Tobacco and snack suppliers have confirmed they will not follow PepsiCo’s decision to fill the supply gap left by Palmer & Harvey’s collapse with a new van sales operation.
On Monday, PepsiCo announced a direct-to-store delivery service will have branded vans supplying Walkers snacks straight to independent retailers, creating 50 jobs in the process.
PepsiCo UK impulse sales vice president Huseyin Tulpar said: “By establishing our own van sales delivery, we can ensure retail customers are getting the direct-to-store service and continuity of supply they deserve.”
However, suppliers Imperial Tobacco, Japan Tobacco International, Pladis and Kellogg’s confirmed to RN they would not be following suit.
Bolt Learning non-executive director and former HIM co-owner Tom Fender said PepsiCo’s van sales operation will not affect the existing supply chain across independent convenience: “I don’t think it will have much of an impact on the business decisions of other suppliers.
“They already work with wholesalers and they’re cutting back on resources, so having a similar service would be both risky and costly,” said Mr Fender.