Mack Bananas has won the ripening tender for Asda’s direct banana sourcing trial due to start next month.
Under the deal, International Produce, Asda’s procurement operation, will source 8,000-10,000 boxes of loose bananas a week directly from Costa Rican supplier Caribana. The fruit will arrive at Dover via Seatrade’s Seaban service where it will be transferred to Mack’s ripening centre at Paddock Wood. The trial does not involve pre-packed fruit. And is estimated to affect less than 15 per cent of Asda’s overall banana volumes. The majority of the retailers’s banana supply is is handled by Del Monte Fresh Produce (UK) as part of a Wal-Mart global sourcing agreement. This new ripening-only contract signed with Mack runs for six months from July.
A spokeswoman for Mack said that by simply having a contract for ripening, a lot of the risk associated with sourcing and being responsible for quality now falls to Asda.
Mack Banana’s commercial director Elliot Mantle has been negotiating the tender with the multiple since February. “We are pleased to be part of this direct sourcing trial for Asda,” he said. “We are always flexible and willing to consider different ways of working in a fast-moving industry. Our core business focus will remain unchanged and or ripening centre will manage the increase in volume within existing provision.”
The move is likely to be keenly watched by the trade and other multiples as Asda attempts to squeeze more costs out of the supply chain. “I don’t think this will be a threat to the role of the traditional importer,” said the Mack spokeswoman. “It is also about making the most of the facilities we have got.”
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