Forbidden Foods healthy boost from takeover

Plant based food manufacturer Forbidden Foods has reported early cost savings and sales momentum following the strategic acquisition of Oat Milk Goodness (OMG) brand of oat drinks.

The company told investors that the first full month of operations as a combined entity saw an initial round of cost savings complemented by strong monthly sales growth.

Group sales for the month of October totalled $360,000, a 44 percent increase on the previous month and up more than 70 percent from the prior year.

There were strong initial sales trends through targeted ecommerce channels with online sales through the Blue Dinosaur website rising by 93 percent on a Moving Annual Total (MAT) basis to $810,000.

Sales momentum for the combined entity is expected to continue in the December quarter, with the company positioned to benefit from the growing footprint of OMG’s beverage suite and the Blue Dinosaur healthy snack bar range across physical store networks.

Forbidden Foods’ Chief Executive Officer Alex Aleksic said: “The group’s operational momentum in October highlights the synergies that have already been achieved by the merged entity following our strategic acquisition of Oat Milk Goodness.

“In particular, the 44 percent increase in monthly sales growth highlights the potential for increased scale in the near-term, given that it represented the first full month of combined operations with the team working hard behind the scenes to complete the business integration.”

Coinciding with the commencement of the 2023/24 Australian cricket season, including the Test Match series between Australia and India, Forbidden Foods will partner with the McGrath Foundation to align commercial sales of its Blue Dinosaur products with a joint fundraising programme.

Under the terms of the agreement, for every berry and coconut Blue Dinosaur bar sold Forbidden Foods will donate 10c to the McGrath Foundation’s breast cancer treatment and awareness initiatives.

Aleksic said: “Looking ahead, the company has a targeted strategy to convert its momentum into a step-change in sales and profits, highlighted in the near-term by strategic marketing campaigns in the Australian summer period which will complement the upward trajectory in our key sales and distribution metrics.”

Picture: Oat Milk Goodness/Co-founder & Australian cricketer, Steve Smith