Bega Cheese finalises private label supply deal with Coles

Posted by AFN Staff Writers on 19th April 2012

Five months after Australia’s largest ASX-listed dairy company Bega Cheese announced a contract to supply private label to Coles supermarket, a formal agreement has been finalised.

The agreement is for a minimum five year term and will see Bega Cheese supply Coles branded cheese products for that period. Initial volumes are expected to be approximately 19,000 tonnes per annum.

The contract, which had been foreshadowed in September 2011, now specifies that Bega Cheese will be manufacturing and packaging Coles private label ‘natural cheddar’, ‘processed cheddar’ and ‘mozzarella’ products.

Bega already packs around 14,000 tonnes of Coles’ retail cheese products for a third party, the new arrangement will see an additional 7,000 tonnes of bulk cheese being manufactured through its production facilities.

Bega Cheese plans to manufacture the cheese products for supply to Coles at its facilities in Bega, in New South Wales, as well as Coburg and Strathmerton, both in Victoria.