Oliver’s Real Food products will be withdrawn from EG service stations by the end of January next year, expected to result in loss of royalty revenue earned from those sales.
The Australian-listed company clarified that no financial penalties will be incurred with the termination of the four-and-a-half-year partnership.
Meanwhile, the company signed an agreement with a new foodservice distributor to distribute its products into its store network, effective November 11.
Oliver’s anticipates better outcomes from the new agreement through improved prices and trading terms.
The company has been seeking to reduce its cost base through initiatives including senior management restructuring, store closures, and a reduction in interest costs.
Its targeted annualised cost reductions range from $1.2 million to $1.4 million.
