Wide Open Agriculture (ASX: WOA) has begun the new year on a high note with news its regeneratively farmed and carbon neutral OatUP oat milk product will be sold in Hong Kong and Macau – expanding its international presence.
The company has a secured a three-year exclusive distribution agreement with Bright Food Global Distribution Company’s subsidiary Metro Alliance, which will sell all flavours of its oat milk products throughout the large Hong Kong and Macau markets.
Bright Food is leading distributor across Asia Pacific regions including Hong Kong, Macau, China, Australia and New Zealand. While Metro Alliance has more than 1,600 locations in its network and extensive relationships with leading retailers and food service companies in Hong Kong.
Under the deal, Metro Alliance estimates if first year retail sales of the oat milk will amount to about $1.7 million, which is expected to generate $700,000 in revenue to Wide Open.
The first shipment to Metro Alliance is scheduled to arrive in March.
Wide Open chief executive officer Jay Albany said the company was “thrilled” to be working with Metro Alliance.
“We view Hong Kong and Macau as strategically important markets as we further the expansion of our brand into plant-based products in Asia.”
Growing national and international presence
Sold under its Dirty Clean Food brand, Wide Open’s OatUP oat milk comprises four flavours: original, barista, chocolate and coffee.
This latest distribution agreement adds to existing ones that cover Singapore, and six countries in the Middle East.
It also includes Wide Open’s Australia-wide expansion plans including a recent agreement with retail giant Woolworths that will see the product stocked across its stores.
Wide Open expects to add new regions for its oat milk “in coming months” as construction progresses on the Western Australian-based commercial scale plant-based milk facility.
“We see the time as now for oat milk,” Mr Albany said.
“Over the last year, we have invested in expanding our portfolio of regenerative and plant-based products, while building the distribution required to accelerate growth.”
“It is clear that our value proposition is resonating globally as we plan for robust stales growth in oat milk during 2022,” he added.
Combined, Malaysia, Singapore, Thailand and Hong Kong had an addressable oat milk market worth US$41.9 million in 2021.
This is expected to rise to US$94 million by 2031 at a compound annual growth rate of 8.4%