cranberries for Christmas alongside the standard salad and vegetable lines.”

This year trading has decreased because of the declining number of greengrocers and the need to bring the market up-to-date. The introduction of the congestion charge has affected the trading times, and customers now arrive at the market earlier to avoid the charge.

He says: “The advantages for Borough wholesale traders are the high levels of service and quick distribution compared to other London markets. Fruit and vegetables are not expensive commodities, there are plenty of substitutes, and we need to attract more customers and people to the sector.

“The market renovations have been good for retailers, but there has been no benefit to wholesale yet. We are living on promises and renovations are running behind time - we have been given six different dates of renovations. The trustees have not tried to attract more wholesalers and have said there is no space to house them, but they keep finding space for retailers.”

FOURTH BOURNE IDENTITY

Since 1889, a member of the Bourne family has run the fresh produce stall at Borough. Fourth generation trader Martin Bourne now stands where his great grandfather once did, albeit on a different site. One difference now is that A&W Bourne has signed a seven-year lease for the site instead of a weekly agreement. “We changed this two years ago for our own security, especially with the renovation works,” says Bourne.

He too mentions the disappointment in the delayed refurbishments. “The wholesale market was to have been first to be updated but we have been pushed to last,” he says. “Unfortunately, trade is on the decline on the wholesale front with the small retail shops dwindling away. The city cafes and smaller shops have kept the market ticking over in the last few years.”

Every month, the numbers of produce lines on offer has increased, currently standing at 100, and making up for the declining turnover in volumes. Bourne says: “This is very different to 25 years ago when we ran 12-15 lines in total and sold 25 tonnes a day - now we sell that in a week.

“We have had to diversify our whole supply chain - this year we have added pre-packed asparagus from Kenya to cater for the convenience sector. Customers do not want to handle produce anymore - the supermarkets have taught them what to do. So we thought if you can’t beat them, join them and play them at their own game.”

Bourne believes the biggest problem for the wholesale market is that the trustees do not help wholesalers as much as retailers, because they do not see them in operation. “We are packed and gone by the time they arrive. So, we have also started selling at the retail market since a few weeks ago, to benefit from the popularity of Friday and Saturday trade.“

BAXTER BIDDING FOR MORE

For Leonard Baxter, owner of Baxter’s fruit and veg specialists for caterers, says the £300 a month he pays for congestion charges has been bad for trade, and deliveries have become more difficult with the increased traffic rules.

Baxter supplies food for caterers and corporate kitchens of financial institutions, which accounts for 70 per cent of his trade, but is falling. “City cooks are disappearing,” he says, “and the grocer trade is diminishing. We are having to rely more so on our retail business which is what is on the rise.”

Baxter buys produce from Borough and Covent Garden and delivers 25-30 orders a day of produce. “Customers buying patterns have changed, buying only what they need today. We moved to Borough from Leadenhall six years ago and the market has a good reputation. But there is a risk that as the tourist numbers increase, the local shoppers decrease. The retail market could do with another day’s trading - on Thursday we are here preparing for Friday and Saturday already.”

SWEET FOR SUGARMAN

E&A Sugarman is a purveyor of fruit and salad produce and owner Andy Sugarman says trade has been quite in November. “Borough is here to serve customers and we do it between the wholesalers to make sure they get the service and produce required,” he says. “The number of lines we sell has increased although volumes are down 10-15 per cent over the last two years.”

Sugarman says that supplier numbers and new companies are also increasing, to the point where there are too many. “We can’t sell any more than we already do. Seasons are longer and there are more countries involved. Our Spanish leaf supplier contacted us about French produce but we cannot take it,” he says.

Demand for novelty salads is on the rise such as red oak, rocket, frisee and mixed bags - sales have quadrupled over the last two-three years.” Customers are looking for convenience, caterers have promoted these lines in restaurants and they have become less expensive to buy,” he says.

Borough’s niche customer market is the independent retailer. “Covent Garden has specialised in caterers and large customers. We don’t carry the product range for the large customers and but we service the smaller retail grocers and the retailers here well - we are convenient and well priced. But the disadvantage of serving the independents is the problem of where the next generation of customers will come from.”

