Keytone Dairy is pleased to provide an update on the commencement of the previously announced $5 million per annum Coles contract.
The key points include:
- Strong opening orders and forecast of more than $800,000 covering less than a 2-month period;
- First product manufactured and dispatched in late June 2021, full initial sales impact to be realised in the September quarter;
- Keytone is now receiving an average of two orders per week for Coles product SKUs, growing in frequency and value;
- Prior inventory and working capital build related to the Coles contract commenced unwinding late in the June quarter as first sales were dispatched and will fully unwind through the September quarter as sales are recognised and collected on agreed contract terms; and
- Ongoing and positive discussions for new product development in addition to promising tenders for new Coles contracts with significant upside for Keytone.
“The start of the Coles contract has proceeded both ahead of schedule and ahead of volume forecasts” stated Keytone CEO Danny Rotman. “It represents the commencement of a long-term strategic partnership with one of Australia’s leading grocers and validates the credentials and capabilities of the Company to service Coles nationally across a range of different categories. Pleasingly the successful launch has lead to a growing sales pipeline with a number of new tenders for the Coles group currently in the works offering significant sales upside for Keytone.”