News

St Ives has emerged as the surprise winner of the multimillion-pound Sainsbury's print contract that has been held by Communisis since 1999.

The news of St Ives’ appointment emerged after Communisis revealed to the stock exchange that it had been unsuccessful in its bid to keep the estimated £20m-a-year contract.

Sainsbury’s confirmed that St Ives had won the competitive tender, first announced in March (PrintWeek, 27 March), but would not reveal any further details as PrintWeek went to press.

A spokesperson said: I can confirm that following the print review at Sainsbury’s, subject to contract, St Ives has been appointed as our preferred print supplier from 1 September 2008.

Communisis moved to play down the loss of its preferred-supplier status, which it announced to the stock exchange last week.

In a statement, the company said: The great majority of the revenues from the relationship with Sainsbury’s is reported in the Print Sourcing segment, with consequently lower margins.

As such the board of Communisis does not expect the move of this contract to have an impact on profits for the current financial year.

St Ives is understood to have won around £100m-per-year worth of contracts in the last 18 months including the £40m-per-year Royal Mail contract.

Simon Ward, managing director, UK sales declined to comment at this time.

SAINSBURY'S TENDER TIMELINE
10 June Sainsbury’s awards contract to St Ives
4 June Communisis loses preferred supplier status
27 March Sainsbury’s sends out invitations to tender
1999 Centurion, prior to its acquisition by Communisis, wins Sainsbury’s first print outsourcing deal