On 26th February 2019, The Food Revolution Group Limited (ASX: FOD) which is an Australian based food processing company involved in the manufacturing of high-quality juices, fibres, infused fruits and fruit waters, announced that is has shipped second order to China after JJ Global receives CIQ.
The company shipped orders of CIQ-approved Fruit Farm Apple Juice and additional orders of Fruit Farm Orange Juice to China following receipt of purchase orders and payment from strategic partner JJ Global Fine Foods. The second shipment to China comprised a container of FODâs 1L and 2L pulp-free Fruit Farm Orange Juice and 1L Apple Juice.
Final production samples were air freighted to JJ Global for final approval 7 business days ago, the product has now received CIQ and will be distributed for sale through high-end hotel chains across China including the Marriot Group (300 hotels), Accor (160+ hotels), Peninsula, Mandarin Oriental, Hyatt, Shangri La and all major supermarkets, China Resources Vanguard, RT-Mart, China Walmart, Lianhua and Carrefour.
FOD continues to grow its presence in China and is now receiving repeat orders. It is anticipated that as FODâs products are accepted and promoted across the Chinese market, sales have the potential to grow rapidly; other significant distribution deals are also being negotiated. As interest for products increase, the Company is focusing on accomplishing CIQ-approval for its expansive scope of items produced for China and anticipates further requests to emerge as extra recurrent requests come through, and other Distribution deals formalise.
On 13th February 2019, the company declared that it had transported its first requests of CIQ-endorsed Fruit Farm Orange Juice to China following receipt of procurement requests and payment from vital accomplice Careline and JJ Global Fine Foods. The primary shipment to China involved a 40-foot compartment of 2 Liter Fruit Farm Orange Juice.
FOD Chairman and significant investor Dr Norman Li is the founder of Careline, a noteworthy producer and exporter of skincare items, supplements and infant formulations into China. Dr Li is boosted to develop FOD's deals to A$100M temporarily and A$500M in five years. FOD's Fruit Farm Orange Juice will be dispersed broadly all through China by means of Carelines exclusive sales distribution system of 10,000 daigous. Dr Li intends to develop this to 30,000 daigous.
A final production test of 2 Litre Fruit Farm Apple Juice was also delivered to JJ Global for final approval. The product ,in the long run, will be available to be purchased through top of the line hotel networks across China including the Marriot Group (300 inns), Accor (160+ inns), Peninsula, Mandarin Oriental, Hyatt, Shangri La and every single significant market, China Resources Vanguard, RT-Mart, China Walmart, Lianhua and Carrefour. Because of these huge distribution deals, it is foreseen by the company that interest for FOD's items will grow quickly in China and lead to solid deals volumes once China Inspection and Quarantine (CIQ) accreditation is accomplished.
CIQ approval implies FOD's items can be made available to be purchased in physical stores in China. In fact, the company had already sent to finish CIQ approval, and FOD's compliance team is centred around accomplishing CIQ approvals for the of the Company's products.
After the announcement the stock price surged 4.35% to A$0.12 as on 26th February 2019 from the previous closing of A$0.115. The stock has given a YTD return of -23.33% but the six months performance is decent at 22.34% return.
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