Morrisons moves into food service for first time with new wholesale partnership

The supermarket chain, which is also one of the UK’s largest food producers, has signed a deal with Starstock, an online marketplace that enables hospitality businesses to order directly from wholesalers. 

The new deal with Starstock will allow pubs, restaurants and hotel owners to stock their premises with products directly from Morrisons.

Under the deal, confirmed this morning, Starstock will stock an initial 1,500 Morrisons products with that likely to expand over the next six to 12 months. 

The food service announcement brings Morrisons into direct competition with the likes of Brakes and Booker, which is owned by big-four grocery rival Tesco. Morrisons also supplies convenience store group McColl’s.

Morrisons online and wholesale director James Badger said: “We’re excited to be working with StarStock and serving pubs, restaurants and hotels across the country through our wholesale business.

“As well as classic pub snacks like crisps and nuts, customers will also be able to order a wide selection of products from Morrisons Market Street. These include fruit and vegetables, as well as delicatessen lines such as cheese, cooked meats and pies.” 

The expansion also provides Morrisons with a fresh revenue stream at a time when the supermarket chain is at the centre of an ongoing £7bn tug-of-war between New York-based private equity firm Clayton, Dubilier & Rice and a consortium led by Fortress Investment.

The drawn-out battle between the two is set to go to auction next month as neither party has yet declared their bids “final”.