Parmalat, one of Europe's leading dairy companies, said on Wednesday that it has entered an agreement with U.S. retailer Kmart to sell Parmalat milk and ice cream, Reuters reports. Parmalat (PRFI) plans to sell its complete line of fresh dairy products in 270 Kmart Corp. (KM) stores in New Jersey, New York, Georgia, South Carolina, North Carolina and Connecticut by the end of March. The deal is expected to increase Parmalat sales by at least 10 per cent in those states, a spokeswoman said, though she would not provide a dollar figure. The company has about US$ 700 million in sales in the United States. The company intends to expand into other Kmart stores over time. The spokeswoman would not say if Parmalat was in discussions to sell at other retailers, but said the agreement with Kmart was not exclusive. The company already sells its products in grocery and convenience stores in New York, New Jersey and Georgia.