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Parmalat wins Coles milk deal
27 Jul 2004
Parmalat has been awarded Coles Myer's Queensland house-brand milk contract, unseating the current holder Dairy Farmers. The two-year contract commences on October 1, for the supply of about 35 million litres of milk a year.
Unlike rival Woolworths, Coles Myer awards its contracts on a state-by-state basis and is expected to review all of its supermarket house-brand arrangements in the near future. The Victorian and Northern Territory contract is held by Parmalat; Dairy Farmers holds the SA and NSW contracts; National Foods has Tasmania, while PB Foods has the WA contract.
A Coles Myer spokesman said that the company had tried to protect dairy farmers in the tender process. Coles sought assurances that neither dairy prices nor farm gate would adversely affect existing prices paid to farmers, he stated.
Australian Financial Review, 27/7/04.
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