Strategic Assured Suppliers (SAS) Fresh Produce Ltd formed from five existing producers, and will supply Sainsbury's with both conventional and organic produce. It is unusual for as many as five companies to work together in a group of this kind.

SAS chairman Mervyn Negus, of Watton Produce, said: 'The initiative is an exciting development by leading producers at a time when the industry faces many challenges to meet successfully the long-term expectations from both customers and consumers.' The five partner members are Bedfordshire Growers Ltd, Huntapac Produce Ltd, Moulton Bulb Co Ltd, United Vegetables Ltd and Watton Produce Ltd. All five companies have a relationship with the store stretching back two decades. Products to be grown and packed by SAS include root vegetables, onions, brassicas, prepared vegetables, leafy salads and organic salad and vegetables.

Richard Diplock, commercial manager of the group, told freshinfo: 'The five companies started talking about a year ago, to the day, to see how we can improve our service to Sainsbury's. This was in terms of offering them a better service in terms of marketing and research, and looking at cost saving by avoiding duplication.

'We've all supplied Sainsbury's for over 20 years and Sainsbury's has five companies speaking to them at the moment, so offering one co-ordinating desk gives them a focal point.

'As a group of suppliers we approached Sainsbury's with the proposal, which is unique. Obviously Sainsbury's thought it was a good idea, and I was appointed in April to set things up.' In addition to offering a diversifying range of crops, SAS also benefits from having a wide geographical split both in the UK and worldwide. This split offers Sainsbury's and SAS Fresh Produce considerable opportunities for mutual business improvement, as well as promoting the store's regionality objective.

Explaining the timing of the group's launch, Diplock said: 'I think we've all got to meet the challenges of the modern day consumer and look at the most cost-effective produce. In terms of size, the number of suppliers is reducing so there's strength in depth. The five companies are individually quite small companies for Sainsbury's, but as a combined unit they are providing Sainsbury's with £50 million worth of produce, which gives the group great depth.' Sainsbury's welcomes the new partnership. Senior buyer Russell Crowe told freshinfo: 'We're fully supportive of what the group is doing. We understand the reasons why and we can see the benefits on both sides. The important thing is this is a group of like-minded people, and we think the formation of the group gives them a number of options to strengthen, share data and facilities, consolidate and reduce overheads.

'It's easier for Sainsbury's to manage one supplier than five, and there are a lot of bonuses on both sides. There are a lot of opportunities for joint investment for new equipment and reduced costs in their businesses.' When asked if he thought other companies would follow SAS's lead, Diplock said: 'I think other people will look at the partnership and see how it develops. The good and unique thing about the five of us is the trust and cohesion and willingness to work together.

'We feel it is definitely the right way forward in terms of Sainsbury's business.'

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