Bestway has confirmed discussions are underway for a new Costcutter supply deal once its arrangement with Co-op Wholesale ends in December.
In a notice sent to Costcutter retailers, seen by The Grocer, Bestway Wholesale MD Dawood Pervez said: “We understand how important this is for your business, and let me start by saying that we are committed to announcing our plans at the earliest practical opportunity. We appreciate your continued patience as we work through the final stages of this process.
“We have been conducting a thorough analysis of the market as part of an exhaustive process to ensure we deliver a supply partnership that is future-focused and tailored to your needs, creating the best possible offer for Costcutter retailers.”
The announcement comes as Co-op Wholesale, the newly rebranded wholesale division of Nisa, confirmed in March it was no longer in negotiations with Bestway to continue supplying its symbol group Costcutter next year.
It will mark the end of a long-term supply arrangement with the Co-op, which started supplying Costcutter stores in 2018, including branded and own-label products, via its Nisa supply chain. The contract was extended to 31 December 2025 when Bestway bought Costcutter five years ago.
Costcutter retailers have praised the Co-op deal for providing their stores with a strong fresh offer through Co-op own label, and have previously raised concerns about how this will be affected upon the contract termination.
Pervez has looked to reassure Costcutter retailers that the wholesaler “remains fully focused on ensuring the best possible outcome for all our retailers”.
In the notice, he continued: “Our aim is to strengthen the value and competitiveness we provide by delivering an improved offer for Costcutter retailers, improve the ease of doing business through more efficient processes and better service levels, and enhance product availability, consistency, and responsiveness.”
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