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Heineken signs deal with logistics provider GXO

21 July 2023 By Jessica Mason

Heineken has signed a multi-year deal with logistics provider GXO in a bid to simplify its service and make its network “more efficient”.

The agreement will mean GXO will continue to operate the warehouse, distribution and secondary transport network for Heineken’s retail and wholesale outlets in the UK as well as work exclusively with its British pub estate – Star Pubs & Bars.

Speaking to the drinks business, sources close to the scene revealed: “The network consists of three large distribution centres: Livingston, Wakefield and Coventry. In addition, there are several strategically placed hubs and numerous transit points that enable efficient final mile delivery to pubs across the country. And, we’re evaluating even more options for enhancing the network.”

In a recent statement, Heineken UK managing director Boudewijn Haarsma said: “Our joint plan, which focuses on investing into modernising the network, underpins our service to customers and our commitment to continuous improvement and sustainability.”

Over at GXO, the business’s president, Europe, Richard Cawston, further explained how “over the past two years, we [GXO] have made significant progress transforming our operations and delivery network to make it simpler, stronger, more efficient and more sustainable”.

Cawston insisted: “Together, we will continue to invest to enhance efficiency and service to support Heineken’s expected growth. It’s a great partnership for us, our team members and the pub industry in the UK.”

In terms of scope, GXO additionally revealed that the network already manages more than 500,000 deliveries per year to more than 8,000 customers from point of production to retail and wholesale delivery. The updated deal will mean that GXO’s operations network for Heineken is set to include “four regional distribution centres, 18 local delivery platforms and transit depots [and] over 400 vehicles” as well as employ “more than 1,500 team members”.