Keytone is pleased to announce it has signed a material milk powder manufacturing and supply agreement with leading New Zealand national grocer, Foodstuffs. Keytone will manufacture and supply whole and skim milk powder for Foodstuffs Own Brand Limitedacross multiple Foodstuffs product brands and sizes to be distributed throughout New Zealand.
The key details include:
- NZD7.1m sales and volume forecast received1
- Initial purchase orders totalling more than NZD500k received to date
- Initial term of the Agreement is 2 years and will continue indefinitely thereafter2
- Other standard terms and conditions setting out quality requirements, ordering and delivery time frames of nominated milk powder products nationally
The products will be manufactured in Keytone’s New Zealand facilities.
This large domestic contract further demonstrates the diversified nature of the revenue base of Keytone across New Zealand and Australia, highlighting the broad, ever-growing and robust client base of the Company. Importantly it also illustrates that the business is not reliant on any one channel, one geographic market or one client. Keytone does not, and nor has it historically, relied on the Chinese Daigou cross-border distribution channel as a key route to market and as such is not suffering the challenges being experienced through this distribution channel due to international border closures as a result of COVID-19.
Keytone’s CEO Danny Rotman commented, “Based off our track record and leveraging our credentials, world class facilities and reputation, Keytone has successfully tendered and won this significant contract in New Zealand for the supply of milk powder. The win is testament to the growing and diversified client base of the Company and the fact that Keytone is not reliant on the Daigou channel or any one distribution channel.”
“While this is a large domestic contract, based off discussions to date, Keytone believes there is further upside in the value of the sales over the initial term not to mention the opportunity to sell in our range of high margin proprietary products to Foodstuffs, New Zealand’s largest grocery retailer.”
The release of this announcement was authorised by the Non-Executive Chairman, Mr. Peter James, on behalf of the board.