// Morrisons will begin selling to pubs, restaurants and hotels
// The grocer aims to expand its wholesale business
// Morrisons has signed a deal with Starstock
Morrisons is reportedly set to start selling to pubs, restaurants and hotels in an effort to expand its wholesale business.
The Big 4 grocer has signed a deal with Starstock, an online portal that enables businesses to order directly from suppliers.
This means that restaurateurs, hoteliers and pub groups will be able to stock their kitchens with products sourced from Morrisons, The Times reported.
READ MORE: CD&R agrees pensions deal with Morrisons as takeover nears
Starstock has already agreed partnerships with producers including Asahi, Coca-Cola and Britvic.
By moving into food service wholesale, Morrisons will be competing for a £5 billion market against incumbents such as Brakes and Bookers, which is owned by rival grocer Tesco.
Morrisons, which owns the Safeway brand, also supplies convenience shops including McColl’s.
Under the deal, Morrisons will initially stock 1500 products – which is likely to be expanded over the next six to twelve months.
The supermarket chain is currently at the centre of a £7 billion takeover tussle between the private equity firm Clayton Dubilier & Rice and a consortium led by Fortress Investment.
As neither suitor has declared their bids “final”, Morrisons’ sale will now go to auction next month.
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