Produce World Group chairman and CEO Neil Fraser's “ridiculous” growth target contributed to his own downfall, an industry source has claimed.
Fraser, who gave an interview to this magazine last year in which he stated his desire to turn Produce World into an industry-dominating £500 million business, left the firm after just 10 months in the dual role. He had worked at Produce World since 2011.
The company has insisted that Fraser’s exit – which follows the recent departures of group commercial director Frank Robinson, group procurement and trade director Jon Campbell, and supply chain director Tim Preston, and the brassicas JV between Produce World and Lincolnshire Field Products (LFP) ending – comes about “principally as a result of our financially-driven decision to exit brassicas, and the consequent need to resize the business appropriately.”
The source told FPJ: “Fraser was running around the industry trying to do any form of JV or acquisition that he could. Everyone saw that article in FPJ – people thought that the £500m target was ridiculous.
“He spent too much time trying to do these kind of deals rather than fixing the company itself. And not only that, directors were being hired and fired every five minutes, which hasn’t helped.”
William Burgess has taken over as CEO and chairman, going back into the top job after working as strategy director and vice-chairman roles under Fraser.
Writing on Redfox’s Fresh Produce Forum, a user purporting to be Burgess wrote: “We have had too much change. I intend to get the business focused on what it’s always been good at – roots, potatoes, onions and organic farming.”
A Produce World spokesperson added: “We have strong leadership in the business, and our overall strategy remains the same.
The challenges within the industry have not changed, and there will inevitably be further consolidation across the supply chain.
“We want to continue to grow and develop the business concentrating on our core sectors, and aiming to supply high levels of service, and quality produce on the firm foundation of four generations of experience of farming and our excellent relationships with our expert growers.
“We have huge respect for LFP, who we believe are excellent brassica growers of very long standing and will continue to do a great job in this very challenging category.”
Produce World featured in 13th place in the FPJ Big 50 Companies 2016 with a turnover of £172m.
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