The 20,000 sq ft site in Croydon opens on 10 October and would benefit from being near depots run by Booker, Costco, Bestway, Eastenders and Dhamecha, Hancocks said.
"We have been looking for a decent site in the Croydon area for some time and this site will be perfect for us," said MD Mark Watson.
"We always look to open depots in conurbations near other cash & carries as they bring people to the area for groceries and alcohol and we can bring more people to buy confectionery. With no other depots around the south of London, this is fresh turf for us and we will be working hard to get ourselves known in the run-up to Christmas an excellent time of year for retailers to look at how Hancocks can help their confectionery business grow."
Hancocks has spent £100,000 on lighting, heating and racking in the depot. It is bigger than most of the company's current depots and will be able to stock the entire range of 5,000 SKUs, the largest wholesale confectionery range in the UK.
Hancocks is planning a series of major promotions in the week after the launch in a bid to attract new customers.