Palmer and Harvey (P&H) has agreed a three-year extension to its distribution contract with Tesco. The news comes as Tesco pursues a £3.7bn takeover of Booker Group, which competes with P&H.
The new deal, which continues the company’s 23-year relationship with Tesco, has been agreed following weeks of discussions between P&H’s lenders and stakeholders.
The contratc covers the distribution of ambient non-tobacco lines to all Tesco petrol forecourt sites and all frozen food lines (including instore bakery) to more than 1700 Tesco Express stores. It also covers Tobacco to all UK Tesco retail sites.
P&H chief executive, Tony Reed said, “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.”
Tesco UK distribution director, Andrew Woolfenden added, “We look forward to building on our long-standing partnership with P&H and continuing to work and innovate with them to serve our customers better.”
P&H was established in 1925 as a tobacco and sweets wholesaler, and is the largest distributor to the UK's convenience sector. The group serves about 90,000 outlets across the country, using a fleet of 1,300 vehicles.