- Keytone Dairy (KTD) has signed a milk powder manufacturing and supply agreement with leading New Zealand grocer, Foodstuffs
- Under the deal, Keytone will produce and supply whole and skim milk powder for Foodstuffs who will distribute the products across New Zealand
- The agreement is expected to be worth NZ$7.1 million (roughly A$6.6 million) and has already received purchase orders valued at more than NZ$500,000 (roughly A$466,300)
- While the agreement was signed for an official two-year term, it will continue indefinitely thereafter
- Company shares are trading 11.9 per cent higher for 23.5 cents
Keytone Dairy (KTD) has signed a milk powder manufacturing and supply agreement with leading New Zealand grocer, Foodstuffs.
Foodstuffs was founded by J Heaton Barker in 1922. J Heaton called together members of the Auckland Master Grocers’ Association to discuss plans to form a co-operative buying group. Since then, it has become New Zealand’s biggest grocery distributor and one of the country’s largest organisations.
Under the deal, Keytone will produce and supply whole and skim milk powder for Foodstuffs across multiple Foodstuffs product brands and sizes that will be distributed throughout New Zealand.
The two-year agreement is expected to be worth NZ$7.1 million (roughly A$6.6 million). Before the agreement was officially signed, the company had already received initial purchase orders totalling over NZ$500,000 (roughly A$466,300). These have also been dispatched.
“Based off our track record and leveraging our credentials, world class facilities and reputation, Keytone has successfully tendered and won this significant contract in New Zealand for the supply of milk powder,” Keytone CEO Danny Rotman said.
Keytone considers this agreement to be a testament in its capabilities as well as the diversity of its revenue base.
“The win is testament to the growing and diversified client base of the company and the fact that Keytone is not reliant on the Daigou channel or any one distribution channel,” Danny added.
While the agreement was signed for an official two-year term, it will continue indefinitely.
Company shares are trading 11.9 per cent higher for 23.5 cents at 10:17 am AEDT.