Atlantic Beef Products sales down after Co-op buyout
The Atlantic Beef Products plant on P.E.I. is experiencing lower sales with the switchover from Co-op to Sobeys.
Sobeys completed its purchase of the wholesale grocery arm of Co-op Atlantic two weeks ago. That wholesaler supplied about 50 Co-op Atlantic stores in the region now being supplied by Sobeys.
Atlantic Beef Products is the only federally inspected beef plant in the Maritimes.
Russ Mallard, president of Atlantic Beef Products, told CBC News discussions are underway with the grocery chain and he is hopeful sales will pick up soon.
"At this point, the conversations we've had with Sobeys have revolved around keeping Atlantic beef in Atlantic Canadian stores, and you know, we've been very encouraged by the conversations we've had with Sobeys," said Mallard.
"We're trying to move them along as expeditiously as possible to make sure that whatever slight interruption we have in our volumes will be back on track as soon as possible."
Mallard did not specify how much sales had dropped. He noted some Co-op stores have been placing individual orders with the plant.
In a written response, Sobeys said it's in discussions with the plant.
"We've had a long-standing relationship with ABP and are committed to supporting the Island beef industry," the spokesperson wrote.
"We know customers will be happy to see that Atlantic Beef Products will continue to be available at Co-op stores supplied by Sobeys Atlantic as well as our Foodland and Sobeys stores."
Sobeys said so far the discussions have been positive.
