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Jatenergy teams up with Oppenheimer to sell plant-based meat in China

Agriculture
ASX:JAT      MCAP $27.47M
22 November 2019 15:15 (AEST)

Jatenergy (JAT) has teamed up with Oppenheimer to develop a range of plant-based meats to be sold into China and other Asian markets.

Oppenheimer is a manufacturer and leading provider of global foodservice brands in Australia, New Zealand, India, China, Southeast Asia and Singapore.

JAT and Oppenheimer have now established a company, JAT Oppenheimer, to carry out the new business. The two companies will own 50/50 of the new company.

Oppenheimer will provide a licence to JAT Oppenheimer, to use Oppenheimer’s intellectual property for the development and sale of plant-based meat products worldwide.

JAT will provide its expertise, know-how and networks to promote and sell products worldwide through various distributors and e-commerce platforms.

JAT CEO, Wilton Yao will be the Chairman of the new company, while Jignesh Shah from Oppenheimer, will be the Managing Director and will be responsible for the day-to-day operations.

Oppenheimer says it will fund the costs of innovation, science and human resources for product development for the first 12 months. While JAT will promote and arrange distribution in China and other Asian countries.

Last week, JAT introduced the plant-based meat project at the second China International Import Expo (CIIE) in Shanghai. The company said it received high exposure to a number of Chinese media outlets.

“The interest generated for our range of plant-based meats presented to potential buyers at the CIIE was very significant and JAT believes there is a very strong market for the products in China,” Wilton said.

The first three products that will be produced are beef meatballs, pork meatballs and burger patties. The beef meatballs have already successfully been introduced to a large restaurant chain in China.

“Potential distributors believed that the timing and opportunity for the sale of our plant-based meat are enhanced as a result of the shortage of pork meat in China as a result of the African swine flu,” Wilton added.

The three products are expected to be on the market in January or February 2020.

Jatenergy is down 1.89 per cent on the market and is trading 5.2¢ apiece at 2:43 pm AEDT.

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