The Australian Primary Hemp Ltd (ASX: APH) share price is racing up this morning following another retail distribution agreement.
Shares in the premium plant-based and wellness company are up 10.34% at 48 cents at the time of writing.
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New retail distribution agreement
In this morning's release, Australian Primary Hemp advised it has secured its second retail distribution agreement with Woolworths Group Ltd (ASX: WOW).
Under the deal, Australian Primary Help will supply its Mt. Elephant 'mylk' branded hemp and oat-milk products across 165 Woolworths stores. This includes its barista/original oat and hemp mylk, and chocolate oat and hemp mylk.
Both products will be available to consumers to purchase from April onwards.
It's estimated that the new deal will generate around $250,000 per year for Australia Primary Hemp.
The company signed its first retail distribution agreement with Woolworths last month for Mt. Elephant baking products. That contract, which starts next month, is worth roughly $2.1 million.
A report published from Global Market Insights in October 2020 estimates that the global plant-based milk market will grow. Consumer taste is ever-changing with increasing demand for more healthier options other than soy or almond milk. Forecasts value the plant-based milk sector at $28 billion before 2026.
What did management say?
Australian Primary Hemp managing director and CEO Neale Joseph welcomed the new deal, saying:
This second agreement with Woolworths will expand the range of Mt. Elephant products being ranged in Woolworths stores and increase consumers' choices for high-quality plant-based superfoods.
This is just the beginning for our mylk products, and positions APH strongly to open further doors to develop even more products as demand for plant-based milk grow.
We are immensely pleased with Woolworths' choice to introduce even more Mt. Elephant products to consumers.
Our Mt. Elephant product range continues to gather commercial momentum, and APH continues to make significant progress in meeting the company's commercialisation and distribution goals with this brand.
About the Australian Primary Hemp share price
The Australian Primary Hemp share price has soared more than 200% in the last 12 months. The company's shares hit a low of 4.9 cents last March, but have since gathered steam. Its shares reached an all-time high of 62 cents just a few weeks ago in January.
Based on the current share price, Australian Primary Hemp commands a market capitalisation of $43 million.
