Why Andreas Meat Company Has Pulled Out of Tesco Deal

So, this week Andreas Meat Company have confirmed it will stop supplying supermarket giant Tesco with products for its Isle of Man stores from February 28.

Many Manxies have expressed their concerns about local produce disappearing from supermarket shelves ever since Tesco’s acquisition of Shoprite back in October 2023 (feels like a lifetime ago!).

Gef remembers last year’s Royal Manx Agricultural Show where the Manx National Farmers Union made headlines for their ‘potato protest’ – which saw them giving away surplus produce left behind after Shoprite’s closure.

Do some miss Shoprite for its local produce? Absolutely. Tesco faces the challenge of finding that balance, but understandably, this news raises concerns.

The silver lining? We’ve still got plenty of local retailers putting Manx products front and centre—EVF stations, Mace stores, and other village convenience shops are just a few.

Gef’s advice: keep supporting Manx businesses and buy local when you can. If we don’t, we risk losing them completely.

‘Revenues and Profit Margins’

But back to Andreas Meats, after a few put their two pence in as to why they’re cutting ties with Tesco, the company issued a statement to Gef outlining their reasoning.

Managing Director Phil Bucuris said: ‘Both our revenues and profit margins from sales to Tesco are well below expected levels.

‘Looking ahead, we do not envisage this improving sufficiently to generate the commercial outcomes that we need to successfully sustain this relationship.

‘Accordingly, we have now reached the decision to cease supplying Tesco Isle of Man with our products, which we believe is in the best long-term interests of Andreas Meats.’

Mr Bucuris said there had been significant changes to the island’s business environment over the past 12 to 18 months, with Tesco’s acquisition of Shoprite in October 2023 playing a key role.

Shoprite, which had been a major customer for Andreas Meats, represented about half of the company’s total revenues before the acquisition.

‘Given the significance of our long-established trading relationship with Shoprite, we changed our business and invested to ensure we met Tesco’s requirements and could continue to trade with them,’ Mr Bucuris said.

‘With assistance from DEFA, this included becoming SALSA accredited and an Isle of Man Approved Food Producer, ensuring full product traceability and high food hygiene standards. We also maintained our commitment to producing Manx-made products despite the higher associated costs.’

Andreas Meat Company now plans to concentrate on developing its brand through its network of local retailers, providing a full list of its supply partners across the island, ensuring customers can continue to purchase its products at various retailers.

‘Through this network, we have comprehensive all-island coverage, backed by our reliable in-house delivery service and can provide a more extensive product range than was available in Tesco stores,’ said Mr Bucuris.

The decision comes as Tesco nears the completion of its expansion on the Isle of Man, with the Victoria Road Tesco Express in Douglas set to open TODAY, marking the ninth new store since acquiring Shoprite.

Gef has approached Tesco for comment.