Tasty new yoghurt deal to deliver pot of gold
CAMPERDOWN Dairy Company has extended its production contract with New Zealand yoghurt brand The Collective by two years, potentially doubling the value of the deal.
Australian Dairy Nutritionals Group, which owns the Camperdown Dairy business, yesterday said the four-year deal signed with The Collective in April 2018 had been extended to six years on the back of pleasing sales volumes.
Camperdown Dairy, which currently produces 17 products for The Collective that are stocked in Woolworths supermarkets nationally, has also agreed to install a high-speed pouch machine to boost production.
Australian Dairy, based at Camperdown, east of Warrnambool, has upgraded the contract’s revenue forecasts from $30 million over four years to between $60 million and $70 million over the new, longer period.
“The board are pleased with sales and production volumes which have been increasing steadily since the beginning of 2019,” Australian Dairy chief executive Peter Skene said.
“The board is happy with the extension of Camperdown Dairy Company’s relationship with The Collective and is pleased to support The Collective’s ongoing product innovation initiatives while at the same time advancing Camperdown Dairy Company’s production capabilities.”
Shares in Australian Dairy traded flat yesterday.
The company added 16 per cent to its share price last week after continuing its shift from white milk to infant formula with the $5 million purchase of an offshore powder processing plant.
Australian Dairy Nutritionals Group changed its name from Australian Dairy Farms late last year after bedding down the sale of organic infant formula maker Flahey’s Nutritionals.