A partnership deal between Costcutter and Palmer and Harvey, which was first reported last week, is expected to be confirmed later today.
The two companies have refused to comment on reports of the deal in The Grocer last week, but they have both invited media to an announcement in Birmingham this evening.
Costcutter stores are currently supplied by Nisa, but according to the report P&H will take over the distribution contract when it expires in July next year, and Costcutter will take over management of P&H’s Mace symbol group.
Nisa and Costcutter have had negotiations over extending the distribution deal, but relations between the two have been complicated since Bibby group took over Costcutter in November 2011.
Bibby had previously tried to buy Nisa and had a bid to retain its ambient distribution contract for Nisa turned down in favour of DHL in April 2011.