Rare Foods sets another record for revenue
Food & Agriculture
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Rare Foods Australia has achieved another Quarter of record sales and revenue from its globally unique abalone ranch while diversifying its offerings from the South-West of WA.
Riding a worldwide wave of demand for sustainably produced food and wine from clean and green regions, the emerging agribusiness has reported record sales revenues of $1.68m for the December Quarter.
That’s up 33% from Rare Foods Australia’s (ASX:RFA) previous Quarter’s record of $1.26m.
Proving the company is both business savvy and environmentally sensitive, the revenue was announced within a day of RFA being shortlisted for the Australian Financial Review’s Sustainability Leaders List.
Its revenue was underpinned by the highest sales so far for wild harvested greenlip abalone. Sales from this core operation totalled 25 tonnes at an average price of $56.70/kg, generating $1.42m. That’s up from 22.7 tonnes at $55.70/kg in the previous Quarter.
In another first for RFA it achieved revenue from wild origin abalone, which totalled $237k.
This new revenue stream came about from RFA fostering strong relationships with local wild roei abalone quota holders, whose harvest is processed and sold under the Rare Foods Wild Origin brand.
RFA is already the largest employer in Augusta, 316km south of Perth, and is now working with more than 50% of WA’s wild origin quota holders, who are demonstrating commitment to long-term partnering opportunities with the business.
In another demonstration of RFA’s growth and diversification, it has harvested its first 540 bottles of ocean cellared wine. Under agreements with Margaret River region wineries Glenarty Road and Edwards Winery more will be placed in RFA’s ocean lease to be matured by the currents, a process used by world-renowned producers including Veuve Cliquot.
And just before Christmas RFA opened the doors of its Ocean Pantry retail outlet and café near its operations at Augusta Marina. The Ocean Pantry sells abalone and other regional products, while showcasing RFA’s innovations through tours of the operations.
Underpinning RFA’s record revenues is a tiered marketing strategy based on selling to distributors who take large volumes to supply their networks of wholesalers, who in turn service restaurants and retailers
The company already has active master distributors in Hong Kong, Australia and the UK, with more master distributor relationships under development in the US, Singapore, Vietnam, Thailand and Japan.
“This second consecutive set of record results demonstrate the strength of our growth and diversification strategy, while reflecting the superior quality of our clean, green products,” CEO Rob Jorden said.
RFA’s globally unique abalone wild-enhanced greenlip abalone fishery last year earned it the coveted Marine Stewardship Council (MSC) certification. The internationally recognised symbol guarantees the seafood is sourced from sustainable, healthy, wild fish populations.
The highly sought-after greenlip abalone are grown on developed artificial reefs called ‘ABITATs’ (abalone habitats), not known to be used anywhere else in the world.
The ABITATs are placed into the pristine waters where the Southern and Indian oceans meet. Each year about 1.2 million juveniles are placed by divers into the ABITATs stretching across a 413ha lease.
RFA is continually investing in R&D to further improve juvenile survival and optimal harvest routines, while introducing wild stock as part of its commitment to not just preserve but naturally enhance the marine environment.
This article was developed in collaboration with Rare Foods Australia (ASX:RFA), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.