A government food initiative that could improve the quality of school and hospital meals has awarded a £100 million contract to the procurement arm of the catering giant Sodexo.
The deal by the Cabinet Office with Entegra, a subsidiary of Sodexo that says it is the largest food group purchasing organisation in the world, has the aim of streamlining public sector food and drink procurement and bringing more small and medium-sized enterprises (SMEs) into the government’s supply chain but keeping prices keen and raising standards.
The merits of the multi-year contract are contentious, however, and food wholesalers and distributors have labelled it as anti-competitive and claim that it will add cost and could lock out more SMEs than it helps. James Bielby, chief executive of