Aldi has signed a new £750m supply deal with Kent-based fruit farm AC Goatham & Son, to last for 20 years.
The grower has supplied Britain’s fourth-largest supermarket since 2016 and earlier last year was announced as Aldi’s sole supplier of British apples.
The new 20-year deal will see the introduction of the ‘Aldi Orchard’ – a 200-acre plot on New Green Farm in Gravesend, which will grow a mix of Gala and Braeburn apples for Aldi stores across the country.
Goatham also has plans to plant an additional 100 acres per year of apple trees exclusively for Aldi.
Aldi said the deal would provide vital support for British farmers – assuring them of supply and giving them security.
“This is a fantastic achievement and a real testament to the work both AC Goatham & Son and Aldi have put into the agreement to have created something truly collaborative, a first for the British top fruit sector,” said Ross Goatham, managing director of AC Goatham & Son.
“This gives us the confidence now to invest for the future and to grow more British apples and pears for Aldi, guaranteeing sustainability, viability and most importantly UK food security,” he added.
Read more: Aldi stocks most British apples and secures major supply deal
In the latest supermarket sales data from industry body British Apples & Pears, Aldi sold the second-largest quantity of apples of any of the UK retailers in April, beaten only by Tesco.
Aldi sold 22.1% of all British apples sold last month, far surpassing its grocery market share of 10% market value.
It was described as “great news” by BAP executive chair Ali Capper.
”It’s fantastic that on the back of awarding Aldi supermarket of the year that has inspired them to make a long term commitment to our largest grower in the sector,” she added. “The nature of orcharding it is that growers are making a 20 year financial commitment when they plant an orchard and this deal means that the retail relationship is committed for that period.”
“We are proud to be one of the largest buyers of British apples and of our partnership with AC Goatham & Son,” said Julie Ashfield, managing director of buying at Aldi UK. “This new 20-year deal represents a £750m investment in British farming and demonstrates our long-term commitment to championing British produce.”
Former Aldi apple supplier Bardsley England, which had accounted for 50% of Aldi supply before the Goatham exclusivity deal, announced it would be beginning an “orderly wind-down” of the business following several years of “significant losses” at the start of this year.
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