Here's why the Food Revolution (ASX:FOD) share price jumped 8% today

The Food Revolution Group Ltd (ASX: FOD) share price is in a very healthy position today after deals with Coles, Woolworths, and Metcash.

| More on:
businessman handing $100 note to another in supermarket aisle representing woolworths share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »