Irish fresh produce giant Total Produce is targeting increased sales of vegetables and soft fruit over the next couple of years, with plans to take a larger stake in two companies in order to boost its involvement in both categories.
Buried away in its year-end report for 2013, below the near-perfect roster of rising revenue streams and increasing profit margins, were a couple of highly significant disclosures that lifted the lid ever so slightly on an expansion strategy set to be pursued over the coming months and beyond.
The group revealed firstly that it had upped its stake in UK-based exotic vegetable importer Provenance Partners from 9 per cent to 50 per cent towards the end of 2013, placing it on an equal footing with the firm's other major shareholder, VP Group.
It also confirmed that, earlier this year, it had agreed to add to its current 50 per cent shareholding in Dutch soft fruit packer-exporter All Seasons Fruit (ASF), committing to acquire the balance in stages over the next few years, subject to regulatory approval.
One industry source with close links to the company, commented:'I think we're going to see Total Produce developing in this kind of area much more in the future as it looks to apply the skills it has built up in mainstream fresh produce to more specialist niches.'
Deep-rooted partnerships
Formerly known as Vegpro, VP Group is Kenya's largest producer and exporter of fresh produce and a major supplier of African vegetables and flowers to supermarkets in the UK.
Via its sizeable packing facility in Nairobi, the group has worked with Total Produce in recent years to build 12-month supply and satisfy demand for new vegetablelines.
Operating seven of its own farms and sourcing from three additional contract farms as well as around 2,000 affiliated growers, more recently it has diversified into new areas byacquiring land in Ghanato grow products including chillies, butternut squash, baby corn and sweet potatoes. as well as reportedly extending its Kenyan operation into berries, mainly raspberries.
Soft fruit is very much at the heart of Total Produce's other latest venture. ASF, which runs a modern packing and distribution centre for berries in Venlo, has developed a long-standing commercial relationship with Total Produce over the past few years.
During that time, it has emerged to play a key role in the group's continued expansion into berries, helping to extend the development of Total Berry's soft fruit business from the UK into mainland Europe.
Total Berry was previously known as The Summerfruit Company and was incorporated into Total Produce as part of its January 2007 takeover of Redbridge Group.
