The Western Australian olive industry has been an exciting sector to observe of late, with one player branching out into the United States while another plans to list on the ASX.
The Western Australian olive industry has been an exciting sector to observe of late, with one player branching out into the United States while another plans to list on the ASX.
At the time WA Business News went to press, Subiaco olive oil marketer Piquant Blue Ltd had secured 1,736 supermarket stores to stock its redisland olive oil brand in the US.
Piquant Blue’s managing director Andrew Konowalous told WA Business News the agreements secured with US supermarket stores had culminated from years of detailed market research into the US market.
“We have only really scratched the surface with overseas markets,” Mr Konowalous said.
The company was on track to achieve its interim target of 2,500 stores selling redisland in the US.
“We set that target because in Australia, between Coles and Woolworths, there are about 1,400 significant supermarkets [and] if you include the Metcash group there are several hundred more,” Mr Konowalous said.
“We felt that would be a milestone to have significantly more stores in the US than in Australia.”
Mr Konowalous said the significance to the company of its first deal with Albertson’s Inc, which will sell redisland in 500 outlets across California, was the confirmation the brand was of a high quality.
“By Christmas, we hope to have more stores stocking redisland in the United States than in Australia and therefore producing more revenue than in Australia,” he said.
During the past month, the company has announced agreements that will result in the redisland brand being stocked throughout the west coast, south east and north east regions of the US. “The biggest region for us will be the north east of the US, including New England and New York, which has 20 per cent of the grocery spend in the US but a 33 per cent olive oil spend,” Mr Konowalous said.
The company launched its core redisland brand in mid-2004, and secured shelf space in Woolworths and Coles supermarkets across Australia.
Meanwhile, olive company Frankland River Olive Company has announced plans to restructure into a single vertically-integrated olive business and raise $5.9 million to become the sector’s new listed player.
The offer is for up to approximately 23.5 million shares, at an issue price of 25 cents each.
In its supplementary disclosure document, lodged with ASIC on May 23, the company said the funds would be used for marketing and promotional activities, expansion of processing and packaging facilities, capital works and debt management.
The completion of the restructure and underwriting is expected to be finalised by an ASX listing on July 11.