Cargill and Faccenda unveil Avara Foods joint venture

By Aidan Fortune and Rod Addy

- Last updated on GMT

The new venture will constitute the third biggest UK poultry supplier, claims Faccenda
The new venture will constitute the third biggest UK poultry supplier, claims Faccenda

Related tags: Value added, Business

The newly-created poultry joint venture between Cargill and Faccenda has been unveiled as Avara Foods.

Cleared by the Competition and Markets Authority in December, Avara Foods will be a 50:50 shared ownership between Cargill and Faccenda and combine the two companies’ chicken businesses as well as the latter’s turkey and duck divisions.

The new venture will employ 6,000 people from both Cargill and Faccenda in a fully-integrated supply chain focused on “delivering high-quality fresh food to UK customers​”. It will supply chicken, turkey and duck to retailers, foodservice and food manufacturers.

A spokesman for Faccenda told Food Manufacture: “It’s very early days for Avara Foods and our primary focus has been on ensuring a smooth transition for everyone involved and protecting the quality and service that our collective customers have come to expect. Led by Andy Dawkins as ceo and Chris Hall as chief commercial officer, the remaining members of the executive management team are made up of former Cargill and Faccenda Foods leaders.

Competitors

“Given that both underlying businesses have been competitors right up until day one, we’re not in a position to outline the strategic direction of the new business. In broad terms, however, there is an opportunity to bring together two successful, complementary, businesses and draw on a larger pool of skills, resources and experience to deliver for our customers in new and exciting ways.

“Avara Foods immediately becomes the third largest poultry supplier in the UK. Combining into one entity will allow us to build on our strengths, grow in the market and better serve our customers, offering a diversified portfolio of fresh poultry and added value products.”

In an official statement, Dawkins said: “This is an exciting day. Launching Avara Foods brings together two successful businesses with high standards, shared values and strong reputations for building sustainable partnerships with customers, growers and suppliers. Now the opportunity is to take the best from both and provide our customers with great service and innovation from a trusted leader in fresh foods.

‘Smooth transition’

“We believe that it is our strong values and talented people that make the difference and will be key to the success of our business now and in the future,” ​he added. “Our first step is to make sure that there is a smooth transition as we bring together the two businesses as Avara Foods, and establish a solid platform for growth.”

When the joint venture was first announced in September of last year, Chris Langholz, president of Cargill Poultry said: “We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers. The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers.”

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