Asda acquires meat suppliers

Asda acquires meat suppliers

Asda has taken control of two of its locally based Yorkshire suppliers. This means that Asda should now be able to participate in decision-making and strategy at sliced cooked meat supplier Forza Foods and fresh meat producer Kober. Both companies are run by Max Smith-Hilliard, the well-known UK pigmeat industry entrepreneur.

Forza has recently reported that its sales had risen by around 70 tons per week to approximately 800 tons a week, with turnover in 2011 up to £225 million, compared to £158 million for the previous year. The company made a pre-tax profit of £8.5 million last year.

Forza had secured a multi-million pound contract with Asda and imports Polish sausages and other cooked meats for the supermarket giant.

Cleckheaton-based Kober supplies Asda with bacon rashers,  joints and steaks, and reported a turnover of £70.8 million in 2011, with an operating profit of £1.2 million.

The group recently spent over £10 million fitting its premises out with new slicing and packaging equipment.

This latest move by Asda backs up industry speculation that the business is looking for further economies of scale and seems intent on taking more control of the manufacturing and supply of its meat and food products, both in the UK and overseas.

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