Metcash new supply agreements with Drakes

Company News

by Anna Napoli

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Last Updated: 19/06/2019 3:28 PM

Metcash (ASX:MTS) has today announced that it has entered into an agreement with Drakes Supermarkets to supply its stores in Queensland for a further five years following the expiry of its existing supply agreement yesterday.

Today’s news follows an announcement( by Metcash) in May last year, that Drakes Supermarkets would not commit to its supermarkets in South Australia being supplied from Metcash’s new distribution centre beyond the current contract term which expired yesterday.

The centre which is under construction in Adelaide, is expected to create operational efficiencies in South Australia and allow access to a wider range of products than is currently available in the region.

Metcash has also entered into a new supply agreement with Drakes Supermarkets to supply its Foodland supermarkets in South Australia to 30 September 2019 with an option to extend.

Shares in Metcash (ASX:MTS) closed 0.34 per cent lower at $2.95 on Friday.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.