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Forbidden Foods (ASX:FFF) signs distribution agreement with Winhealth

Consumer
ASX:FFF      MCAP $3.408M
02 July 2021 10:30 (AEST)
Forbidden Foods (ASX:FFF)- Founders, Marcus Brown and Jarrod Milani

Source: Ideas Hoist

Forbidden Foods (FFF) has entered into an exclusive distribution agreement with Winhealth Pharma.

The agreement will see Forbidden’s FUNCH brand sold on China’s second-largest cross-border eCommerce platform, Kaola, and China’s largest online retailer, JD.com.

FUNCH is an infant & toddler health and nutrition brand, it includes snack mixes for kids and baby puree.

Winhealth is a commercialisation platform aiming to satisfy unmet nutritional needs in China. The business has already placed its first purchase order for over $90,000, which will be shipped to China.

The targeted sales over the term of this two-year agreement is just over $1 million for the first year and the second year is expected to bring in $2.1 million.

Forbidden Foods Co-founder and Chief Operating Officer Jarrod Milani was excited about the partnership.

“Winhealth have strong capabilities and a great track record working with a reputable list of health & pharmaceutical multinationals in Asian markets. They have mapped out a clear path for reaching the sales target in this exclusive distribution agreement which gives us confidence in their ability to exclusively represent FUNCH on these platforms,” he said.

“Growth in China forms a key part of Forbidden Food’s overall strategy, and whilst there are some current macro challenges, the current and longer-term commercial opportunities for our business remain compelling.”

Following this agreement, the FUNCH range of baby foods will now be available on T-mall Global, Kaola, JD Global and Little Red Book. Notably, these four eCommerce platforms capture 62.2 per cent of the cross-border eCommerce sales in China.

Just before the market opens Forbidden is trading at 23.5 cents per share.

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