COLAC processor, Australian Lamb Company Group (ALC) has had a significant win, signing a 10-year processor contract to Coles supermarkets.
The deal announced today is seen as a major boost to Victoria’s south west region and will see ALC will process lamb to Coles supermarkets throughout eastern Australia.
An investment of $30 million in their facilities will also ensure production capacity is increased to supply Coles, while also assist ALC in expanding its export customer base.
The deal will see ALC employ up to 60 new people in the area.
The new partnership was announced at the facility by ALC managing director John Verrall and Coles merchandise director Richard Pearson.
Under the contract, which takes effect in November, ALC will process 1.1 million lambs for Coles each year.
ALC, which is owned by founders John Verrall and Denis Zarpellon, has been operating in the lamb and mutton processing and export sector for more than 20 years and currently exports to more than 69 countries worldwide.
Mr Verrall said the new contract was a significant milestone for both the business and the community in which it is based.
“We are one of the largest employers in the Colac Otway Shire and over the life of the contract we expect to contribute around $300 million of wages and purchasing to the local economy of Colac and surrounding districts,” Mr Verrall said.
“The ten year Coles contract is a very significant partnership – it will deliver a level of certainty and security for our business and provide a solid platform for Australian Lamb Company Group in new and existing markets.
“The Coles contract provides a strong degree of certainty for our workforce, reducing the seasonal nature of the business with guaranteed processing numbers for 12 months of the year.
“This is of particular benefit in winter when ALC’s own export numbers may be reduced and Coles processing numbers remain steady.
“We anticipate our workforce to increase by more than 60 people, which will bring our workforce to approximately 600 people which is a great boost to the local community.”
Mr Pearson said the long-term contract was testament to the confidence that Coles had in the Colac business.
“We are pleased that this ten-year partnership will enable ALC to further invest in its business and support the local economy at Colac,” he said.
“We also have a very strong ongoing relationship with JBS and they will continue to be a key meat supplier to Coles in the future.”