EXCLUSIVE: PepsiCo launches its own van sales team after failed P&H direct takeover talks

P&H Palmer & Harvey Walkers PepsiCo redundancy
News RE Palmer & Harvey Confectionery Savoury snacks / crisps
Login or register to save this article

PepsiCo UK is to launch its own van sales operations after talks to take over Palmer & Harvey’s van sales operation broke down.

According to retailer sources, P&H van sales staff were told by managers to “go home and wait” following the company’s collapse, suggesting bosses thought a takeover of the division was imminent.

However, PepsiCo pulled out of talks and instead announced it would be building its own offering with “a third party to provide warehousing and depot services.”

Administrators PwC said that despite interest “it has not been possible to achieve a sale,” and that 404 additional staff from P&H subsidiaries Snacksdirect, Sweetdirect and Direct Van Sales were made redundant on December 8. This takes the total number of redundancies from the collapse of P&H to at least 2,904 out of 3,400 staff.

PepsiCo’s new van sales division will bolster its team of reps and replace services previously provided to retailers by P&H on PepsiCo’s behalf, such as providing sales, support and advice for Walkers snack products.

The news of a replacement service was well received by retailers. John Vine from Newsworld in Church Stretton welcomed it: “I’m happy to see a replacement come into practice so quickly, retailers need to get on with business and anything that helps is a bonus,” he said.

Discussing the replacement of services provided by P&H, PepsiCo impulse sales vice president Huseyin Tulpar explained: “We can quickly replace that service and ensure our retail customers are getting the direct-to-store service and the continuity of supply they require.”

Talks break down

PwC joint administrator Matthew Callaghan told Retail Express: "We have been working closely with the directors of the vans business to pursue a sale. However it is with regret that we have to announce this has not been successful.”

Ex P&H finance director Ed Friel described the failed talks and additional redundancies as “the worst of days” adding: “After 10 frantic days trying to sell our fabulous and profitable direct van sales business, we failed at the very last moment. It still seems unbelievable. We tried everything and I am truly sorry to all those affected.”

“I thought you had crossed the line, so sorry for you all,” responded the wholesaler’s former MD Martyn Ward.

Though not naming now redundant P&H van sales staff directly, a release by PepsiCo said it “will consider any experienced van sales representatives who would like to apply for roles.”

Tulpar added: “The wholesale market is experiencing a significant amount of change and our focus is to ensure that our customers' needs are being me.”

P&H’s previously purchased PepsiCo’s Walkers van sales division in 2012.

Tobacco and snack suppliers have confirmed they will not follow PepsiCo’s decision. Want to read the follow-up story?

Read more here
By Jack Courtez Avatar
By Jack Courtez 12 Dec, 2017

Comments

1 comments
  • By Pete Clements 16 May, 2018
    Reply

    Hi, can anyone help me with a contact point at PepsiCo? We are a van supplier and convertor and deal with many household names by a van into a mobile shop, a mobile dog grooming parlour or a mobile workshop and would love to speak with the right contact at PepsiCo to see if they have a requirement for our services. Trouble is, I am going round in circles trying to find the right point of contact.

    Any help or pointers would be greatly appreciated.

Have you seen a boost in own-label products in the past year?

Make the most of betterRetailing.com

You know your shop better than anyone. Now you can decide exactly what news, advice and retailer case studies that you want to see to help you improve your business.

Subscribe to personalise your content Already have an account? Login