Shares in Freedom Foods have jumped more than five per cent after the health food manufacturer announced it had joined Alibaba Group-owned Theland to create a range of cereals and snacks in China.
The deal will allow Freedom’s Arnold’s Farm Brand – which is already one of the top three oat cereals on Alibaba’s Tmall International – to grow its range for the Chinese market.
Theland will become the exclusive distributor for the cereal and snack range and use the Alibaba Group’s online retail reach to leverage sales.
Arnold’s Farm brand is now selling in 4,000 outlets across China, Freedom Foods managing director and chief executive Rory Macleod said.
‘We have a good footprint here in China and it is strategic long term partnerships like this with Theland that will help us continue our strong trajectory,’ he said in a statement on Wednesday.
‘What we’re seeing is changing preferences and tastes from Chinese consumers who are increasingly looking to healthy Western breakfast and snacks formats.’
In addition to the cereal and snack range development, Freedom announced it had commenced supply of an A2 protein milk product to Theland under its own brand, with the expectation of more milk products to be launched in 2019.
Freedom’s shares were 27 cents higher, or 5.2 per cent, at $5.43 at 1034 AEDT.