Cann Global Ltd’s (ASX:CGB) T12 Food Division has become an official supplier to Costco and has secured its first purchase order of 6,900 bottles of VitaHemp certified organic hemp oil capsules from Costco Australia.
Costco Australia is part of the global Costco wholesale corporation, which nearly doubled its profits during the past financial year due to an additional warehouse generating more sales and better operational leverage.
The order with Costco is a significant initial order, with other T12 products expected soon to follow.
Investors have responded positively to the deal with shares up 13% today to an intra-day high of 3.5 cents, a new 12-month high.
“Major step towards building a strong relationship”
Cann Global’s food division corporate head Eli Levy said: “This is a major step towards building a strong relationship with the global wholesaler which currently has 11 locations in Australia and a 12th to open soon in Perth.
“Costco’s member first policy and high-quality ethos will be a perfect fit for T12’s business model which includes Australia and Asia.”
Natural plant-based alternative
Cann Global executive chairperson Pnina Feldman said: “We are very excited to receive this first order from Costco, one of Australia’s largest food retailers, and is proof of the hard work which has gone into producing our high-quality products.
“Our hemp seed oil capsules are a natural and plant-based alternative to fish oil capsules without the fishy after taste.
“We hope to see this and all our T12 products and brands on many Australian tables in the years to come and distributed across Asia.”
Costco is an American multinational corporation which operates a chain of membership-only warehouse clubs and in 2017 was ranked the second-largest retailer in the world after Walmart.