Nisa has confirmed it is no longer in negotiations with Bestway to continue supplying its symbol group Costcutter next year.
It will mark the end of a long-term supply arrangement with The Co-op, which started supplying Costcutter stores in 2018, including branded and own-label products, via its Nisa supply chain.
The contract was extended to 31 December 2025 when Bestway bought Costcutter five years ago.
Costcutter retailers have praised the Co-op deal for providing their stores with a strong fresh offer through Co-op own label, and have previously raised concerns about how this will be affected upon the contract termination.
In moves reported first by BetterRetailing, Nisa has now confirmed it is no longer in talks to extend the contract.
“We’re not in negotiations and our contract with Costcutter ends on 31 December 2025,” said a Nisa spokesman.
It comes after Costcutter recently renewed a contract with high-profile retailer Jonathan James, who owns 44 stores. Symbol group SimplyFresh also renewed its contract with Bestway in July, providing it with continued access to Co-op’s own label range through Bestway’s supply deal with Nisa for Costcutter.
It is not yet known which retailer will take over the contract in 2026, though an announcement is expected soon.
The Grocer revealed last year that Bestway had held meetings with Sainsbury’s about a future supply deal for its Costcutter symbol estate in 2023.
It is understood the wholesale giant was exploring potential supply options for Costcutter once its contract with Co-op ended. As part of this process, it hosted a delegation with Sainsbury’s in at least three Costcutter stores during that summer. Sainsbury’s declined to comment at the time.
The meetings followed Bestway’s move to accumulate a 4.47% stake in Sainsbury’s 2023, representing an investment of £250m and making Bestway the fifth largest investor.
Sainsbury’s declined to comment on whether it was in negotiations with Bestway to supply Costcutter stores from next year.
Morrisons is said to be another contender, but also declined to comment.
A Bestway spokeswoman said: “At Bestway, our number one priority is supporting our customers and, in this case, our Costcutter retailers.
“Like all businesses we are looking to the future to remain competitive in the market and provide our customers with the best offer, to help our retailers thrive.”
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