MURRAY River Organics has secured two new contracts with a major Australian supermarket retailer worth about $15 million over two years.
In a statement released on Monday, the company, which trades on the share market under the code MRG, said the deal was a key milestone in achieving a new strategy launched last year, which focused on growing relationships in the retail market.
The statement said the organisation’s scale and global sourcing capabilities had been the foundation for the new contracts, as they built partnerships with large scale retailers.
MRG chief executive officer Valentine Tripp said the company had been building its relationships through extensive collaboration, numerous site visits and engagement with growers, as well as joint planning with retail customers over the past nine months.
She said the organisation looked at matching the capability it had at its farming operations in Mildura and broader Sunraysia, as to what retail partners were looking for.
“We are delighted that the program is delivering and enabling us to secure material contracts going into 2021,” Ms Tripp said.
“It is a real goal for us to be able to connect the retailer with the growers in the region to share learning and make sure, particularly in challenging times, that we are all working together.
“(Those challenging times include drought and water issue) and I think over the past two years these have had major impact across farming communities and ourselves, as well in Sunraysia.”
As part of the partnership, a large contingent from one of the major supermarket retailers joined MRG for three days to meet growers and visit farms and facilities.
Due to a confidentiality agreement, Ms Tripp was unable to name the supermarket.
Ms Tripp said the visit gave retailers an understanding of why it was important to support Australian growers.
The new contract announcement builds on the MRO branded ranging announced in February, for eight new products with another Australian supermarket retailer, which are expected to generate $5-6m per year.
The products are expected to be on shelf from June.
More information will released closer to the date.
