Since undergoing a pivot in strategic direction The Sustainable Nutrition Group (ASX: TSN) is making headway in the growing hemp and plant-based products space.
The worldwide plant based food market is predicted to reach USD$162 billion by 2030. Australia is the third fastest growing vegan food market in the world with many companies adapting to plant-based consumer demand.
With people embracing a more plant based diet for ethical, health or environmental reasons, companies like TSN are scrambling to meet the demand.
The Company has inked two new deals with global beverage manufacturers DASH Brands Pacific and Remedy Kombucha. The agreements will see TSN supply native ingredients through wholly owned subsidiary The Australian Superfood Co. to both companies for a combined contract value of $720k over two years.
Entering the Australian market last year, DASH is a B Corp certified, UK-based creator of fruit infused sparkling water products. DASH focuses on three simple ingredients: water, bubbles and ‘wonky fruit’ (fruit unsuitable for retail sale due to imperfect shapes). TSN will supply fruit extract ingredients for DASH’s Australian drinks.
Source: Bloomberg Intelligence, OECD FAO Agricultural Outlook 2021-2030, GFI 2020 State of the Industry Report
Naturally fermented, sparkling kombucha is the new soft drink, having graced menus and supermarket aisles for years now, showing no sign of slowing down in popularity. Founded in 2012, Remedy Kombucha has become the largest producer of kombucha in Australia and New Zealand. The Brand is also seeking expansion into overseas markets. TSN will provide various ingredients to Remedy to create their many flavours.
Managing Director of TSN, Neale Joseph said: “We are very pleased to enter these two supply agreements with companies of the calibre of DASH and Remedy. They are both important innovators in the ‘better-for-you’ beverage consumer market. We believe incorporating our native ingredients into their products will be an attractive offering to their customers and provide further competitive differentiation for their products in market.
“Together these agreements with leading players in the beverage market demonstrate the potential for expansion of The Australian Superfood Co products into a range of new markets and the future revenue potential we identified at the time of acquiring The Australian Superfood Co last year.”
Investors have taken well to TSN’s bubbly news, with their share price soaring 11.11% in early morning trade.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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