Retail chain the Co-op has delivered a timely boost to Chippenham-based logistics group Wincanton by renewing its food distribution contract for a further five years. 
Last week Wincanton bosses told the firm’s AGM that they would closely monitor the impact of the EU referendum decision on the business.
While the firm’s clients are now based almost completely in the UK and Ireland, it employs a large number of EU nationals in its warehouses and distribution depots.
Its AGM statement said: “We are a large multicultural and multinational employer and we will continue to value the development and retention of all our colleagues from all nationalities.
“Wincanton is a resilient and innovative company with over a 90 year history and we are confident that we will successfully navigate through any changes arising from the referendum result.”
The Co-op has been a client of Wincanton for more than 25 years. Under the renewed contact Wincanton will continue to service the Co-op’s logistics depots on Merseyside and in Cambridgeshire.
Under the contract it employs around 700 staff and uses a fleet of 500-plus vehicles to support the challenging demands of the grocery marketplace – making around 130,000 journeys a year to up to 1,000 Co-op stores nationwide.
Wincanton said as part of the contract renewal it would achieve further efficiencies and continuous improvement benefits across its logistics operations.
Chief executive Adrian Colman said: “Wincanton will deliver transformational change, utilising our continuous improvement expertise to capitalise on opportunities for further efficiencies across these operations.
“This significant contract renewal with the Co-op underlines our leadership in the UK grocery sector for supporting successful retailers in their ambitions to win market share.”
Co-op head of transport Jon Paul Brown added: “Renewing our food logistics contract with Wincanton is an important part of our re-build strategy, which continues at pace.
“We remain committed to delivering the best possible service to stores and we are confident that continuing our long-term relationship with Wincanton will help this and reduce our operating costs, to support investment in our business and members going forward.”
Since March Wincanton has signed a number of major contracts including a five-year contract to manage DIY chain B&Q’s distribution centres, the renewal of a five-year contract with Sainsbury’s to support its supermarket and convenience stores across England and Wales, and a three-year agreement for transport logistics with Halfords.
The firm operates more than 4,000 vehicles and employs 15,500 people across 200-plus sites in the UK. It sold its European distribution operations in 2011.
Wincanton's shares were up 2p – 1.1% – at 181p at midday today.
