Caterfood, the Bidcorp Group-owned buying group, could triple in size to reach £1bn turnover within five years, its MD has said.
A separate division from Bidcorp-owned foodservice giant Bidfood, Caterfood Buying Group was officially formed in 2019 as Bidcorp kicked off a shopping spree of independent foodservice wholesalers with the purchase of East-Sussex-based Elite Fine Foods.
Since then it has snapped up four more wholesalers. These, along with three businesses Bidcorp acquired prior to the creation of the buying group, have combined sales of £350m.
As well as future acquisitions, Caterfood Buying Group MD Phil Atyeo also floated the idea of allowing non Bidcorp-owned wholesalers to join the group, suggesting there could be opportunities for wholesalers to join as “commercial members”.
“We are in talks with one right now. It’s a new adventure for us,” Atyeo said. He hinted this may be a route for businesses in other territories such as Ireland or France.
“I do feel as if we’re trying something unique here,” he added. “That’s why I am conscious this isn’t a structured step, it’s an evolving piece.”
However, the majority of the growth would continue to come from acquisitions, said Atyeo.
And he claimed there was a strong pipeline of wholesalers who would be keen to sell at the current time, with many still feeling the effects of the pandemic and associated lockdowns.
“I think lockdown has made people re-evaluate,” he added.
“There is nervousness about the future for some, with people wondering if the next thing will put them out of business like Covid nearly did for many.
“On top of that, the mentality of the second, third generation is ‘I’ve seen how hard my parents have worked, I’m not sure I want to do that.’”
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