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February 14, 2018

New Zealand’s Synlait signs new supply deal with China’s Bright Dairy

Synlait Milk, the New Zealand business best known for co-packing infant formula, has renewed a supply arrangement with its largest shareholder, China's Bright Dairy.

Synlait Milk, the New Zealand business best known for co-packing infant formula, has renewed a supply arrangement with its largest shareholder, China’s Bright Dairy.

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The firms have announced a new five year supply agreement for packaged infant formula.

Synlait said the agreement provides certainty around production volumes for both parties and builds on previous supply arrangements put in place since the relationship began in 2011.

“This new agreement is a positive step in our long standing partnership and we’re looking forward to playing a key role in the future success of Bright Dairy’s infant formula business,” said Synlait’s John Penno.

The agreement includes a commitment from both parties to prescribed production volumes each year for Bright Dairy’s Pure Canterbury infant formula brand.

The Pure Canterbury range of infant formula is Bright Dairy’s flagship infant nutrition brand and was launched in 2011. It is sold throughout China in both online and traditional channels.

This agreement will underpin Synlait’s application to register Pure Canterbury with the China Food and Drug Administration (CFDA).

Overall, the agreement targets a fourfold increase from current volumes over the five-year term.

Bright Dairy has a 39.4% stake in Synlait.

In December Synlait announced it was entering the fresh milk market.

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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