Sugarman has been chairman of the tenants’ association for 10 years. In addition, he says the Jubilee Market, the site where the wholesalers trade from, is in desperate need of renovations. “I have been involved in the refurbishment planning and funding for the last six years. The wholesale market will be reconfigured to restore the feel of the old market. We need smartening and brightening up, better infrastructure and modern facilities to attract customers. We should be moved to our temporary trading sites soon and renovations completed within the year. However, Phase I of the refurb was more expensive and took longer than expected. The market is on a conservation site - but this is also a strength being on such an historical site,” says Sugarman.

“The new trustees who have recently joined the board are committed to the market and bring a different, commercial approach to the meetings - one that is self-fulfilling for the market. But the strength of the retail market is the wholesale market - it is now self-perpetuating. We are disappointed we have not yet had the refurbishment and we want some commitment from the trustees.”

OLD ONES STILL THE BEST

The Wild Mushroom Company has been based at Borough for six years, since being invited by the trustees to help develop the Friday and Saturday farmers markets. However, 95 per cent of the company’s trade is conducted throughout the week, supplying restaurants and caterers based in the City and West End. “The retail side has grown with the farmers market, but we use it as a showcase for our customers visiting on the weekend,” says owner, Tony Booth.

Mushrooms make up 50 per cent of the offer, with wild mushrooms selling year-round, as well as frozen and dried mushrooms, all globally sourced. Supplies vary season-to-season and week-to-week, and on average 200-250kg batches are brought in from a supplier in Rungis, France and from an agent based in Barcelona.

Booth also sells salads and herbs year-round. “We are always looking for something new. This season we are trialing ligonberries from Lithuania, which have sold well. We have introduced new herbs to add variety to the normal run of herbs - spearmint and lovage from Israel and Spain, Thai Basil and garlic chives.

“We try to include seasonal fruit and different Italian vegetables in our lines because restaurants want something special,” he says. “We have been selling peacock kale and pigeon kale grown in Kent, and old Victorian cabbage that is back in fashion, just as a lot of old veg is. We are still experimenting with the kale but we are selling 40 boxes a weak and sales are steady.”

Booth says the relationship with the farm in Kent is important, as they are willing to grow different vegetables - next spring blue carrots will be grown. “The restaurants come to us because they want unusual produce and we share ideas.”

Trade has been quieter in the last year because the restaurant sector is suffering from the drop in tourist numbers adds Booth. But he is already planning for the move to the new site once the refurbishment is done. “We will be with the other wholesalers on a bigger area. We will introduce more products such as mushroom-based sauces, which are missing in the UK market.

“So much more can be done as there is a big gap for direct wholesalers here in fruit and veg, but the trustees haven’t approached new businesses to join.”

E&B COMPLETES REFURB

Elsey & Bent has been operating six days a week at Borough for the past three years and just completed a big refurbishment to its stand. “We have invested in a cold store that holds 12-15 pallets in order to protect the produce, opened up the unit, added shutters, new lighting to brighten the space and attract customers. We keep reinvesting into the company,” says manager, Gary Voigt.

Ensuring quality and variety will keep the business growing, he adds, and over 200 lines are offered to customers. “We buy from the markets everyday and use C&C at Borough as much as we can, but we aim to buy the best we can. I work closely with our full-time buyer, John (Elvis) Whymark, who knows what’s available at the markets. We use Borough as much as possible as well as New Covent Garden. We have a truckload arriving everyday with produce,” says Voigt.

During the week, customers are mainly local residents and office workers but the weekend brings new faces and this is when sales are the highest. “As a retailer, we aim to provide new produce to customers and offer the best of the season. For the run up to Christmas, we have trees and holy, dried fruit and nuts, Californian pomegranates, apricots and prunes,” he says.

“The frozen berry lines are very popular when berries aren’t in season and we have introduced tayberries from Scotland. Another new line is South African garlic. Herbs are also popular as people are experimenting with cooking - we get runs on herbs.”

Voigt says that E&B’s success as a retailer comes down to the daily freshness and quality of the produce, often better than supermarkets. ”People want freshness, quality and value for money - customers can bring produce back if they aren’t satisfied.”