Fowler Welch is to open a new depot at Newton Abbot in Devon in July with 25 trucks and 35 trailers there full time.
Managing director Nick Hay said the move followed an initiative for Tesco at the Washington depot in Sunderland.
“The ability we have developed there, to service the smaller Tesco Express range of stores in urban locations, has seen us asked to extend that and deliver a similar service in the southwest: Newton Abbot will be the centre of that operation.”
Newton Abbot will not be a dedicated Tesco-only depot however and Fowler Welch will be looking for other work in the area.
Hay said: “We already have a level of business in the South West that will make Newton Abbot busy from the start. So, while Tesco is an important customer there and at other UK depots for us, the Newton Abbot staff will all be our own and the fleet based there will work across all local chilled and ambient business opportunities.”