Bottled water brand Thirsti says its partnership with Woolworths has been built on trust and mutual growth.
Not all Woolworths suppliers have an adversarial relationship with the retail giant: The head of one of its biggest suppliers says that in his 11-year relationship with Woolworths, they have always been “completely honourable”.
Rob Hoatson, managing director of Thirsti, the bottled water brand which supplies almost all Woolworths’ beverage products, as well as meat and ice made from pure spring water, said: “This has been a very successful partnership, mainly because we share the same values – of top product quality and integrity.”
Thirsti praises long-standing Woolworths relationship
He said Woolworths has an “amazing” technical team when it comes to food innovation and that they have always been open to new ideas, driven by the same sort of entrepreneurial ethos of Thirsti.
“We pitched a proposal to them when we were just three months old and they gave us a chance. For that, we are eternally grateful.”
The reason that Woolworths had become the benchmark in food retailing in South Africa – but whose offering would compete successfully with any globally – was because they were innovative and flexible and “prepared to take a risk”, he added.
In return, signed agreements between the company and its suppliers set out the parameters of the relationship.
“Understandably, they demand loyalty – and like us they are protective of their intellectual property – but, in return, we get amazing support and, believe me, we have learned a lot from them.”
‘We have never been bullied’
There would be “plenty of robust discussion” in meetings between the two, said Hoatson, but “we have never been bullied, we have never been disrespected or sworn at”.
He said the terms of the relationship were set down in the contract – “as you’d expect in a normal, healthy business arrangement” – and both sides honoured the terms of that agreement.
Yet, with Woolworths, there was also an open way of dealing with its partners: “We know their strategy and their plans and they know ours.”
Thirsti had been able to supply Woolworths with its house-brand product and develop the Thirsti brand.
“From our perspective, this has been a win-win relationship.”
Woolies wins crown of global trust yet again
Woolworths was named one of the World’s Most Trustworthy Companies for a third year in a row by international news publication Newsweek, topping the chart for South African companies on the list, the company announced last year.
The Newsweek ranking is built on extensive surveys and 200 000 evaluations on three dimensions of trust: customer, investor and employee.
The ranking also incorporated social listening analysis with 500 000 mentions from the internet.
“Consumers say trust in a company stems from product quality and value, brand reputation and customer experience,” said Jennifer H Cunningham, editor-in-chief of Newsweek.
“A company that prioritises aspects can see positive impacts, with 87% of customers reporting they are willing to pay more for a product from a brand they trust.”
Woolworths’ long history
- Founded by Max Sonnenberg, the first Woolworths opened in 1931 in Cape Town;
- It originally operated out of the dining room of the recently closed-down Royal Hotel on Plein Street;
- The name was legally borrowed from the American FW Woolworth Company to capitalise on its international fame, but the South African entity has zero operational or financial links to the US;
- The company operates across SA and 10 other countries in Africa;
- Woolworths has 366 dedicated food stores and 225 department stores across SA;
- Food retail is the massive core of the business, generating 69% of group turnover followed by apparel, beauty and home at 27%, and financial services at 4%; and
- Group turnover is R81 billion.
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