Wincanton secures two new contracts with Weetabix
By Michele Maatouk
Date: Wednesday 09 Jan 2019
(Sharecast News) - Logistics company Wincanton has been appointed by Weetabix to provide transport, warehousing and co-packing services from February.
As part of the new partnership, which is made up of two separate, five-year contracts, Wincanton will operate four warehouses where goods are stored and co-packed for retail promotion. It will also provide a nationwide transport operation for the delivery, management and transfer of finished goods and stock.
Chief executive officer Adrian Colman said: "We are delighted to have been selected as Weetabix's logistics partner of choice across both its transport and warehousing services. Our many years of experience in providing integrated supply chain networks put Wincanton in the best position to help take Weetabix's operations forward and we are keen to bring new ideas to the process."
Weetabix said it was "thrilled" about the new partnership.
"The culture and capability of the Wincanton business is a great fit for The Weetabix Food Company," it said.
Liberum, which rates Wincanton at 'buy', said: "No financial details of the contracts have been disclosed. However, we believe the scale of the contracts may be larger than the average Wincanton new business win announcement.
"Given the timing of the start of the contracts, we would expect no material financial contribution in the current FY (March 2019E), with modest upside to consensus for later years."
At 1555 GMT, the shares were up 0.9% at 234p.
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