Carlsberg UK to outsource secondary logistics to DHL Tradeteam

Carlsberg UK is planning to outsource its entire secondary logistics operation to DHL Tradeteam as part of plans to refocus its efforts on brewing.

The own-account operator, which as an O-licence authorising up to 438 vehicles and 317 trailers, plans to end its secondary logistics operation in 2017-18.

It will also stop providing porterage, which sees multiple operators consolidate deliveries from different drinks suppliers, but said it will honour all existing porterage contracts until they expire.

As well as transporting its own products, it works for pub chains JD Wetherspoon and Punch Taverns.

Chief executive Julian Momen said: “The review and subsequent proposal have been given the considerable time and care they warrant.

"Our intention to outsource our secondary logistics to a specialist logistics provider in DHL Tradeteam is taken with a long-term view of the market to ensure a sustainable solution in terms of service and cost for our business and our customers.”

Carlsberg said DHL Tradeteam, which recently rolled-out a new livery, is currently finalising the structure of its network to handle the drink manufacturer’s logistics and is expected to complete the integration by March 2018.

A DHL Tradeteam spokeswoman said: “We are delighted that Carlsberg UK is proposing to outsource certain parts of its distribution requirements in the UK to DHL Tradeteam.

"As a leading logistics provider in the UK, we look forward to providing Carlsberg UK’s consumers and customers with an excellent service in the coming years.”

A Carlsberg UK spokesman could not confirm how many employees would be affected by the decision, but said around 900 people are involved in its logistics operation.

However, Union Unite said it was “dismayed” by Carlsberg’s plans which put the jobs of driving, warehousing and admin staff across 11 depots at risk.

Unite said it wanted “copper-bottomed guarantees” on pay, and terms and conditions should workers be transferred to DHL Tradeteam. It will meet with the brewer on Friday 15 July.

Carlsberg's Momen added: “We recognise this is a significant change for our business and in particular our employees. Our focus over the coming months will be on providing all potentially affected employees with the support they require.”