DBC Foodservice's new owners at Iceland Foods want to add at least £30m to its annual turnover by taking on giants Brakes and 3663 First for Foodservice.
The wholesaler plans to "annoy the market" by aggressively competing for high street contracts serviced by the biggest players in foodservice.
Currently, about three quarters of DBC's sales come through the public sector, known as the cost sector, but DBC will now target commercial operators. "We are after the profit sector customers," said Tarsem Dhaliwal, finance director of Iceland Foods and chairman of WPD Holdings, which bought DBC last month. "3663 and Brakes have had a cosy situation - we think we can catch up. People are wanting an alternative."
Iceland would look for ways in which to use its £2bn buying power to help DBC get better prices and more range, he said.
It would help DBC to expand its frozen range, leading to more national contracts and higher profitability because frozen has a higher margin than ambient products.
DBC was in talks with national providers of fresh fish and produce, with the aim of working together.
In order to clear its £15m-debt within five years, Dhaliwal said it needed to refinance in September but banks were now "knocking on the door to throw money at us".
WPD, which is owned by Iceland Foods' founder and CEO Malcolm Walker, its MD Andrew Pritchard, and Dhaliwal, bought DBC last month. Pritchard is WPD's executive director, Dhaliwal is its chairman and Walker is a shareholder with no formal role.
The wholesaler plans to "annoy the market" by aggressively competing for high street contracts serviced by the biggest players in foodservice.
Currently, about three quarters of DBC's sales come through the public sector, known as the cost sector, but DBC will now target commercial operators. "We are after the profit sector customers," said Tarsem Dhaliwal, finance director of Iceland Foods and chairman of WPD Holdings, which bought DBC last month. "3663 and Brakes have had a cosy situation - we think we can catch up. People are wanting an alternative."
Iceland would look for ways in which to use its £2bn buying power to help DBC get better prices and more range, he said.
It would help DBC to expand its frozen range, leading to more national contracts and higher profitability because frozen has a higher margin than ambient products.
DBC was in talks with national providers of fresh fish and produce, with the aim of working together.
In order to clear its £15m-debt within five years, Dhaliwal said it needed to refinance in September but banks were now "knocking on the door to throw money at us".
WPD, which is owned by Iceland Foods' founder and CEO Malcolm Walker, its MD Andrew Pritchard, and Dhaliwal, bought DBC last month. Pritchard is WPD's executive director, Dhaliwal is its chairman and Walker is a shareholder with no formal role.
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