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Rockwood loses to Dee
Page 14
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• Troubled Rockwood Holdings has lost its 25 million highstreet distribution contract with Courage Take Home Trade to its rival, the John Dee Group.
This follows a rationalisation of Rockwood depots and more than 230 redundancies since the acquisition of Lowfield Distribution's general traffic division (CM 11-17 January). The former Lowfield contract, which amounted to less than 2% of Rockwood's total physical distribution, will not lead to more staff redundancies, and there will be no excess vehicles, says Rockwood chairman Tom Forrest. Rockwood lost the contract because it could not match John Dee Group's rates, he says. The three-year contract is one of John Dee Group's biggest. The company is investing 2500,000 on 16 new vehicles bearing the Courage livery.
The North-East company's Dunstable, Avonmouth, Leeds and Airdrie depots will create about 40 new jobs to handle the contract, which amounts to 30% of Courage's take home trade deliveries.
The group only began targeting the drinks trade a year ago, but says that drinks business now accounts for 121/2% of its 240 million turnover, thanks to contracts with Scottish and Newcastle, Joshua Tetley and Watneys.
Courage's transport division is to bid for transport contracts with rival brewing firms, as well as handling the brewery's in-house transport (CM 31 August-6 September 1989) but it did not tender for the takehome deal.