Heineken has said that it ‘expects to reach an agreement’ with Dutch food retailer Sligro Food Group over the sale of its beer and cider portfolio in the Netherlands.
Sligro will assume responsibility for Heineken orders from the Netherlands’ hospitality sector – including processing, storing and delivering beer and cider to customers. Heineken will also sell other wholesale operations to Sligro, including in soft drinks, water, spirits, wine, coffee and tea.
The deal is expected to boost Sligro’s wholesale sales by approximately €150 million and will last for an initial period of 15 years, set to begin this autumn.
The agreement will not apply to deliveries of tank beer, which will continue to be managed by Heineken itself. Around 370 staff will be affected by the changes, though Heineken expects its own employees, as well as ‘most temporary staff’, to be able to keep their jobs.
Heineken Netherlands managing director Pascal Gilet said: “We are seeing the Dutch hospitality market change, with more and more businesses preferring to order their products from a single supplier. This proposed partnership allows both parties to join forces, which means that we can offer our hospitality customers more effective and efficient services. As a result of this partnership, Heineken Netherlands will be in a position to focus on its core competencies – brewing, packaging, selling and building beer and cider brands – and will give us a market lead.
“This proposal also means a change for the people who work at Heineken. We are fully aware of this and will act with respect, consideration and care. As a family business like us, Sligro is a good partner in this area, too.”
The agreement will allow Heineken to significantly expand its customer base: the brewer currently supplies around 18,000 locations, while Sligro supplies about 25,000 – including some that are also existing customers for Heineken. The firm has 13 distribution centres in the Netherlands while Sligro has eight delivery service outlets, plus three cash-and-carry outlets.
To enable it to handle the combined food and beverage deliveries, Sligro will be investing between €80 million and €100 million in the coming years to build a single, integrated distribution network. The two companies have agreed to disclose no more about the purchase price or the value of the contracts.
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