AAK deal will double supply to Premier Foods

By Rod Addy

- Last updated on GMT

Related tags Fat

Premier Foods brands include Ambrosia custard and Mr Kipling
Premier Foods brands include Ambrosia custard and Mr Kipling
Premier Foods’ tie-up with AAK, the fats and oils supplier, will double AAK’s volume sales to the branded foods manufacturer and could strengthen collaboration on areas including shelf-life and fat reduction.

That’s according to AAK md Martin Craven, who told FoodManufacture.co.uk: “This new partnership, which is part of Premier Foods’ ‘Invest to Grow’ programme, will result in broader collaboration across a wider range of categories and a doubling of supply in terms of overall volumes.”

AAK refused to provide precise detail on the volumes of fats and oils it was previously supplying to Premier Foods under their existing longstanding relationship, which goes back more than 20 years.

Commenting on the details of their collaboration work on “innovations, ideas and technologies”,​ Craven said: “For example, we may be asked by Premier to share our ideas on how to reduce fat content within individual products and ranges.

“Also, as a founder member of the Roundtable on Sustainable Palm Oil, we will be working with Premier to help them achieve their stated targets on sustainable palm oil.

‘Positive impact on environment’

“We will also make a positive impact on the environment by cutting waste at every stage. For example we will be focusing on improving shelf life in a bid to reduce the quantity of food which is thrown away after purchase.”

Craven said AAK’s £10M investment programme in its Hull refinery would support the cooperation between the two companies, by increasing its ability to process “innovative and specially designed blends and products”​.

AAK announced in June it was investing £8.5M in updating the ageing E3 deodoriser at the Hull plant, which it expects will be fully installed and operational during the first quarter of 2014. The project is part of a wider two-year investment at the site.

The new E5 deodoriser would play a key role in processing palm and rapeseed oil, it said, removing oxidation, pigment, fatty acids, taste and odour.

“This gives us the capacity to deliver semi-speciality and value-added solutions for our customers, strengthening AAK’s position as a world leader in edible oils and fats,”​ said AAK UK operations director Alec Paterson at the time of the announcement.

Three-year partnership

Premier Foods and AAK announced yesterday they would be cementing their existing supply relationship by forging a three-year partnership to supply vegetable oils, fats and related food ingredients.

Mark Hughes, group procurement director at Premier Foods, which owns brands such as Ambrosia custard and Mr Kipling cakes, said the agreement would help it deliver strong British products.

“We need the best suppliers to help us achieve our vision to be the best in British food. The development of long-term partnerships is an excellent way to ensure we can continue to innovate in support of our brands.”

AAK UK is based in Hull and is part of the AarhusKarlshamn Group, which has its head office is in Malmö, Sweden. Its products are sold in more than 35 countries.

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