Coles has acquired two processing facilities from Saputo Dairy Australia (SDA) for $105 million.
Located in Laverton North (VIC) and Erskine Park (NSW), each facility can process an estimated 225 million litres per year and is primarily used to bottle Coles Own Brand 2L and 3L milk.
Last November, Saputo Dairy revealed plans to close one of its factories, streamline others.
Coles said the new facilities would improve the security of its milk supply and supply chain resilience, consolidate milk production, and facilitate growth opportunities through product innovation.
Steven Cain, CEO at Coles, added that the processing facilities would complement existing investments in Coles’ own and exclusive brand portfolio and manufacturing capabilities in areas such as convenience meals and meat.
“These facilities are state-of-the-art, delivering exceptional production efficiency and quality through highly automated processes,“ said Cain.
“The acquisition will build on the strong relationships we have developed with our dairy farmers since launching our direct sourcing model in 2019.”
The acquisition will be funded from Coles’ existing debt facilities subject to ACCC approval and is expected to be completed next year.
