The UK Fresh Produce sector is set for further consolidation as the gulf between industry winners and losers widens, a new report reveals.
Research from market analysts Plimsoll indicates that with 128 UK produce companies in trouble, 327 others powering ahead and a further 181 set to be taken over, the market has never been more polarised.
David Pattison, author of the new 'Plimsoll Analysis - Fresh Produce' explained: 'Having rated 128 struggling companies as Danger and given 327 others a Strong rating, I am surprised at the gulf in performance in the market. Despite all other factors, success still comes down to how well a company is run.'
When pressed on what the consequences of this polarisation in the market will be, Pattison’s response was emphatic: 'Acquisitions. The market, in the current economic climate cannot support this many companies. There has to be further, more radical consolidation in the market. Strong companies will be buying up distressed competitors in the next 12 months.'
?Plimsoll analysed the top 981 companies in the market by region, rating each as Strong, Danger and/or exposed to takeover. Each company is assessed using the Plimsoll Model - a graphical and written analysis.
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