Australian organics manufacturer Murray River Organics (MRG) has confirmed two new contracts with an undisclosed Australian supermarket retailer, worth $15 million over two years, to bring more better-for-you products to mainstream consumers.
The scale and global sourcing capabilities of MRG were key in forming the two contracts with the supermarket, and builds on the company’s partnerships with retailers.
It follows MRG’s branded product expansion with another retailer announced in February, which is expected to generate between $5–6 million annually.
“We have been building relationships through extensive collaboration, numerous site visits and engagement with our growers, as well as joint planning with our retail customers over the last nine months,” said MRG CEO Valentina Tripp.
“We are delighted that the program is delivering and enabling us to secure material contracts going into FY21.”
MRG has also said the ongoing Covid-19 environment has caused delays in shipping and orders in February and March, and “anticipates this to continue for the foreseeable future”.
It has also impacted on the company’s exports, fresh programs and import supply chain, but will “continue to monitor its expected financial performance against the EBITDA-S guidance approved in August 2019”.
Further cost reductions and cash management initiatives building on farm restructuring activities in December 2019, as well as freezing all non-urgent capital expenditure, are among the implementations MRG is enforcing to combat Covid-19 impacts on the business.
