Keytone will manufacture and supply whole and skim milk powder for Foodstuffs Own Brand Limited across multiple Foodstuffs product brands and sizes to be distributed throughout New Zealand.
The company said it has received orders of NZ$7.1m (US$4.8m) with purchase orders of more than NZ$500,000 (US$340,385) already received.
The initial term of the agreement is two years, which will continue indefinitely thereafter.
The products will be manufactured in Keytone’s New Zealand facilities.
Keytone’s CEO Danny Rotman said, “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.”