Small Tasmanian dairy processor secures big yoghurt supply deal with Coles

Posted by AFN Staff Writers on 15th May 2012

Tasmanian dairy processor Tamar Valley Dairy has reportedly secured a five-year deal to supply 3,000 tonnes of yoghurt each year to Australian supermarket chain Coles.

Tamar Valley Dairy is a family operated company specialising in the production of probiotic yoghurts and cultured milk drinks.

According to media reports, the five-year deal will see Tamar Valley Dairy’s yoghurt products on sale in Coles stores in Tasmania, Victoria, NSW, Queensland and South Australia from June 2012

Tamar Valley Dairy is reported to be employing 40 more people as a result of the new contract with Coles, which it estimates will see a 40 per cent growth in its retail business.

Speaking at the Global Foundation Summit in Melbourne on Friday 12 May 2012, Coles’ Merchandise Director John Durkan said the Coles supermarket chain was committed to working with Australian food manufacturers and growers to ensure long-term, sustainable domestic food supply.

Mr Durkan said that the Australian food industry was facing widely-acknowledged challenges, including rising input costs and a high Australian dollar.

“I believe these are not insurmountable issues and for our part Coles wants to work with suppliers to overcome these challenges, through quality, innovation and branding initiatives,” Mr Durkan said.