Asda has defended its revamp its salads supply chain, a move that could lead to own-label manufacturer Bakkavor cutting jobs.
The UK’s number two retailer told just-food today (2 June) it wanted to source more of its produce direct from UK farmers in a bid to cut costs and keep prices down.
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The move has been cited by Bakkavor as the reason why it needs to revamp its packing operations at company subsidiary English Village Salads. Over 100 staff at EVS’s two sites in North Yorkshire could be made redundant.
Asda said it had been in talks with EVS for 18 months. “This is not a decision we have taken lightly. We have been in consultation with English Village Salads for 18 months and have worked hard to make sure the transition is as smooth as possible for all involved,” the retailer said.
“Asda is moving to a model where it sources directly from British growers, investing in both ends of supply chain by cutting out the middle man and passing the cost savings on to customers by lowering prices across the store.”
Asda’s plans include the creation of 160 jobs at its “centre of excellence” in Normanton, which employs 600 staff.
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