News

A three-way shoot-out in chilled distribution is likely to intensify, following the acquisition of Corby Chilled Distribution by Innovate Holdings. Innovate chief executive Pete Osborne says the firm can now assert leadership in chilled over the other two national network operators in the sector: Wincanton and NFT Distribution, recently bought by its management and venture capitalists.

"We're going to beat them obviously," Osborne quips. More substantively, he notes NFT's lack of warehousing  and picking activities and he says that Innovate is better geared up in practice to provide a chilled and frozen service to customers who want that. For example, some customers freeze "chilled" products in advance of a major promotion.

Wincanton has gone off chilled a bit, having closed its Milton Keynes depot, he says. "Wishful thinking," retorts chief executive Graeme McFaull, who notes that his firm this year added a large contract with Tulip Bacon.

Innovate, already big in frozen food distribution, has come from being a minor player in chilled this year, buying first Grampian Country Transport and now Corby. It now claims to be the largest in chilled, which accounts for 54% of turnover, and the largest in temperature-controlled storage and distribution.

Innovate now has more than 2,000 employees, a turnover of £175m, more than 500 trucks and two million square feet of warehousing.

The takeover of Corby appears to have shut out TDG from a big move  on the sector. Industry sources say that TDG bid for NFT and for Corby. Innovate is also said to have been an unsuccessful bidder for NFT.

Corby was owned by Daniel Stewart, father of current MD Iain. It adds six depots, five of which it owns, taking the Innovate total to 12 depots in chilled.

Corby's customers include Tesco, Morrisons, Geest and Arla Foods. In the year ended April 30, 2005, Corby had grown turnover to £53.5m from £35.5m and pre-tax profit to £1.57m from £1.47m.

The Corby brand will remain and Iain Stewart and Carol Simey, CCD's financial director, will stay with the business, Stewart with the title chief operating officer.

Osborne says he is committed to Innovate's expansion into ambient next year and would be keen to do such work for a range of customers, including Tesco.