Following the end of negotiations with Scotts last week, Solus CEO Mark Pearson has confirmed that the company has engaged Grant Thornton to review its strategic options.

“We are in discussion with several trade and financial partners,” he said. “Clearly, as we are now in peak season, it is important for all parties concerned that we conclude any discussions as quickly as possible.” 

Mark Pearson added: ‘’I want to thank those long-standing retail partners of Solus who have sent some excellent messages of support.  It is great that they are continuing to buy in volume from our Solus own-brand ranges.  We are fully stocked and the promotions we are launching now will be backed up by further special offers over the next two weeks – perfect to maximise the opportunity of a good growing season and set up for what we hope will be a great summer.’’ 

With regards to the cautious approach taken by Solus’ 3rd party suppliers, Mark added: “We continue to work with our brand partners, with exception of Bayer, to deliver orders as usual to the excellent service levels for which Solus has always been known.’’

GTN Xtra has since received answers to questions put to Solus following this statement.  See related article.

Following the Solus statement issued earlier today, GTN Xtra put the following questions to the company, and here are the responses:

GTN Xtra:  Who are the 3^rd party suppliers that retailers can buy their stocks through Solus now?

Solus:  The only accounts not trading with Solus as of today are Bayer and Scotts. The vast majority of other major accounts, including Fiskars, Town & Country, RSPB and Neudorff are still trading with Solus.


GTN Xtra:  Can we report that Scotts products are still available for delivery in the short term?  

Solus:  Yes. Solus still has Scotts products in stock and is continuing to supply and take orders on Scotts stock held

GTN Xtra:  When exactly did Bayer stop using Solus?

Solus:  Officially today (Monday)

GTN Xtra:  What was the tipping point that caused negotiations with Scotts to break down?

Solus:  The details are confidential but Solus can confirm it was not part of the due diligence process and a last-minute demand which Solus thought unreasonable.

GTN Xtra:  Why did the distribution agreement with Solus not get renewed?  This is a fundamental one for people to understand as they are thinking Scotts pulled out of distribution because Solus may be in trouble...

Solus:  Scotts had plans for going direct to market without Solus for several months preceding the failure of the talks.  Clearly the decision to move away at peak season creates significant challenges for Solus as well as our shared customer base.

GTN Xtra:  What activities are the Solus sales team engaging in to re-assure customers of continued supply etc?

Solus:  Solus reps are doing what they should do – reassuring customers, taking orders, offering promotions and answering questions. The sales team is addressing the issues in a structured and responsible way. Scotts instructed their salesforce to brief customers before the negotiations with Solus were concluded: the Solus team was in the boardroom negotiating when Scotts reps were telling customers the deal was off.

GTN Xtra:  Lastly, in what capacity have Grant Thornton been engaged?  To find a buyer for the business or as some may jump to conclusions to be administrators.

Solus:  Perhaps an understandable conclusion but Grant Thornton have been engaged solely to help build a strategic direction for the business and follow through on advances from interested companies.

Commenting in response to the changes at Solus, Paul Lerigo, Head of Marketing at Bayer Garden explained: “Now, in the midst of the season, it is particularly important that Garden Centres have access to the full range of Bayer Garden products”

“Our products continue, of course, to be available from our distribution partners at Decco and Stax.”

“Any customers with questions relating to the supply of Bayer Garden products should contact their local sales representative or Bayer customers services directly on 01223 226501.

As the ramifications of the split between Scotts and Solus started to take shape today, all of the suppliers we contacted were "doing all that we can to ensure supplies to our customers."

Martin Breddy, VP & General Manager of Scotts Miracle-Gro, commented: “As a company, we would like to reassure everyone that all of us at Scotts Miracle-Gro are working as hard as possible to fulfil orders and to make the supply of our products as seamless as possible. We'd like to thank our customers for their understanding during this challenging period, and also extend our thanks to the other partners who are helping out."

Some suppliers, even those who are not distributed by Solus are concerned of the possible implications to the trade as a whole.

