Leading independent wholesaler Convivality Plc is entering into a two-way supply deal with Palmer and Harvey McLane Limited (P&H), supplying beers, wines and spirits in exchange for tobacco.
The wholesalers will team up for an initial period of two years, during which time, Conviviality will supply P&H's national distribution centre with lower volume beers, wines and spirits, and P&H will supply Conviviality Retail with tobacco for its chain of franchise retail stores.
Conviviality CEO Diana Hunter said the deal demonstrates the "significant role" that Conviviality plays in the UK drinks market, adding: "This agreement will help us to maintain and further improve our ability to invest in future initiatives and pricing to provide our customers and franchisees with more opportunities to strengthen their business."
Conviviality Plc is the UK's leading independent wholesaler and distributor of alcohol and impulse serving customers through its 716 franchised retail outlets, across Bargain Booze, Bargain Booze Select Convenience and Wine Rack stores.
Since October 2015, it has increased its on-trade and hospitality distribution via the acquisition of Matthew Clark for £200m.
Conviviality Retail said the deal will help to drive efficiencies in its buying capability while further utilising its nationwide distribution network.
"We are constantly looking at ways to ensure we provide the right range, service, support and pricing for our franchisees," David Robinson, MD of Conviviality Retail said.
"This agreement will help us to maintain and further improve our ability to invest in future initiatives and pricing to provide our franchisees with more opportunities to strengthen their business."
Martyn Ward, MD of P&H, added: "We are delighted with this strategic collaboration with Conviviality Retail. We are confident it will benefit our respective businesses, partners and customers, and believe there is scope for growth in future years."