An island meat supplier has announced it will cut ties with Tesco after experiencing a significant decline in revenues and profit margins.

Andreas Meat Company has now confirmed it will stop supplying the supermarket giant with products for its Isle of Man stores from February 28.

The firm issued a fresh statement to Isle of Man Today on Wednesday, outlining the precise reasons behind its decision.

Andreas Meat Company, known for its Manx pork, beef, and lamb, has long been a supplier to local supermarkets, independent retailers, catering outlets, and residents.

All of its products are born, reared, and processed on the Isle of Man under Farm Assured standards - a certification scheme that guarantees certain standards of food production, animal welfare, environmental management, and food safety on farms.

In the statement, Andreas Meat Company 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, including EVF locations, Mace, Woodbourne Deli, and local convenience stores in towns and villages across the Isle of Man.

‘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 this week, marking the ninth new store since acquiring Shoprite.

During the transition period, Shoprite stores continued operating under their original branding before being gradually rebranded.

Over the past year, new Tesco outlets have opened in Peel, Castletown, Ramsey, Onchan, Port Erin, and Douglas, as part of the retail giant's expansion.

Isle of Man Today has approached Tesco for comment.