Bond Pearce handles Whitbread logistics deal

Bond Pearce has advised Whitbread on its decision to outsource its logistics and food warehousing services to Kuehne + Nagel (KN).

The five-year deal is expected to save Whitbread, which owns major brands including Beefeater and Costa, £25m a year.

Nick Barwood, head of commercial for the Bristol-based firm, said it had been selected as sole adviser on the deal last November after acting on a consultancy basis from September.

Previously Whitbread performed its own food warehousing and logistics services for its 1,400 outlets, but after taking advice from Bond Pearce it decided to outsource the operation.

The ;deal ;included advising Whitbread on the transfer of its operations to KN’s sites, including a new site in Wellingborough.

The firm also advised Whitbread on the transfer of 340 employees to the logistics services company under the Transfer of Undertakings (Protection of Employment) Regulations.

“Outsourcing can bring significant financial rewards. A key factor is getting the contract right, which is beneficial to both parties,” Barwood said. “The process for this begins with the tendering stage, where there are numerous variables and models that can be adopted.”

Barwood was assisted on the deal by associate Jonathan Stickland.

KN was advised by in-house counsel Rob Layton with ;assistance ;from Hill Dickinson corporate partner Mike Jones.