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Dorset bakery flourishes in hard times Dorset bakery flourishes in hard times
(about 8 hours later)
By Rebecca Davis BBC NewsBy Rebecca Davis BBC News
While profits fall and sales decline at many larger retailers, a small bakery in Dorset is growing beyond all expectations.While profits fall and sales decline at many larger retailers, a small bakery in Dorset is growing beyond all expectations.
Emma Custard, Honeybuns' owner, wants to stay independentEmma Custard, Honeybuns' owner, wants to stay independent
Sitting underneath a pink umbrella in the Honeybuns Bee Shack café, cake in one hand, tea in the other, you would find it hard to believe that the sugary eco-treats produced here find their way to high-speed trains, corporate canteens and supermarket shelves. Sitting underneath a pink umbrella in the Honeybuns Bee Shack cafe, cake in one hand, tea in the other, you would find it hard to believe that the sugary eco-treats produced here find their way to high-speed trains, corporate canteens and supermarket shelves.
The home of Honeybuns baked goods is other-worldly. Based at a converted farm near Holwell in Dorset, the firm's bakery used to be a milking shed, their visitors' cafe a chicken hut, and their office a former pigsty.
A converted farm near Holwell in Dorset, their bakery used to be a milking shed, their visitors' café a chicken hut, and their office a former pigsty.
Surrounded by green fields, birdsong and donkeys, Honeybuns' HQ is like something out of a children's story book.Surrounded by green fields, birdsong and donkeys, Honeybuns' HQ is like something out of a children's story book.
But even more extraordinary is that while many big businesses are suffering the effects of the recession, this ethical food producer is thriving.But even more extraordinary is that while many big businesses are suffering the effects of the recession, this ethical food producer is thriving.
Emma Goss Custard, the founder of the company, says: Emma Goss Custard, the founder of the company, says: "Last year was our strongest year ever, and this year looks set to be the same…. it went beyond all expectations."
"Last year was our strongest year ever, and this year looks set to be the same….it went beyond all expectations."
Ethical business successEthical business success
Honeybuns is not alone in running a successful ethical small business.Honeybuns is not alone in running a successful ethical small business.
People are treating themselves with small things, rather than buying new cars Richard Ford, Grocer MagazinePeople are treating themselves with small things, rather than buying new cars Richard Ford, Grocer Magazine
Frugi, a family-run online organic children's wear specialist, has seen their business double in the past 12 months. Frugi, a family-run online organic children's wear specialist, has seen its business double in the past 12 months.
And Jackie Williams, owner of the Organic Health store in Cambridge, which sells organic and locally sourced foods, is also doing well. She has seen some monthly sales this year increase by 40% compared to last year, adding to 14 years of steady growth.And Jackie Williams, owner of the Organic Health store in Cambridge, which sells organic and locally sourced foods, is also doing well. She has seen some monthly sales this year increase by 40% compared to last year, adding to 14 years of steady growth.
Experts suggest that one reason for the success of these businesses are a result of consumers seeking out more affordable treats. Experts suggest that one reason for the success of these businesses is consumers seeking out more affordable treats.
People are "treating themselves with small things, rather than buying new cars," says Richard Ford at the Grocer Magazine. People are "treating themselves with small things, rather than buying new cars", says Richard Ford at the Grocer Magazine.
Fundamental shift?Fundamental shift?
Honeybuns bakery has a variety of successful productsHoneybuns bakery has a variety of successful products
But some argue that the success of these companies may be part of more fundamental shift in consumer behaviour. But some argue that the success of these companies might be part of more fundamental shift in consumer behaviour.
FairTrade, which certifies brands which meet ethical standards, and is now sold in supermarkets across the country, argues that "consumers are calling for a new model in trade……Their shopping habits and decisions tend to reward (or punish) companies that meet (or do not meet) their expectations." FairTrade, which certifies brands which meet ethical standards, and is now sold in supermarkets across the country, argues that "consumers are calling for a new model in trade".
If this is true, then Honeybuns, with their bee-green tree planting projects, goldfinch habitat programmes and logs for hedgehogs scheme, are worthy of the rewards they are receiving. "Their shopping habits and decisions tend to reward (or punish) companies that meet (or do not meet) their expectations."
Even for ethical companies that aren't going to these lengths, sales are still increasing. If this is true, then Honeybuns, with its BeeGreen tree planting projects, goldfinch habitat programmes and logs for hedgehogs scheme, is worthy of the rewards it is receiving.
Vic Morgan, chief innovation officer at Ethical Superstore, an online eco-product specialist with no green projects on the side, states that their "sales have been growing by 50% year on year, regardless of the downturn". Even for ethical companies that are not going to these lengths, sales are still increasing.
Vic Morgan, chief innovation officer at Ethical Superstore, an online eco-product specialist with no green projects on the side, states that "sales have been growing by 50% year on year, regardless of the downturn".
