Food and beverage production company, The Food Revolution Group Limited (ASX: FOD) on 2 May 2019, announced that it had received its first order from Metcash distribution with Juice Lab products available to Metcash Victorian supermarket banners, IGA and Foodworks.
Metcash (ASX: MTS) is a leading Australian wholesale distribution and marketing company which had more than $14 billion worth sales in FY2018. Metcash is spread across 1,700 supermarket retail stores in Australia, 2,700 retail liquor stores and approximately 700 hardware stores. Metcash provides support related to merchandise, operational and marketing to family-owned and operated enterprises.
The Juice Lab brand of The Food Revolution Group Limited was launched in 2015 in Australia. It has a range of cold filled fruit and vegetable juice combinations.
The juice products of FOD is currently available not only in super market chains but are also available at other convenient outlets. With the deal announced with Metcash, FOD further extends its reach.
The launch of Juice Lab in Metcash Victoria comes on the back of FOD joining hands with MoU with ICC Global Pty Ltd, an international cross-border e-commerce platform, in April 2019. The MoU calls for ICC Global will to order $8 million worth products of FOD by the end of 2020.
The Chief Executive Officer of FOD, John Florey stated that with the launch of Juice Lab in Metcash Victoria stores will not only help in expanding the domestic footprint of the company, but it will also help in growing a strong sales profile to leverage into China. He also highlighted that the company is making significant efforts in extending distribution in China and other international markets.
In February 2019, the company had shipped orders of CIQ-approved Fruit Farm Apple Juice and additional orders of Fruit Farm Orange Juice to China after receiving the purchase orders along with payment from JJ Global Fine Foods. In the same month, the first order of CIQ-approved Fruit Farm Apple Juice and additional orders of Fruit Farm Orange Juice was shipped to China.
In the 1H FY2019, the revenue from the ordinary activities declined by $2,058,789 to $15,053,023 due to decline in co-packing sales, services fees and logistics. The company made a loss of $3,437,701 during the period.
The combination of the developing sales traction along with the domestic and international market, the company feels that there is significant scope to expand the capacity at its state-of-art beverage plant. The solid funding position of the company would support its positive growth outlook in 2019. The company also expects the current Chinese juice sales to ramp up and in the near future, it might formalize the MoU with Sinopec.
In the past one year, the stock has delivered a decent return of 61.02%. At present, the shares of FOD are trading at A$0.102 (AEST: 3:54 pm, 2 May 2019), up by 7.368% as compared to its previous closing price. FOD holds a market capitalization of A$47.78 million and approximately 502.92 million outstanding shares.
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