The NFRN has given a cautious welcome to the news that John Menzies is discussing merging its newspaper and magazine distribution arm, Menzies Distribution, with DX Group.
NFRN Chief Executive Paul Baxter said: “At first sight this could be good news for Menzies’ retail customers, particularly if it means a more cost effective news distribution service. If that is the case NFRN members can rest assured that we will be seeking a reduction in carriage charges for them as well as a promise from the new company that service levels will be improved.
“Greg Michael, the managing director of Menzies Distribution, will become the CEO of the new group so we plan to meet him at the earliest opportunity to hear more about the merger, what he believes it will mean for independent news retailers and to get him to address any concerns that we have.”
Menzies has said that if the deal goes ahead it will become independent from John Menzies and will represent approximately 80 per cent of the new combined business.
In a letter to the NFRN, Mr Michael said: “We believe that this deal creates a compelling proposition for you as a valued key partner and is a fundamental pillar in the strategy for Menzies Distribution. The combination of both businesses will create a robust, unique national network with the capability to widen the reach of our services in the newspaper and magazine supply chain; simultaneously, it will allow us to offer more services across the UK and Irish logistics market, broadening our customer base and enhancing the sustainability of the supply chain.”