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Halo Food Co (ASX:HLF) subsidiary signs $54m dairy deal

ASX News, Consumer
ASX:HLF      MCAP $2.805M
10 November 2021 09:20 (AEST)
Halo Food Co (ASX:HLF) - CEO, Danny Rotman

Source: Keytone Dairy

Halo Food Co’s (HLF) subsidiary has signed a deal to develop and manufacture powdered dairy products in China.

Keytone Enterprises signed a memorandum of strategic cooperation with Theland New Cloud Digimart in China, a company majority owned by the Alibaba Group.

The US$40 million (around A$54.2 million) strategic partnership will see Theland’s powdered dairy products developed and manufactured in China.

“We will support Theland’s growth ambitions with new product development and the ability to continue to scale across their formulated milk powders as they continue to expand their footprint in China,” said Halo Food Co CEO Danny Rotman.

The partnership will include whole milk powder, skim milk powder and other formulated nutritional powders across a range of pack formats including bags, cans and PET jars.

The products will be manufactured at Halo’s New Zealand facilities.

“Keytone’s advanced facilities aligns with Theland’s objective to provide high quality products and flexible services from green, clean, pristine New Zealand to Chinese consumers,” said Sheng Wenhao, CEO of Theland Asia Pacific Region.

The strategic partnership begins this month with a two-year term, with initial orders worth US$1.5 million (around A$2 million) due to be manufactured by the end of November.

Halo Food Co last traded at 12.5 cents on November 9.
  

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