Kombucha maker Food Revolution gains 17pc after $5m juice launch
Health & Biotech
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Food Revolution has capped a busy September with a new product launch it hopes will add $5 million revenue.
The maker of kombucha juices (ASX:FOD) — which last year reported $33 million revenue and a $2.2 million profit — has won shelf space in Woolworths stores nationally for new juices under its ‘Thirsty Brothers” brand: pulp-free orange, apple, tropical and pear & mango.
Shareholders applauded, bumping the company’s shares up 17 per cent to 17c. That’s only just short of their 18.5c high watermark earlier this month. The stock cooled to 15c by midday.
The company says it’s also manufacturing a range of “cold-filled ambient” 350ml NFC juices alongside 400ml pressed juices.
This, it says, will increase revenue “in excess of $5 million per annum”.
FOD chief Bill Nikolovski said the company was planning to branch out beyond just juice.
“We started with juice production and we are now producing carbonated beverages, kombuchas, teas and coffees to reflect the changing tastes and preferences of consumers,” he said.
“We are continuing innovation into new categories including a range of plant-based milks.”
The company also took the chance to remind investors of the China opportunity, reiterating the $20.2 million deal it signed with Careline, a health and skincare maker and importer-exporter to get its juice and kombucha into China.
Food Revolution also recently signed a deal with essential oils maker Natural Fractions to turn orange peels into orange oil.
Earlier this month it lost its original cornerstone investor but gained two institutions.