North Wales wholesaler Harlech Foodservice has added £4m to its annual turnover following the acquisition of a butchery business.
Having bought a local butchery business in 2012, the premium fresh meat category at Harlech now accounts for approximately 16% of annual turnover.
After hearing that fresh meat sales accounted for between 16 and 18% of the total spend of foodservice customers, Harlech looked at ways of securing a cut of the market. Having invested £400,000 in the butchery arm of the business over the last three years, Harlech’s Bwydlyn-branded meat is now one of its main revenue streams, significantly contributing to an overall turnover of approximately £25m for 2015.
Ian Woodcock, purchasing director for Harlech Foodservice, said that he and joint managing director Andrew Foskett (both men pictured) were inspired to invest in the butchery business after receiving market intelligence from buying group Fairway Foodservice.
“It was like a eureka moment for us. After carrying out some further research into how to actually add fresh meat to our services, we purchased a local catering butchers business in Pwllheli.
“It’s taken us three or four years to get to where we are now and has taken a lot of time and resources, but it’s been fully worth the effort.
“Since buying the butchery, its turnover has grown from £500,000 to more than £4m this year, with a projected turnover of £10m by 2020 – we’re planning a further £1m expansion of the butchery to cope with that projected growth.”
We’ll have more on Harlech Foodservice in the September issue of Wholesale News.