Palmer & Harvey signs new three-year distribution contract with Tesco

Delivered wholesaler Palmer & Harvey has announced  an agreement for a three-year distribution contract with Tesco.

Palmer & Harvey will provide delivered wholesale services to Tesco stores, in a continuation of their 23-year relationship.

The contract will cover the distribution of tobacco and associated products (plus postage stamps) to every Tesco retail site in the UK; ambient non-tobacco lines to all Tesco Petrol Forecourt sites; and all frozen food lines (including Instore Bakery) to over 1,700 Tesco Express stores.

Tony Reed, CEO of P&H said: “We are delighted to further extend our multi-year relationship with Tesco and we look forward to working with the Tesco team to maximise efficiency and provide great service over the coming years.

“The combination of resources from the two businesses is proven to deliver a first-class retail offer for Tesco customers”.

Andrew Woolfenden, Tesco’s UK distribution director said: “We look forward to building on our long-standing partnership with Palmer and Harvey, and continuing to work and innovate with them to serve our customers better.”

The new contract will do much to ease recent speculation about P&H’s future: according to some media reports, Tesco accounts for as much as 40% of P&H’s business. The wholesaler also last week called in corporate restructuring specialist Andy Leeser to help with a corporate restructure and refinancing.

We’ll have more on P&H in the April issue of Wholesale News, out next week!

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