The move confirms earlier rumours concerning the two companies (‘Dedicated depots for Blueheath, The Grocer, March 19, p8) and gives the business use of CTM Wholesale’s sole depot in Wrexham and access to 1,000 more customers, mainly for tobacco and confectionery products. It also gives Blueheath its first dedicated warehouse and delivery vehicles.
Douglas Gurr, chief executive of Blueheath, said: “CTM will continue trading under its own name. We will not be changing branding, liveries or staff. The main benefits for Blueheath will be supply chain improvements and the ability to extract better pricing. CTM operates with 22-28 days of stock and we can reduce this to four or five days through our technology.”
CTM MD Gino Paletta, who will retain the freehold for the property, will be staying on to run the business. He said: “Working with Blueheath will give us the opportunity to bring more business to Wrexham and continue our success.”
Blueheath has signed a five-year agreement with Paletta to use Wrexham for picking. Blueheath will continue to use 13 British Bakeries depots and two sites, run by logistics firm Owner Driver Network, for storage. Gurr said Blueheath would consider similar deals if CTM Wholesale’s integration proved successful.
CTM Wholesale was worth £42.4m in sales according to its last full-year figures.
Therefore, Blueheath could jump from number 30 to number 24 in The Grocer’s next Big 30 ranking of wholesalers.