Morrisons to build new fresh packhouse in direct supply drive

Morrisons is opening a fresh produce storage warehouse that will become a packhouse as part of its plans to become the UK’s biggest fresh food manufacturer.

The produce warehouse will be opened next to the supermarket’s new distribution centre in Bridgwater, Somerset, a spokesman said.

Initially, store-packaged vegetables will be housed at the Bridgwater Regional Distribution Centre, before being sent to stores in the South West and south Wales.

By 2014, Morrisons has plans to transform this into a packhouse so the produce will also be packaged on-site before being distributed.

The retailer also said it is investing in prepared produce by expanding its Simply Veg range.

The development of Morrisons’ fresh produce sourcing forms part of an overall £200m investment by expanding its manufacturing food arm by 2013.

It is also expected Morrisons will buy more fresh food directly from farmers than its rivals.

Chief executive Dalton Philips said last week that, if market conditions continue, Britain’s fourth-largest food retailer will become the UK’s largest manufacturer of fresh food by 2015.

“This investment sets us apart from other retailers and means that we will be the biggest customer for UK farms,” he told Morrisons second annual farming conference. “This will continue to build on our record of serving the freshest and best food that our farmers have to offer with minimal waste in the supply chain.”

By making more of its fresh products, Philips also suggested that Morrisons would be able to control quality, cut out middlemen and deal directly with producers to procure and make use of “whole crops of fruit and vegetables”.

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