Hospitality navigating a ‘new normal’ of volatility and reinvention

Sysco group brand Fresh Direct has released its Summer 2026 Market Review, setting out the pressures reshaping global supply and the opportunities emerging across key categories.

The fresh produce supplier’s review underscores the scale of disruption affecting agriculture and logistics worldwide, as well as highlighting areas of resilience and growth.

It identified regenerative farming pilots – including hedgerow planting, wildflower meadows and freshwater habitat creation – as supporting future resilience while weather patterns are becoming increasingly unpredictable. Fresh Direct itself has now achieved 100% LEAF Marque environmental assurance certification across all contracted British growers.

However, the report cites escalating geopolitical tensions as challenging energy costs and shipping security, while extreme weather events continue to damage major European growing regions. Labour shortages, rising minimum wages and demographic pressures were noted as adding further strain across farming, packing, haulage and hospitality.

Fresh Direct believes category innovation accelerating, with strong momentum in prepared produce, premium fruit lines and advanced breeding technologies such as AI-driven avocado research and pangenome supported banana development.

Andy Pembroke, managing director of Fresh Direct, said: “We are operating in a market defined by volatility, with extreme weather now the norm and geopolitical pressures making long-term planning increasingly complex. Yet there is also real opportunity. Diversified sourcing, sustainability leadership and category innovation are strengthening resilience across the fresh supply chain.

“Our focus is on giving chefs and operators confidence, whether that’s through LEAF-assured British supply, regenerative farming partnerships or the continued expansion of our prepared and premium ranges. Fresh Direct is committed to maximising availability, delivering service excellent and being the most reliable fresh partner in the industry.”

In 2024, Fresh Direct partnered with Kent-based vertical farm GrowUp Farms to supply its greens year-round, following the addition of Norwich’s Fischer Farms to its portfolio.

Parent company Sysco GB recently signed a deal with Shell Energy Europe to harness 20 Gigawatt hours (GWh) of wind power a year until 2035, as part of its commitment to use only renewable energy by 2030.

Last year, the group acquired catering butcher Fairfax Meadow from Hilton Foods in a £54m deal.

That was the wholesaler’s second acquisition in the meat supply chain within a year, after the Campbell’s Prime Meat takeover in October 2024. 

Last December, Sysco’s Brakes arm launched the second phase of its Get Set Supply incubator scheme to help SMEs pitch to hospitality operators.