This announcement relates to a department/facility of TGR's that would otherwise have closed as a result of them not wanting to supply Coles due to the opportunity cost.
They've simply moved the supply of Woolies salmon to this facility so that:
1) there is minimal impact to the employees within this facility (i.e. they're not retrenched)
2) they don't have to close the facility
Don't think for a second that TGR is being squeezed by Woolies to do this - to be honest, I don't even know how it can be understood as such
This part of the announcement really says it all:
“The end of this contract recently meant the Margate operation was at a risk of closure,” he said.
The Tassal plant at Margate is a significant employer within the area and employs 120 people. Mr Ryan said as one of the largest employers in the area, Tassal’s Margate facility plays an important role in the community.
“It was a great outcome to work in partnership with Woolworths to ensure sustainable solutions are developed and that Tassal's Tasmanian heritage is honoured. We 're part of the community - it is part of our social licence"
TGR Price at posting:
$4.18 Sentiment: Buy Disclosure: Held
