Morrison split with its Fruit supplier

morissonsMorrison has split with the fruit supplier that helped to set up its banana warehouse in Lincolnshire two year ago. The supermarket chain has spent £2.9m to buy out Global Pacific from its Wm Morrison Bananas joint project, and brought the fruit giant Fyffes as its new partner. Morrisons  exercised its right to take over the entire joint project in September, folding its business into its produce supply operations.  According to recent company records, directors from  Global Pacific left shortly afterwards.

The project  located in old Del Monte factory in Boston, Lincolnshire, posted returns of £7.4m for the year to February and turned a small profit. Morrison uses the place to cool its imported bananas,  allowing its customers to buy slightly green fruit to ripen at home.

The supermarket chain has a wide array of shambles, bakeries and food processing plants to cut out the middle man charges , to lowering the costs. It has bought out a number of suppliers in recent years and spending £20.2m on Flower World and Simply Fresh Foods in 2014.

Wm morisson produce turning over more than £1.2bn in the year to February, out of overall group revenues of almost £17bn and became the major artery of the supermarket.

According to its most recent accounts ,the subsidiary firm declared a dividend of £660m for the year, lowering its net asset from £705m to £110m at a time when the group was undergoing major change.