(Article from FPJ)
Leading UK foodservice supplier Fresh Direct has acquired Skelmersdale-based Parkfresh, to become its second Fresh Direct Local operation. “Founded nearly 20 years ago by Boyd Park, Parkfresh is a terrific business to add to our bow – a slick, profitable operation with some very strong employees who will complement our own capabilities,” said Fresh Direct chief executive Nigel Harris. The two companies, both of which have already been chosen as finalists in this year’s Re:fresh Awards, have developed along similar lines, Park told FPJ:
“I built the company up from scratch over 20 years into a chain of greengrocery stores, before moving into foodservice supply 10 years ago. Since then, we have grown quicker than anyone else in the North West. We had pretty much saturated the region and, with the help of a £5 million loan from Royal Bank of Scotland, I was looking at acquisition opportunities, as well as a joint venture in Birmingham.” Park met Harris when both were finalists in the RBS Entrepreneurial Challenge – Parkfresh in the northern category, and Fresh Direct in the southern equivalent. “Nigel suggested that I sell Parkfresh to Fresh Direct and take a seat on its board, which meant that I would still have control of the company going forward,” he said. “Joining Fresh Direct Local means the blueprint that Parkfresh has established within the North West for regional fresh produce foodservice can now be rolled out nationally.
The Local concept will explode the myth that many people hold of foodservice being mediocre and non-extensive, and myself and our 90 loyal, highly trained employees look forward to moving forward as Fresh Direct Local, North West.” While money has changed hands, Harris is keen to liken the process internally to a merger. “Parkfresh has a £10 million turnover and Fresh Direct is a £100m company. It would have taken me a long time to reach that level, and this opens up a whole raft of opportunities,” said Park. “My managing director at Parkfresh, Abby Rycraft, becomes md of Fresh Direct Local, North West, and the rest of the staff will continue as before, which was extremely important to me. “Fresh Direct does not want to outsource; it wants the same local staff, drivers and growers. This is a big growing area, and we will continue to source local potatoes, carrots and the rest as before.”
The fresh produce industry needs to consider the range of consumers buying its products, including singleperson households, as well an onpack and in-store information on athome storage of its products if the UK is to tackle the horrifying amount of fresh produce wasted in the home.
The message came from Richard Swannell, director of retail and organics programmes at the Waste & Resource Action Programme (WRAP), as he revealed early findings from the group’s research ahead of its full publication in the summer. “The main reason we have come out with this now, is that we were staggered by the figures,” Swannell told FPJ. He revealed that 4.4 million apples, 5.1m potatoes, 1.6m bananas, 2.8m tomatoes and 1.2m oranges are thrown away untouched every day from homes throughout the UK. According to WRAP research, carried out with Sainsbury’s and Mack Multiples by East Malling Research, fresh fruit and vegetables make up 40 per cent of the 6.7m tonnes of food waste generated by homes in the UK every year. Swannell said that although many packs already contain information on storage, there is more the industry can do. “We are working with Sainsbury’s to look at shelf-barkers and other information in store for loose produce, and whether or not they work,” he said.
The practice of selling pre-packed fresh produce and offering buy-oneget- one-free offers has been criticised by anti-packaging and waste campaigners in the past as contributing to food waste, but Swannell indicated this may not be the case. “There is no clear evidence so far that BOGOFs or poly-bagging are making a difference,” he said. “But one element the industry could consider is the range of consumers, and that an increasing number of them are living on their own.
There could also be information about the best way to get value from BOGOF offers, such as cooking and freezing a proportion of the produce. “Half price, rather than BOGOF deals might be more appropriate for single person households,” he suggested. Findings from the WRAP research will be shared with all other retailers and the industry in the summer.