It has agreed to sell the plant to Encirc, the UK arm of Vidrala Company, although no financial details on the deal were disclosed.
The deal is expected to be finalised in January 2023.
The agreement will see Accolade Wines entering a 10-year contract bottling and distribution agreement with Encirc to ensure ongoing support for its beverage brands. Encirc offers a “360 service” which includes a supply chain offering for glass, filling, storage and distribution.
Under the terms of the agreement, Encirc will acquire The Park facility and all associated plant and equipment. As part of the transaction, approximately 400 employees engaged in manufacturing at The Park will transfer to Encirc on their existing terms of employment. The Accolade Wines team members not involved in manufacturing will continue to drive Accolade Wine’s European business, and work with Encirc to ensure a smooth transition to the new model.
Sustainable supply chain
The move will utilise rail distribution between sites and supply into retail, enabling Encirc to provide an “ultra-efficient, sustainable supply chain service” it was revealed.
The Park is an advanced and sustainable manufacturing facility, capable of producing the equivalent of more than 30m, 9-litre cases of wine a year. Following investments by Accolade Wines, the facility is currently zero waste and carbon neutral, with the installation of wind turbines in 2019 contributing to the use of 100% renewable electricity.
Encirc operates from three purpose-built sites in Derrylin, Co Fermanagh, Elton, Cheshire and Corsico, Italy. It produces around four billion glass bottles and other containers annually and can fill more than 200 million litres of bulk shipped beverages every year.
Accolade Wines chief executive officer, Robert Foye, said the decision to divest facility and enter a long-term bottling and distribution agreement with Encirc would deliver the optimal supply chain structure to support the company’s growth strategy in key markets, including the UK and Europe.
Excellence
“Accolade Wines is committed to excellence across its global supply chain in terms of innovation, quality, efficiency and sustainability,” Foye said.
“The Park represents best practice across all of these criteria and, through our collaboration with Encirc with its deep experience and networks across Europe, we will be able to continue accessing all the benefits of this world-class facility while extracting additional efficiency and flexibility in our supply chain. In Encirc, we have found the perfect partner to provide the bottling, warehousing and distribution services we need to support our premiumisation strategy in the growth markets of Europe and around the world.”
Encirc managing director, Adrian Curry, said: “This deal shows how collaboration and innovation between organisations who put sustainability and planet-first operations first can lead to the realisation of a shared vision. This deal will allow us to service the UK glass beverage market with an offering that is unrivalled globally in terms of service and sustainability. We are excited to welcome our new colleagues from The Park into the Encirc family.”
