Whitbread awards new food logistics contract to Kuehne + Nagel

Global logistics provider Kuehne + Nagel has successfully secured a new contract to manage the distribution of food on behalf of Whitbread plc, the UK’s largest hotel and restaurant group.

Whitbread, which manages the number one brands in hotels, restaurants and coffee shops, including Premier Inn, Brewers Fayre, Beefeater, and Costa has taken the decision to fully outsource its food logistics activities to Kuehne + Nagel in a new agreement which was confirmed today.

Under the terms of the five-year contract, Kuehne + Nagel will undertake delivery of chilled and ambient products to over 700 Costa Coffee outlets seven days per week, and delivery of frozen, chilled and ambient products to almost 600 Brewers Fayre, Beefeater and Premier Inn restaurants nationwide. In addition, Kuehne + Nagel will operate a customer call centre on behalf of Whitbread and manage the ordering of products from designated suppliers. The operation, which is expected to handle over 20 million cases per annum, will be based at a new national distribution centre in Wellingborough, supported by outbases in Trafford Park, Cullompton, Harlesden, Dagenham and Livingston in Scotland. The respective Whitbread employees will transfer to Kuehne + Nagel under TUPE.

Alan Parker, Chief Executive Officer, Whitbread, said, "There is a compelling financial case for outsourcing versus retaining our food logistics operations in house and we will derive significant financial benefits from moving to a new operational location. We chose Kuehne + Nagel as our preferred supplier because they offered the most attractive and competitive solution and clearly demonstrated their commitment and desire to work with Whitbread during the tender process."

Commenting on the deal, Glenn Lindfield, Managing Director Contract Logistics for Kuehne + Nagel, North West Europe, said, "Kuehne + Nagel is ideally positioned to offer Whitbread flexible solutions which will support the company's growth in the dynamic hospitality market. We look forward to working in close partnership, and adding value to Whitbread's supply chain."

About Whitbread plc
Whitbread plc is the UK’s leading hospitality company, managing the number one brands in hotels, restaurants and coffee shops, including Premier Inn, Brewers Fayre, Beefeater, and Costa. The Company employs 35,000 people within its businesses and serves 8.5 million customers each month in 1,400 outlets across the UK.