Encirc and Accolade Wines deal secures sustainable future for UK beverage industry
Encirc, a Vidrala Company, has entered into a deal with Accolade Wines, one of the world’s leading premium wine producers, to purchase the assets of “The Park” bottling and warehousing facility in Bristol, UK.
The agreement will see Accolade Wines entering a 10-year contract bottling and distribution agreement with Encirc to ensure ongoing support for its flagship beverage brands. The move will utilise rail distribution between sites and supply into retail, enabling Encirc to provide an ultra-efficient, sustainable supply chain service across the UK beverage market.
The Park is a highly advanced, sustainable and award-winning manufacturing facility, capable of producing the equivalent of more than 30 million, 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 its three purpose-built sites in Derrylin, Co Fermanagh, Elton, Cheshire and Corsico, Italy. It produces around 4 billion glass bottles and other containers annually and can fill more than 200 million litres of bulk shipped beverages every year. Encirc is already unique in the market due to its 360 service – a complete supply chain offering for glass, filling, storage and distribution that helps reduce the carbon footprint of every glass bottle it makes and fills.
The 360 service allows Encirc to fill, store and distribute bottles from one location in Elton Cheshire, significantly reducing the number of lorry journeys needed to get a product onto supermarket shelves.
Accolade Wines Chief Executive Officer, Robert Foye, said the decision to divest The Park 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.
“Accolade Wines is committed to excellence across its global supply chain in terms of innovation, quality, efficiency and sustainability,” Mr. 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.”
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 with no disruption to customers. The transaction is scheduled to close in January 2023.