The a2 Milk Company has extended its manufacturing and supply agreement with Synlait Milk as a key part of the company’s global supply strategy.
In July 2018, the supply agreement for a2 Platinum and nutritional products was agreed to for a minimum term of five years, with a rolling three-year term from 1 August 2020.
A two-year extension has been signed as a variation to the deal, with the new minimum term dated to 31 July 2025.
The agreement further includes details of an increase in the volume of nutritional products which Synlait already has exclusive supply rights for, as well as increased committed production from Synlait and pricing terms to reflect the agreement on the part of both companies as “an ongoing market-competitive pricing regime”.
On November 19, a2 Milk CEO Jayne Hrdlicka announced it had forecast $780-800 million revenue for 1H20, and will increase its focus on China and US markets in the year to come.
In October, Synlait announced it would acquire New Zealand-based Dairyworks for NZ$112 million.
A2 Milk was listed as #26 in the Food & Drink Business Top 100 Companies report for 2019.