Scottish Wholesale Association (SWA) has this week joined other business and industry groups to give oral evidence to the Scottish Covid-19 Inquiry where it shared in detail the impacts of Covid on SWA members and wider wholesale channel.
Having provided substantive written evidence to the inquiry in August, SWA chief executive Colin Smith and Margaret Smith, the organisation’s former head of public affairs who retired at the end of last year.
They also told how, in their view at that time, the Scottish and UK governments did not fully understand or consider the vital role of wholesalers when making initial decisions on market closures, support mechanisms, or key worker status – all with little to no warning in allowing businesses to prepare.
Smith said, “We articulated to the inquiry how wholesale is not a homogenous sector and that every wholesaler is inextricably linked to the national food and drink infrastructure, food resilience, and food security.
“We wanted to show that regardless of size or markets supplied, every wholesaler suffered in some way. Through our evidence, we to tried to ensure that no wholesaler has to relive the same experiences, and that no-one is left behind in the future.”
He continued: “It was the first time, out with our conversations with the Scottish Government, that we were able to articulate the combined impacts faced by our sector, including the personal mental stress and trauma members, their employees, and their families faced. Yet despite this, wholesalers and their staff continued to serve their customers, and kept the nation fed.”
Smith gave first-hand evidence on what the Christmas restrictions on 19th December 2020 meant for wholesalers.
Recounting what he saw and heard, while sitting in a foodservice member’s boardroom listening live to the then-First Minister restrict Christmas parties and socialising, the inquiry heard about the phones immediately starting to ring from customers cancelling their orders, leaving the wholesaler with 700 turkeys and a warehouse full of stock valued at £1.7 million, 35 per cent of which had a short shelf life.
Through all the evidence, one of the key recommendations asked by SWA of the inquiry was to have the Scottish Government embed wholesale into all future pandemic and national emergency planning, through the development of a Scottish food and drink wholesale strategy, and for government to have regular ongoing engagement with SWA and the sector.
Smith, however, stressed that the SWA “fully appreciated” the £21 million wholesale specific support from the Scottish Government, of which many SWA members benefited.
All the same, he highlighted to the inquiry that while this fund saved businesses and prevented a catastrophic failure of Scotland’s food supply chain, the wholesale industry cannot wait nearly a year before support is forthcoming in the future.
According to the SWA, in future this needs to be implemented at the very beginning of market restrictions and closures, to prevent wholesalers burning through cash reserves or taking on loans that ultimately prevent the restocking, rebuilding, and reopening of markets.
Another key point highlighted by the SWA to the inquiry was the need to support and recognise the importance of the supply chain with wholesale employees classified as “key workers”. Wholesale drivers especially are skilled licensed individuals, integral to ensuring the wheels of Scotland’s food and drink supply chain keep moving.
Commenting after giving evidence this week, Smith said that since the pandemic the SWA had continued to forge stronger relations with the Scottish Government and had collaborated closely with ministers, officials, MSPs and other stakeholders to raise awareness of the importance of wholesale.
In September, a Members’ Debate in the Scottish Parliament, initiated by Gordon MacDonald, MSP for Edinburgh Pentlands, provided a platform for politicians from all parties to speak about the often overlooked yet vital role of wholesalers in the food and drink supply chain.
The debate also highlighted the SWA's collaborative initiatives, supported by direct Scottish Government investment, aimed at increasing opportunities for Scottish producers and strengthening the supply chain, such as the Delivering Growth Through Wholesale programme, Wholesale Local Food Champion training, and the recently launched Scottish Wholesale Local Food and Drink Growth Fund.
