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Australian Primary Hemp (ASX:APH) secures second distribution agreement with Woolworths

Consumer Discretionary
ASX:APH
08 February 2021 16:10 (AEDT)

Australian Primary Hemp (APH) has secured a second retail distribution agreement with Woolworths (WOW).

Under this agreement, APH will distribute its Mt Elephant ‘mylk’ branded hemp and oat milks to more than 165 Woolworths stores across Australia.

Products are expected to begin rolling out in April and APH expects the agreement to generate roughly $250,000 in sales per year.

The products to be sold include a barista oat and hemp mylk, as well as a chocolate and hemp mylk.

Essentially, mylk is non-dairy milk that is made from a water-based plant extract, making it 100 per cent vegan.

It contains highly digestible plant-based protein and essential amino acids, and is low in saturated fats, high in polyunsaturated fats, free from cholesterol, and is packed with vitamins and minerals.

According to Global Market Insights, the global plant-based milk market is expected to be worth $28 billion by 2026.

“This second agreement with Woolworths will expand the range of Mt Elephant products being ranged in Woolworths stores and increase consumers’ choices for high-quality, plant-based superfoods,” CEO and Managing Director Neale Joseph said.

“This is just the beginning for our mylk products and positions APH strongly to open further doors to develop even more products as demand for plant-based milks grow,” he added.

APH has ended the day 13.8 per cent in the green with shares trading at 49.5 cents in a $40.22 million market cap.

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