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In February 2003, Scottish & Newcastle announced that the implementation of the supply chain reorganisation in Scottish Courage, its UK beer division, had resulted in greater than expected disruption costs and delays in the realisation of cost savings.
At its interim results statement in December 2002, S&N said that its UK supply chain is being reorganised which has resulted in greater than expected disruption costs and delays in the realisation of cost savings. Since then, it admitted having suffered from significant drop in productivity and "double running" costs as the new regional distribution centres come up to speed. S&N Retail, with a quality estate in strong sectors, continues to perform well.63 in December to GBP 3.60 (11 February 2003)..