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Norco signs major milk supply contract with Coles

Wed, Apr 10th, 2013

Norco Co-operative Limited Chairman Greg McNamara and Chief Executive Officer Brett Kelly are pleased to announce that the Co-operative has secured a major milk supply contract with Coles Supermarkets Australia Pty Ltd, to commence from July 2014.

Under this contract Coles branded milk will be supplied by an iconic Australian farmer-owned co-operative which has been doing business since 1895. Norco understands that Coles is also pleased to be working with a farmer-owned co-operative, which reflects its streamlined channel to market strategy of dealing directly with farmer-owned dairy businesses.

In relation to this announcement Norco Chairman Greg McNamara said:

"We at Norco are delighted to be able to provide this volume of milk to Coles customers and we believe that the contract will be beneficial for our dairy farmers, who are the owners of the Co-operative. This contract further strengthens Norco and supports the ongoing sustainability of our farm base."

Prior to its reacquisition of the Norco Milk sales, marketing and distribution business from Fonterra Brands (Australia) Pty Ltd in November 2012 Norco was contractually bound not to deal directly with retailers. The securing of this contract to supply Coles brand milk is a reflection of the opportunities which are available to Norco given that it is no longer restricted in dealing directly with the retail channel. In this regard Norco CEO Brett Kelly said:

"The consumer can have great confidence in the supply chain now that there is a direct link from the farm to the supermarket shelf."

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