Finance Blog number 1

November 25, 2009

Delta extends contract with catering vendor

Filed under: management — Tags: , , — Sun @ 6:54 pm

Delta Air Lines Inc. has renewed its vendor contract with gategroup, parent company of food contractor Gate Gourmet.

The multi-year extension, valued at more than $1 billion in revenue over the life of the contract, also involves gategroup subsidiaries Gate Safe, eGate Solutions, Pourshins and deSter, the company said in a Wednesday news release.

“Delta is a leading customer for gategroup and its brand companies and has been for more than 50 years,” Guy Dubois, gategroup CEO, said in a statement. “We're delighted to call the world's largest airline one of our top customers. The scope of this business validates gategroup's strategy of building a brand portfolio that provides end-to-end solutions to the travel industry, and demonstrates the cross-selling power of the brands.”

The deal with Atlanta-based Delta (NYSE: DAL) covers 40 airports worldwide and expands catering service to airports in Amsterdam, Fort Lauderdale, Fla electronic check payday advance., Los Angeles and Newark, N.J.

Gate Safe, the catering screening and security subsidiary of Zurich-based gategroup, will expand to serve all Delta, Northwest and Delta Connection stations currently served by Gate Gourmet in the U.S.

The contact also extends agreements with eGate and Pourshins, the company’s in-flight catering management and food, beverage and equipment sourcing and logistics arms.

"Consistency of product delivery is a key component of Delta's brand experience for our customers," Joanne Smith, Delta senior vice president of in-flight services, said in the release. "The complete integration of catering solutions is another important step in bringing together the best of Delta and Northwest."

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