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08 July 2016

Carlsberg to outsource logistics to DHL

Carlsberg will restructure its business to focus on its brewing operations. It will cease to run its own distribution services in the UK, it was reported on 29 June 2016. Additionally, it will no longer provide porterage services, as it will transfer its remaining logistics operations to DHL Tradeteam during 2017 and 2018. The move follows a review of its supply chain.

It is unclear at this stage how many employees will be affected. Carlsberg employs 1,800 people in the UK, of whom 900 work in some form of logistics.

Porterage allows major multiple operators to consolidate deliveries from their different drinks suppliers through a single provider. Following expiration, contracts will be put out to tender.

Carlsberg’s own portfolio will be distributed by DHL Tradeteam. Integration is expected to be completed by March 2018.

DHL is owned by Deutsche Post (German Mail), which itself was privatised in 1995.

Last November, Carlsberg’s CEO Cees ’t Hart warned that Carlsberg’s performance has worsened in the UK and promised that the company would restructure the business with an aim to reduce capacity and costs. Carlsberg is the UK’s number four brewer with a market share of 13 percent.