Fremantle-based Frankland River Olive Company has broken into the Chinese market with the sale of more than 30,000 bottles, making up two containers, of its Jingilli extra virgin olive oil for distribution into high-end supermarkets, restaurants and hotel
Fremantle-based Frankland River Olive Company has broken into the Chinese market with the sale of more than 30,000 bottles, making up two containers, of its Jingilli extra virgin olive oil for distribution into high-end supermarkets, restaurants and hotels throughout Shanghai.
Frankland River Olive Company managing director David Carr said the order for the first container, which left for China earlier this month, marked the company’s first significant export of packaged olive oil under the Jingilli brand.
“We are looking forward to Jingilli being launched into China and developing a foothold in this very promising market,” he said in a recent statement.
“We are aware that China has shown increased demand for extra virgin olive oil, following a campaign by the Chinese government promoting a healthy diet. Rising individual incomes are also fuelling the popularity of olive oil.”
Mr Carr said that, compared with world consumption standards, the olive oil market in China was relatively small, although this was likely to change.
According to a report published in the Australia Olive Association publication, The Olive Press, The International Olive Oil Council expects “China will become the world’s largest consumer of olive oil within the next decade”.
The second container making up the rest of the 30,000-bottle consignment, is due to leave in September.
Win Market Pty Ltd, the Sydney arm of the Shanghai based Shanghai Shizong Enterprises and the buyer of the Jingilli product, has indicated an interest in delivery of an additional three containers before Christmas.
Last week, the company listed on the Australian Stock Exchange at 30 cents, a 5 cent premium on its issue price, before closing that day at 25 cents.
The listing follows Frankland River’s restructure into a single vertically integrated olive business. The company raised $5.88 million from the issue of 23.5 million shares by way of a rights issue to shareholders.
In its supplementary disclosure document, Frankland River said the funds would be used for marketing and promotional activities, expansion of processing and packaging facilities, capital works and debt management.
FROC, which was established in 1999, completed a takeover last year of Parmelia (Larenta) Olive project, a 330-hectare olive grove and processing facility at Gingin, north of Perth. The company now owns and manages three groves comprising more than 761ha of olive trees, based in Frankland River and Gingin.
The company already has its Jingilli-branded products on the shelves of major supermarket groups including Coles and Woolworths throughout Australia.
Frankland River competes with other well developed groups, such as ASX-listed Piquant Blue Ltd, whose Red Island brand has been stocked in 2,531 stores throughout the US.
The company said the number of stores achieved to date represented nearly 20 per cent of the stores in Piquant Blue’s target regions in the US.
Piquant Blue has identified approximately 13,000 supermarkets in the north east, south east and west coast regions as core olive oil outlets.
During the past two months the company has announced several agreements with US supermarket chains to carry the Red Island brand.
