The Food Revolution Group Limited (ASX: FOD) is an Australia-based food processing company that uses a range of processing technologies, to extract juice from fruit and vegetables. Also, it manufactures a range of high-quality juices, infused fruits, fibres and fruit waters. Headquartered in Mill Park, Australia, the company uses a combination of conventional juice processing equipment and custom-developed equipment. It sells its products in domestic and overseas market.
The Food Revolution Group has announced that it has signed a sales MoU with international cross-border e-commerce platform, ICC Global Pty Ltd, wherein ICC Global has committed to order at least $8 million of FOD products by the end of 2020.
ICC Global Pty Ltd is an international cross-border e-commerce platform, that links Australian manufacturers with Daigou (personal exporters) and other international markets.
Under the MoU, ICC Global can order the products from the existing range of FOD, and any other future products added to its portfolio. ICC Global’s interest lies in FOD’s upcoming range of sachet and gel products, to be launched early in FY20, which will contain marine proteins and collagen.
FOD and ICC agree to develop a long-term strategic cooperative business relationship, as per the Memorandum of Understanding (MoU). Also, ICC will become an important distribution partner for FOD in the future.
ICC Global is particularly interested in FOD’s orange juice, and its first order will be a minimum of 10,000 units in one-litre and two-litre sizes. FOD will deliver the ICC’s first order to Shanghai, China in June 2019.
FOD’s Executive Chairman, Dr Norman Li considers this MoU as an important step, towards the expansion of its distribution channels in China and international market. He thinks this agreement will help FOD further grow awareness of its brands in China. According to him, the Diagou visit was very successful, and the distributors were astonished by their facility, brands and capabilities. Production of orange juice in real time and extraction of citrus oil from the peel (a waste product) left the Diagous impressed. He believes FOD’s upcoming range of sachet and gel products will be a substantial growth driver for the company subsequently.
Under its deal with strategic partner JJ Global Fine Foods, FOD is already shipping orange and apple juice to China, as it has China Inspection and Quarantine (CIQ) certification for its Fruit Farm juices.
FOD hosted 70 daigous at its Mill Park operations in Melbourne, where ICC Global received an overview of FOD’s business and sampled FOD products before signing the MoU.
The company earlier announced $1.89 million of bridge funding being provided by Chairman, Mr Norman Li. Also, company’s shareholders and directors participated in a block trade (off-market) of 35 million shares. The growing confidence in FOD enabled this ongoing shareholder and institutional support.
Post the announcement, the stock by the end of the trading session, was at a price of AUD 0.105 (as on 16th April 2019), 9.375% above from the previous day's market close. Today, 17 April, the stock is trading at AUD 0.105 (as at 12:25 PM AEST). The 52-week low and high value are noted at AUD 0.040 and AUD 0.212 respectively.
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