In her first interview in the post, International Produce (IP) general manager Kathryn Gray this week told the Journal that the company represents a rewrite of the supplier/buyer relationship model for the fresh produce industry.
Gray, pictured, said that IP is ready to take up the challenges laid down for it by its sole customer Asda, specifically bringing a larger range and higher volume of produce into the fold, operating as a multi-site business for the first time, and developing programmes with a long-term vision.
“We have been presented with the opportunity of delivering the plan that’s laid out for us, as agreed with Asda,” she said. “Our focus is long-term; to improve the business performance and enhance everything that is done currently, across all our functions. We have a big, strong team of people here, comprising all of the Thames Fruit management and four additions from Geest, including myself.
“We expect to be of a scale that no other produce company in the UK has ever reached and that will give us the means to do some bold things. IP will be working so closely with Asda that many of the aspects of the business that are traditionally looked at as short-term, will be seen from a long-term perspective, giving greater clarity to the entire supply chain and ability to plan for the future.”
Internally too, Gray believes the IP/Asda relationship is a win:win scenario. “We are very close to being Asda colleagues, but I don’t have any problem with that,” she said. “This relationship takes out the traditional supplier/buyer conflicts and puts a new model in its place. Our role and aim is to expand Asda’s volumes by delivering the desired quality at the right price and inspiring repeat purchase. This is not about margin; Asda believes in our ability and there is a fair distribution of margin throughout the supply chain.”
As reported last week, the new company will eventually operate two packhouses, in Kent and Yorkshire. Negotiations are ongoing over the northern facility, but it is expected that it will be fully operational by March 2005.
Marketing, finance and some of the procurement functions will be moving north when the new site is operational. “Obviously there are mixed emotions amongst existing staff and not everybody will decide to relocate,” said marketing and communications manager Bruce Bell. “But those of us who move are looking forward to working closer to Asda. Our customer wants us to align ourselves with their line of thinking and we are showing true commitment by doing this.”
IP expects to handle 30 million cartons in 2005, when it will incorporate top and stone fruit into its mix, and further expansion after that. Gray said: “We will have more than enough volume for these two facilities and a lot more. We have to develop a strategy that handles that and allows for direct deliveries to Asda depots in the most cost-efficient manner.”
Emilio Teresa, founder of Thames Fruit and a 24 per cent stakeholder in IP, will become managing director of a new network of IP country offices, building on the success of the established Thames Fruit’s Spanish and Geest’s Iberian offices and creating an integrated global network of Asda suppliers.
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