Sainsbury is to ditch fresh, retail packed lamb supplier Lloyd Maunder from October - but it is unclear whether this marks a step by the retailer towards single sourcing in the category.
Sainsbury refused to say which company would be handed the business for the volumes currently supplied by the West Country producer when its contract ends in the autumn. At present, it appears Dungannon Meats Group - Sainsbury’s other fresh lamb supplier besides Lloyd Maunder - has not been approached to fill the gap.
The Grocer has learned from trade sources that Dungannon recently won extra volumes of fresh lamb from Sainsbury. However, it is believed that around 30% of the retailer’s
lamb consumption remains unaccounted for, and a tendering process looks imminent.
Sainsbury said the decision not to renew Lloyd Maunder’s contract was part of a wide-ranging commercial review and would help it to offer a better service to customers.
Business unit director Karen Schenstrom said: “We remain fully committed to sourcing lambs from the South West and those farmers currently supplying Sainsbury will be given every opportunity to continue doing so.”
Lloyd Maunder’s director of lamb procurement, Richard Maunder, said: “Although this is a set-back, we are developing new opportunities for West Country lamb. New season lamb was launched into 300 Somerfield stores in March and we are in talks with further supermarkets.
“Over the next year we expect to reorganise our cutting and packing operations. Given the projected growth of our poultry business, there is a good possibility that we can avoid any major redundancies.”
Dungannon, which lost a contract last autumn to supply Sainsbury with fresh beef, will be keen to pick up the lamb volumes vacated by Lloyd Maunder. The company declined to comment.
Richard Clarke
Sainsbury refused to say which company would be handed the business for the volumes currently supplied by the West Country producer when its contract ends in the autumn. At present, it appears Dungannon Meats Group - Sainsbury’s other fresh lamb supplier besides Lloyd Maunder - has not been approached to fill the gap.
The Grocer has learned from trade sources that Dungannon recently won extra volumes of fresh lamb from Sainsbury. However, it is believed that around 30% of the retailer’s
lamb consumption remains unaccounted for, and a tendering process looks imminent.
Sainsbury said the decision not to renew Lloyd Maunder’s contract was part of a wide-ranging commercial review and would help it to offer a better service to customers.
Business unit director Karen Schenstrom said: “We remain fully committed to sourcing lambs from the South West and those farmers currently supplying Sainsbury will be given every opportunity to continue doing so.”
Lloyd Maunder’s director of lamb procurement, Richard Maunder, said: “Although this is a set-back, we are developing new opportunities for West Country lamb. New season lamb was launched into 300 Somerfield stores in March and we are in talks with further supermarkets.
“Over the next year we expect to reorganise our cutting and packing operations. Given the projected growth of our poultry business, there is a good possibility that we can avoid any major redundancies.”
Dungannon, which lost a contract last autumn to supply Sainsbury with fresh beef, will be keen to pick up the lamb volumes vacated by Lloyd Maunder. The company declined to comment.
Richard Clarke
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