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Processors chase the Coles milch cow
18 Jun 2004
National Foods and its suppliers may have sewn up their three-year Woolworths house-brand milk deal but for Dairy Farmers and Parmalat the competition has intensified. At stake are their shares of Coles Myer's house-brand milk contracts.
Parmalat has been supplying Victorian Coles supermarkets for the past two years, while Dairy Farmers supplies NSW, Queensland and SA. National Foods has the Coles contract in WA and Tasmania. The loss of the Victorian contract would be a major blow to Parmalat. Analysts have questioned whether Coles will award Parmalat the contract given its parent's woes, but the local MD David Lord said the Australian operations are capable of standing on their own.
House-brand milk now accounts for 51 per cent of milk volumes and 42 per cent of sales in grocery stores, with retailers using low milk prices to lure shoppers into stores.
Australian Financial Review, 18/6/04.
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