And mainstream companies like Eurostar, John Lewis and Sainsbury's have all stocked Honeybuns' products.And mainstream companies like Eurostar, John Lewis and Sainsbury's have all stocked Honeybuns' products.
Annie Brolesworth is a regular Honeybuns customer at Alweston Post OfficeAnnie Brolesworth is a regular Honeybuns customer at Alweston Post Office
Train company First Great Western say that they stock them partly because of "consumer demand, which will itself reflect ethical considerations", according to company representative Ellie Banks. Train company First Great Western stocks them partly because of "consumer demand, which will itself reflect ethical considerations", according to company representative Ellie Banks.
But Honeybuns haven't forgotten about their smaller stockists. But Honeybuns hasn't forgotten about its smaller stockists.
Nick and Sally Wolmer of the Alweston Village Post Office, Dorset, say that they "always have an empty Honeybuns basket to refill at the end of the day" and can list the favourite Honeybuns products of many of their customers.Nick and Sally Wolmer of the Alweston Village Post Office, Dorset, say that they "always have an empty Honeybuns basket to refill at the end of the day" and can list the favourite Honeybuns products of many of their customers.
Green premiumGreen premium
We don't want more machines in the bakery than people Charlotte Drake, HoneybunsWe don't want more machines in the bakery than people Charlotte Drake, Honeybuns
While small ethical businesses appear to be doing well, the ethical and organic product industry as a whole has taken a hit.While small ethical businesses appear to be doing well, the ethical and organic product industry as a whole has taken a hit.
Supermarkets are seeing a significant decrease in sales of organic products.Supermarkets are seeing a significant decrease in sales of organic products.
Neil Saunders at Verdict Research identifies the green premium, the mark-up on some ethical products, as the cause. His observations suggest that price is still at the top of peoples' agenda, especially during the economic downturn. Neil Saunders at Verdict Research identifies the green premium, the mark-up on some ethical products, as the cause. His observations suggest that price is still at the top of people's agenda, especially during the economic downturn.
Other industry insiders say the recession-led thriftiness is only a temporary phenomenon.Other industry insiders say the recession-led thriftiness is only a temporary phenomenon.
The Ethical Superstore believes they are seeing the early signs of a long-term shift. The Ethical Superstore believes it is seeing the early signs of a long-term shift.
"Interest in sustainable products has gone from being a niche to being much more mainstream….anything sustainable is going to be part of future economic development," Mr Morgan says. "Interest in sustainable products has gone from being a niche to being much more mainstream…. anything sustainable is going to be part of future economic development," Mr Morgan says.
In their Retail Futures report, sustainability consultants Forum for the Future predict that tomorrows consumers will "search for….products that are more 'natural', local, healthier and greener." In its Retail Futures report, sustainability consultants Forum for the Future predicts that tomorrow's consumers will "search for…. products that are more 'natural', local, healthier and greener".
They advise that this desire for "authenticity" will become a "mainstream retail issue." They advise that this desire for "authenticity" will become a "mainstream retail issue".
Outside investmentOutside investment
The company wants to keep close to its rural rootsThe company wants to keep close to its rural roots
For small ethical businesses achieving impressive levels of growth, one issue is whether to accept outside investment, with a possible loss of control.For small ethical businesses achieving impressive levels of growth, one issue is whether to accept outside investment, with a possible loss of control.
Neil Saunders at Verdict Research warns that by selling out to big investors "you can lose some of what made you special".Neil Saunders at Verdict Research warns that by selling out to big investors "you can lose some of what made you special".
But he points out that the bulk of ethical product sales are achieved through large-scale retailers.But he points out that the bulk of ethical product sales are achieved through large-scale retailers.
Therefore by choosing to stay small, ethical businesses could be missing an opportunity to have a significant influence over industry.Therefore by choosing to stay small, ethical businesses could be missing an opportunity to have a significant influence over industry.
In the case of Honeybuns, its owner has refused numerous investment offers.In the case of Honeybuns, its owner has refused numerous investment offers.
The production manager, Charlotte Drake, explains that they "don't want to become a factory".The production manager, Charlotte Drake, explains that they "don't want to become a factory".
"We want to keep the team the size it is...we don't want more machines in the bakery than people," she adds. "We want to keep the team the size it is. We don't want more machines in the bakery than people."
By choosing to not expand on a grand scale, the ethical gap in the market is being filled by larger businesses. By choosing not to expand on a grand scale, the ethical gap in the market is being filled by larger businesses.
But Ms. Custard, Honeybuns' founder, is not concerned about the possibility of supermarkets becoming a threat to her niche. But Ms Custard, Honeybuns' founder, is not concerned about the possibility of supermarkets becoming a threat to her niche.
She says that "if the right values are not central to your business they won't be sincere…. customers are very savvy as to what is genuine." She says that "if the right values are not central to your business they won't be sincere…. customers are very savvy as to what is genuine".