Northern Foods today announced its Pork Farms Bowyers business is in talks with Kerry Foods Limited, a division of Kerry Group, with a view to combining their van sales operations in Britain.
As part of the proposed arrangements Pork Farms would become the exclusive brand for pastry and fried products to be sold through the enlarged van sales business, which would be called Kerry Foods Direct to Store.
The parties are also discussing the sale by Pork Farms Bowyers to Kerry of its branded sausage business, including the Porkinsons brand, and the granting of a licence to Kerry to use the Bowyers brand on sausage.
These proposed arrangements form part of a restructuring that would bring greater simplification and focus to Northern Foods' meat and savoury products business.
The talks are subject to employee consultation and regulatory approvals. It is thought that, if implemented, the new arrangements would come into effect in March 2002.