Woolworths has today confirmed it has selected a new supplier to manufacture and pack private label products including cheese, UHT, adult milk powder and cream.

Murray Goulburn retains the contracts to supply private label mozzarella cheese and private label butter.

“MG continues to enjoy a strong ongoing relationship with Woolworths and they remain a valued partner for our co-operative,” said David Mallinson, interim CEO, Murray Goulburn.

“We believe our tender to retain this business was competitive, whilst balancing acceptable returns for our products given the current environment for our farmers, suppliers and investors.

“I can also reassure our valued customers that ranging of MG’s Devondale and Liddells products are not impacted by this decision and continue to be available at Woolworths nationally,” he said.

MG expects annualised revenue loss to be approximately $108million after the announcement though expects the financial impact to be limited “given timing of existing contracts completing.”

Updated: 11am AEST  July 29

Following this mornings announcement, a media spokesperson issued the following statement to Inside Retail.

“Woolworths has entered into new supplier arrangements following a competitive process across a number of categories. From January next year Bega Cheese Limited will be supplying our private label cheese products. In other categories, such as cream, we have looked to align like producers with local markets. For example, In Queensland our supplier will be Parmalat, Victoria is Fonterra and the other states will be supplied by Bulla. We look forward to delivering new products to our customers through our private label brands through these new suppliers.”

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