Nestle deal accelerates Kuehne + Nagel’s strategic push into FMCG sector

Kuehne + Nagel’s (K+N) strategic push into perishables and consumer goods logistics now includes an array of Nestlé products. Starting next year, all Nestlé – Netherlands’ chocolate, coffee and culinary products, as well as pet and baby foods, will be warehoused in a distribution center in Veghel that K+N built for this new partnership.

The two companies have worked together for 15 years, and this latest development increases K+N’s role in the food company’s supply chain.

K+N’s profits have stalled as margins remain under pressure, especially in its traditionally strong-showing air and maritime freight sectors. Entering the fast-moving consumer goods (FMCG) side of the business will allow the forwarder to put its extensive infrastructure into play in a market that seems to be accelerating.

“The FMCG industry is of strategic importance to Kuehne + Nagel,” said Diederick de Vroet, managing director of K+N Netherlands. De Vroet said that, with Nestlé – Netherlands looking for a single partner for all of its distribution channels, an “omni channel approach,” in which all logistic flows are managed centrally, made the most sense in the “fast-changing consumer landscape.”

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