Dairy company announces new five year supply deal with Coles

Posted by AFN Staff Writers on 19th January 2012

Australian ASX-listed company Warrnambool Cheese and Butter (WBC) today announced the signing of a five year deal to supply dairy products to Coles Supermarkets under a new consumer brand.

The new brand, called ‘Great Ocean Road’, will be sold exclusively through Coles stores across Australian and includes a range of cheddar cheeses and fresh milk products.

In a statement released today, WCB said it will work with Coles to formalise the agreement into a contract. Under the supply contract, WCB will supply a minimum of 4,000 tonnes of cheddar cheese per year under the Great Ocean Road brand, commencing in May 2012. WCB will also supply a range of fresh milk products into Coles’ Victorian stores under the new brand.

WCB estimates that the Great Ocean Road brand will require and additional 50 million litres of milk from dairy farmers each year for the five years of the contract.

The statement said, “The new deal signals a strategic relationship which is beneficial for both partners. Under the five year agreement, WCB will continue to build its branded consumer product business in cheese and other dairy products.”

Coles has been entering into a number of long-term supply arrangements with other suppliers.  In September 2011, it announced that Bega would be supplying its home brand cheese products.