Aldi salad supplier UK Salads Ltd has gone into administration with the loss of over 200 jobs and up to £15 million of “perfectly good greenhouse crop” potentially being wasted, reported The Grocer.
Although the specific reasons for the business’s failure remain unclear, like a number of other fresh produce suppliers to fold in recent months, the company will have been trying to cope with rising production costs, fluctuating energy prices, and issues related to labour and transportation.
The FPC commented, ‘The unharvested crops represent a significant potential loss of food, highlighting the issue of food waste – a global problem with serious environmental and economic consequences. Wasting food contributes to greenhouse gas emissions and puts unnecessary strain on resources. Aldi may face disruptions to its salad supply chain as it is forced to find alternative suppliers.
‘The administrators appointed to handle the situation will need to assess the company’s financial position and explore options, which could include finding a buyer for the company’s assets or attempting to restructure the business. Ultimately, this situation highlights the challenges faced by the fresh produce industry in the UK.’
The Tomato Growers Association (TGA) expressed regret at the news, adding that it had recently been discussing membership of the TGA with British Salads who has added tomatoes to their product portfolio, alongside peppers, cucumbers and aubergines.
Established in 1992, Harlow-based UK Salads Ltd, which had suppliers in the UK and overseas, is part of the Aquila Food Holdings Group, a privately owned company backed by mergers, acquisitions & private equity firm – Opulentia Capital. In 2021, Paul Seabridge, CEO of Opulentia Capital, commented, “We’re delighted to have the opportunity to build upon what the Directors have created and look forward to watching them grow. We’re looking forward to making further acquisitions in this sector in the future.”