Kent grower AC Goatham & Son has begun supplying top fruit directly to Sainsbury’s in a move that represents a significant strategy shift by the retailer.
Goatham has pulled out of supplying Sainsbury’s via OrchardWorld and is now selling direct. It already supplies directly to Morrisons, its other major customer.
The company is opening a new £9 million packing and distribution centre at Flanders Farm in Rochester, Kent, next week, with Sainsbury’s chief executive Justin King expected to cut the ribbon at the ceremony. The site will also become Goatham’s new HQ.
“We are entering our first season as direct suppliers into Sainsbury’s,” said senior partner Clive Goatham. “This facility has been designed with the needs of our retail partners in mind.
“Improving quality and offering better service to both our retail and growing partners is key to our success,” he added.
Some £1.9m of funding for the new facility came from a DEFRA grant from the Rural Development Fund, with the new facility boasting high-speed packing lines and new fruit management and assessment technology.
Goatham will now supply around 200 million apples to Sainsbury’s this season, and has targeted some 50,000 tonnes of supply by 2020.
“Building on our 10-year partnership with AC Goatham, this is a great step for the apple industry and for our customers, who will see more British fruit on shelves,” said King. “Looking forward, we have committed to double sales of British food by 2020 as part of our 20x20 Sustainability Plan, and we expect this site to play a key part in helping us meet this target.”
Goatham said the developments would help “support British farmers by putting more money back in their pockets to invest in the future” and would also mean season extension thanks to investment in new varieties and growing systems.
Sainsbury’s product technologist Theresa Huxley added: “Being involved in the opening of Flanders Farm comes as an example of our clear commitment to British farming and maintaining valued partnerships with our suppliers.”
OrchardWorld declined to comment on the developments.
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