Beston Global Food Company (BFC) – which is set to float on the Australian Stock Exchange this month – has secured distribution for its premium Australian dairy, meat, seafood and health food products in 150 cities across China.
The company has signed the distribution deal with Chinese retail giant Dashang Group, which also has agreed to subscribe to 14.9 per cent of Beston’s stock as part of the $AUD130 million Initial Public Offering. Institutional investors committed $AUD100 million to BFC within four days of the offer being released earlier this month.
BFC’s Chairman, Dr Roger Sexton AM, said BFC had been invited to be the preferred supplier to Dashang for all Australian food and beverages. BFC also has the opportunity to create and stock a Beston Pure Foods section in the up-market stores operated by Dashang.
“BFC has formed a close working relationship with Dashang following on from the signing of the Free Trade Agreement between China and Australia,” Dr Sexton said. “Our two companies share a common objective of taking lean, green and safe products from high quality producers in Australia into the discerning consumer markets in China.”
￼Dr Sexton said BFC had also established a wholly owned subsidiary in China through the acquisition of the Dalian Australian Food Expo Company. The company – which consolidates about 7,000 distribution outlets across China – will manage the import, customs clearance and distribution of BFC’s food and beverage products.
In addition, BFC has a customer relationship with on-line supermarket product distributor Yihaodian – 51% owned by Walmart and with 57 million registered users at the end of 2013.
“Beston Global Food Company will operate as a branded food company which, through its stable of quality food investments, will aim to provide high quality, safe, clean (natural and/or organic) food and beverage products to consumers,”
Dr Sexton said. "Our goal is to be recognised as a reliable, high quality and consistent provider to burgeoning global consumer markets which are becoming increasingly concerned about issues of food safety.
“With ingredient integrity and a secure supply chain consumers will be assured of an authentic, genuine, healthy food experience.”
"This approach not only recognises our responsibilities to the environment, but also maximises returns to shareholders through the ability to achieve higher "price maker" margins from health conscious consumers."