Tulip UK’s foodservice business to hit £260M by 2018

01-Oct-2013 - Last updated on 02-Oct-2013 at 15:44 GMT

Tulip UK aims to double its current foodservice sales of about £130M over the next five years

Pork processor Tulip UK has relaunched its foodservice division in a move designed to double its current sales of about £130M in this sector over the next five years.

The UK foodservice sector is expected to grow by £10bn to about £90bn by 2018, according Tulip Foodservice Solutions, and it wants a bigger slice of this action.

“We had a good foodservice business, but the size of the opportunity was much bigger and the majority of our foodservice business had been built on the back of, and was predominantly, bacon,” said Rob Hoare, Tulip’s commercial and marketing director. “What we weren’t doing was selling across our product portfolio.”

Tulip Foodservice Solutions now describes itself as a ‘one-stop shop’ for the 400 caterers, wholesale outlets and cash-and-carries it currently serves, offering sliced cooked meats, shredded meats, pizza toppings, meal solutions and deli fillers.

Largest meat producing company

Tulip is owned by Danish Crown, Europe’s largest meat producing company and the second biggest pork producer in the world, handling 325,000 pigs across Europe a week. It claims to be one of the largest food producers in the UK – operating 16 factories – and the largest processor of pig meat, handling 45,000 pigs a week, 15,000 of which it produces itself.

Tulip’s current overall UK turnover is around £1.2bn, including its retail business of about £750M, said Hoare.

Alongside Tulip brands such as Danepak, Stagg Chili, SPAM and SuperTops, Tulip Foodservice Solutions has also launched retail-inspired own-label product ranges: Simply Best, Simply Better and Simply Good Oak Crown. The Simply Best, Simply Better and Simply Good Oak Crown ranges are grouped around ‘price tiers’ and meat content to help caterers and retailers choose products by budget and quality preferences.

“We are a retail manufacturer that does more than a bit of foodservice; we are one of the major names in the UK in terms of foodservice,” said Tulip Foodservice Solutions director Simon Shirley. He noted that until recently many potential customers had been unaware of the range of products it offered in this sector. “That’s not the customers’ fault, it’s our fault, we haven’t told them.”

Shirley added: “Although we have been leaders in retail for over 20 years, we recognise that the foodservice sector is significantly different. Our dedicated foodservice division is focused on taste and customer care as well as quick service and delivery.”

‘Fragmented and confusing’

“Before launching our products we analysed the foodservice market and found that caterers were frustrated with the fragmented and confusing nature of sliced cooked meats buying. Meat content, provenance, slice count and serving suggestions were not uniformly clear. As such, our range was developed to address these issues and offer chefs and caterers not only a diverse range of products but clear product quality tiers with matching pricing.”

Tulip says its meat is fully traceable and sourced from high welfare, sustainable farming systems in the UK, Denmark and Europe. In addition to pork, bacon, sausages and gammon, Tulip also supplies chicken, lamb and beef as well as canned meats, pizza toppings, deli fillers and ready meals.

The company plans to grow its foodservice team over the next 12 months and extend its product range over the next 18 months. It will also be relaunching its SuperTops pizza toppings brand, which is currently worth £10M in the UK.