Sainsbury’s has announced it is to axe one of its four potato suppliers in a move to streamline its supply chain.
Cambridgeshire based MBM will no longer be supplying the chain following the review, while the retailer said it has significantly increased its business with Greenvale AP, based in Shropshire.
The retailer’s other two suppliers are QV Foods, based in Spalding, Lincolnshire, and Hoche International, based in Boston, Lincolnshire.
John Maylam, Sainsbury’s buying manager, said: “We are continually striving to deliver the best possible quality and value food offering to our customers.
“By streamlining our potato supply base we are in a much better position to improve efficiencies for everyone involved in the supply chain, which ultimately means we will be able to serve our customers better.”
Alan Owens, chief executive of Greenvale AP, said the decision would mean a further 130 jobs would be created within the company: “We are delighted to be awarded this additional new business.
“We will obviously be looking to new growers who wish to supply us in the future and are delighted with the faith shown by Sainsbury’s in Greenvale.”
Sainsbury’s said it has given MBM more than seven months notice to ensure all commitments undertaken by growers under the Sainsbury’s name would be honoured.
Maylam added: “We recognise the consequences that our decision will have on MBM, but we will be working closely with them throughout the seven month period to manage those changes.
“Growers will, where appropriate, be invited to continue supplying Sainsbury’s through our new supply base.”
Sainsbury’s said it currently sells around 190 million kilograms of potatoes a year, worth around £130m.
