The South East Food Group Partnership is to develop a London Food Hub to increase regional and local food supply into the capital.

The project, which is sponsored by sponsored by the South East Food Group Partnership (SEFGP) and managed by specialist food consultancy Azurance, has entered the business planning phase.

The initiative will establish the financial viability of the hub as a commercial venture, which will aim to increase market share for local and regional food suppliers.

This follows on from a feasibility study carried out last year, which indicated a substantial demand for local and regional food, particularly in the foodservice sector.

The research found that there is a lack of knowledge among buyers and suppliers of the product and a lack of sales opportunities, against the backdrop of other complexities such as collecting, consolidating and distributing products efficiently.

The report recommended the development of an e-commerce marketplace supported by a physical hub for distribution.

Henriette Reinders, managing director of SEFGP, said: “We envisage the London Food hub to have various functions, such as increasing the profile of regional supply chains into the capital, optimising delivery in order to reduce food miles and product costs, as well as providing the opportunity for producers and suppliers to enter the London market and/or extend their market share.

“Throughout the business planning phase, we will liaise as much as possible with suppliers and buyers to make sure we get it right and meet their needs. We will also research various other online food hubs worldwide to learn from their impact.”

The business plan will be ready by the end of the year.

Richard Walters, managing partner of Azurance, added: “We believe this to be a very exciting development and one of real benefit to London and the regional food sector. We specialise in the development of food hubs and have been tracking the fortunes of e-marketplaces for some time. They clearly present a fabulous opportunity for the UK’s food industry.”