Tesco has built an 80,000 sq ft ready meals factory in Los Angeles to supply its new Fresh & Easy stores, according to The Financial Times.
It is the first time the retailer has manufactured the food it sells.
Forty per cent of the ingredients supplied to the site - dubbed the Fresh & Easy kitchen - are provided by UK suppliers Wild Rocket Foods and 2 Sisters Food Group.
Both companies have invested £100m in setting up processing plants next to the new Tesco site.
“We have lots of experience in this, and the margin is much better,” said John Burry, Fresh & Easy’s chief commercial officer of centralised planning at the new plant. “Why pay someone else to do it?”
The kitchen produces 120 lines, including sandwiches, sushi and ready meals.
It is the first time the retailer has manufactured the food it sells.
Forty per cent of the ingredients supplied to the site - dubbed the Fresh & Easy kitchen - are provided by UK suppliers Wild Rocket Foods and 2 Sisters Food Group.
Both companies have invested £100m in setting up processing plants next to the new Tesco site.
“We have lots of experience in this, and the margin is much better,” said John Burry, Fresh & Easy’s chief commercial officer of centralised planning at the new plant. “Why pay someone else to do it?”
The kitchen produces 120 lines, including sandwiches, sushi and ready meals.
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