KEY POINTS:
Goodman Fielder said today it agreed to buy Independent Dairy Producers (IDP), a small, independent company that trades under the Cow and Gate milk brand.
The acquisition would increase Goodman's presence in the route trade where IDP sells its milk, chief executive Peter Margin said.
Goodman Fielder has also been awarded a milk supply contract with Progressive Stores which involves the supply of 30 million litres of house brand milk.
Progressive Enterprises is owned by Australia's Woolworths and runs the Foodtown, Woolworths and Countdown supermarket chains. It has around 44 per cent of the New Zealand grocery market.
"Progressive Stores have also determined that they will now stock Goodman Fielder's Meadowfresh milk as the major proprietary milk brand in the majority of their stores, said Mr Margin.
Goodman Fielder also announced it had entered into a new strategic partnership with The Grate Kiwi Cheese Company (GKC) for the production of retail cheeses.
Mr Margin said it would be investing limited capital in the joint venture which would be used to install specialist cutting and wrapping equipment in GKC's Auckland plant.
Goodman shares were down 1 cent at $2.61 on the NZX shortly after the announcement.
- NZPA
