Nisa Announces ADM Londis Recruitment

14/10/2009

Nisa-Today’s has announced that it has recruited ADM Londis plc, one of Ireland’s leading symbol groups, into its membership following an agreement to supply a range of well known International branded products and a private label range, which will strengthen the groups position in the Irish market and ultimately place ADM Londis retailers in a more competitive position in the grocery sector.

Under the agreement, Nisa has awarded ADM Londis with the future wholesaling rights in the Republic of Ireland (ROI) for Nisa’s Heritage and Value private label brands. However, Nisa’s existing membership base in the ROI will remain unaffected by this agreement. The range of products, soon to be available in Londis stores through the agreement with Nisa, will comprise everyday grocery categories such as fruit juices, canned food, sauces, cooking oils, health & beauty and many more.

The wholesaling agreement comes into effect immediately and follows a successful trial period over the past number of weeks with select Londis retailers. It is estimated that the agreement will represent approximately 10% or €25 million of ADM Londis’ overall food, non food and beverages purchases when fully implemented with the prospect of additional growth as its partnership with Nisa develops.

Prior to the agreement, Nisa had been generating approximately £15million worth of turnover, through its existing ROI members following a period of intensive recruitment in the country. The new contract with ADM Londis significantly strengthens this position.

Nisa–Today’s Group Sales director, Andrew J. Mouse, commented, ‘We are delighted to announce, after a successful trial period, that Nisa-Today’s and ADM Londis have agreed a contract to progress our mutual business opportunities in ROI whilst ensuring our current ROI membership base continues to enjoy the full benefits of Nisa direct membership. The respective business models share many synergies, the largest of which is that of being true advocates of independent retailing, and as such this contract allows us to launch a new and exciting mutual trading opportunity for the Republic of Ireland market and represents an attractive alternative to competitors’ franchise schemes. We look forward to a very successful partnership with ADM Londis as a member of Nisa-Today’s.”

Peter Foley, Commercial Director, ADM Londis plc said, “Ultimately this deal will result in more competitive pricing in Londis stores for consumers. This exclusive agreement places Londis retailers in a significantly enhanced competitive position within the market with access to very competitively sourced international branded and private label products. We have identified savings of, in some cases, over 10% on particular products. We plan to get these lower prices into Londis stores. We believe that the Londis franchise is now a more attractive proposition for symbol store operators given our enhanced buying muscle and strengthened commitment to a retailer driven business philosophy. ”

Stephen O’Riordan, CEO, ADM Londis plc added, “The agreement will result in Londis delivering a significantly enhanced wholesale offering utilising our logistics facility based near Naas in Co Kildare. It also complements our continued support of Irish suppliers and Irish brands.”