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Distribution giant teamsup with S&N

Published:  23 July, 2008

Scottish & Newcastle UK (S&N UK) has formed a joint venture with logistics firm Kuehne + Nagel to organise drinks distribution in the UK.

The agreement constitutes one of the largest logistics contracts of its kind in Britain, and will see the formation of a new Kuehne + Nagel-owned division, KN Drinks Logistics.

Kuehne + Nagel has been handling S&N's primary distribution (bulk movements from production sites to warehouses and multiple retail customers) and its warehouse services but, under the joint venture, it will now also take care of secondary distribution (delivery from warehouses and regional depots to pubs and licensed premises).

Peter Ulber, Kuehne + Nagel's chief executive of UK and Ireland, said: This is a true win-win deal for all parties.

Kuehne + Nagel will add value by using its logistics expertise. The independent KN Drinks Logistics business will represent a new and compelling offer to pub companies and beverage suppliers throughout the UK.'

Stephen Glancey, group operations director for S&N, added: We have created the biggest and best invested drinks logistics business in the UK. It becomes free of the constraints to grow, and will be able to seek new contracts outside S&N.

Furthermore, S&N UK is now free to concentrate on its core business of developing and selling great drinks brands and contract pub management.'

No redundancies are forecast as a result of the decision, and the new business will have nationwide coverage of 22 depots, 850 vehicles and nearly 3,000 people. KN Drinks Logistics should become fully operational by 3 July.