Irish co-op The Irish Dairy Board is to supply own-label butter to Tesco stores in four markets in central and eastern Europe.
The IDB said the EUR20m (US$25.6m) deal will see it produce private-label products for Tesco in the Czech Republic, Poland, Slovakia and Hungary.
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Kevin Lane, the co-op’s chief executive, said the contract was a “key new route to market” before the end of EU quotas on dairy production in 2015.
“This partnership with Tesco will help us on our journey to ensure that we meet our international export and growth objectives and feeds into our strategy of significantly growing new sales into new geographies and markets,” Lane said. “We’re confident that this exciting new growth initiative with Tesco can be built on further in the years to come.”
In an interview last month at the SIAL trade show, Fergal McGarry, the IDB’s global marketing and innovation director, told just-food the co-op’s main target markets were Africa, Russia and China.
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