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The Food Revolution Group to acquire the Original Juice Co Black Label brand for $1.25 million

The company will leverage Original Juice Co to innovate and develop new products as well as expand into Asian markets.

Food Revolution Group Ltd - The Food Revolution Group to acquire the Original Juice Co Black Label brand for $1.25 million
The company expects the acquisition to increase FY20 financials

The Food Revolution Group Ltd (ASX:FOD) is set to acquire the Original Juice Co Black Label (OBL) brand and brand assets from Golden Circle for $1.25 million.

Golden Circle has produced high-quality fruit juices in Australia under the OBL brand for nearly two decades.

The brand was originally founded in Melbourne in 1988 and is forecast to deliver a substantial portion of the company’s sales in FY2020.

New chapter in company’s history

Food Revolution’s chief executive officer John Florey said: “Our acquisition of Original Juice Co Black Label will see a new chapter commence in our company’s history.

“We can use our leading technology and experienced gleaned from creating our own juice ranges to innovate the Original Juice Co product range and we are well funded to pursue this having secured a $2.5 million strategic investment from Careline Australia.

“Since announcing this investment last year, we have been able to grow our capabilities and distribution into China as well as finalise upgrades to our Mill Park facility.

“We have also built a new and stronger management team over the past year and we are set to move into new platforms.”

Gross sales revenue of $32 million

Food Revolution Group achieved gross sales revenue of $32 million for FY19 and expects this to increase by about 25% in FY2020 with revenue guidance of $40 million.

The company plans to release new products during the second half of FY20 and is working to complete a state-of-the-art dry room facility to produce high-end, high-margin functional gels and powder sachets.

These planned new products have generated a lot of interest particularly in the China market with more than 100 potential customers visiting FOD’s Mill Park facility for discussions.

Quick facts: Food Revolution Group Ltd

Price: 0.088 AUD

ASX:FOD
Market: ASX
Market Cap: $63.77 m
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