Murray Goulburn wins Coles cheese supply contract

Murray Goulburn has entered into a five-year national private label contract to supply Coles brand Australian cheese as part of MG’s ongoing push to secure critical mass in the Australian dairy foods market which will underpin and support the company’s growth plans.

Murray Goulburn has entered into a five-year national private label contract to supply Coles brand Australian cheese as part of MG’s ongoing push to secure critical mass in the Australian dairy foods market which will underpin and support the company’s growth plans.

The announcement follows a ten-year partnership that MG commenced with Coles in 2014 to supply daily pasteurised milk for Coles private label brands in Victoria and NSW.

The contract includes the supply of a range of Coles brand cheddar-style cheese including tasty, colby, mild and light cheese in blocks, shreds and slices for Coles supermarkets across Australia.

Approximately $130 million will be generated in additional sales per annum and will also deliver a stable stream of profits to MG over the life of the contract.

According to MG Managing Director, Gary Helou, the company aims to build a world-class cut and wrap consumer cheese processing facility at its Cobram cheese plant.

“We are delighted to extend our existing relationship with Coles and its customers to deliver the quality, taste, and freshness of cheese made by Australia’s largest dairy farmer co-operative, which is 100 percent controlled by Australian farmers,” Helou said.

“This additional Coles business complements our investment strategy to build a state-of-the-art supply chain and adds to our critical mass here in Australia, as we look to substantially grow our business internationally.”

As part of its capital investment program, MG has announced plans to invest up to $145 million to significantly increase ‘ready-to-serve’ cheese capacity and capabilities at its new consumer cheese plant in Cobram.

“Cobram will deliver world-leading technology for processing and packaging a range of consumer and food service cheese products including block, slices, snacking and shred,” Helou said.