Blog: Morrisons raises the bar on fresh food manufacturing

Michelle Russell | 15 March 2012

Morrisons' chief executive Dalton Philips has this week outlined plans for the group to become the UK's largest fresh food manufacturer.

Speaking at the retailer's Second Farming Conference yesterday (14 March), Philips announced plans to invest GBP21m in its livestock supply business, in addition to significant investment in the retailer's fruit, vegetable and salad packing operation, adding to recent investments in seafood and meat processing.

The GBP21m investment will increase the company's capacity at its abattoir in Colne, Lancashire. Morrisons will also complete a GBP200m investment in the expansion of its manufacturing food arm by 2013, meaning it will buy more fresh food directly from farmers than its rivals, it claims.

"If market conditions continue, we will become the UK's largest manufacturer of fresh food by 2015," Philips said. "This investment sets us apart from other retailers and means that we will be the biggest customer for UK farms."

By making more of its fresh products, Morrisons said it can "control quality, cut out middlemen and deal directly" with farmers.

Vion, whose operations are concentrated mainly in the meat sector, is currently the UK's largest manufacturer of fresh food, with Morrisons the second largest.

The announcement comes as competition in the UK's fresh food space is stepping up. Larger rival Tesco recently announced that it will be investing heavily to improve its fresh offering. Nevertheless, Morrisons distinctive farm-to-fork approach leaves it well-positioned to take on the challenge.

 


BLOG

Consumers are cooking for social media - and how brands can capitalise

We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....

BLOG

Nestle announces changes to senior team with new CEO on horizon

Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....

BLOG

Blue Bell Creameries involved in another safety scare

Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...

BLOG

Hain Celestial's Orchard House deal waved through

The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....

just-food homepage



Forgot your password?