Chinese links boost manufactured exports

Market knowledge and in-market contacts are vital for export sales, with evidence mounting that close Chinese-Australian links are a major driver of manufactured exports.

In November @AuManufacturing reported that locally listed retailer AuMake International (ASX:Au8) was gaining traction in Chinese online and home shopping markets with its range of Australian and New Zealand manufactured products.

And on Friday we showed how Chinese-Australian business Habour Bottling was using inside knowledge to export fine wine to China.

Now we can reveal yet another such business, the Food Revolution Group (ASK: FOD), a recently listed Australian manufacturer with links and product sales in fast-growing Chinese consumer markets.

FOD announced it will upgrade its Mill Park, Victoria processing facility to boost production and diversify the range of products that it sells in China.

A state-of-the-art 1,260sqm clean room with laboratory and powder mix room will be installed to make ‘in-demand functional health and beauty aids’.

FOD is well known for its upmarket Komboucha brewed drinks. It also makes a range of juice brands such as Thirsty Bro’s, Fruit Farm and the Juice Lab, as well as the Replenish brand of functional drinks.

FOD’s Chief Operating Officer John Florey has a near-term sales target of $100 million, and a longer term goal of $500 million in sales to China.

“The upgrade is an important step for FOD to rapidly scale its business as it will increase the efficiency and financial metrics of the plan.”

Key is FOD’s chairman and major shareholder, Dr Norman Li, who as the founder of another company, Careline, has extensive China distribution networks and connections.

This helped FOD to sign agreements with China Petroleum and Chemical Corporation (“Sinopec”) to distribute
FOD’s Garden Canola Oil in 35,000 petrol and convenience outlets, and with JJ Global Fine Foods to supply Fruit Farm Orange Juice to high end hotel chains.

Australia is seeing a new wave of cross-cultural investments and sales – making these exciting times.

Picture: Food Revolution Group

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