SPC Global secures $250 million Hong Kong contract
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The news: Food and beverage processor SPC Global has struck a long-term deal to supply dairy products to Hong Kong health and beauty retail chain Dairy Farm Company (DFI).
The numbers: Under the deal, SPC’s Nature One Dairy subsidiary will supply products to DFI’s 320-outlet Mannings retail chain in Hong Kong and Macau. The contract is expected to generate $250 million in revenue over 10 years, SPC said.
SPC Global shares were down 0.9% to $1.14 in early trading on the ASX.
The context: SPC called the agreement a significant milestone for its powdered milk division and said the deal would further strengthen its position in Asia.
The contract is the first major deal since SPC Global returned to the ASX in December after merging with The Original Juice Company and Nature One Dairy.
The source: ASX announcement
