Australian grocery distribution and marketing firm Metcash has signed a long-term supply agreement with independent grocery retailer Drakes Supermarkets, to supply groceries in Queensland, for a further five years.
The deal is an extension to the existing supply agreement between both the parties, which expired on 2 June this year.
The development follows after Drakes’ announcement in May last year regarding its intention to not have its supermarkets in South Australia supplied from Metcash’s distribution centre in Adelaide.
Metcash has signed a new supply agreement with Drakes Supermarkets to supply its Foodland supermarkets in South Australia to 30 September this year.
This agreement may be extended at the option of Drakes Supermarkets up to 30 September 2020.
Drakes Supermarkets’ revealed plans last year to establish $80m grocery distribution centre in Edinburgh North, South Australia. The centre is scheduled to open this month.