The Pure Foods Tasmania Ltd (ASX: PFT) share price went nuts earlier today after the company released a sterling customer update.
After reaching an intraday high of 72 cents in mid-afternoon trade, the Pure Foods share price lost its beans and has since retreated to 65 cents apiece, up 3.17%.
Let's see why the smoked salmon and trout producer is performing so well today.
Pure Foods' new distribution deal
Pure Foods advised its subsidiary Woodbridge Smokehouse has just signed a new distribution deal with international food distribution company Monde Nissin Australia.
The distribution deal makes Woodbridge the sole supplier of trout and salmon products for Monde Nissin, which sells its foodstuffs to independent grocers in 45 countries.
Pure Foods reports that the deal is expected to increase Woodbridge's total revenue by 50% in FY22 against the previous year, and increase Pure Foods' total group revenue by 15%.
The deal will include four new Woodbridge products the company recently brought to market. Monde Nissin is currently also in the process of expanding its market into Queensland, which has the potential to further increase revenue from the deal.
Management comments
Pure Foods managing director Michael Cooper said:
We are very excited to be further strengthening our relationship with Monde Nissin Australia. MNA has strong customer relationships covering the Australian FMCG network. The position of PFT as the sole supplier of Atlantic Salmon and Trout products to the Monde Nissan distribution network will provide significant growth opportunities for our Woodbridge Smokehouse brand.
The agreement with MNA further supports the large growth that WBSH has been able to deliver over recent quarters. With forecasted growth for WBSH of over 50% versus last year, it is great to see continued demand and increased availability of our premium brands nationally.
Pure Foods share price snapshot
The Pure Foods share price rose significantly in 2020 – up 220% for the past 12 months – but hasn't performed nearly as well this year-to-date, down 32%.
It has, however, been bolstered with its diversifying news of plant-based food brand acquisitions, such as its buyout of Cashew Creamery in March.
