Chilled divisions to merge
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• Unigate subsidiary Wincanton Distribution Services is to merge its two chilled distribution divisions, UCD and WCD, to form a 900-strong refrigerated vehicle fleet.
The move follows the disbanding of the Wincanton Group and the reorganisation of its subsidiary Wincanton Distribution Services last June. This was due to disastrous end of year results for the Wincanton Group, when profits plummeted from £16.6m to £700,000 for the year ending March 1991.
UCD was a subsidiary of Unigate before June, not part of WDS.
The merger between the only two WDS chilled divisions was expected after UCD joined WDS in June. However, WDS bosses originally denied an imminent merger, claiming that the subsidiaries offered different services.
UCD traditionally has only a few contracts with large retail customers, including Gateway, Safeway, and Sainsbury. It offers dedicated warehousing and has begun to offer composite services, which include distribution of ambient goods.
WCD has about 150 customers, which are mainly manufacturers. This includes a £6m a year contract with Mattessons Wall's, which was won in April.
A joint head office will be set up for the company, which will be headed by UCD managing director Mike Burbage. WCD managing director Peter Brown is expected to be moved elsewhere within WDS.
It is claimed that operations will remain separate. WCD is based in Chippenham and UCD is in Swindon.
WCD and UCD have a total of 2,300 staff and 900 vehicles. WCD has 250 32-tonne trucks and 1,000 staff.