S&N subsidiary, Scottish Courage, is to create one of the UK's largest wholesale drinks groups.

The company's Waverley Group wines and spirits operation is to merge with The Beer Seller (TBS), the on-trade drinks wholesaler acquired as part of the Bulmers purchase in 2003.

The new company - which will be independently run and known as Waverley TBS – will operate in three areas. On Trade Wholesale is the core composite drinks wholesaling operation, UK packaging is a specialist wine packaging operation and Off Trade & Export is a specialist sales division aimed at building sales in the two markets.

Waverley TBS will be headed up by Jeff Jamet, previously md of The Beer Seller.