Aldi Ireland has agreed two new deals with Irish-based suppliers - Broderick's Handmade Cakery and Cookie Dó - worth a total of €8.5m.
The new deal with Dublin-based Broderick's is worth €7.5m.
Under the terms of the deal, the company will continue to supply all of Aldi's 152 Irish and 970 UK stores with its sweet treat products, while the company will now also supply 300 Aldi stores in the US.
Broderick's Slices will now be available as a Specialbuy in 300 of Aldi's US Stores, while the company’s new Pouches product will also be available in the US as part of an initial trial.
Broderick’s products will go on sale in US stores from next month.
Founded in 1983 and based in Dublin 24, Broderick's currently employs 105 people in its family-run business.
Aldi has also extended its contract with Cookie Dó in a deal worth about €1m, which will see the company continue to supply the supermarket chain into 2023.
Based in Tallaght, Cookie Dó’s Classic Chocolate Chip and Triple Chocolate cookies, as well as a brand-new White Chocolate Chip flavour, will be available at Aldi's stores around the country.
Cookie Dó produces tubes of raw cookie dough which can be taken home and baked.
Cookie Dó have been supplying the discount retailer since first entering the Grow with Aldi programme last year - this initiative was designed to assist Irish suppliers develop their brand and grow their business.
Niall O'Connor, Aldi Ireland Group Managing Director, said that Broderick's has supplied the company's Irish stores for almost seven years now, while Cookie Dó has been a popular addition to its range since 2021.
"We are delighted to commit €8.5m to further extend these partnerships, which will also give Broderick's access to the US market for the first time through their listing in 300 Aldi US stores," he said.
At Aldi, we are committed to supporting our Irish producers, meaning our customers can enjoy the very best products Ireland has to offer, and our suppliers can reach new markets with their produce," he added.
Minister for Agriculture, Food and the Marine, Charlie McConalogue said the company's continued commitment to Irish suppliers is a welcome support to producers right around the country.
Bernard Broderick, the co-founder and owner of Broderick's said today's deal was a fantastic one.
"There's been so much uncertainty this past year with pricing of raw materials and now energy, this gives great security for the 100 people that work with us in Tallaght, and then for our own suppliers," Bernard Broderick said.
"Having a contract like this allows us to go to suppliers and secure product in bulk - like Belgian chocolate, we can buy it by the tanker, which creates efficiencies for the business."
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He described the extension of the supply deal to the US as a "great opportunity", and said the partnership with Aldi offered a much smoother path towards establishing the brand on the other side of the Atlantic.
The deal is a continuation of a seven year-long relationship between Broderick's and Aldi.
Mr Broderick said rising costs have been a major issue for the company in recent months, and its focus has been on reducing waste in order to limit the amount of that that is passed on to consumers.
"We've never seen anything like this - the chocolate increase alone will cost our business around €400,000 this year," he said. "Egg went up by 50%, and then another 50%.
"What we try and do is, especially when working with someone like Aldi, is drive any waste out of the process and keep the price as tight as possible."
But while Broderick's deals in what is ultimately a luxury product, he said he was confident that there would still be consumer demand even in the face of dwindling disposible income.
"Hopefully people see the value - they need to have a treat every once in a while to keep the spirits up," Mr Broderick said.
Brodericks has been in business since 1983. Last year it returned to family ownership after a falling out between management and investor Development Capital.
"It was a difficult few years, thankfully now we're back in the business and we've managed to drive costs out of the business and turn it around, and position it well for the future," he said. "With opportunities like this, it's exciting. We're in a good position."
