UK soft drinks producer Britvic has signed a 10-year secondary distribution and vending machine replenishment contract with KN Drinks Logistics, the drinks distribution arm logistics group Kuehne + Nagel.

Under the terms of the new agreement, Britvic's secondary retail and full-service vending networks throughout the UK have been absorbed into the KN Drinks Logistics distribution network, with the respective employees transferring to Kuehne + Nagel.

The contract will see KN Drinks Logistics undertake deliveries of Britvic soft drinks to pubs, bars and food service outlets across the country, along with the replenishment of 10,000 vending machines. In addition, warehousing services for Britvic products will be provided within the KN Drinks Logistics shared-user environment.

"As part of our focus on driving efficiency and reducing cost, we have chosen to outsource to KN Drinks Logistics, which will deliver the benefits we seek," said Dave Eslick, Britvic's director of logistics. "We believe there are significant benefits to be gained from the shared-user distribution model, and there are notable synergies between the respective delivery bases of Britvic and KN Drinks Logistics in the UK."

Peter Ulber, CEO of Kuehne + Nagel, North West Europe, said: "I am delighted to announce this substantial contract win for KN Drinks Logistics. Britvic's decision highlights the strength of our bespoke network. I look forward to working in close partnership with Britvic over the coming years and to developing the portfolio of services that Kuehne + Nagel offers, both to Britvic and to the wider drinks industry."