Under the new agreement Clipper will provide a full UK logistics operation, including all warehouse operations in the UK and delivery to all BAT customers in the UK.
It also includes the delivery of e-commerce support for Vype, BAT’s vapour business,
The firm, which operates around 170 trucks and 120 trailers, will use a mix of dedicated and shared user vehicles from its distribution centres.
Steve Parkin, executive chairman of Clipper, said: “We are delighted to have been selected for this significant contract with BAT.
"This builds on the existing 25 year relationship the two businesses have had and the new contract win and extension of coverage to the whole of the UK is a testament to our approach to proactively building client relationships and delivering solutions for customers."