The Food Revolution Group is to sell its New Zealand-based business and bioactive intellectual property and lease its LangTech Citrus (LTC) assets to Singaporean company Gravity Solutions Global (GSG), in a deal worth more than AUD17 million over 10 years.
FOD chief executive Bill Nikolovski says the deal will allow the company to focus on commercialising its range of consumer products and growing its market share in Australia and internationally.
“This will significantly reduce our expenditure on further research and development of ingredients and technologies. The sale of the bioactives and ingredient intellectual property will give us value for these assets,” he says. “GSG is well equipped to commercialise these technologies and ingredients. It has a strong sales and R&D team led by David Coleman, with international distribution capabilities and sufficient capital to commercialise these technologies and ingredients. They will be an excellent partner for us.
“With GSG continuing work in this field, we will have access to these ingredients and will receive 20 per cent of pre-tax profits generated by new FRG product sales that increase production above current levels.”
FOD announced last week that its recently launched product lines into major Australian supermarkets had generated revenue of AUD1 million a month for three consecutive months (April – June 2016) and that product sales per month over the three months generated an average gross margin of more than 35 per cent.
FOD is a food and beverage processing company with operations in Mill Park, Victoria and New Zealand. It manufactures superior quality juices, fibres, infused fruits, fruit waters and bioactives for sale as branded products and ingredients into the international food, beverage and nutraceutical markets.
The company is primarily involved in food and beverage processing in the fast moving consumer goods (FMCG) sector for customers in Australia and key international target markets, including China, as a provider of naturally functional products.