Compass Group has signed what it claims is the UK's largest catering distribution contract with Brakes.

From January 2012 Brakes will receive deliveries of £300m worth of frozen, ambient and chilled goods from suppliers at its depots and deliver them to Compass' 5,500 UK sites. Brakes will provide Compass with a single multi-temperature delivery system.

The seven-year deal is a big step up in the relationship between the two companies. Brakes currently distributes £120m of Compass' core chilled and frozen products. The deal adds ambient and is worth half the value of Compass' annual deliveries.

Talks are under way about the remaining £300m of goods, which includes agreements with Costa Coffee and Starbucks and specific local arrangements. Compass said the deal would remove at least four million miles from its supply chain each year and would make efficiency savings by having sites place all orders electronically and simultaneously rather than having to contact individual suppliers. "Capturing the orders electronically gives us more transparency within the supply chain," said Mike Walden, Compass executive director, commercial. "There's a real lack of control elsewhere in the catering industry around sourcing methods, and a lot of smoke and mirrors."

Brakes won the contract over rival 3663, which will continue to deliver £140m of ambient goods until the end of next year.