How do you see chill chain distribution changing in terms of the beverage industry?
Ian Padley: The industry is expecting new legislation relating to noise pollution and C02 (and other) emissions from refrigerated units. This will be targeted at refrigeration units when running while the vehicle is stationary.
There are also more stringent rules being applied to chill temperatures of food and drink during the distribution process, with exact temperatures now being specified.
What are you most frequently asked for regarding chilled beverage transport?
Ian Padley: At a basic level, our customers in the chill chain distribution sector ask us to source ancillary chilled refrigeration equipment, rather than freezer units. These refrigeration units need to comply with the current and the proposed legislation on noise pollution and C02 emissions.
Our customers have to respond to these regulations when sourcing vehicles and equipment, despite them being more capital intensive.
Within the beverage distribution industry, health and safety laws on heavy lifting also need to be considered and that involves the addition of tail lifts and, in certain cases, fitting trailer units with lower bodies.
What can you supply to meet cost-saving requests?
Ian Padley: We involve industry specialists and manufacturers to match evolving requirements and have the competitive finance in place so our customers can save time in the funding search process.
We can also offer flexibility, spreading the capital cost over a longer term to reduce costs. We take the residual value risk reducing our clients’ cash flow requirements and is tax efficient.
What has been your latest investment in this sector?
Ian Padley: Asset Alliance recently signed a full contract hire deal with Willenhall-based Midland Chilled Foods, confirming delivery of a further two 26-tonne Mercedes Benz Axor 2529L 6×2 sleeper chassis cab refrigerated vehicles in September 2012.
How much pull do the retailers have?
Ian Padley: The retailers dictate most aspects of refrigeration distribution. Suppliers have to comply with specific health and safety regulations laid down by retailers and by the government, as well as complying with the retailers’ own delivery process. If vehicles don’t meet these criteria, they lose the contracts – plain and simple.
If entrepreneurs are looking to launch and distribute a chilled beverage product, what questions should they be asking?
Ian Padley: What vehicles and equipment do I need to invest in and what will the capital investment be? What will be the target monthly contract hire costs versus a margin that makes the business worthwhile?
How can fuel costs be kept as low as possible?
Ian Padley: Fuel costs can be kept a lot lower with the investment of newer and more fuel-efficient vehicles. New vehicle costs far outweigh savings in fuel consumption.
?How can you help beverage manufacturers meet sustainability targets?
Ian Padley: In the case of refrigeration units, Asset Alliance recommends buying new equipment that’s silent and far more eco-friendly, and meets all industry regulations. An effective fleet management contract gives equipment a lifespan of up to seven years.
Claire Phoenix is managing editor of Beverage Innovation magazine.
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