Australian grocery distribution and marketing firm Metcash has entered a long-term supply agreement with Foodland Supermarket to supply groceries to Foodland supermarkets across South Australia.
Foodland Supermarket is the governing body for independent Foodland supermarket retailers in South Australia.
As part of the agreement, Metcash will supply groceries from its new distribution centre in South Australia for a period of ten years.
The company announced plans to establish this distribution centre in May, during which it has signed a long-term supply agreement.
The latest deal excludes Drakes Foodland supermarkets in South Australia, as it opted not to make a commitment to have its supermarkets supplied from Metcash’s distribution centre.
The agreement is conditional on Metcash entering a lease agreement for the new distribution centre before 21 December.
The company has also signed long-term supply agreements with Foodland multiple store owners such as Romeo’s, Chapley’s, and other members of the Foodland board.
Both companies are now planning to implement the ten-year supply contract with the remaining Foodland retailers in South Australia.
Metcash offers merchandising, operational and marketing support to independent retailers across food, liquor and hardware domains.
The company currently supports a network of more than 1,600 independently owned stores from various brands such as IGA and Foodland IGA brands in the food sector.
It also features around 2,700 stores under independent liquor retail brands, including Cellarbrations, The Bottle-O, IGA Liquor, Duncans, and Thirsty Camel.