MY and MMP take up Diageo supply

MY Cartons and Mayr-Melnhof Packaging (MMP) have won contracts to be carton suppliers to Diageo, along with its main carton producer, Field Group.

Field retains the bulk of the drinks company's work, which includes Johnnie Walker and Bells whisky, and, according to Field marketing manager Bob Houghton, MY and MMP have taken on smaller contracts.

However, Diageo did not disclose the value of the deals or the volume of cartons that each company will produce. MY's three-year contract, which is said to be "important" for the company's strategy, will be carried out from its two sites in Leeds.

The contracts were won after an extensive e-tender and auditing process, overseen by Jim Ferrans, Diageo Scotland's purchasing category manager of cartons.

MY Europe chief executive John Monks said he was "proud that our skills are so highly regarded by such discerning packaging users".

Between 1995 and 2000 Field was the sole supplier to Diageo, then United Distillers. It remained the only carton supplier but took on a rolling contract, as Diageo planned to add more suppliers. "Diageo has planned to take on more companies for a long time as contingency and back-up suppliers," said Houghton.

Jarvis Porter was Diageo's sole label supplier before it decided to exit print last year, and it is believed that the drinks group, which now uses around six label companies, wanted to avoid a similar situation occurring with its carton supply.

"We would have liked to have kept the whole contract, but Field remains dedicated to the drinks market, especially whisky. Having closed our Edinburgh site, we've made a significant investment in state-of-the-art operation at East Kilbride, which we believe will increase our share in the whisky sector in the long run," said Houghton.

Story by Rachel Barnes