Waitrose has joined forces in a new agreement with Duchy Originals which will give the supermarket the exclusive right to originate, manufacture, distribute and sell Duchy products.
Waitrose aims to more than double the current range of 200 products to around 500, and will pay a royalty to Duchy Originals on all wholesale and retail sales.
Products, including a range of biscuits and snacks, desserts and breads, will continue to be sold in all 214 Waitrose stores and new lines are planned from Spring 2010. Waitrose will also sell the products wholesale.
To date, Duchy’s has donated almost £7million to charitable causes throughout the UK and overseas, and it is hoped that sales growth of the brand will generate a substantial increase in the royalties to charity.
The deal has been spoken of by Waitrose MD Mark Price, as “a match made in heaven”.
Andrew Baker, Chief Executive of Duchy Originals explained: “Because of our constitution, and the fact that we are owned by a charity, Duchy Originals has never been able to build up reserves for investing in future growth. This is a deal where everyone wins – it is good for Duchy Originals, good for Waitrose, good for our consumers and good for charity.”
In July this year, due to its failure to turn a profit, Duchy Originals’ Cornish bakery was taken over by Tamar Foods, part of the Samworth Brothers Group, which now produces the brand’s sweet tarts under licence.