Town of Monaghan co-op has won a contract to supply own-label milk to the Aldi retail chain in Ireland. It will be the third milk supplier to the retailer, with Arrabawn and Strathroy already supplying the German company. Aldi has grown its market share to 8% of the Irish grocery market.

The new contract will begin on 26 June. Town of Monaghan Co-op will supply nine nearby Aldi stores with two and three-litre containers of 100% Republic of Ireland-farmed milk that carries the National Dairy Council logo (NDC). The milk will be sold under Aldi’s Clonbawn brand.

Since 1 April, Town of Monaghan has been paying the NDC levy on the milk that it buys from farms in the Republic of Ireland, around 75m litres per year. This put the co-op in a position to take on this contract as the NDC logo was one of the conditions. Town of Monaghan had already built a strong relationship with Aldi, supplying its award-winning Irish yogurt range.

A few years ago, Town of Monaghan ceased paying the levy to the NDC due to disagreement over the policy behind the logo.

This deal emphasizes Aldi’s marketing drive in the local area, including its new Carrickmacross store. In the past, these stores had been supplied by Strathroy.

The German discounter entered the Irish market in 1999. Ten years later it had secured 2.3% of the market. As it grew, it required an ever-increasing supply of liquid milk. Aldi’s loyalty to Strathroy dates back to their entry in 1999, when Strathroy gave them supply when no one else would. Strathroy’s volume of milk sold through Aldi expanded for some years, as it grew to 108 stores. Milk is now believed to be sourced only from Republic of Ireland farms, but it is noteworthy that this local deal is replacing some of that volume.

As Aldi continues to grow, there should be more opportunities for Irish companies like Town of Monaghan Co-op Ltd to work with the discounter and sell local milk in the surrounding areas.

Aldi’s buying director Colin Breslin said: “Our commitment to our customers is that 100% of our Clonbawn fresh milk range sold at our Irish stores is sourced from farms in the Republic of Ireland. The milk will be 100% sourced from Republic of Ireland farms, packaged in Monaghan and carry the National Dairy Council (NDC) logo.