Brewer Scottish & Newcastle has set up a joint venture with Kuehne & Nagel to handle drinks distribution in the UK. The joint venture entails merging the distribution assets of S&N UK with those of K&N to create a new Kuehne & Nagel owned division, KN Drinks Logistics.
From July, K&N will provide all S&N UK’s primary and secondary distribution for an initial contract period of 10 years.
The intention is that KN Drinks Logistics will bring in third party work to supplement the work it does for S&N. S&N UK said it did not expect to see any immediate changes to its physical distribution network.
Stephen Glancey, group operations director for S&N said: “S&N UK is now free to concentrate on its core businesses of developing and selling great drinks brands and contract pub management. The deal will free up further cash to be reinvested in these areas.”
Since 1991 Kuehne & Nagel has provided S&N UK with primary distribution and warehouse operations services, including five major regional distribution centres at strategic sites across the UK, and employing around 1,000 people. KN Drinks Logistics will absorb the existing Kuehne + Nagel contracts with S&N UK and will take over responsibility for secondary distribution activity.