IPL, the sourcing arm of Asda, has revealed it is on the lookout for more direct meat suppliers in the wake of the horsemeat scandal.
Earlier this year, it emerged that traces of bute were found in Asda’ Smart Price corned beef supplied through IPL and manufactured by French firm Toupnot. However, Nick Scrase, group managing director of IPL, told The Grocer that the business had since invested heavily in improving its supply chain.
“The principle investment has been in traceability, whether that’s through technology or more of our people out there in the field, so we can monitor Asda products right back to the raw material,” said Scrase.
“I think that by having more direct meat suppliers we can offer a much more efficient and reliable supply chain. People must understand that Asda and IPL, as well as the other UK retailers, were victims of criminality with horsemeat; there were people deliberately contaminating meats for financial gain. It has forced us to think again and we are investing millions to improve transparency right back to who puts meat into a tin.”
As of October, IPL now sources 100% of Asda’s vegetables and potatoes, as well as the retailer’s fruit and salad lines. Scrase also revealed that IPL, in conjunction with Walmart, is set to open a new fresh produce operation in Peru in 2014.
IPL saw a 55% increase in revenue to £112.9m (£72.7m in 2011) for the year ending 28 December 2012, while profits before tax increased 36% to £10.1m (£7.4m in 2011).
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