Fonterra has signed a A$30 million ($32.5 million) a year contract to be the sole supplier of cheese to Domino's Pizza in New Zealand and Australia.
The contract has an initial term of five years.
Dominos Pizza chief executive Don Meij said the Fonterra contract would help the pizza maker
preserve margins despite price increases in the cheese market.
Mr Meij said Fonterra would make cheese especially for Domino's, but also provide scope for the use of new cheeses on the pizzas.
"While Fonterra will be manufacturing Domino's Pizza specific cheese, its strong R&D focus and exceptional cheese making technology will provide Domino's Pizza with the opportunity to explore new products from time to time, Mr Meij said.
Domino's Pizza and its franchisees operate 407 stores across Australia and New Zealand, making more than 40 million pizzas each year.
- NZPA
