Metcash Limited has extended the term of its agreement to supply all Drakes Supermarkets in Queensland by a further five years. The agreement now extends to June 2034.
There are currently 22 Drakes branded supermarkets in Queensland supplied by Metcash. Sales by Metcash’s Food pillar to Drakes Supermarkets in Queensland were $222.5m in FY242.
Metcash Food CEO Grant Ramage says: “We are delighted to continue our long-term relationship with Drakes supermarkets in Queensland.”
Drakes Supermarkets CEO Roger Drake says: “Metcash has been a reliable and trusted supply partner for our stores in Queensland and we are pleased to again extend our agreement with them.”
Metcash also announced that it has completed the sale of its 26% joint venture ownership interest in Dramet Holdings Pty Ltd to Drakes Supermarkets Pty Ltd for net sale proceeds and loan repayment totalling ~$18 million. Metcash previously held a 26% ownership interest in Dramet Holdings, and Drakes Supermarkets held the remaining 74% ownership interest.
Dramet Holdings operates and owns 21 of the Drakes branded supermarkets in Queensland supplied by Metcash, as well as eight stores in South Australia that are supplied by Drakes Supermarkets.