A Glenfield company has won a 12-month contract to process food and drink gift packs.

Widdowson Group has signed a £500,000 deal with Blue Tree Gifts, which is one of the UK's fastest growing alcoholic gifts companies.

Widdowson used to be one of several contractors doing packing and distribution for the company, but following several years of success, Blue Tree decided to find one partner to provide all its services and Widdowson won the contract.

Clarke Robinson, operations manager of the Widdowson Group at Mill Lane Industrial Estate, Glenfield, said: "Since we started work with Blue Tree it has expanded from a small business to one of the UK's leading alcoholic gifts companies.

"Most of the gifts we handle for them are supplied for special events in the year, such as Mothering Sunday, Father's Day or our busiest time, the run up to Christmas.

"In addition, we process a growing range of gifts that are for sale all year round in Tesco."

Packing staff put the gifts into their boxes at an extended 65,000sq ft packing centre at the Glenfield site. The gifts are then delivered directly to retailers.

The gifts include premium brand drinks, food and toiletries.

Widdowson is currently processing well over a million gift packs a year for Blue Tree Gifts.

Ben Bolt, commercial director of Blue Tree Gifts, said: "Originally, we were working with several companies, but then we were referred to the Widdowson Group.

"As they offered a total logistics solution, I decided it would be much better to use them for the entire operation and this has the benefit of giving me just one point of contact.

"Widdowson receives the items from our suppliers and takes them into their warehouse for storage. They then contract pack the gifts and distribute them as finished goods to our customers, who are mostly major supermarkets and high street retailers.

"We are now entering our fifth year of working with the Widdowson Group and continue to be delighted with the personalised attention we receive from their staff who provide us with a complete service."

Widdowson Group, which employs 340 people, reported a profit of £65,000 in the year to March 31, after losses of more than £2 million in the previous two years.

Bosses estimate the company is on course to achieve a £30 million annual turnover by 2013.