A major new force in direct sales of chilled and snacking products to the convenience sector could be created through the merger of the van sales operations of Pork Farms Bowyers and Kerry Foods. Pork Farms parent Northern Foods and Kerry Foods parent Kerry Group revealed they have been exploring a merger of the two subsidiaries for several months. Under the proposed deal, which would take effect from March subject to consultation with employees and regulatory approval, both sides would benefit from access to a wider customer base, while retailers would get a more comprehensive range of products in a single delivery to store. Pork Farm Bowyers parent Northern Foods said the rationale behind the deal was simple: cutting costs, combining the strength of the Pork Farms brand and Kerry's distribution network, and offering retail customers all their savoury snacks requirements on a single van. Northern Foods company secretary Julian Wild said it was premature to talk about job losses and depot rationalisation and stressed that while there was "geographical overlap" between the two van sales operations there was far less in terms of retail customers. Wild said the aim was to develop the "strongest van selling network in the country," giving both sides the "best of both worlds". The new business would be branded Kerry Foods Direct to Store. Pork Farms would become the exclusive brand for pastry and fried products, significantly boosting its volumes. Kerry's savoury snacks brands such as Miller would be taken off the vans. The combined operation would deliver sandwiches and pastries, cooked meats, ready meals, yogurts, drinks and other dairy products to c-stores nationwide. Kerry Foods' parent Kerry Group is also negotiating the purchase of Pork Farms' branded sausage business and discussing a deal whereby Kerry would obtain a licence to produce sausages under the Bowyers brand. Production of Pork Farms' branded sausages such as Porkinsons would transfer to Kerry's factory in Manchester. {{NEWS }}

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