Shake-up in UK bracket distribution
It’s been all change in the UK bracket distribution market this month. Distributor BBG and long term supplier Vogels parted company at the end of February before announcing a new supplier this week.
On the 24th of February, a statement from both BBG and Vogels was released, declaring that by mutual consent the distribution agreement would be terminated as of March 23rd. Both companies have been at pains to make it clear that the split is amicable, and merely represents a divergence of business interests between the two brands.
Vogels has subsequently announced the establishment of its own direct distribution firm in the UK market – Vogels Products UK. The company states the move is because of the important of the UK market to the company. At the moment it only enjoys a market share in single figures. When InAVate met with Roland van Marlen, manager of Vogels’ professional business unit, he said that the company had ambitions to reach 30%.
It is thought that another reason behind the original split from BBG is that the company is being hurt by the recent devaluation of the Pound versus the Euro, which has moved as much as 30% over the last six months. That’s enough to take a significant chunk out of anyone’s margin.
On the same day that Vogels announced its move, BBG has announced its new bracket supplier to be American firm Peerless Industries.