P&G Canada selects Exel for co-packing and product customization operation

Procter & Gamble Inc. announced its decision to select Exel to operate the co-packing and product customization site in the new Canadian Distribution Centre in Brantford, Ontario. The customization area of the distribution centre is expected to begin operations in October 2005 and will handle assembly of in-store displays and promotional packaging.

“Our new Brantford distribution centre has a sizable space dedicated to co-packing and product customization,” said Tim Penner, P&G Canada president. “We received strong proposals from several vendors for the operations of this area and are pleased to announce Exel as our selection. We believe that this partnership will increase our long-term operational advantage to offer customized products for the Canadian marketplace.”

The key factors in evaluating all proposals and the eventual selection of Exel were cost competitiveness and operational capability. Under this contract, Exel will be responsible for a significant portion of P&G’s customization and contract packaging business.

“We are thrilled to be selected to operate the co-packing and product customization site at P&G’s new Canadian Distribution Centre,” Mark Richards, Exel’s Senior Vice President of Operations. “Our team is looking forward to extending our synergy between managing the distribution centre and operating the product customization site.”

As previously announced, P&G is relocating its Canadian Distribution Centre to Brantford, Ontario with Exel, who acquired Tibbett & Britten in 2004, as the third-party logistics provider. The 775,000-square-feet site is expected to open by June 2005. The total investment is estimated to be CAD$70 million. The distribution centre will serve P&G’s $2 billion national business.