Del Monte is re-evaluating its position in the UK after “walking away” from Asda’s banana business.
UK md Peter Miller told FPJ: “We decided that it was no longer the right proposition for us to continue supplying Asda with bananas.
“We walked away from the Asda tender because we didn’t like the money, but we still have 80 per cent of their pineapple business, a significant and developing share of their melon business and a massive proportion of their fresh-cut fruit business.”
Asda has extricated itself from the global supply deal its parent company Wal-Mart had on bananas with Del Monte, and is now sourcing from Fyffes, Chiquita and International Produce. The latter does not have any ripening facilities of its own and so has contracted out ripening to Mack in order to supply Asda with yellow fruit.
The developments put Del Monte in an extremely interesting position, particularly as the company is also closing its juice factory at West Lynn in Norfolk. “We are still the largest branded ambient juice supplier in the market, but that market is not growing at a massive rate compared to own-label,” said Miller. “Our factory is old and needs investment and in order to compete effectively we would have to build a new factory. It make economic sense for us to outsource our juice packing and will enhance our bottom line.”
Miller added that Del Monte will now focus on three parts of its business: fresh-cut fruit from its Wisbech factory for a market that is growing at 40-plus per cent a year, dressed salads from its York factory, and fresh whole fruit.
“We will now look at where we go from here,” said Miller. “We have all sorts of opportunities in bananas now and we will re-evaluate our position in the UK.”
Del Monte’s position as banana supplier to Asda is due to finish at the end of next month.
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