Wells & Youngs to sign new distribution deal
Wells & Youngs plans to outsource its distribution to Kuehne + Nagel Drinks Logistics (KNDL) for southern England.
The aim is to find a distribution centre to replace the depots in Wandsworth, which are due to be vacated in 2008.
Distribution from KNDL will cover the Young's pub estate and also southern freetrade accounts extending from the M25 through to the south west, the Isle of Wight and the south east.
KNDL operates 22 depots across the UK and delivers 6.5m barrels per year on behalf of customers including Scottish & Newcastle UK and Anheuser-Busch.
A statement from W&Y said: "No contracts have been signed yet and the proposal is still subject to both companies Board approval, but if successful, the outsourcing will be completed by early 2008."
Wells & Young's had looked at the option of leasing warehouse space in South London. However with the recent acquisition of the Courage Brands from S&N UK and increased distribution opportunities into Southern England, Wells & Young's believed a third party solution with wider geographical reach would serve both its and crucially its customers more effectively.
Wells & Young's announced to their employees today (25 May) the proposal to outsource their southern secondary distribution with KNDL identified as their preferred supplier. However the proposed deal is subject to consultation with Wells & Young's employees and ongoing commercial negotiations. This process is likely to take several months, but we will announce further detail on the contract as soon as we are able.
