P&H nets multi-million pound chilled contract from Tesco subsidiary

By Rod Addy contact

- Last updated on GMT

P&H will deliver the chilled range to One Stop's 650 stores in England and Wales
P&H will deliver the chilled range to One Stop's 650 stores in England and Wales

Related tags: Convenience store, Tesco

Palmer & Harvey (P&H) has nailed a multi-million pound rolling chilled food contract with Tesco subsidiary One Stop.

The deal involves P&H signing a rolling agreement with the convenience store chain to become its official supply partner for chilled products.

One Stop said it would keep handling its own buying, ranging and selection, while P&H would deliver the range to more than 650 stores across England and Wales via up to six weekly deliveries.

P&H has supplied One Stop’s chilled range since April, after rival operator Kerry Fresh elected to exit the account in February this year as part of a restructuring of its business.

‘Highly competitive environment’

“We operate in a highly competitive environment so it’s important that we have a reliable supply chain, especially with products that have a short shelf-life,”​ said Tony Reed, ceo of One Stop, which employs 9,500 staff and operates as a separate business to Tesco, despite being a subsidiary.

“We have been particularly pleased with P&H’s excellent service levels and dedicated account team support in providing our stores with the flexibility required to meet demand.”

Andy Maclay, P&H director of sales (distribution), said: “We are delighted to have agreed this new partnership with One Stop.

‘Fast and efficient service’

“Our unique nationwide distribution facilities mean we are equipped to supply all of One Stop’s stores with a fast and efficient service and can react to shopper demand.”

P&H, which was founded more than 80 years ago and is a privately-owned company, claims to be the UK’s largest delivered wholesaler, with an annual turnover of more than £4bn.

It has 14 regional depots and a fleet of more than 1,000 vehicles, serving major UK grocery multiples. It calculates that it handles more than 11,000 ambient, chilled and frozen food lines and carries out more than 60,000 weekly deliveries across the UK.

Related topics: Supply Chain, Chilled foods, Services

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