JUICE MAKER EXPANDS AT HOME, LOOKS ABROAD

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    By AAP | 04.04.2016 04:33 PM

    Health drink maker The Food Revolution Group is predicting revenue to almost double thanks to a series of deals with major supermarkets and cafes.

    The food and beverage maker will increase its range of juices sold at Woolworths and Coles from this month and has also signed distribution deals to sell its products at more than 2,000 outlets such as independent supermarkets, convenience stores and cafes.

    The deals should generate more than $15 million in annual sales on top of the $17 million it recorded in FY15, and there could be even more to come as chief executive Bill Nikolovski looks to China for further growth.

    Australia makes up 95 per cent of the Melbourne-based company's revenue, with China and Thailand its other two markets.

    Companies including Blackmores, a2 Milk and Bellamy's are thriving thanks to Chinese demand for imported products seen as safe and healthy, and China is expected to eventually make up 50 per cent of Food Revolution's revenue.

    "We are looking at the premium end of the market in China and if we can tap into that market, it is easily bigger than the Australian market," Mr Nikolovski said.

    He said the company also plans to expand into South Korea, which also has a strong demand for healthy products that customers are willing to pay high prices for.

    "Globally, there is a trend for better-for-you products, which means more natural, more functional and less processed products," Mr Nikolovski said.

    "We are looking at leveraging our products and being disruptive."

    Food Revolution was formerly LangTech, a developer of nutrient extraction technology for more than 20 years. It only launched on the Australian share market in February following a reverse takeover of gold miner Crest Minerals.

    Mr Nikolovski said the company took over the Heinz bottling factory at Mill Park about two years ago and then merged with marketing and development company Thirsty Brothers to commercialise their products and technologies.

    "We have all these technologies and products and realised the opportunity to commercialise them," he said.

    He said the company's achievements included a sugarcane extract that has a low glycemic index, which it sold, and an extraction process that cranberry juice maker Ocean Spray uses.

    The company's core products are its Juice Lab and Mixologist juice brands, and fruit-infused water Badu. But it also sells fibre and plans to expand into baby food.

    Food Revolution issued 120 million shares at 10 cents a share with an implied market capitalisation of $29.4 million in February.

    Its shares rose as much as 14.8 per cent in early trade on Monday before closing up half a cent, or 1.85 per cent, at 27.5 cents.

    courtesy of The Bull.com.au

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    (DYOR)

    sorry , i haven't even started researching this one

    you are on your own here .

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    Woolworths to extend FODs Juice Lab Pressed Juice range in April and launch FODs

    new carbonated juice range Mixologist

    FOD to launch 21 products into Coles stores nationally in April under the Juice Lab

    Limited Edition, Juice Lab Smoothies, Juice Lab Vegessentials and Badu ranges

    In addition, distribution deals signed with BP, Conga Foods, Procal, Norco and PFD

    Fresh To Go

    New deals will distribute FOD products to more than 2,000 retail outlets including

    Melbourne Airport, and BP service station stores

    FOD expects sales from these new grocery distribution deals to be more than $15

    million, on an annualised basis.

    The Food Revolution Group Limited is pleased to announce it has signed a number of significant distribution deals with Australian retailers, including major supermarkets Woolworths and Coles, for an expanded product range that will launch this month.

    In addition to the agreements with Woolworths and Coles, FOD will increase its distribution into independent supermarkets, convenience stores and cafes from April via distribution agreements with BP, Conga Foods, PFD Fresh To Go, Procal and Norco.

    In total, FOD will launch 21 products in mid-April, in addition to its four existing Juice Lab Pressed Juice products, that will be distributed through the above channels. The successful Juice Lab brand will be extended from the current Juice Lab Pressed Juice range to Juice Lab Limited Edition (Limited edition, Grab and Go range), Juice Lab Smoothies (smoothies) and Juice Lab Vegessentials (vegetable juices) ranges.

    FOD will also launch new brands Badu (infused fruit waters) and Mixologist (lightly carbonated juice). FOD expects incremental sales from these new grocery distribution deals of more than $15 million, on an annualised basis.

    We are very excited about executing these grocery distribution deals with some of Australias biggest and best known retailers that will see our range of existing and newly launched products available across the country, FOD Chief Executive Officer Bill Nikolovski said.

    These deals will see FOD products distributed through grocery, convenience store and route trade channels across Australia and we expect that having our products available across such a large number of outlets will drive strong sales.

    FOD, which listed on the Australian Securities Exchange in February, is a food and beverage processing company with operations in Mill Park, Victoria and New Zealand. It manufactures superior quality juices, fibres, infused fruits, fruit waters and bioactives for sale as branded products and ingredients into the international food, beverage and nutraceutical markets.

