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Wide Open Agriculture (ASX:WOA) secures first distribution partner

Consumer
ASX:WOA      MCAP $15.93M
05 October 2021 14:50 (AEST)
Wide Open Agriculture (ASX:WOA) - CEO, Jay Albany

Source: Wide Open Agriculture

Wide Open Agriculture (WOA) shares are up on the back of news it has secured its first distribution partner.

WOA entered into an agreement with GrowHub International to distribute Dirty Clean Food’s OatUP throughout Singapore. The two-year agreement represents the first step in the brand growing its market share in South-East Asia.

Singapore is the first international market to be signed up, however WOA said distribution agreements in additional countries were likely to eventuate in the near future.

“Australian products have a strong reputation throughout the region and OatUP’s carbon neutral credentials will provide consumers with a product that allows them to step up for their planet,” Dirty Clean Food CEO Jay Albany said.

Under the agreement, GrowHub will purchase around $500,000 worth of OatUp as a minimum order quantity within the first year. Additional supplies of OatUP will be purchased if demand exceeds these initial quantities.

GrowHub said it would use this initial order to maintain foundational stock levels to enable order fulfilment through its network of big box retailers, food service companies and specialty stores.

GrowHub will also begin training sales staff and undertake a marketing campaign to promote OatUP across the Singapore territory.

The agreement follows a sampling program, which it said indicated potential demand for the product, along with positive feedback about the product’s taste.  

The company said this initial product rollout was expected to be followed by an expanded oat milk range, along with other Dirty Clean Food product lines.

Wide Open Agriculture shares closed up 4.29 per cent at 73 cents each.

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