Charlie's wins juicy deal with Coles

Charlie's expects to squeeze four million extra lemons annually to keep up with demand. Photo / Supplied

Charlie's says a deal to supply Australian supermarket giant Coles has potential to increase its juice sales across the Tasman by $7 million a year.

Nine of the listed West Auckland juice-maker's products - spearheaded by its Old Fashioned Lemonade - will be available in the chain's 750 stores early next month.

Charlie's expects to squeeze four million extra lemons annually to keep up with demand.

"It probably is the biggest retail deal that we've done," said chief executive Stefan Lepionka.

"We now have a very big foot in the Aussie market door because we use the best ingredients and have innovative, honest and fun packaging."

The Charlie's share price surged more than 45 per cent after the deal was announced late yesterday, closing up 5c at 16c.

Lepionka said that Coles was Australia's second-largest supermarket chain, after Woolworths, with more than 100,000 employees and 11 million customer transactions each week.

The market across the Tasman was tough to crack and the firm had to overcome "negativity" from some of its competitors to seal the deal.

Lepionka said the Australian competition included the Daily Juice Company, owned by Lion Nathan National Foods, and Heinz Australia's Golden Circle brand.

"[The deal] has come at the expense of our competitors - they've lost a lot of business as a result of having to make space for us."

The sales team worked on the deal for more than 12 months, with the company's products being trialled in 37 Coles stores during that time.

Supplying the supermarket chain would increase volume at the Australian production facility, which was set up in 2008, by 30 to 35 per cent, Lepionka said.

The four million extra lemons would come from Australia and New Zealand, with the company eyeing Argentina as another potential source.

The Coles deal follows an agreement Charlie's South Korean distributor secured with a major cafe chain in that country last month.

Charlie's reported record earnings of $3.4 million in the year to June 30, with sales up 39 per cent in Australia.