A garden products supplier MD, told GTN Xtra:  "Customers are obviously concerned about continuity of supply and many will have negotiated valuable rebate agreements which must now be called into question. If rebate payments are not ultimately made then retailers will lose a valuable income stream and that impacts on all suppliers as this money is lost from the trade.  Should the worst happen, the rest of the supply chain must take the strain to keep the trade fed with stock so that retailers can make the most from what has begun as a very promising season. This will be no easy task!"

If you are a supplier with a view on the situation, please add a comment below or contact GTN Xtra:  trevor.pfeiffer@tgcmc.co.uk - 07973 504214.

As a result of Spring-like conditions, the total volume sales in the GTN Bestsellers All Products index shows it has actually been the best March since 2009.

The last week of March was buoyed by a good Mothers’ Day. Total volume sales were up 43% on the same week last year, with plants, gifts and catering leading the way. As customers focussed on looking after Mum, gardening product and growing media sales tailed off slightly from the previous week.

Whether this start to Spring becomes a really good garden centre retailing season or not now depends on the weather during April. Remember, we didn’t have a bad March in 2011 and then it went all wrong in April and May.

The Met Office reports in their forecast for the second half of April: “By day, temperatures are likely to be near or above average, so conditions are likely to feel quite pleasant in sunshine.”

Better get the outside catering areas all ready for action and add some garden furniture and BBQ merchandising around it!

GTN Bestsellers Top 50 sales volumes
compared to the same week last year

• 
  Garden Products – up 14%
• 
  Veg-2-Gro – up 46%
• Growing Media – up 63%
• All items index – up 43%

To subscribe to GTN Bestsellers email karen.pfeiffer@tgcmc.co.uk

The UK’s number one selling weedkiller brand Roundup will soon be hitting the nation’s TV screens as its £2m consumer advertising campaign begins ahead of Easter.

For the past several years Roundup has committed to a multi-million pound national TV advertising campaign and 2014 is no exception. A wide mix of TV channels have been incorporated into the schedule, with Roundup being advertised between popular programmes on ITV, Channel 4 and Five, as well as the Republic of Ireland’s RTE and TV3. This year the TV adverts will be running from Easter weekend until mid-July, an extra 6 weeks, covering the key gardening and weeding season.

The advertising will focus primarily on Roundup’s award-winning Gel, which has continually dominated the list of best-selling weedkiller packs in the UK. The schedule also includes Roundup’s popular Pump ‘N Go system, another one of the brand’s industry-leading innovations.

The TV advertising is part of Roundup’s multi-platform, wide reaching consumer communications campaign for 2014, through which the nation’s gardeners will see Roundup in print, on social media and through attractive in-store POS and displays.

Gary Philpotts, Roundup Lawn and Garden UK Business Director, said: “With this heavy investment to drive demand for Roundup branded products, retailers will be able to take advantage of increased sales, particularly over the forthcoming Easter break and May bank holidays.

"With the high level of investment in this year’s longer campaign, which builds further on the support for the brand over the past few years, there is no doubt Roundup will once again be the brand everyone will be asking for and looking to buy.”

To find out more about the UK’s leading weed killer brand and how it can help you increase sales this season, visit www.roundup-garden.com/trade or call 01483 410334.

Kelkay's Build Mate range of 16 products was launched at Glee 2013 and has enjoyed an excellent response with many retailers acknowledging the extra sales opportunities that it has provided.

It has helped to drive significant profit increases for those retailers that have invested in this entirely new market sector.

With brighter skies comes warmer weather and the chance for homeowners to get their gardens ready for the summer.

As the UK's leading decorative aggregates supplier, Kelkay offers an extensive range of decorative and natural stone paving.

The Build Mate products now complete this offering providing a one stop shopping experience and allowing the consumer to buy all they need to improve their homes and gardens and complete their hard landscaping tasks.

Kelkay's Managing Director, Antony Harker said: “This new focused category has made stocking this range simple, easy and hassle free. With informative packaging providing clear instructions and trade secrets, retailers do not need to become DIY experts to sell this product and consumers can easily identify what products are required for the task at hand.”

Available now and supported by strong, attention grabbing point of sale, the 16 products in the Build Mate range include sand and cement, fix-a-post, concrete mix, building, sharp and kiln dried sand and 10mm and 20mm gravel among others. S.R.P from £2.50 a bag, on selected offers.

