What is Sales and Marketing Strategy of Greencore Company?

The company's primary sales channels involve direct supply to all major UK supermarkets, convenience stores, travel retail outlets, and discounters. This direct engagement ensures efficient product placement and availability for consumers.

Supporting its direct sales model, Greencore operates a substantial logistics network, executing over 10,500 direct-to-store deliveries daily. This operational capability is key to its quick-turnaround food solutions.

Greencore emphasizes building lasting relationships with its customers, which is vital for its high-volume business. As of 2023, approximately 70% of its sales were generated from its top 10 customers, highlighting the importance of these key accounts.

The company's growth strategy includes strategic acquisitions, such as the 2011 purchase of Uniq plc's convenience foods division, which expanded its product range. The planned acquisition of Bakkavor Group PLC, anticipated for early 2026, further solidifies its market presence and distribution reach.

Greencore distinguishes itself through substantial production capacity, operational excellence, and robust customer relationships. The company prioritizes consistent quality and service delivery, achieving outstanding operational service levels of 99.2% in H1 FY24.

The brand's professional visual identity and tone of voice are tailored for its business-to-business relationships, reflecting its crucial role as a supplier to major supermarkets. Its appeal to these key clients is built on efficiency, scale, and responsiveness to market trends, such as the increasing demand for healthier and more sustainable food options.

A significant aspect of Greencore's brand positioning is its commitment to sustainability. The company aims to reduce carbon emissions by 50% by 2030 (compared to 2019 levels) and is working towards a deforestation-free supply chain by 2025, alongside a commitment to fully recyclable or reusable packaging by 2025.

Greencore maintains brand consistency across all communications, reinforcing its dedication to quality, partnerships, and a better future for food. In response to evolving consumer sentiment and competitive pressures, the company actively enhances its product offerings and supply chain, as seen in its 'Horizon 2' strategy focused on profit recovery and return enhancement.

This ongoing strategy aims to accelerate profit recovery and enhance returns, building on the previous 'Horizon 1' stabilization phase. The effectiveness of this business strategy is evident in the group's operating profit, which saw a 28% increase to £84.3 million for the 52 weeks ending September 27, 2024.

The 'Better Future Plan' and the 2024 Sustainability Report highlight a strong commitment to environmental responsibility. Targets include a 50% reduction in carbon emissions by 2030 and ensuring all packaging is recyclable or reusable by 2025, serving as a key selling point for environmentally conscious retailers.

Successful strategic sales efforts are demonstrated by the onboarding of a new large ready meals contract in late Q4 FY24. Robust revenue momentum in Q3 FY25, with a 9.9% increase to £511.1 million, was driven by favorable weather and new business, particularly in sandwiches, sushi, and ready meals.

The reintroduction of a dividend in FY24, after a four-year hiatus, signals strong financial health. This move reinforces the company's market standing and instills confidence among shareholders and potential investors, reflecting a positive Mission, Vision & Core Values of Greencore.