Keytone Dairy receives first order from Walmart China for private label whole milk powder and skim milk powder to Walmart’s Sam’s Club China.
Keytone’s contract with Walmart China is open-ended in that it does not provide for a set or maximum quantity or dollar amount – rather, the contract sets out the terms on which Keytone Dairy manufactures Sam’s Club China-branded product as and when Walmart China places orders with the Company providing significant upside for Keytone. The first order is for Sam’s Club China private label whole milk powder and skim milk powder, totalling approximately NZD107,000.
The Walmart contract is strategic for the Company given the size and number of stores Sam’s Club operates in China. Additionally, this contract followed many months of rigorous compliance audits and other onerous onboarding procedures by Walmart China in validating the quality of the Keytone Dairy manufacturing operations and ultimately selecting Keytone Dairy as its preferred contract manufacturer for these powdered dairy products.