Britvic plc
24 April 2007
Britvic plc ('Britvic') Outsourcing Proposals - 24 April 2007
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As a result of a review focused on its strategic goal of driving efficiency and
reducing cost, Britvic has today entered into a consultation process with its
employees on the following proposals:
• the outsourcing of its secondary retail distribution network to KN
Drinks Logistics
• the outsourcing of its vending and chiller remanufacturing operations
to Apollo Vending Services
As a result of these proposals it is anticipated that up to 450 employees would
be transferred from Britvic to KN Drinks Logistics and Apollo Vending
Services in FY08. Both proposals are subject to the employee consultation
process, due diligence and any contract finalisation. It is currently
anticipated that these operational changes would be implemented by October 2007.
Related to these proposals, Britvic has exchanged contracts for the disposal and
short term lease back of its depot in Tamworth, the only freehold site within
the secondary retail distribution network, at a net cash consideration of £9.0m.
This compares to a NBV of £5.8m as at 15 April 2006.
Over the last two years Britvic has driven a number of significant efficiency
programmes delivering £11m of sustainable overhead cost savings with an
additional £4m of savings identified for FY07 and £3m for FY08. The actions
detailed in today's announcement are expected to add an incremental £5-6m in
annualised savings at an operating profit level by FY09 at a one off exceptional
cost of £3-4m in FY08. The proposals would also reduce capital expenditure
requirements by £2-3m from FY08.
For further information please contact:
Investors:
John Gibney /Jo Guano +44 (0)1245 504 330
Media:
Britvic main switchboard +44 (0)1245 261 871
Julian Mears +44 (0)7834 962 542
Notes to editors
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Britvic is one of the two leading soft drinks businesses in Great Britain.
Its broad portfolio of leading brands includes established names with high brand
recognition such as Robinsons and Tango and highly successful innovations such
as J20 and Fruit Shoot. Included within the portfolio are the Pepsi and 7UP
brands, which Britvic produces, markets, sells and distributes under its
exclusive appointment from PepsiCo which runs until December 2023. This brand
and product portfolio enables Britvic to target and satisfy a wide range of
consumer demands in all major soft drinks categories, via all available routes
to market.
KN Drinks Logistics is a wholly owned subsidiary of Kuehne + Nagel Ltd. The
Kuehne + Nagel Group is one of the world's leading logistics companies.
Apollo Vending Services provides outsourced vending operations which include a
national machine delivery service and a remanufacture operation. It has been the
national brand partner for Cadbury's vending operation since 1998.
Cautionary note regarding forward-looking statements
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This announcement includes statements that are forward-looking in nature.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
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