Britvic is consulting with its staff about outsourcing its retail distribution network to KN Drinks Logistics and its vending and chiller remanufacturing operations to Apollo Vending Services, writes Paul Charity. The plan would see 450 Britvic staff employees transfer from Britvic to KN Drinks Logistics and Apollo Vending Services in the next financial year. A spokesman said: “Both proposals are subject to the employee consultation process, due diligence and any contract finalisation. It is currently anticipated that these operational changes would be implemented by October 2007.” Britvic has also exchanged contracts for the disposal and short-term leaseback of its depot in Tamworth, the only freehold site within the secondary retail distribution network, for £9m. This compares to a net book value of £5.8m. The outsourcing is expected to add an incremental £5m to 6m in annualized savings at an operating profit level by 2009 at a one off exceptional cost of £3m to £4m in 2008. The proposals would also reduce capital expenditure requirements by £2m to £3m from 2008.