Retail Food Group tenders distribution to cut suppliers, products and costs

Retail Food Group tenders distribution to cut suppliers, products and costs. Food franchisor Retail Food Group has tendered its entire distribution business, which is worth between $100 million and $200 million a year, as part of a strategy to cut costs and simplify business for struggling franchisees. Retail Food Group’s new chief executive Richard Hinson wants to cut the number of distributors for food and non-food products sold to franchisees from 16 to one or two. The former Metcash, Goodman Fielder, Mars and Wrigley executive also wants to reduce the number of products sold from 15,000 to around 3000 SKUs to better leverage the group’s buying power, reduce cost of goods and improve product quality. Source: AFR