    FOD is primarily involved in food and beverage processing in the Fast Moving Consumer Goods (FMCG) sector for customers in Australia and key international target markets, including China, as a provider of naturally functional products.

    "China is expected to eventually make up 50 per cent of Food Revolution's revenue.

    We are looking at the premium end of the market in China and if we can tap into that market, it is easily bigger than the Australian market," Mr Nikolovski said.

    He said the company also plans to expand into South Korea, which also has a strong demand for healthy products that customers are willing to pay high prices for".

    "Globally, there is a trend for better-for-you products, which means more natural, more functional and less processed products," Mr Nikolovski said.

    "We are looking at leveraging our products and being disruptive."

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    please dyor as really liking the potential growth market once entry/foothold into China (with deals etc.)

    Cheers tela

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    the A+ is for finding the first red flag for me

    a ( more than supplier ) relationship with WOW .

    sorry WOW and 'cooperation ' rarely helps the smaller business .

    i was a little concerned on the potential for expanding too quickly , already

    will research very deeply now

    cheers !!

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    Hey sal, .....I see, as was wondering about the A+ for posting the above!? lol (as simply copied and pasted excerpt from announcement etc.) ..... P.S. either way, dipped my toe in today @28c (smallish parcel) and will add to my position if it dips much lower as see this as a very promising growth story unfolding based on today's news imho

    Good luck with your deep research.. (and kindly share if you pick up on anything else - appreciate it)

    Cheers!

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    i ( a long time ago ) worked for WOW , hold a major part of my holding in WOW , and know some ex-WOW management .

    currently they are a desperate mess , and don't have a history of treating 'junior partners' nicely even in the good times .

    a desperate business with a tattered history of loyalty is a dangerous friend to have .

    HOWEVER would the ACCC let CCL make good friends with FOD ( take-over or JV ) , that would change the game ( possibly in the share-holders favour )

    hold WOW and CCL

    some of FOD's goal's are where CCL need to be ( but as a rival or ally )

    take care there will be plenty of noise around this soon .

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    have a dig around here , at the Lang Tech site ,

    link below .

    http://langtech.com.au/

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    The Food Revolution Group juice supply deal a little bottler

    April 4, 2016 10:00pm

    Claire Heaney, Herald Sun

    HEALTHY juice maker The Food Revolution Group has inked deals with major supermarkets for an expanded range of products, creating 20 more jobs at its Mill Park factory.

    The juices, using world leading, locally-developed extraction technology, will hit the shelves this month.

    The company will launch 21 products under the Juice Lab and Badu labels in Coles.

    Woolworths will continue to stock its Juice Lab chilled pressed fruit, vegetable and non-milk smoothies range, and also take up the new carbonated Mixologist product.

    An existing product, the high fibre dietary supplement drink Hi-Fi, is presently stocked at Coles.

    New distribution deals with independent outlets, cafes and convenience stores will see the Food Revolution range sold at more than 2000 retail outlets, including BP service stations and Melbourne Airport.

    Listed on the Australian Securities Exchange in February, the company expects the contracts will generate more than $15 million a year in Australia alone. It is also pushing into the lucrative Asian market, with distribution deals in China.

    Managing director Bill Nikolovski said the 21 new products added to the four existing Juice Lab and Hi-Fi offerings.

    These deals will see Food Revolution products distributed through grocery, convenience store and route trade channels across Australia, and we expect having our products available across such a large number of outlets will drive strong sales, he said.

    Mr Nikolovski said the juices provided a cheaper alternative to high-priced juice bars.

    Food Revolution has operations in New Zealand and processes at the former Golden Circle plant in Mill Park.

    Formerly known as LangTech International, it was listed through a reverse takeover of mining shell Crest Minerals last year and renamed.

    Its extraction technology, developed by LangTech founder Tim Lang in partnership with the CSIRO, has been used internationally. Mr Nikolovski said the group would expand its workforce to about 80 and weekly shifts from nine to 15.

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    today's vwap was 27.86c despite the 'manipulative sell down to close @27c' during the after-market 4:10pm auction.

    please dyor

    Cheers tela

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    just keep your guard up , ( and your cash risk low )

    if the excitement continues you can have both shares and cash

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    Good advice sal, as have personally taken a liking to similar 'Asian/China exposure potential growth stocks' like A2M, BAL, BFC, AVG, EMC and now FOD but early day's of course ..... take care folks

    Cheers!

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    FOD--- keep an eye on this one IMO...!
    signed a deal with ALDI to supply 2lt orange juices..??

    up 11% today, maybe market is slow to react../
    very tightly held.

    1 like
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