The 12 months to July 31st 2016 saw Suttons Consumer Products achieve an operating profit of £567k compared with the previous 12 month comparable profit of £203k. This represents a 179 per cent increase in profits along with a further improvement in gross margin to 44.9 per cent against 43.9 per cent in 2015.
Over the past year, there has been investment in all parts of the business with an emphasis on attracting good people and providing them with the right systems and information to make better decisions. Significant investments have been made IT systems and processes to improve efficiency throughout the business.
Corporate Social Responsibility
As part of the company’s commitment to reducing waste, in 2015 Suttons started offering retail partners the opportunity to move to a process of ‘partial returns’ where only out of date packet seed stock and discontinued seed product lines are returned each year. A consequence of partial returns is a reduction in the input of new stock and an equivalent reduction in Sutton’s turnover
in the first year of conversion. The positive response to this initiative by retail clients has been extremely encouraging and has directly led to a reduction in retailer ‘out of stocks’; an increase in store sales and avoided the wastage of over 1 million packs of seed in the last 12 months alone.
Solar panels installed last year have, over the past 12 months, generated over 300,000kwh of electricity, which has saved well over 100 tons of carbon dioxide from entering the atmosphere.
Suttons works very closely with a number of charities and operates online and catalogue trading operations for two major UK charities. These activities along with the continuing generosity of Suttons and Dobies customers has helped the company to raise donations and net charity trading income of over £250,000 in the last 12 months alone.
Personnel
The improving fortunes of the business continue to be driven by the commitment and flexibility of a loyal and experienced workforce and their desire to see Suttons thrive. In recognition of the continued exceptional contribution of all our staff this year every permanent employee has been given a £500 bonus, double last year’s £250.
Paignton has assisted area status and, as such, Suttons is an important local employer. In the past 12 months, fifteen seasonal positions have been converted to full time contracts, providing increased job security, pay and associated benefits to these employees and their families.
Additionally, several new senior employees have joined in the past year to help drive product development and innovation
Product development and innovation
Whilst Suttons has always been known for its Seed range (which still represent around a third of total sales), the ranges of plants and equipment offered are being continually expanded to increase customer choice.
There is rising awareness of the importance of diet to human health and increasing knowledge of the beneficial effects of specific nutrients. To ensure that Suttons customers have the benefit of being able to select varieties with the highest nutrient levels, a research scientist has been appointed to work closely with Exeter University, analysing nutrient levels in various conventionally bred crops. The health benefits of the ‘Mediterranean diet’ have long been discussed and Suttons has recently launched, as part of a new range of James Wong plants, four tomatoes with high
levels of the antioxidant lycopene. Retailer interest in these and other innovative new plant introductions has been very high, with initial sell ins to independent garden centres up nearly 40 per cent on last year.
Rob Smith, the winner of the BBC Big Allotment challenge has joined the company on a permanent advisory basis and his new range of plants, including a Heritage Vegetable range has proved extremely popular with retailers, with sales significantly up on last year. Suttons has also been supporting the Heritage Seed Library by growing and cropping seeds to increase their reserves of rare species.
Gavin Shaw joined earlier in the year to help the business expand its perennial, tree and shrub ranges. Gavin’s knowledge and contacts with independent breeders and nurseries has already enabled Suttons to obtain the rights to several brand new, exclusive products, as well as to significantly increase our online range. Gavin has also been working closely with the team at Suttons trials grounds to expand the growth of herbaceous plants to provide even better value to Sutton’s customers. An additional, experienced nursery manager has been recruited to further enhance the company’s capabilities in this area. Working with the researcher, he will assist with the expanded trialling programme of new plants and growing techniques.
The company recognises that innovation is the key to future growth and these new appointments will help to keep Suttons at the forefront of new seed and plant introductions.
The company has recently acquired the Ascott smallholders supplies business and this will provide new ranges of products for the Dobies Group scheme partners, particularly in the allotment, smallholder and Horticultural Society market. Further company acquisitions are being actively pursued and we hope to make significant improvements to the range of products and
services available to our direct customers and retail partners in the coming months and years.
For a number of years, the packet seed market has been static at best. By working closely with our retail partners, Suttons has been able to increase retail sales and expect further improvements from its innovations in seed displays over the coming 12 to 24 months including the introduction of exclusive ranges of seeds with some retail partners.
It can be tempting to attract new direct customers through discounted online seed offers but in contrast to some competitors, and in recognition of the potential adverse effect on the retail market, last year Suttons has continued to reject online discounting of packet seeds as a marketing tool, instead, it concentrates on providing year round value for money on its products.
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