The Food Revolution Group Ltd (ASX: FOD) share price surged as much as 26% earlier today to a high of 4.8 cents. This uplift came after the company announced it would begin selling product in Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS) stores.
At time of writing, the Food Revolution share price has retreated to sit at 4.2 cents – up 10.5% on yesterday's close. In comparison, the S&P/ASX All Ordinaries Index is up 0.73%.
Let's take a closer look at what Food Revolution announced and how it is affecting its share price.
What did Food Revolution announce today?
In a statement to the ASX, Food Revolution Group announced the launch of its 'Juice Lab Super Shots' in supermarkets around the country. While 9 variants of the product exist, only 3 are being launched at this time — the "Focus", "Immunity", and "Digest" varieties.
The products are already on sale at Coles and soon to be on sale at IGA and other Metcash stores. Coles is selling one 60ml drink for $3.50.
Initially, the product is being sold in 160 stores, but the company expects this to expand to over 1800 stores. Additionally, Woolworths Group Ltd (ASX: WOW) has been approached by Food Revolution
Food Revolution Group CEO, Tony Rowlinson, commented:
Being first to market with a 'all-natural plant based' product in the Wellness beverage category is a massive achievement. The US who lead the world regarding 'better for you' beverages has seen a dramatic growth of 'all natural, pick- me up shots & tonics' impacted by COVID -19. Preventative Foods & Beverages is the fastest growing sector within the $4.8Bn US market.
Later in the day, the company issued a clarifying note on its announcement. In it, Food Revolution states sales are exceeding expectations.
The expected run rate when Coles launched the range was that the range would sell 2 units per store per week. Following 3 weeks of the shots being available in over 160 Coles stores, the range of 3 variants are selling 6 to 7 units per store per week. This is 200% higher than expectations.
The company estimates the "[Australian] health and wellness market" to be valued at $650 million.
Food Revolution share price snapshot
Despite today's impressive gains, Food Revolution has been on a downward trend over the past year. 12 months ago, shares in the supplier were swapping hands at 8 cents each – a 43.8% drop in share price at today's rate.
In fact, at the end of 2018, the Food Revolution share price was as high as 20 cents.
Food Revolution's market capitalisation is $35.3 million.
