Atlantic Enterprises awarded 14m packaging supply contract

Packaging supplier Atlantic Enterprises has won a two-year contract to manage fast food chain Pizza Hut's packaging supply chain.

The contract, worth over £7m annually, was awarded to Atlantic Enterprises in November following a two month competitive tender process. The Hampshire company previously split the contract with Siaca, which produced 60% of Pizza Hut’s packaging to Atlantic’s 40% for 18 months.

In September, the contract came up for renewal and Atlantic was given the chance to bid for a bigger share of the contract. Atlantic business development manager Richard Hemsley believed that the company’s quality customer service and understanding of the client’s logistics needs led Pizza Hut to award Atlantic 90% of the contract.

Atlantic will supply the fast food chain’s pizza, starter and side dish boxes, sourced from overseas manufacturers, from 1 January. The number of boxes produced will total around 35m each year.

Siaca will take up the remaining 10%, providing large starter boxes for the client.

All packaging is delivered to a central hub at distributor Bidvest and delivered together with Pizza Hut’s chilled products provided by Bidvest.

Hemsley said: "We manage the supply chain, design, development, print, logistics, shipping and quality assurance so that the client has no concerns about sourcing from overseas."

Meanwhile, Atlantic is to launch a nationwide trial of its new Eco-fold box in the new year, a patented fast food box design that uses significantly less cardboard than those currently on the market, Hemsley claimed.

The boxes fold down to 15% of their original size, making it easier for consumers to dispose of them, which Hemsley expected would encourage recycling. The carbon footprint of the boxes’ is reduced as less cardboard is used, which also passes on lower costs to clients and consumers.

Also, the boxes have been designed to make it easier for fast food operators to construct them from flatpack, delivering time savings to the client.

The product is patented by Atlantic, which will outsource manufacturing to an overseas partner.