Morrison(Wm.)Supermarkets PLC Wholesale supply initiative with McColl's (6673M)
August 01 2017 - 1:01AM
UK Regulatory
TIDMMRW
RNS Number : 6673M
Morrison(Wm.)Supermarkets PLC
01 August 2017
News Release
Release date: 1(st) August 2017
Morrisons to become sole UK wholesale supply partner for
McColl's
Morrisons is pleased to announce a major new, long-term
wholesale supply initiative with McColl's, which will take
wholesale supply sales to more than GBP1bn in due course.
Morrisons is to start supplying both Safeway products and
national brands to 1,300 McColl's convenience shops and 350
newsagents across the UK(1) . The new partnership will replace all
McColl's existing supply arrangements in time.
Morrisons will supply McColl's shops, with a phased programme
starting in January 2018. By the end of 2018, we expect total
annualised wholesale sales to all our partners to be in excess of
GBP700m (inc. tobacco). We expect this new initiative to make an
initial profit contribution in 2018/19, and increase
thereafter.
Morrisons has unique food maker skills, with thousands of
colleagues in 17 food manufacturing sites across Britain. This
makes us an ideal partner to supply good quality, great value
Safeway products.
In addition, our buying experience and strong relationships with
suppliers will enable us to ensure competitive prices for McColl's
in branded products.
Morrisons has been developing a new Safeway range since the end
of 2016. It now comprises over 400 fresh, frozen and ambient food
products, many of which are made in Morrisons food manufacturing
sites. McColl's is to be given a one year period of exclusive
access to Safeway products.
The new wholesale supply initiative allows Morrisons to partner
with a growing, centrally managed convenience retailer and helps
McColl's on its journey towards developing a broader convenience
food offer.
David Potts, Chief Executive of Morrisons, said:
"We are very pleased to partner with McColl's, and look forward
to developing a long and successful relationship together. We are
also pleased to be reviving the Safeway brand which we know
customers will enjoy.
"This new partnership is a further example of Morrisons
leveraging existing assets to access the UK's growing convenience
food market in a capital light way. Wholesale supply will help make
us a broader, stronger business."
(1) Initially Morrisons will supply c.1,000 McColl's convenience
shops and 350 newsagents, with the remainder of the McColl's estate
(the c.300 recently acquired convenience shops) migrating in due
course
Jonathan Miller, Chief Executive of McColl's, said:
"As a large, leading multiple grocery retailer with its own
outstanding food manufacturing capability Morrisons stands apart
from the competition, and we are truly delighted to be entering
into partnership with them. In McColl's, Morrisons gain a long-term
partner of significant scale with a growing neighbourhood
convenience estate and in Morrisons we gain access to their
best-in-class sourcing and manufacturing capabilities. This will
enable us to provide our customers with the highest quality fresh
food through the relaunch of the much loved and trusted Safeway
brand. This is a defining moment for McColl's and builds on the
transformational deal we announced last year to acquire 298 high
quality convenience stores."
Enquiries:
Wm Morrison Supermarkets
PLC
Trevor Strain - Chief
Financial Officer 0845 611 5000
Andrew Kasoulis - Investor
Relations Director 0778 534 3515
Media Relations
Wm Morrison Supermarkets Julian
PLC: Bailey 0796 906 1092
Citigate Dewe Rogerson: Simon Rigby 0207 282 2847
Kevin Smith 0207 282 1054
This announcement contains inside information
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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