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Significant logistics contracts signed in UK

A range of logistics contracts have been signed recently to support the trade in the UK. James Graham reports

Kuehne + Nagel has grown its business in the UK wine and spirits market with Concha Y Toro, Latin America’s leading wine producer and exporter and one of the 10 largest wine companies in the world.

Its long-term partnership with Kuehne + Nagel has been increased with the signing of a new three-year contract logistics agreement. Kuehne + Nagel has managed imports of wine from Chile and Argentina by seafreight on behalf of Concha Y Toro for ten years. Under the terms of the new agreement, Concha Y Toro will now transfer all its UK domestic warehousing and distribution to KN Drinks Logistics, Kuehne + Nagel’s wholly-owned subsidiary in the UK.

KN Drinks Logistics’ Hams Hall facility in the Midlands will offer storage for approximately one million cases of wine which will be delivered annually to both on- and off-trade customers via the KN Drinks Logistics’ primary and secondary distribution networks.

German Lledo, finance and logistics director at Concha Y Toro UK, said: “We chose to develop our supply chain operations in the UK with KN Drinks Logistics because it is crucial to us to be able to offer a flexible, highly reliable and seamless service to our customers in a very competitive market.”

Phil Newton, business development Director for KN Drinks Logistics, said: “As the largest seafreight forwarder in the world, Kuehne + Nagel has been a significant player in the wines and spirits market for a number of years. We are therefore ideally positioned to offer our contract logistics expertise to this sector, which continues to be a strategic target for our organisation.”

Marks & Spencer awards contract to DSV Road…

DSV Road has won a two year contract to transport all Marks & Spencer’s (M&S) beer, wine and spirits from its UK suppliers to the M&S Distribution Centre in Daventry.
Using a combination of dedicated and network vehicles, DSV Road will collect the beer, wine and spirits from suppliers throughout the UK and deliver into the Daventry DC in one-hour time slots.
Philip Eaves, head of primary logistics at Marks & Spencer said: “We were impressed by DSV’s logistics experience and IT solutions. DSV showed determination to find the right, cost-effective solution for our precise requirements.”
DSV Road has planned its operations to assist Marks & Spenser meet its tough environmental targets. Collection routes have been designed to minimise road miles as much as possible, with vehicles meeting the highest emissions standards. All drivers are SAFED (Safe and Fuel Efficient Driving) trained to reduce fuel consumption,” he says.

… as it signs up JF Hillebrand

Logistics provider JF Hillebrand it has been awarded new contracts from two of the UK’s largest retail chains, building further upon its existing relationships with these customers.
Marks & Spencer (M&S) has selected JF Hillebrand to manage the importation of its European beers, wines and spirits (BWS) range of products to the UK, extending the successful relationship it currently enjoys with the handling of M&S BWS import operations from the New World covering both freight and supply chain management.
Roger Preston, sales director of JF Hillebrand UK said: “This opportunity of a new two-year agreement will allow us to build further on our collaboration and to refine M&S’ BWS supply chain across all trade lanes.”
Meanwhile, JF Hillebrand has won a new contract with Wm Morrison, being awarded the majority of the supermarket chain’s inbound wine logistics business, a reflection of the consistent high quality and reliability of service provided across selected businesses to date.
“We are obviously delighted that M&S and Wm Morrison should have the confidence in the quality and value of our services to their business, to make this level of commitment,” said Tom Yusef, chairman of JF Hillebrand UK. “It is very rare for us to publicise the winning of new business, but we are especially proud to report these significant recent successes.”

Raising a pint to PD Logistics

PD Logistics, part of the PD Ports Group, has won the contract with the UK’s largest independent drinks manufacturer and distributor, Halewood International, to handle all imports of Tsingtao Beer from China.
Containers will be received into the port of Felixstowe and unloaded into PD Logistics 500,000 sq ft onsite warehouse facility for bonded storage prior to onward despatch.
This new contract with Halewood International significantly increases the volume of bonded products that PD Logistics currently handles at this facility. As a result, PD Logistics has expanded its wet bond area from 80,000 sq ft to 165,000 sq ft to accommodate the imported Tsingtao beer, whilst allowing for further expansion within the market. Tsingtao is the fifth fastest growing premium packaged lager in the world and the tenth-largest beer brand worldwide. With an already substantial and loyal consumer base within the Chinese restaurant market in the UK, Tsingtao is has begun to appear on supermarket shelves.
James Wright, sales controller at Halewood International, comments: "With the Tsingtao agreement in place we needed to identify a partner, who was able to offer a large, bonded warehouse facility as close to the port as possible, which would enable us to maximise the efficiency of our supply chain."
"We were aware of the excellent reputation of PD Logistics bonded facility and the comprehensive shipping connections enjoyed by the Port of Felixstowe. The decision was easy to make and we look forward to what we hope will be a long and fruitful relationship with PD Logistics."
Halewood International, based in Merseyside, manufactures and distributes some of the UKs best known alcoholic drinks brands from Lambs Navy Rum to Crabbies Alcoholic Ginger Beer and Red Square Vodka.

1 February 2010 - James Graham