IPL, the buying arm of Asda, has opened talks over buying potato production sites from Fenmarc and QV Foods.
FPJ can reveal that IPL has entered exclusive negotiations with Fenmarc to acquire its potato packing business in Westry, and with QV Foods over its Scottish potato packing assets in Inchture.
The move follows a strategic review of Asda's potato sourcing arrangements, and is set to continue the supermarket group's approach of more direct sourcing, as well as developing closer relationships with growers.
It also reflects the continued expanding role for IPL within Asda's sourcing strategy. In the last five years it has grown to take in new operations such as bottling wine, slicing and packing cooked meat, as well as handling a large range of fresh produce.
The acquisitions are set to complete in 2015 in the case of Fenmarc's Westry site, and 2016 for QV's Inchture facility. Staff from both sites would transfer their employment to IPL/Asda.
IPL managing director Nick Scrase said: 'This is good news for both growers and customers. We want to put stability back into the potato industry and give reassurances to growers with longer-term contracts that allow them to grow their businesses.
'Having direct relationships with growers means we can ensure consistent quality for our shoppers, at great Asda prices.'
If the deals complete, it will represent the second major sale of a Fenmarc site in a short space of time following last month's sale of its Swinderby roots division to Produce World.
Fenmarc and QV Foods were unavailable for comment by the time of publication.
No comments yet