Wide Open Agriculture (ASX: WOA) has begun the new yr on a excessive observe with information its regeneratively farmed and carbon impartial OatUP oat milk product will be sold in Hong Kong and Macau – increasing its worldwide presence.
The firm has a secured a three-year unique distribution settlement with Bright Food Global Distribution Company’s subsidiary Metro Alliance, which is able to promote all flavours of its oat milk merchandise all through the big Hong Kong and Macau markets.
Bright Food is main distributor throughout Asia Pacific areas together with Hong Kong, Macau, China, Australia and New Zealand. While Metro Alliance has greater than 1,600 areas in its community and in depth relationships with main retailers and meals service firms in Hong Kong.
Under the deal, Metro Alliance estimates if first yr retail gross sales of the oat milk will quantity to about $1.7 million, which is anticipated to generate $700,000 in income to Wide Open.
The first cargo to Metro Alliance is scheduled to arrive in March.
Wide Open chief government officer Jay Albany stated the corporate was “thrilled” to be working with Metro Alliance.
“We view Hong Kong and Macau as strategically important markets as we further the expansion of our brand into plant-based products in Asia.”
Growing nationwide and worldwide presence
Sold under its Dirty Clean Food model, Wide Open’s OatUP oat milk includes 4 flavours: unique, barista, chocolate and espresso.
This newest distribution settlement provides to current ones that cowl Singapore, and six international locations in the Middle East.
It additionally contains Wide Open’s Australia-wide growth plans together with a latest settlement with retail big Woolworths that can see the product stocked throughout its shops.
Wide Open expects to add new areas for its oat milk “in coming months” as building progresses on the Western Australian-based industrial scale plant-based milk facility.
“We see the time as now for oat milk,” Mr Albany stated.
“Over the last year, we have invested in expanding our portfolio of regenerative and plant-based products, while building the distribution required to accelerate growth.”
“It is clear that our value proposition is resonating globally as we plan for robust stales growth in oat milk during 2022,” he added.
Combined, Malaysia, Singapore, Thailand and Hong Kong had an addressable oat milk market price US$41.9 million in 2021.
This is anticipated to rise to US$94 million by 2031 at a compound annual development charge of 8.4%.
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