Iceland Foods has kicked off a new franchise partnership with c-store chain Alliance to run Iceland and Food Warehouse stores in the Channel Islands.
Described as a “new era” for the supermarket, it will end its current franchise agreement with SandpiperCI, which will close its 10 Iceland stores in Guernsey and Jersey over the next year.
They are to be replaced with new Alliance-run stores, the first of which will be a new Food Warehouse on Braye Road in Guernsey. It is due to open in January 2025 as the first Food Warehouse store outside the UK.
Ahead of the store openings, Alliance Stores will begin stocking Iceland’s own label and exclusive ranges, including its Christmas products, from 11 November.
The switch follows Sandpiper’s acquisition by Morrisons in May this year. The 10 Iceland stores were among the 38 convenience stores sold to Morrisons and scheduled to switch to the Morrisons Daily fascia.
“Partnering with Alliance is a significant step forward for us in the Channel Islands,” said Iceland Foods international and partnerships director Justin Addison. “We’re delighted to work with Alliance to continue providing our customers in the Channel Islands with Iceland’s range of innovative, value-driven products.”
It is the latest reshuffle of Iceland’s growing third-party supply network in the UK and beyond. Last month, Iceland expanded its longstanding concessions partnership with Dunnes Stores in Ireland, having controversially exited the Irish market in February 2023.
In the UK it has also been ramping up its concessions partnership with The Range and Wilko owner CDS, and rolling out its Amazon partnership to more cities.
Iceland is the latest major British grocer to partner with Alliance, which has had a supply agreement with Waitrose since 2021. The independent chain currently has five stores across the British dependency.
Alliance MD Andrew Bagot said: “We’re thrilled to announce our new partnership with Iceland and bring their much-loved products to communities across Jersey and Guernsey.
“Together, we’re making it easier than ever for households in the Channel Islands to enjoy Iceland’s fantastic range, from everyday essentials to seasonal favourites.”
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