The Pure Foods Tasmania Ltd (ASX: PFT) share price is up 2.08% at the time of writing, trading at 98 cents.
While the Pure Foods share price has fallen over 11% during the past month, the company has rocketed up over 300% since its April 2020 initial public offering (IPO).
So what's sending the share price higher today?
Expansion of Woodbridge Smokehouse distribution
Earlier this morning, Pure Foods announced that food manufacturer Monde Nissin Australia (MNA) will be adding the Pure Foods brand Woodbridge Smokehouse (WBSH) to its national portfolio of products.
The strategic partnership will see WBSH products available to an additional 1,400 independent stores across Victoria, New South Wales, ACT and Western Australia. The four products that will be initially offered by MNA are cold smoked salmon and ocean trout in 100g and 200g packs.
Based on the distribution expansion, Pure Foods expects WBSH revenue to increase by at least 50% during the 2021 financial year compared to the 2020 financial year. Pure Foods further expects revenue to increase across the company as a whole by 15% during financial year 2021 compared to financial year 2020.
Speaking about the deal with MNA and looking ahead to future plans, Pure Foods Managing Director Michael Cooper commented:
With this extended distribution network PFT now services all major retail and majority of the IGA/ Independent channels in Australia. Along with our e-commerce platform, we are providing all Australian consumers access to our brands. We look forward to continuing to grow in FY21 as we develop and acquire 'Better for You' food & beverage brands.
A growth strategy to acquire new business and advance organically
In the company's latest investor presentation, Pure Foods cited the company's intention 'to acquire, grow and develop premium food businesses in Tasmania'. Achievements during the 2021 financial year included acquiring Daly Potato Co., launching the plant-based New Pastures product range as well as launching the company's premium Homestead Pate into 850 Woolworths Group Ltd (ASX: WOW) stores nationally.
Pure Foods has also shared an ambitious e-commerce strategy and expressed its interest to tap into the Singapore market.
At the time of writing, the Pure Foods share price is sitting at 98 cents per share, giving the company a market capitalisation of $50.96 million.
