Mack and Geest have set up a jv to manage their potato and conventional and organic vegetable business with Marks & Spencer.
The 50:50 merger was announced on Monday with the creation of Manor Fresh Ltd. It represents a merger of Mack’s DGM Growers and Geest QV which both supply potatoes and vegetables to M&S.
The new joint company will have an annual turnover of some £50 million and more than 200 employees. A new management team has been created from both the previous teams with a “very small number of redundancies as well as natural wastages with some recent vacancies not being filled,” said Manor Fresh md Ian Craig, formerly of DGM Growers, pictured.
The new business will be based at the Geest QV site while personnel and equipment from the DGM site will be transferred over the next four months. The DGM site will then be sold. Both facilities are in the Spalding area.
“This is something that has come about as we looked at the potato supply chain and the pressure we are under to be competitive,” said Craig. “We wanted to get the best from the existing supply chain by consolidation and delivering synergies to our customer.”
Manor Fresh has other customers, but the impetus for its formation came from a desire to consolidate the business of both shareholders with Marks & Spencer.
The Lincolnshire-based jv will manage fresh potato supply as well as providing conventional fresh brassicas and legumes and organic brassicas and root vegetables to the retailer.
M&W Mack chairman Chris Mack said: “One of the key factors in Mack’s decision to acquire DGM Growers three-years ago was the obvious passion of the team there. We believe that this merger will allow Manor Fresh to apply that passion on an even greater scale.”
Bill Carter, director at Geest QV, added: “Following the success of Geest QV, the shareholders are delighted to be joining forces with Mack to create Manor Fresh.”
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