The Australian Primary Hemp Ltd (ASX: APH) share price is surging today following the singing of a retail distribution agreement. During late-morning trade, the premium plant-based and wellness company's shares are swapping hands for 47 cents apiece, up 6.9%.
Established in 2016, Australian Primary Hemp is a vertically integrated company that produces, manufactures, and distributes plant-based products. This includes seeds, oils, nut bars, flour, and more.
What's driving the Australian Primary Hemp share price higher?
The Australian Primary Hemp share price is on the move today as investors digest the company's latest positive announcement.
According to its release, Australian Primary Hemp signed a retail distribution agreement with supermarket giant, Coles Group Ltd (ASX: COL).
In particular, under the contract, Australian Primary Hemp will supply its Mt. Elephant 'mylk' hemp and oat milk range to Coles. This will be available from next month in more than 140 Coles stores situated along the east coast of Australia.
Specifically, Australian Primary Hemp will distribute two products from its Mt. Elephant 'mylk' hemp and oat milk category. They are the barista/original oat and hemp mylk and a chocolate oat and hemp mylk.
The company highlighted that demand for its products is growing as consumers look for plant-based alternatives. Thus, popular trends in the past few years have strayed away from dairy, soy, and almond milk.
Commentary from management
Australian Primary Hemp managing director and CEO Neale Joseph welcomed the deal, saying:
This distribution agreement with Coles further reinforces our observations on the growing demand for high-quality, plant-based superfoods and is a significant step on our path towards further commercialisation of Mt. Elephant branded product lines.
This is just the beginning for our mylk products, and we are excited to see Coles stock the line later this year.
Our Mt. Elephant product range is building commercial momentum. This agreement with one of Australia's largest grocery stores is a significant milestone as APH continues to progress commercialisation and distribution of Mt. Elephant products.
The Australian Primary Hemp share price has gained more than 240% over the past 12 months.
