Outsourcing of Food Logistics

Whitbread PLC 03 April 2008 Thursday 3rd April 2008 Whitbread Plc to outsource Food Logistics Operations to Kuehne + Nagel Whitbread Plc, UK's largest hotel and restaurant group, today announced that it has exchanged contracts in an agreement to outsource its food logistics operations to Kuehne + Nagel, one of the world's leading logistics companies. Kuehne + Nagel was chosen as preferred supplier after a detailed evaluation was undertaken to find the most operationally efficient way to supply food to the Whitbread businesses. Under the terms of the five year contract, Kuehne + Nagel will supply all the food requirements across the current Whitbread estate in the UK. Kuehne + Nagel will begin a phased transition of operations from the existing Whitbread Food Logistics depots in Reading and Castle Donington to a new, bespoke depot based in Wellingborough, Northamptonshire. Kuehne + Nagel will retain the Whitbread Food Logistics depots in Trafford Park and Cullompton. The approximately 340 WFL employees will transfer under TUPE to Kuehne & Nagel at the time of completion, expected in May 2008. As previously announced, the decision to outsource Whitbread Food Logistics combined with the on-going organisational review will result in cost savings of £25 million per annum in 2009/10. An exceptional cost of £35 million will be taken in 2007/8 and 2008/9. Alan Parker, Chief Executive Officer, said: 'There is a compelling financial case for outsourcing versus retaining our food logistics operations in house and we will derive significant financial benefits from moving to a new operational location. 'We chose Kuehne + Nagel as our preferred supplier because they offered the most attractive and competitive solution and clearly demonstrated their commitment and desire to work with Whitbread during the tender process.' - ENDS- For more information please contact: Media: Julie Foster +44 (0) 7826 873031 Interim Director of Communications, Whitbread Plc Andrew Grant/Tom Murray Tulchan Communications +44 (0) 20 7353 4200 Notes to Editors About Whitbread: Whitbread PLC is the UK's leading hospitality company, managing market leading businesses in the budget hotels and restaurant sectors, including Premier Inn, Brewers Fayre, Beefeater and Costa Coffee. Whitbread's strategy is to create value for our shareholders by focusing investment and growing in expanding sectors of the hospitality industry, primarily in the UK but also in selected overseas markets. In the financial year to 1 March 2007, Whitbread generated pre-tax, pre-exceptional profit of £213.0m. Founded in 1742, the company is listed on the London Stock Exchange (as WTB.L) and is a member of the FTSE4Good indices. Further information can be found on www.Whitbread.co.uk About Kuehne + Nagel: With more than 51,000 employees at 830 locations in over 100 countries, the Kuehne + Nagel Group is one of the world's leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based supply chain management services. Further information can be found on www.kuehne-nagel.com. This information is provided by RNS The company news service from the London Stock Exchange

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