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- The Food Revolution Group (FOD) has already received the first order for its new hand sanitiser product announced just two days ago
- The company announced the Sanicare brand in response to high global demand for hand sanitisers in light of the Covid-19 coronavirus
- Already, the company has received a $2 million order through its distribution partner, Careline Australia
- Furthermore, FOD expects to have shipped the product and pocketed the cash within the next four weeks
- FOD shares have risen just under 50 per cent since Tuesday afternoon’s announcement
- After today’s announcement, shares are higher by just over three per cent and worth roughly nine cents each
The Food Revolution Group (FOD) has already received its a $2 million hand sanitiser order after announcing its new product line just two days ago.
The company threw its hat in the ring to join the businesses cashing in off of the Covid-19 coronavirus on Tuesday by announcing its new “Sanicare” brand.
FOD, which typically sells a range of fruit and vegetable-based juices and infused waters, had recently finished building a new bottling line at its Mill Park facility in Melbourne. The company decided to adjust its business model to fit the times and start producing hand sanitisers to meet the unprecedented demand for the product across the world and particularly throughout Asia.
Today, the company told investors it has sourced the ingredients for an alcohol-based hand sanitiser and already received a big order through its distribution partner, Careline Australia.
Furthermore, though Sanicare is a new business direction for the company, FOD said it expects to fill this order and pocket the $2 million cash within the next four weeks. With the help of manufacturing partners, the company expects to fill its new bottles at breakneck speed as it prepares to face the onslaught of demand.
FOD’s Chairman, Norman Li, said the company believes today’s order will be the first of many in a long-term plan.
“Careline has demand for this product from both Australian supermarkets and pharmacy chains as well as direct demand from China,” Norman said.
“FOD’s aim is to build these distribution channels so that FOD can continue to supply them beyond the current Corinavirus outbreak,” he added.
Of course, four weeks from product-announcement to completion of a $2 million order is a short time span in which to turn around a new product idea.
As such, some investors may be worried that the company has had no time to fully optimise costs, resources, and even product efficacy as FOD scrambles to get the Sanicare brand up and running.
Nevertheless, the market has responded well to this week’s news with myriad similar products around to learn from, perhaps the product testing is a simple process.
Either way, FOD shares are currently sitting at their highest point in 2020 so far and just shy of their 52-week high. At market close today, shares were up 3.5 per cent and priced at 8.9 cents each — representing a healthy 48 per cent increase since Monday afternoon.
