viewAngel Seafood Holdings Ltd

Angel Seafood unveils next growth phase as oyster demand surges

The company has chalked out a three-pillar strategy to support growth which includes acquisitions, innovative ways to increase production and augmenting retail presence.

Angel Seafood Holdings Ltd - Angel Seafood unveils next growth phase as oyster demand surges
Angel is the Southern Hemisphere’s largest organic oyster producer.

Angel Seafood Holdings Ltd (ASX:AS1) has started its next growth phase as oyster demand outstrips supply with production capacity and profitability to increase through a 3-pillar strategy.

The planned growth comes after the company achieved a production capacity of more than 10 million oysters per annum and a profitable operating base.

Angel’s growth plans include the acquisition of 6.25 hectares of premium Eyre Peninsula water leases, new-age biodynamic flip-farming trials to drive increased yields and enhanced brand positioning.

“Excited about next phase”

Angel’s CEO and founder Zac Halman said: “We are very excited about the next phase of growth for our company.

“Our committed team have worked hard to get to where we are today, and our board believes the time is now right to move to the next phase of Angel’s evolution.

“We are pleased to have entered into new lease agreements for additional high-quality water in the Eyre Peninsula, increasing the production capacity of our successful Multi-Bay Strategy.

“Demand for our premium organic oysters has continued to grow and we are excited to be able to expand our capacity in the region.

“With 2 hectares of the new leases in Coffin Bay having the infrastructure in place, this means that we can get straight to work and produce more Angel oysters from the start of 2021, while undeveloped leases are earmarked to be rolled out for our flip-farming trials.”

Increased capacity through acquisitions

With the company acquiring additional 6.25 hectares of premium Eyre Peninsula water leases, annual production capacity will increase to 12 million oysters from the current 10 million.

The 6.25 hectares of water leases will be held under leasing agreements with terms ranging from 6-15 years at an aggregate cost of $138,000 per annum, with options to buy at the end of the lease periods, or first right of refusal.

Productivity through innovation

In line with Angel’s objectives to increase productivity through innovation, the board has approved the trial of a new bio-dynamic oyster farming system, called ‘FlipFarm’, on 3 hectares of deepwater leases in Coffin Bay.

This will be the first time this modern farming method has been trialled on the Eyre Peninsula.

FlipFarm systems have been successfully applied in New Zealand and are known to increase productivity and require less labour, thereby significantly lowering operating costs.

Halman said: “We are extremely proud to be bringing FlipFarms into our operations.

“This modern bio-dynamic farming method has the potential to be a game-changer for Angel’s productivity and perfectly aligns with Angel’s values of organic and sustainable oyster farming.

“This method has been successful in international oyster farming, and we hope the broader industry can also benefit from our trials through more efficient farming methods and ultimate environmental care.”

Building the Angel brand

The company will also be focusing on its premium brand positioning to improve pricing.

Angel has achieved strong traction with major retailers and is also benefiting from some retailers undertaking specific marketing campaigns, including being featured in Costco’s Christmas catalogue and Drakes weekly catalogue.

Halman said, “Our retail strategy is going strong and we are proud to have been featured in Costco’s Christmas catalogue and Drakes’ weekly catalogues this year.

“This is testament to Angel’s growing recognition of its capability to guarantee supply of organic, sustainable and high-quality oysters from pristine waters in South Australia.”

Quick facts: Angel Seafood Holdings Ltd

Price: 0.15 AUD

Market: ASX
Market Cap: $24.24 m

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