In light of events in the last week alone, it is hard to disagree with Seamus Mulvenna’s assertion that the formation of Total Produce kicked off a new round of consolidation in the UK fresh produce sector.
The Total Produce md makes the comment in our feature (elsewhere on this site), and several articles on this site this week back his views up. This is fast becoming a year like none before it for changes at the high-volume end of the industry.
Some might say, of course, that the level of consolidatory activity in this industry would have risen whether or not Total Produce had come along. But at surface value, the creation of the largest single entity in our field certainly appears to have quickened the pace.
The endgame has altered somewhat too. In the recent past, there are too many examples of companies that sadly crashed and burned in their muddled quests to become larger - and therefore indestructible - at whatever cost.
Fresca chairman Chris Mack points to the group’s broad product portfolio as vital in maintaining its status quo in a difficult last 12 months, and herein lies the major driver for the consolidators. Volume is not the only value to be added to a company through acquisition or merger - the key to successful expansion is the addition of breadth and depth to the base that already exists.
Hold onto your hats - there’s far more to come.
No comments yet