- Juice company Food Revolution Group signed agreement with Sinopec to distribute in China.
- Sinopec has more than 35,000 petrol and convenience stores in China and a large online presence.
- Food Revolution expects canola oil distribution to start early 2019 and expects the relationship to grow into the distribution of other foods and beverage products.
Shares in the Food Revolution Group jumped after the juice maker announced a distribution deal in China.
A short time ago, the shares were up 20% to $0.145.
Food Revolution says it has signed a Memorandum of Understanding (MOU) with Sinopec (China Petroleum & Chemical Corporation), the world’s largest oil refining, gas and petrochemical conglomerate.
Under the MOU, the two companies will negotiate a distribution agreement for Sinopec to sell Food Revolution’s Australian canola oil products, under the Garden brand, at more than 35,000 petrol and convenience outlets in China.
“This is a great relationship for FOD (Food Revolution) to build on, not only for distribution of canola oil but also for our functional food and beverage range over the longer term,” says Chairman Norman Li.
“A landmark deal such as this will put FOD on the map in China and position the Company to generate further distribution deals with large Chinese companies.”
Food Revolution will be required to complete China Import and Quarantine certification for the canola oil products, a process it achieved for its Fruit Farm juice range in 10 days.