The agreement comes after one of its largest customers,Drakes Foodland,ended its relationship with Metcash in May and said it would start sourcing its own groceries directly and open its own distribution centre.
Losing the Drakes account started a sell-off that has seen Metcash shares lose about a fifth of their value,and contributed to Metcash slashing the value of its supermarket business by about a third in a $352 million write-down.
It also raised fears among investors that other Metcash customers could jump ship to Drakes'rival supply chain.
But Metcash said that with the agreement revealed Monday - which depends on it signing a lease for a new distribution centre before December 21 - most of its sales in the state were now locked down.
"Long-term supply agreements have now also been signed with Foodland multiple store owners such as the Romeo’s and the Chapley’s,as well as the remaining members of the Foodland Supermarket Board who are owners of Foodland supermarkets in South Australia,"the company said in a statement to the ASX.
"Together with other existing fixed term supply agreements with Foodland and IGA supermarket retailers in South Australia,Metcash now has long-term supply agreements in place with retailers representing the majority of its Supermarket sales in that state."
Metcash said it was now trying to sign-up a number of smaller,mostly single-store customers to new 10-year supply agreements.