Nat Foods signs $2b deal with Linfox

Posted by Daniel Palmer on 5th August 2009

Food and beverage firm National Foods has signed one of the largest logistics contracts in the Australian food and beverage sector.

The owner of the Dairy Farmers, Yoplait, and Pura brands announced the deal with Linfox Logistics yesterday, which will see Linfox manage the majority of their Australian national distribution for the next ten years.


“Worth up to $2 Billion in revenue over ten years, this is one of the largest single contracts in the Linfox Logistics portfolio and in the Australian logistics industry,” Linfox CEO Michael Byrne said. “The scope of work, including distribution centre (DC) design and management, linehaul and local distribution, will add nearly 300 people to the Linfox team.”

Mr Byrne said the negotiations had been taking place over the course of a couple of years, with the deal larger than their agreements with Coles and Coca-Cola Amatil.

New technology

“Linfox helped review National Foods’ Australian supply chain operations and developed a powerful supply chain solution that will establish a state-of-the-art distribution centre network and specialised delivery vehicle fleet,” Mr Byrne advised. “We are using cutting-edge SAP IT to provide leading transport and warehouse systems to effectively manage our customer’s distribution operations.”

National Foods’ Group Executive of Corporate Services & Logistics, Conor O’Malley believes the deal will improve “visibility” in the supply chain.

“Most importantly, this will reduce complexity, provide supply chain visibility, and help us deliver a best-in-class service to our customers,” he contended. “I am confident that working together in a strategic and strongly commercial partnership, both National Foods and Linfox will deliver improved value to both customers and shareholders.”