Harlech Foodservice, a Gwynedd-based food distribution company, has achieved a significant milestone by winning its first contract to supply state schools in South Wales.
This £700,000 deal is part of the company’s broader growth strategy, aimed at expanding its presence in the region over the next few years.
A Landmark Achievement
Marking a pivotal moment in its expansion plans, Harlech Foodservice has secured a £700,000 contract to supply grocery products to schools and care homes in Rhondda Cynon Taf. The 12-month agreement represents the company’s first venture into the South Wales educational sector.
Gavin Davies, South Wales account manager and a local resident, expressed his delight over the achievement. He stated, “I’m delighted that our first schools contract is right on my doorstep as we’ll be supplying my old school as well as all the schools across Rhondda Cynon Taf along with care homes and theatres.”
Strategic Expansion
The company’s recent acquisition of Celtic Foodservices, based in Pembroke Dock, underscores its commitment to growth in South Wales. This strategic move has facilitated greater regional coverage and enhanced service capabilities.
Operations in Merthyr Tydfil, Carmarthen, and Chester have played a crucial role in this expansion, enabling the company to meet increasing demand.
Emphasis on Welsh Products
Harlech Foodservice prioritises the supply of Welsh products whenever feasible. Key suppliers include Radnor Springs, known for their beverages, and various local producers providing school-compliant snacks.
Gavin Davies highlighted the importance of this approach, noting the genuine customer need for a local wholesaler. “There is a genuine customer need for another Welsh wholesaler in South Wales and there are other public sector bodies wanting to talk to us.”
This focus on local sourcing not only supports the economy but also aligns with the company’s sustainability goals.
Operational Capabilities
The opening of Harlech’s Carmarthen depot this spring was a key factor in its recent growth, driving annual sales to a record £50 million. The company’s fleet of over 50 vehicles now delivers up to 5,000 product lines to various establishments across Wales and adjacent regions.
This extensive logistical network enables efficient delivery to a wide customer base, including cafés, restaurants, pubs, and public sector clients.
Future Prospects
The £6 million expansion plan over the next three to five years is expected to create 150 new jobs. This includes 100 roles at the company’s Gwynedd headquarters and 50 others across various locations.
Mark Lawton, Sales Director, highlighted the importance of this expansion by stating, “We now have a real presence right across Wales and I know the Welsh public sector has a desire to using Welsh suppliers whenever commercially possible.”
The company aims to leverage this increased capacity to secure additional contracts within the public sector.
Community Impact
By establishing a strong foothold in South Wales, Harlech Foodservice is poised to make a significant impact on the local community.
The creation of new jobs and the emphasis on local products are expected to bring considerable benefits to the regional economy, supporting local businesses and employment.
Harlech Foodservice’s first contract in South Wales marks a significant milestone in its growth strategy, underscoring its commitment to regional expansion and local sourcing.
This achievement not only positions the company as a key player in the Welsh food distribution sector but also promises substantial economic benefits for South Wales.