The deal was finalised barely one week on from McColl’s announcement that it would retender its existing supply contract with Nisa.
McColl’s new arrangement will see Morrisons supply the convenience chains estate of 1,300 convenience stores and 350 newsagents with a range of fresh food and grocery products through the relaunched Safeway brand. As part of the deal, McColl’s will have exclusive rights to Safeway products for a period of 12 months.
Morrisons will supply both Safeway and branded products to McColl’s with a phased rollout programme starting in January 2018.
Jonathan Miller, chief executive of McColl’s, said: “As a large, leading multiple grocery retailer with its own outstanding food manufacturing capability Morrisons stands apart from the competition, and we are truly delighted to be entering into a partnership with them.
“In McColl’s, Morrisons gain a long-term partner of significant scale with a growing neighbourhood convenience estate and in Morrisons we gain access to their best-in-class sourcing and manufacturing capabilities.”