Co-op Wholesale and Costcutter Supermarkets Group (CSG) have agreed a new long-term supply arrangement designed to strengthen a collaboration which has been in place for several years.

The deal means Co-op will continue to act as primary wholesale supplier to Costcutter stores, extending a relationship first established in 2018. 

Katie Secretan, MD of Co-op Wholesale, commented that the agreement “goes further than just a supply deal”. The two businesses will be jointly focused on “true partnership as the key ingredient for mutual success”, with the aim of collectively supporting indie retailers to grow through the businesses’ propositions.

CSG was acquired by Bestway Wholesale in 2021. Dawood Pervez, MD of Bestway Wholesale, said the continuation of the Co-op partnership ensures Costcutter retailers will “continue to benefit from the market-leading full-service convenience model from Co-op Wholesale”.

He added: “Both businesses are committed to working together to continuously improve the offer, supporting retailer growth in an evolving market.”

The deal also ends industry speculation around the future of Costcutter’s supply arrangements following its integration into Bestway. The strengthened agreement underlines Co-op’s wholesale ambitions while giving Bestway a robust platform for its symbol groups.

Bestway Wholesale is one of the UK’s largest independent food and drink wholesalers, with 62 depots nationwide and turnover of £3bn. Alongside Costcutter, it operates Best-One and Bargain Booze brands, as well as specialist van sales, pet and export divisions.

The Co-op currently supplies more than 5,000 independent retailers and franchisees across the UK, and sees wholesale as a key growth channel alongside its own retail estate.