Press reports suggest that major potato supplier Produce Investments, which owns Greenvale AP, Swancote Foods and The Jersey Royal Company, has lost one of its key contracts.
According to Food Manufacture, the unnamed customer plans to implement a ‘single supplier strategy’ and so Produce Investments will not be offered a new contract when its existing one expires next August, with product volume expected to be gradually phased over three years from that date.
A spokesman for Produce Investments said, “While naturally disappointed with the outcome of this decision, this is part of the ordinary course of business in the sector in which the company operates. The board will continue to work hard to drive new business and mitigate over time any negative impact this decision may have on the company’s operations.”
The news came just days before new Greenvale managing director Andy Clarkson, who has been promoted from customer operations director, was due to address the FPJ Live conference in Coventry. On his appointment, Mr Clarkson commented, “I am pleased to have the opportunity to continue the development of the Greenvale business. We have a great team internally and externally and I am very much looking forward to the opportunities and challenges that lie ahead.”
Last month Produce Investments accepted a £52.95 million takeover from Jersey-based investment company Bidco, which will delist the group from the stock market.
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Rowe Farming Limited, the Cornish-based daffodil and potato growing subsidiary of Greenvale parent company Produce Investments has purchased fellow Cornish daffodil grower Andrew Farming.
The deal includes 40 new commercial daffodil varieties and 90 smaller seedling varieties and will expand the company’s daffodil portfolio significantly. Under the agreement Kevin Andrew will join the Rowe Farming management team.
Rowe Farming managing director Rob Stacey commented, “This acquisition enables Rowe Farming to offer a wider range of products and services to our customers and in particular we see opportunities in dried bulbs and specialist cut flowers.
“The varieties we have acquired from the deal are extremely complimentary to our own and the combined expertise will enable Rowe Farming to better serve our customers. This acquisition represents a major investment in future daffodil flower and bulb production, underlying our continued commitment to the sector.”
Photo Credit: Richard Crowhurst
The post Produce Investments buys another daffodil grower appeared first on Hort News on 6 January 2016.
Produce Investments, the parent company of potato packer Greenvale, has said that it will close the recently acquired Kent Potato Company after a metal contamination incident at its prepared foods business could remove between £300,000 and £1.5 million from its results next year. In its latest results revenues fell from £191.8 million last year to £178.4 million.
The AIM-listed company is still investigating the issue at its Swancote Foods subsidiary in Shropshire, after a mechanical failure resulted in the recall of potato salad and ready meal products across a range of customers.
In a statement the company said; “Following a recent review of potato packing operations, the company is proposing to transfer all packing and associated operations from its site in Kent to sites in Cambridgeshire and Scotland. Regrettably, this would mean the closure of The Kent Potato Company site with associated redundancies.”
The company has won a three-year agreement at a fixed margin with one of its main retail customers. However, the deal has come with a reduction in overall volume from next July.
Chief executive Angus Armstrong said; “While this reduction…is clearly disappointing, we are extremely pleased to have achieved this arrangement, a first for our business, a signal of market confidence in Produce Investments and a positive step forward.
“Consequently, as a result of the reduction in volume, the company is currently reviewing its requirements across its packing facilities, aligning capacity to forecast sales and therefore ensuring that the business remains efficient and cost competitive.”
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