Advisers
Learn
Newsletter
Offers
Podcast
About
  Back
~
1
min read
· Posted on
February 21, 2024

Got milk? Coles secures its own milk supply with a whopping $105 million purchase

Coles has acquired two milk processing facilities for $105 million from Saputo.

What's the key learning?

  • The drinking milk market has always been popular in Australia but really began to boom back in 2013/2014 when the supermarket milk price war kicked off.
  • Coles acquired the milk processing facilities to improve the security of its milk supply and increase its milk capacity.
  • Supply chain acquisitions help retailers get more and more vertical integration.

👉 Background: Australians love their dairy. In fact we consume more than 2.5 billion litres of drinking milk per year.. And that doesn’t even take into account the milk in cheese, yoghurts and cream.

👉 What happened: The drinking milk market has always been popular in Australia but really began to boom back in 2013/2014 when the supermarket milk price war kicked off.  Now, Coles has acquired two milk processing facilities for $105 million from Saputo.

👉 What else: The goal is to improve the security of milk supply and increase Coles' milk capacity. Coles isn't the first... and certainly won’t be the last retailers to buy one of their key suppliers.

What's the key learning?

💡Supply chain acquisitions help retailers get more and more vertical integration. In other words, it allows them to own more parts of the supply chain.

💡Coles aren’t the only retailer acquiring parts of their supply chain:

💡For Coles, this acquisition means they now have their own capacity to provide 450 million litres of drinking milk per year.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at WorkAdvisers
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 1283166) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
No items found.