P&H signs three-year supply contract with Tesco

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Palmer and Harvey (P&H) had extended its distribution contract with Tesco by three years, amid refinancing talks with tobacco manufacturers.

The contract will cover the distribution of tobacco products to every UK Tesco store; ambient non-tobacco lines to all Tesco petrol forecourt sites; and frozen food lines (including in-store bakery) to over 1,700 Tesco Express stores.

P&H CEO Tony Reed said: “We are delighted to further extend our multi-year relationship with Tesco and we look forward to working with the Tesco team to maximise efficiency and provide great service over the coming years.

“The combination of resources from the two businesses is proven to deliver a first-class retail offer for Tesco customers”.

Tesco’s UK distribution director Andrew Woolfenden said: “We look forward to building on our long-standing partnership with Palmer and Harvey, and continuing to work and innovate with them to serve our customers better.”

P&H is currently in refinancing talks with JTI and Imperial. JTI head of communications Jeremy Blackburn said: “Palmer & Harvey is one of the key wholesalers of our products in the UK and we are currently in discussions with its management team to develop future business plans.”

Readers' comments (7)

  • That will be some comfort to their staff.Mind you, they are actively looking to relaunch the Independent Sales side of their business i.e.the area that can return the most profit unlike being a distribution partner for the likes of CSG and Tesco etc.

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  • Whilst good news for the employees the cynic in me does wonder if this was always the plan, or whether Tesco are attempting to circumvent a potential major issue with the CMA over the Booker deal.

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  • Good point James however since they dismantled their Independent Sales team in NOV 2015, it looks like they have realised that this was a mistake given that CSG were not really buying in the way that was needed to sustain that arrangement for too long.That agreement has been a real bind on what P&H were abouti.e.a really good supplier/partner for the Independent Retailer.Sadly those days are gone, perhaps forever.

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  • When we were a costcutter retailer the best days were during the Nisa-Today partnership. Business was still strong by the time it was just Nisa. The supply change to Palmer Harvey caused huge issues and we had no alternative but to change. I still hear of issues with the current arrangement more so rumours CSG have handed their notice

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  • RETAILER2, that RUMOUR has been doing the rounds for the last six months.The latest i heard was that P&H will not be renewing the arrangement when the current one expires.Either way the CSG deal has been a disaster for P&H.

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  • RETAILER

    Given the issues already mentioned regarding the CSG/P&H deal it would make sense for the latter not to renew, particularly if the can replicate the apparent inroads their own 'Central' company and franchisee stores are making here in the South West to other regions.

    Where this will leave CSG I don't know, back to Nisa or another partner such as Bestway?

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  • Always found P&H the most expensive wholesaler especially on grocery, bws and chilled. Any CSG volume would be beneficial to the other wholesalers, especially if large volume is hard to gain.

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