Bega loses Coles contract but has eyes on bigger cheese
Bega Cheese chief executive Aidan Coleman insists strong demand for infant formula will offset a $130 million revenue hole formed after Coles ditched the dairy company to supply its private label cheeses.
Bega’s shares dived 10.5 per cent to close at $6.32 after Coles awarded its new private label cheese contract to Murray Goulburn. The five-year deal will begin next January, and pushed units of Murray Goulburn’s listed trust up 2.1 per cent to $2.43.
Bega said it would divert about $60 million worth of cheese inventory, which normally goes to Coles, into higher value-added products such as infant formula.
Bega’s shares dived 10.5 per cent to close at $6.32 after Coles awarded its new private label cheese contract to Murray Goulburn. The five-year deal will begin next January, and pushed units of Murray Goulburn’s listed trust up 2.1 per cent to $2.43.
Bega said it would divert about $60 million worth of cheese inventory, which normally goes to Coles, into higher value-added products such as infant formula.
The Sydney Morning Herald – Read more…
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