Sutcliffe buys up catering guild

by Nigel Bartlett

Sutcliffe Catering has bought The Catering Guild, the contract catering subsidiary of tobacco and spirits giant Gallaher, for £5.5m.

The acquisition, which was announced yesterday, adds £15m in turnover to Sutcliffe's £405m and brings in a further 115 contracts, many with blue-chip companies.

A Sutcliffe spokeswoman said there would be "minimal" redundancies among The Catering Guild's 800-strong work-force. All operational staff are likely to be retained, although changes may take place at head office level.

David Jenkinson, managing director of The Catering Guild, will continue to head up the company's contracts in England, which will become part of Sutcliffe South East.

They will continue under their own name "for the foreseeable future", according to Sutcliffe. Elsewhere, however, Catering Guild's contracts are to be operated under the Sutcliffe name.

Sutcliffe Scotland will gain 15 contracts, bringing its total to more than 200. Sutcliffe's Irish operation will add 12 to the eight it operates in Northern Ireland, and one to the 90 it operates in the Republic of Ireland.

A statement from Gallaher said it was selling The Catering Guild as part of a policy of concentrating on its core activity, which entails producing Silk Cut and Benson & Hedges cigarettes, Hamlet cigars and Whyte & Mackay Scotch whisky.

The subsidiary was founded in 1989 and formed part of Gallaher Retail Division, whose other elements are also to be sold off.

These include Vendepac and Flavorpac vending systems, as well as the 700-strong Forbuoys newsagent's chain and Marshell Group of in-store tobacco kiosks.

Mr Jenkinson said the purchase meant The Catering Guild would be able to grow within a much larger group with a similar quality ethos to its own.

"Our clients can only benefit from Sutcliffe's advanced use of information technology, merchandising skills, local resources and experience in the market-place."