For more information on Kelkay's Build Mate range email salesenquiries@kelkay.co.uk or call 01405 869333.

It's time to enter your teams into the 2014 Greatest Awards – and we have some different and exciting new opportunities for your this year.

With the event taking place alongside SOLEX, the foremost outdoor leisure exhibition in the UK, we have introduced some new categories for the garden centre sales and display teams to get their teeth into...

• The Greatest BBQ Sales Team
• The Greatest Outdoor Furniture Sales Team
• The Greatest Garden Decor and Lighting Sales Team

Popular categories also available to enter are:

• The Greatest Planteria Sales Team
• The Greatest Garden Care Sales Team
• The Greatest Home Interiors Display Team
• The Greatest Garden Centre Merchandising Team

To register free for any or all of these categories, email trevor.pfeiffer@tgcmc.co.uk

The Greatest Awards 2014 are produced in association with SOLEX...

and sponsored by Weber

A statement from Scotts said:  "No further stock will be dispatched to Solus. No further Growing Media orders will be invoiced by Solus."

Solus Garden and Leisure had issued a statement late on Wednesday afternoon saying that "regretfully" it was no longer in negotiations to join forces with the Scotts Company (UK) Ltd.

Solus CEO Mark Pearson said: “We are disappointed that our discussions with Scotts have not been fruitful but remain positive about the future of the company. 

"The Board and the Shareholders are pursuing a number of other options for the business and we will communicate our plans in due course.’’

The shock news of the Scotts-Solus split broke on Wednesday. Initially, it was thought an agreement between the two parties would be finalised by Easter. How dramatic and quickly things can changes in business.

If you have any worries about supplies to your garden centre let us know by emailing trevor.pfeiffer@tgcmc.co.uk

Derek Bunker - Alton Garden Centre

“It’s very sad that one of the trades’ best suppliers for many years is in trouble.  It is very difficult for anyone to know exactly what the situation is, but I like many others are obviously very concerned about future supplies, especially as we enter our busiest time.

I've been a loyal customer of Solus for many years and I'm saddened by the current situation.  No one likes to see a good supplier lost to the trade.  The sooner we can reach some conclusion on the future of Solus the better for all of us.   No one wants confusion at this time.

As a business it is extremely annoying that we now have to have direct accounts with so many suppliers, Scotts, Doff, Sinclair’s, Wolf Wilkinson, Hozelock, all of which we used to buy through Solus and received excellent delivery service and stock holding.

We are now at the vagaries of various transport systems around the country, some of which are pretty poor with service.   No other wholesaler has ever come close to the service and stockholding that Solus had.”

Martin Stewart – Stewarts Garden Centres

“Have we ever known a time of such large and fundamental change in our industry?

Garden Centre retailing is a massively complicated business with such a diverse mix of products to stock and sell, together with the perishable nature of our plants. The amount of change at suppliers and The Garden Centre Group needs following closely.

 A few months ago we started looking at the implications of the changes and sent members of the team to the Decco trade show earlier in the year.  If the supply of some items gets difficult then we will contemplate taking more deliveries direct which will impact on our storage space and cash.  Deliveries will have to be bigger than usual to make them worthwhile.

So far we are having a very steady Spring, it’s not too hot and not too cold, it’s right on the button.  Let’s hope this turmoil in the trade doesn’t cause us to suffer any damage to that steady business.

The situation at Solus is going to have ramifications right through the trade.

One thing is certain:  Glee will be fascinating this year, there will be so much to tie up going forward.”

Matthew Bent – Bents Garden Centre

“It is a worry if Solus are in difficulty, cannot supply product on an ongoing basis and especially if they cannot continue trading.  We encountered a similar situation with Spread many years ago and had to find alternative sources.”

Sam Bosworth – Bosworths Garden Centre and Chairman Choice Marketing

“Choice has an excellent relationship with Scott's and both are confident that there will be no interruption to supply of Scott's products to our retail outlets.  Both Scott's and Choice are working together to ensure continuity of supply.

