Express Dairies teams up with TNT Mail UK

Express Dairies, a trading division of Arla Foods UK plc the UK's leading dairy company, has signed a two-year agreement with mail and logistics company TPG N.V.'s UK subsidiary TNT Mail, which will see Express Dairies delivering addressed, heavier weight letters and packets for TNT Mail's customers.

The agreement with Express Dairies enables TNT Mail to deliver large non-time sensitive mail items to over six million UK households. The partnership will offer businesses a service for large bulk letters and heavier addressed packages.

Express Dairies has been building its experience in the delivery of mail items for three years and has gained a strong customer base of its own providing a cost effective, efficient service for distributors of books, CD's, contact lenses and photographs. The collaboration is the next step in growing the mail volume.

The deal is the second strand of TNT Mail's UK market entry strategy. The contract with Express Dairies follows TNT Mail's announcement in April that it had signed an agreement with Royal Mail allowing access for mailings to 27 million homes nationwide.

Express Dairies will have the responsibility of delivering mail through its existing networks and TNT Mail UK will be responsible for collection, sales and marketing. The services will be sold under the name of TNT Mail Services.

By joining forces with Express Dairies, as well as securing agreement with Royal Mail, TNT Mail UK is well positioned to establish its strategic ambition of achieving a number two position in the UK and being the main challenger to Royal Mail.

In addition, the mail services of TNT can leverage the size, scale and resources of TNT's express and logistics business in the UK. With 18,000 employees nationwide, TNT in the UK has established market leading express and logistics operations. Furthermore, TNT Mail benefits from TPG Post's expertise as the world's most efficient postal operator. Being part of a leading mail company, TNT Mail can utilise a wide range of innovative, customer focused mail services.

Commenting on the deal with TNT Mail Tim Smith, Executive Director of Arla Foods UK plc said:

"By working together with TNT Mail, Express Dairies will continue to develop and extend our parcel delivery business. Our collaboration provides us with a step change of activity level in this exciting new venture for our traditional doorstep delivery business. The addition of the strength and experience of a national postal operator will provide first class resources for winning new business in the newly deregulated market. Through our extensive doorstep operations, our expertise in this area remains unparalleled and we look forward to building on the success we have had since the granting of our Postcomm licence. This agreement also demonstrates to the wider market our capability and competency in home delivery, especially over the crucial last few miles."

Nick Wells CEO of TNT Mail added:

"Progressing in its strategic ambition, the deal with Express Dairies means that TNT Mail can extend its reach and services within the country.

"Our experience, size, and efficiency, coupled with the trusted infrastructure of Express Dairies means that TNT Mail can provide a new alternative for businesses wishing to send heavier items to their customer base.

"As the UK postal market opens up to competition, businesses are realising that they now have a choice in their postal operators. Our access agreement with Royal Mail remains a major part of our strategy and, with the addition of our partnership with Express Dairies, TNT Mail is now able to provide a value for money, flexible and reliable service to UK businesses, positioning us to establish our aim of being the main challenger to Royal Mail."