Asda is stepping up its direct sourcing capability with a raft of new developments in the UK, FPJ can reveal.
The supermarket, via its direct sourcing arm International Produce Ltd (IPL), purchased a dried fruit and nut facility in Telford in May and is already packing own-label nuts. From this week, the site has reached 100 per cent supply on five core Asda lines as part of three phases of growth up to January 2012.
IPL also plans to invest in new dried fruit and nut packing facilities and “enhancements to improve the customer offer” next year, a spokeswoman said.
In a further development, the retailer’s houseplants and flowers business will be moved into the direct sourcing model, with a new site based in Whittlesey, Peterborough employing over 150 staff packing flowers and plants for all Asda depots.
FPJ understands that the business will be open by October and IPL has already recruited a buying team based in the countries of origin and has established a supply chain to flow goods through to Whittlesey.
IPL is also working on a feasibility study to consider setting up a prepared fruit and vegetable facility in the UK.
The moves come as Asda rapidly increases the volumes and range of food procured via IPL. Last year the division began sourcing products as diverse as Italian and Greek cheese, Belgian paté and pasta, and it is believed a much wider range of lines are also under consideration.
Meanwhile, at last month’s Global Table Grape Congress in Cape Town, IPL’s regional manager for South Africa, Mike Newton, revealed that fresh produce would be rolled out in all Massmart stores in the country following the retailer’s acquisition by Walmart in May.
IPL is expected to orchestrate the sourcing of fresh produce for Massmart, a retailer describing itself as a “managed portfolio of four divisions, each focused on high volume, low-margin, low-cost distribution of mainly branded consumer goods”.
No comments yet