And here is the bad news ??? -
http://www.northern-foods.co.uk/application.asp?app=latest_news.asp&process=full_record&id=1000134
9 September 2005
NORTHERN FOODS WINS MAJOR READY MEALS BUSINESS WITH ASDA
Northern Foods is pleased to confirm that it has been chosen as one of the main suppliers for ASDAs range of ready meals after an 18 month tender process.
The appointment follows ASDAs decision to re-launch its ready meals range this coming autumn with new recipes and new packaging. The business is worth around 30 million*.
Northern Foods will be making over 60 different products across four sites in the UK. Production will be phased in from the 17th of September with full production in place by the end of October 2005. Over 270 new jobs will be created to manage the increased production volume with the potential for more in the future.
Pat ODriscoll, Northern Foods chief executive, said:
This new business with ASDA demonstrates the winning proposition of quality, expertise and scale that Northern Foods is able to deliver. We are delighted with this major new business win and look forward to further strengthening our relationship with ASDA.
Northern Foods already supplies a wide range of products to ASDA including chilled savoury pastry, cakes, puddings, biscuits and frozen pizza.
* Annualised manufacturers selling price
-- -- -- --
Now you see reference to the new recipe - you see reference to the new colourful and eye catching packaging designs - but do you see reference to Greenseal ? Do Northern Foods say they need 6 months to change their equipment - no - phased in in 7 days - no conversions happening there then.
My point before was Asda may have used SE0 to get figures - figures they could use against suppliers and get the cheapest price from them - so the TENDER winner is the one who can supply equal to or less than the Greenseal trial figures - so a supplier simply lowering margin for increased volume could win a tender - make money - increase revenue and profits on higher volume of slight discounting - and not have to convert - to make more money Northern Foods will need to utilise existing machinery better - and this will mean putting in place extra labour for shift working.
You do not see Northern Foods saying they will have to spend money to convert machinery - you do not see reference to they will have to purchase new machinery - you only see reference to increased labour to cope with the increased production.
All IMO - but the fact that it was done by TENDER means Asda are only looking for cheapest supplier - and that can simply mean cutting margin for increased volume and NOT spending a fortune on new equipment and conversions on Greenseal which is far from proven in a high production enviroment and was not taken up by Reiser / Oscar Mayer and others during their trials in late 2004.
SE0 would not have missed a spin opportunity - and a little extra discount or a few spare parts free of charge they could have got Northern Foods to say wonderful things in their press release about using SE0 Greenseal - but there is no mention of SE0 - bad news coming ??
All IMO - DYOR !!!!!!!!!!!!!!!!!!!!!