Marshalls is to streamline and become a specialist as it looks to counter product losses and a dent in profitability.
The Lincolnshire vegetable supplier has realigned its structure and product base towards traditional green veg after a torrid winter and tough preceding period which hit turnover and profits.
But performances at two of its sister companies in the Produce World Group, Rustler Produce and Solanum, have been more positive while Marshalls is taking steps to address a fiercely competitive UK market and is now led by interim MD Keith Pringle, described by some as a “turnaround specialist”.
Marshalls will focus on the core brassica lines of broccoli, cabbage, cauliflower and sprouts, encompassing conventional, organic, speciality lines such as baby cauliflower, Bellaverde broccoli and pak choi. It has removed lines such as pumpkins that “did not sit in the green vegetable category”.
According to accounts filed at Companies House last week, turnover at Marshalls fell by almost £10 million from £81.4m between 28 June 2008 and 26 June 2009 to £71.8m from 27 June 2009 to 2 July 2010.
Over the same period, turnover at potato supplier Solanum was stable at £40.4m and Cambridgeshire business Rustler saw a £1.5m increase in turnover to £38.3m. Both companies recorded steady profits. Produce World said it was confident of boosting sales and performance at all three companies as the group undergoes a major overhaul.
The group has battled a winter that wiped out 70 per cent of its cauliflower and other UK brassica production with high costs and no retail price movement.
Group commercial director Jason Burgess told FPJ: “Everybody in fresh produce will know what a competitive market it has been. The harsh winter in the UK caused many crops to be written off, and therefore imports were required to fulfil the needs of the domestic market. At the same time, there has been very little increase in retail prices.
“Even so, Produce World has been able to compete as a result of its long-standing relationships with its customers and with its growers, both in this country and abroad. We have built up strong trust over a long period of time and this has helped during these periods of challenge.”
The group has enjoyed some robust product sales with 130 per cent growth year on year on Bellaverde and 450 per cent growth for its exclusive
Co-operative potato line Corolle. It has also begun a partnership to supply the iconic Green Giant Fresh brand.
Burgess said of Marshalls: “The figures reflect our overall business strategy designed to integrate parts of the group, and put us in the best possible position to compete in the future. We are focusing on product lines where we can be competitive in the market, and where we can be the specialists in our chosen products. A number of products have been withdrawn as part of this strategy, and the operating costs of the business have now reduced."
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