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May 30, 2019

New Zealand’s Keytone Dairy wins China milk powder contract from Walmart

New Zealand-based Keytone Dairy has won a deal with a major US retailer to contract manufacture milk powders. 

By Dean Best

New Zealand-based Keytone Dairy has won a deal with US retail giant Walmart to manufacture milk powders for the Chinese market.

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The contract has been secured through Walmart (China) Investment Co., which in turn will supply milk powders to Sam’s Club West, a wholly-owned subsidiary of the US retailer, according to a statement from Canterbury-based Keytone. Financial terms were not disclosed.

Under the contract, Keytone will produce and provide Walmart with Sam’s Club private-label branded whole milk powder and skimmed milk powder. 

“The terms of the contract are in line with industry standards for a contract of this nature, and as is common in the industry, the contract does not stipulate a specific volume of production – rather it sets out the terms on which Keytone Dairy will contract manufacture Sam’s Club China branded product, as and when Walmart China places orders with Keytone Dairy,” the statement read. 

Sam’s Club is an American chain of membership-only retail warehouse clubs owned and operated by Walmart, with 597 members in the US and 208 internationally, including Mexico, Brazil and China. It operates 18 superstores in cities including Beijing, Shanghai, Shenzhen and Wuhan.

Keytone is listed on the Australian Securities Exchange and its brands include KeyDairy and KeyHealth, primarily destined for the Chinese market. The company also offers contract packaging for leading brands and holds an export license known as the China Certification and Accreditation Administration (CNCA) of the People’s Republic of China.  

Chief executive James Gong said: “This contract further validates the Keytone Dairy credentials into China. The fact that a brand of this calibre has entrusted Keytone Dairy with manufacturing its branded product is both a major milestone for the company, and an indicator of the company’s ability and reputation in its target market. We will be looking to leverage this milestone into a number of other contract wins globally.” 

Keytone added Walmart has completed compliance and quality audits on its dairy facilities in Christchurch.  

Related Companies

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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