Solus are also a major partner to the members of choice marketing, and whilst choice are currently unsure as to why the partnership between choice and Solus has failed, we can confirm that Solus have not reneged in any part of the deal currently in place, in terms of supply of product and financial contribution to the group.  However with Scott's products no longer available through Solus, choice marketing will need to monitor and adapt to the quickly changing supply chain.

Garden Centre Owner – name withheld

"Very disappointing news, having been persuaded to return to Solus as our main supplier for the 2014 season we are having to renegotiate deals in the middle of the season when the time should be spent on the shop floor with customers. 

The value of trade given to Solus so far will have a huge impact on our ability to now reach targeted rebates with alternative suppliers.  We understand other suppliers who use Solus for distribution have pulled out too, what does the future hold?  Will suppliers now be offering direct accounts?  Will the alternative wholesalers be able to cope with the additional demand for stock so close to Easter?"

Gary Carvasso – Coolings Garden Centre

“It is true there are rumours that suggest Solus may struggle to stay credible and solvent with suppliers.  We hoped they continue for our sake, it can only damage the industry particularly as this crucial time of year if they ceased trading.  We should all support them as best we can, at the same time ensuring all our ‘Easter’ eggs are not in one basket!”


Charlie Groves – Groves Garden Centre

“Whilst we do use Solus as a supplier we gave our pre season (and so in season) orders to Decco this year largely because Decco can deliver to us twice a week, so the Scotts/Solus situation hasn’t affected us directly.

Having said that, of course competition and choice between wholesalers is always a good thing to ensure that we can get the best possible deal for our customers.  So Scotts not supplying Solus is not good at all.  Unfortunately Solus seem to be stocking less and less manufacturers and focusing on their own brands more and more which is making it more tricky to stock some of the more specialist essentials.  

At the moment it seems to be Decco who have the right formula for being a wholesaler; regular & frequent small deliveries from a range of manufacturers so that we can keep our shelves full during not only the busy season but during the quieter periods without having to commit to large quantities of stock.  This is particularly essential in seasons with unexpected starts or ends as it means that as retailers we can be more reactive to stocking the bigger brands if the weather turns good.

Nigel Wallis – Baytree Garden Centre

“I have to say that when Solus started to fall apart as in loose key members if staff, the people the industry has known and trusted for years, I thought here we go, Gardman all over again!  They don't know anybody, the people running it have not been in the garden centre trade,  so we started looking at Decco as an alternative and we decided to put Scott's through them and apart from an odd hiccup to do with EPOS we have not had a problem. 

As for Solus own brand, we have not had a problem yet and are covered with the Wilkinson Sword/Wolf ranges that do well for us.

I hope that Solus do not go pop owing their suppliers, but if Scott's have pulled out, Sinclair already have and hearsay is that others are going direct then it does not sound good.  But who knows?  As far as we are concerned, apart from Graham our rep, who is running it because we have heard nothing!

As long as we can get stock for the next 4 months to get through what looks like being a good season we will be fine and then we look forward to GLEE.  I think it is going to be very interesting!”

If you'd like to add your voice to the comments about the current situation, please use the comments link below, or e-mail trevor.pfeiffer@tgcmc.co.uk

Every week GTN receives and analyses epos data from a number of UK garden centres to produce the GTN Bestsellers charts and weekly bestsellers sales tips.

The full charts which provide useful insight into product sales peaks, new trends and new link sales opportunities are published in the weekly GTN Xtra printed newsletter.

As the year goes on we give sales volume comparisons with 2012 as well as 2013 to allow your teams to see variations over a three year period.

Access is by subscription only.  For £145.00 per year you and your team can have access to the most upto date gardening sales analysis that has already helped many UK garden centres increase their sales.  To subscribe call 01733 775700, e-mail karen.pfeiffer@tgcmc.co.uk or buy on-line using the link below.

Highlights of the GTN Garden Products Bestsellers chart for last week are here

Highlights of the GTN Veg-2-Gro Products Bestsellers chart for last week are here

Highlights of the GTN Growing Media Bestsellers chart for last week are here

WARNING the GTN Bestsellers Charts seriously improve the business of our subscribers.  Invest 15 minutes each week in improving your sales using the GTN Bestsellers charts and your turnover and customer satisfaction will improve too.