- The Food Revolution Group will buy Original Juice Co Black Label (OBL) from Golden Circle for $1.25 million
- FOD will leverage OBL to innovate and develop new products and expand into Asian markets, particularly China
- The acquisition is expected to increase FOD’s FY 20 financials by 25 per cent
- New products are set to launch in 2020
The Food Revolution Group (FOD) has announced it will buy Original Juice Co Black Label (OBL) from Golden Circle for $1.25 million.
Golden Circle has produced high-quality fruit juices in Australia under the OBL brand for nearly two decades. OBdL was founded in Melbourne in 1988.
OBL is a successful distributor within Australia as well as key export markets in Asia and New Zealand. FOD’s acquisition is driven by its intention to use OBL’s established networks throughout South East Asia and China to grow its annual sales. OBL is already expected to deliver a significant portion of FOD’s sales during FY2020.
FOD CEO John Florey is pleased with the acquisition, considering it to drive a new chapter for the company.
“Original Juice Co Black Label has an established, solid market here in Australia
and building on that it will give The Food Revolution Group a new larger springboard and allows us to open up new opportunities in international markets, such as China,” John said.
FOD is an Australian-based food processing company that operates state-of-the-art fruit and vegetable processing facilities in Victoria and manufactures a range of high quality juices, fibres, infused fruits, waters and kombucha.
The company has been carefully planning its strategy to grow its capabilities and distribution into Asia. Over the past year, it has secured supply distribution agreements with China for its juice products and has built a new and stronger management team to facilitate future growth.
“We are excited to take this next step in our strategy through this acquisition, as it allows us to build on the momentum created in FY19 when we cleared the slate and commenced our growth into China,” John stated.
FOD achieved gross sales revenue of $32 million for FY 19, however, it expects this to increase by 25 per cent in FY 20, following the OBL acquisition.
The company plans to release new products in early 2020 and is working to complete upgrades to its Mill Park facility to produce high-end functional gels and powder sachets. These products have generated a lot of interest in the China market, with more than 100 potential customers visiting Mill Park.
FOD will continue to sell the existing OBL range to major Australian retailers such as Coles and Woolworths. New OBL products will reportedly launch in the next few months.