Value Centre may become the major supplier to Shell's retail network after securing agreement to supply 10 Shell Select shops on a trial basis. The deal has been reached with a view to Value Centre Wholesale Cash & Carry supplying Shell's 290 outlets in Ireland.
The outlets taking part in the trial, which is due to last six months, are located in Dublin and Cork. Value Centre Wholesale Cash & Carry has a network of 31 branches nationwide and is part of the BWG Group, itself a subsidiary of Irish Distillers Group. A spokeswoman would not reveal how much the deal was worth.
Irish Shell senior category manager, Ms Catherine Byrne, said the potential for Irish Shell Limited and its retailers in the deal "is quite significant".
Ms Byrne said the arrangement with Value Centre would help retail outlets run more efficiently.
She added that Shell would still "allow for local preference" and she did not envisage one supplier "ever supplying an individual stores total needs".
It is estimated that forecourt retailing will account for more than 2 per cent of the Irish grocery market by the year 2000. At present the overall market is worth £4 billion.