The Food Revolution Group, which uses CSIRO technology to create healthy fruit and vegetable juices, has done a deal with four retailers and distributors in China.
Its shares jumped more than 13% on the news. A short time ago, they were trading at $0.26.
The new channels in China have direct distribution to market either through ownership of the physical stores or through established relationships with shops, together with online channels.
Food Revolution says orders from two of the retailers/distributors will see juices distributed in more than 1000 stores across four Chinese provinces. Orders from the other two are expected in the next few months.
Clean and safe food is in high demand in China. Australian companies are seeing strong demand for infant formula and for vitamins.
CEO Bill Nikolovski says the company is negotiating agreements with a further four distributors in different provinces in China.
“Sales to China will be a key platform for our growth with 50% of the company’s revenues expected from this region over the next three years,” says Nikolovski.
“While the opportunities in China are incredibly exciting, we will enter these markets with the right amount of diligence.”
Food Revolution, which listed on the ASX last month, is a food and beverage processing company with operations in Mill Park, Victoria and New Zealand.
The company uses a range of processing technologies, including an extraction method developed with Australia’s peak science body, the CSIRO.