The £30 million agreement will see Accolade Wines entering a 10-year contract bottling and distribution agreement with Encirc to ensure ongoing support for its flagship beverage brands.
The move will utilise rail distribution between sites and supply into retail, enabling Encirc to provide an efficient, sustainable supply chain service across the UK beverage market.
The transaction is scheduled to close in January 2023.
The Park is an advanced, sustainable and award-winning manufacturing facility, capable of producing the equivalent of more than 30 million, 9-litre cases of wine a year.
Following investments by Accolade Wines, the facility is currently zero waste and carbon neutral, with the installation of wind turbines in 2019 contributing to the use of 100% renewable electricity.
Under the terms of the agreement, Encirc will acquire The Park facility and all associated plant and equipment.
Accolade Wines Chief Executive Officer, Robert Foye, said the decision to divest The Park facility and enter a long-term bottling and distribution agreement with Encirc would deliver the optimal supply chain structure to support the company’s growth strategy in key markets, including the UK and Europe.
Encirc Managing Director, Adrian Curry, said: “This deal will allow us to service the UK glass beverage market with an offering that is unrivalled globally in terms of service and sustainability. We are excited to welcome our new colleagues from The Park into the Encirc family.”
As part of the transaction, approximately 400 employees engaged in manufacturing at The Park will transfer to Encirc on their existing terms of employment.
The Accolade Wines team members not involved in manufacturing will continue to drive Accolade Wine’s European business, and work with Encirc to ensure a smooth transition to the new model with no disruption to customers.