Nestlé forges contract packing deal

Nestlé has sealed a deal with Eddie Stobart and IPS, the UK’s largest independent contract packer, to secure a range of packaging services and the creation of display units. 

A dedicated contract packing facility is being introduced at Stobart’s Bardon site, which the new joint venture will operate to carry out tasks such as flow wrapping, shrink wrapping and carton filling.

The move would benefit Nestlé by consolidating packing and distribution services at the Leicestershire location, IPS said.

‘Cost-effective’

“This important development proves that IPS has the ability to deliver innovative contract packing solutions to its clients in a cost-effective fashion,” said IPS md Andrew Dawson.

“The new operation will complement other packing solutions already provided to Nestlé by IPS at its York and Featherstone sites.”

IPS was acquired by Culina Group, the food and drink logistics operator, in April 2014. It has since seen its nationwide network grow to nine sites, including a facility that opened in Dudley, West Midlands, in April.

‘Substantial capital investment’

“The acquisition by Culina has given us a fantastic foundation and allowed us to make substantial capital investment, enabling us to expand our network and purchase market-leading, automated machinery,” added Dawson.

Culina received planning permission to build a new ambient site at Port Salford back last month, a multimodal facility that would provide excellent links by road, rail and water. The development will include 2,787m2 of dedicated contract packing space, taking the number of IPS sites across the country into double figures.

IPS provides contract packing services for some of the world’s best-known food brands. It employs 800 people and has a nationwide network providing more than 27,871m2 of space.

Eddie Stobart has 2,200 vehicles, 3,200 trailers and more than 557,000m2 of warehousing. It runs vehicle, port and rail freight operations from 50 sites in the UK and the rest of Europe.