Talking Tesco: UK Competition Commission

Supplier case studies – small suppliers

Gillian Howell, apprentice distiller for Tesco supplier The Welsh Whisky Company

Although many of our suppliers have grown with us over the years, we are always interested in new suppliers with great products to offer. We work with many small suppliers helping them to grow their business. We understand that sometimes times are tough, especially for small suppliers, so we make every effort to support them and help them grow into strong sustainable businesses.

The Welsh Whisky Company

The Welsh Whisky Company is distilling the first Welsh malt whisky for more than 100 years. We were one of the first to stock the now award-winning Penderyn Single Malt Whisky, distilled in the village of Penderyn, in the Brecon National Park. There the equivalent of just two barrels a day of single malt are produced by a small team, including apprentice distiller Gillian Howell – a 25-year-old chemistry graduate and Wales’ only distiller.

The company has been supplying us with Brecon Special Reserve Gin, Brecon Vodka and Merlin cream liquor since it launched in 2001.

Managing Director Stephen Davies said: "Tesco has been instrumental in helping us to establish the Penderyn brand. They showed faith in us from the start. Last year, we supplied 11,000 bottles of whisky to Tesco, including a Grand Slam edition to mark the rugby success."

Already the fledgling company has doubled its staff, to 20, and is currently exporting to a new country each month.

Trevor Giles

Trevor Giles grows organic English Victoria plums for us in the Vale of Evesham.

His first year of working with us, Trevor admits he expected us to dismiss him out of hand when frost struck and wiped out two thirds of his crop.

But he says: "Tesco said they wanted a partnership whereby we look after each other in good times and bad, so they still took my fruit, even though I could only offer three tonnes. This year the crop looks much healthier and I’m hoping to supply between 10 and 20 tonnes of plums."

The security of the Tesco deal is enabling Trevor to re-invest in his orchard, which he started from scratch four years ago.

Tilly Confectionary

Eight years ago Peter and Elisabeth Patterson were making tablet (crumbly butter fudge) on their kitchen table. Now they supply our Scottish stores with up to 4,000 bars of tablet, fudge and macaroon each week.

Their Clackmannanshire-based firm, Tilly Confectionery, has taken on extra staff since last year earning the contract to work with us, and now employs 14 people.

Peter said: "People love the home-made taste and appreciate the quality of our ingredients and the care with which the tablet is made. We’re delighted that more people now get the chance to buy it."

For more supplier stories see our regional sourcing website.

Key facts at a glance

Long-term suppliers

We have over 1,500 suppliers who have been working with us for five years or more.

Local products

We offer our customers over 7,000 local products in our stores and have plans for even more.

Talk to us and the competition commission