Rod Addy
Chilled food distributor Kerry Foods Direct to Store has clinched a £35m deal to supply convenience chain TM Retail.
The three-and-a-half-year contract took six months to negotiate. Michael Bassett, Kerry Foods Direct to Store MD, said it was part of a long-term strategy for the company to become the chilled supplier of choice to the convenience and independent sector.
Bassett said Kerry Foods Direct to Store vans carried small quantities of short shelf-life products on spec. Retailers could buy these direct from the vans when they made their daily deliveries without having to pre-order. It was this service, he said, that swung the agreement with TM Retail: "Our little and often' principles in a low volume marketplace have once again been recognised in delivering a major contract. We'll offer even one or two sandwiches to top up shelves, not just whole cases."
Bassett added that Kerry Foods Direct to Store was pushing to enhance the delivery process through auto-replenishment: "We have been trialling this with T&S Stores over the last few months. Early signs have been encouraging and we are now looking to roll out the system across its total estate of 1,162 stores."
Bassett did not want to comment on Tesco's takeover of T&S but said Kerry had a contract with T&S which ran until 2004. Kerry Foods Direct to Store has 450 vans delivering to 17,500 customers.
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Chilled food distributor Kerry Foods Direct to Store has clinched a £35m deal to supply convenience chain TM Retail.
The three-and-a-half-year contract took six months to negotiate. Michael Bassett, Kerry Foods Direct to Store MD, said it was part of a long-term strategy for the company to become the chilled supplier of choice to the convenience and independent sector.
Bassett said Kerry Foods Direct to Store vans carried small quantities of short shelf-life products on spec. Retailers could buy these direct from the vans when they made their daily deliveries without having to pre-order. It was this service, he said, that swung the agreement with TM Retail: "Our little and often' principles in a low volume marketplace have once again been recognised in delivering a major contract. We'll offer even one or two sandwiches to top up shelves, not just whole cases."
Bassett added that Kerry Foods Direct to Store was pushing to enhance the delivery process through auto-replenishment: "We have been trialling this with T&S Stores over the last few months. Early signs have been encouraging and we are now looking to roll out the system across its total estate of 1,162 stores."
Bassett did not want to comment on Tesco's takeover of T&S but said Kerry had a contract with T&S which ran until 2004. Kerry Foods Direct to Store has 450 vans delivering to 17,500 customers.
{{NEWS }}
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