Nestlé FoodServices has won the contract to exclusively supply catering outlets within one of the UK's biggest entertainment complexes. As one of the founding partners for the O2 arena, Nestlé FoodServices has the exclusive rights for all of its branded hot beverage, food, confectionery, ice cream and water sales inside the main public arena, including Nescafé, KitKat, Mövenpick, Herta and Buxton Water.
The arena is based around the former Millennium Dome and its surrounding area in Greenwich, and is operated by AEG, a company which owns or operates some of the leading entertainments complexes and stadiums across the globe. At its heart is the indoor arena that can accommodate up to 20,000 fans, and is scheduled to stage 150 music, entertainment and sports events in the year following its opening. There is also an exhibition space which will house the Tutankhamen exhibition coming to London in November, an 11-screen cinema complex and an 'Entertainment Avenue' housing a variety of bars and restaurants. The deal does not include the branded restaurants and bars in the complex, but does cover all the public concessions, which will be operated by Levy, an American arm of Compass Group. It will be the first Levy operation outside the US.
The deal between AEG and Nestlé is for an initial five-year period and will end shortly before the arena is due to be the venue for the gymnastics and basketball events at the 2012 Olympics. The initial deal had to end at this point because the rules of the International Olympic Committee insist that venues it uses must be handed over to it free of any sponsorship deals.
David Field, managing director of Nestlé FoodServices, said: "Our involvement with the O2 and AEG is a great example of bringing our core proposition of becoming an 'inspiring growth partner' to life. This relationship is not just about providing products, but working with our partners to provide an inspirational venue with the right food and beverage solutions - to meet the many and varied demands of the operators on site and those visiting the arena.
"We are excited at the opportunities which a world class organisation such as AEG can bring to our business and we look forward to welcoming so many visitors to our brands while they enjoy the outstanding entertainment on offer at the O2."
David Campbell, president and CEO of AEG Europe said: "Nestlé FoodServices is unique in being able to provide a venue like the O2 with a complete range of world class food, confectionary and beverage products.
"They have worked extensively with us to provide the right solutions and service to meet the high standards our visitors expect at the arena. We are delighted that they have come on board as a founding partner."
Martin Lines, marketing director of Nestlé FoodServices, said: "This deal offers us a phenomenal range of marketing and merchandising opportunities."
He said the events at the arena would become a key part of its marketing activities, including offering tickets for consumer promotions, clients and for staff incentives.
In addition to the Nestlé brands already familiar to UK customers, he said the company would also be sourcing other food from within Nestlé's global network of companies, such as fish and pizza products from Nestlé's French arm Davigel.
Lines said the deal would mean a huge number of consumers would experience Nestlé products. On the opening night alone 10,000 hot dogs were consumed and up to five million people a year are expected to visit the complex.
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