Thursday, 08 January 2009

Northern Foods bids to sell food on trains

The owner of Cavaghan & Gray’s food factory has revealed a plan to sell its products on trains.

Northern Foods, which makes ready meals for Marks & Spencer and the big supermarkets at its Carlisle plant, is in talks with a number of train operators in a bid to sell meals and snacks.

It is likely to be retailing products like its popular M&S sandwiches through the arrangement.

It would be Northern’s first foray into contract catering.

The firm has been through years of painful restructuring and factory closures and now wants to open new revenue streams.

The move is being pushed by chief executive Stefan Barden.

Initially, relatively small-scale catering opportunities are being explored to complement the core business selling to supermarkets.

“We are actively pursuing a number of opportunities, investing £500,000 in the first half-year in projects to develop the business in new related areas,” the company said.

Talks with rail franchises are believed to be among the most advanced.

Rail catering is fragmented and the firm regards it as an ideal test-bed.

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