Products under the tender include multiple powdered SKUs in various pack formats, flavors and sizes, and Keytone said the deal will lead to a A$5.2m (US$3.8m) sales forecast per annum.
Production at Keytone’s Melbourne facility will start late in the first quarter of 2021, with product in Coles store from the second quarter of 2021.
Keytone said it anticipates the term will be longer than an initial 12-month period, implying a gross sales value multiples higher than the annual value.
While the award of the tender specifies the products, sizes, pack formats and forecast volumes to be manufactured, Keytone said there is significant upside in the volume of the products to be manufactured as well as further collaboration between Keytone’s product development team and Coles to introduce further private label products at significant volumes for the business in the future.
Keytone’s CEO, Danny Rotman, said, “This is a fantastic and significant win for the business. It highlights the growing awareness of the Keytone brand of quality and our credentials across the broader health and wellness sector.
“This tender win comes shortly after and in addition to the recently announced Foodstuffs contract in New Zealand and significant increases in the sales forecast for Walmart China and Nouriz China, providing Keytone with a growing sales pipeline through the next calendar year and beyond.”