One of the UK's leading potato suppliers Greenvale AP has added a significant export string to its bow with an agreement to acquire 100 per cent of the shares in award-winning exporter Avicorn Ltd.
Avicorn has built up its reputation for high quality potato products, particularly in European export markets such as Germany and the Scandinavian countries.
Greenvale AP has been solid in exports of seed potatoes in the past, but not ware. It also has breeding programmes which it runs with other companies. "Avicorn's customer base is strong, particularly in Scandinavia which is an area which has an affinity with the UK market," said Greenvale AP finance director Andy Behagg. "We see potential for generic varieties and added value lines, such as salad potatoes, punnets and microwavable packs. Avicorn is already very strong there with bakers and conventional pre-packs. We also have a number of varieties coming through trials on our breeding programmes. Each year we take on a different target market with specific varieties. This is a fairly long process, but it is a good opportunity for us, for Avicorn and their customers."
Under its new Greenvale ownership, Avicorn will continue to trade all of its potato products to its long established customer base. All other products previously traded through Avicorn Ltd will be traded through Avicorn Imports Ltd, a company that remains 100 per cent owned by Lance Cornell and Alan Avison, joint managing directors.
To ensure continuity of operation, Avicorn Ltd and Avicorn Imports Ltd have drawn up a long-term marketing contract between them so that the same staff will continue to be involved in the sales and administration of all of the export activities now being conducted by Avicorn Ltd.
The two companies have been in discussions on ways they could work together for some two years. "Greenvale AP is a diverse go-ahead potato business and we have been very strong in exports, which is the last piece they needed to complete the picture," said Lance Cornell, joint managing director of Avicorn Imports Ltd.
But the deal has also been about personalities. "We have been approached by other companies before over the years, but this time is different. We feel Greenvale has the right people at the top and that we are adding value to our existing export business. We started trading with each other last year and they have been packing for us. There are a lot of synergies between us and we are also an importer in our own right."
Alan Owens, chief executive of Greenvale AP, said: "We believe this is a very positive and exciting move that is entirely complementary to both businesses. Greenvale AP looks forward to a long and rewarding association with all existing and future trading partners."
The move also represents an opportunity for Avicorn Ltd to introduce the innovative product lines that Greenvale AP is involved in to a receptive export market. "The German and Scandinavian markets present an opportunity for Greenvale's different variety developments, such as specific white varieties for baking," said Cornell. "We are finding that the export business is starting to mirror the UK supermarket business and catch up with developments. They have big supermarket chains too in our export markets and it needs a big organization like Greenvale AP to get the continuity right.
"We have found the right company to take the business forward with us. The world is our oyster."
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