The Food Revolution Group Ltd (ASX: FOD) share price had a very healthy day today. The share price was sent shooting for the sky after the company provided an update on sales of its product at Coles Group Ltd (ASX: COL), and new deals with Woolworths Group Ltd (ASX: WOW) and Metcash Limited (ASX: MTS).
The Food Revolution share price was as high as 4.4 cents today – up 18.5%. At close of trade, shares in the food producer had retreated and are trading for 4 cents each – up 8.11%.
Let's take a closer look at Food Revolution's announcement with Coles and Woolworths.
Image source: Getty Images
What did Food Revolution announce today?
In a statement to the ASX, Food Revolution Group announced Metcash will sell its 'Juice Lab Super Shots' from April. As well, Woolworths Supermarket and Metro stores will stock the item from May. On 9 March, the company began selling its products at Coles stores.
In its announcement, Food Revolution said sales for the 60mL drink were already exceeding expectations. Coles ranges the 'Super Shots' in over 1000 stores already. The group sells the drink in 3 varieties – 'Focus', 'Immunity', and 'Digest'.
Coles sells the product for a base price of $3.50, although this week it is on special for $2.00.
Words from the CEO
Speaking on today's announcement, Food Revolution CEO Tony Rowlinson said
We are delighted as to the positive response to Juice Lab Wellness shots by our retail partners. Having FOD's largest customer Woolworths onboard is a fantastic outcome.
The initial consumer offtake in Coles has been excellent and the team have done a good job meeting the increased demand. With consumers globally seeking products that deliver against immunity and provide functional benefits due to COVID- 19, we are well positioned with our extended range of wellness beverages and carbonated beverages to be rolled out into the market.
Getting the Juice Lab shots ranged provides us with the catalyst to introduce extended Juice Lab offerings.
The company estimates the Australian health and wellness market to be valued at $650 million.
Food Revolution share price snapshot
Despite today's impressive gains, Food Revolution has been on a downward trend over the past year. 12 months ago, shares in the company were swapping hands at 7.2 cents each – a 41.7% drop in share price at today's rate.
In fact, at the end of 2018, the Food Revolution share price was as high as 20 cents.
Food Revolution's market capitalisation is $33.2 million.
