- Holista CollTech (HCT) and its U.S. subsidiary have signed an agreement with Costanzo’s Bakery to produce low GI bread
- Under the three year agreement, Holista will supply the bakers with its own unique GI Lite Bread Premix
- 160 tonnes of the premix will be sold to Costanzo’s in the first year before 220 tonnes is handed over in years two and three of the contract
- Costanzo’s will make and sell bread, rolls and buns to its customer across the U.S., Canada and Mexico
- Shares in Holista Colltech are trading for 6.2 cents each, up 6.90 per cent
Wellness company Holista CollTech (HCT) and its U.S. subsidiary, Holista Foods Inc., have signed an agreement with a U.S. baker to produce low GI bread.
The company in question, Costanzo’s Bakery, is an 87-year-old business, which supplies bread products across the U.S., Canada and Mexico.
Agreement
The binding agreement between Holista and Costanza’s will last for three years and sees Holista hand over its GI Lite Bread Premix to the baker so that they can produce low GI bread, rolls and buns for their American customers.
Under the agreement, Costanza’s is set to purchase 165 tons worth of the premix, worth US$1.9 million (around A$2.7 million), in the first year of the contract.
From then on the baker has agreed to buy 220 tons of the premix, worth US$2.5 million (around A$3.5 million) for each of the next two years of the contract.
However, the size of the annual orders are subject to review and Holista has the right to increase the cost of the GI Lite Bread Premix to compensate for commodity price changes.
“This is a breakthrough agreement for the North American market and we expect
this to spur interest in other markets,” Holista CEO Dr Rajen Manicka said.
“We are excited to be bringing a healthier and better-tasting white bread product to the world, and we are currently pursuing opportunities in other countries,” he added.
Shares in HCT are currently trading up 6.90 per cent at 6.2 cents each at 11:45 am AEST.