The Forbidden Foods Limited (ASX: FFF) share price has tumbled today following an announcement of a new partnership with FoodWorks/Australian United Retailers Limited (AUR).
At the time of writing, the Forbidden Foods share price is down 5.97%. This compares with the All Ordinaires Index (ASX: XAO) which is up 0.9% to 6,444 points.
What does Forbidden Foods do?
Forbidden Foods is a multi-brand food, beverage and ingredients company that focuses on baby food, wellness and organic markets. Established in 2010, the business has over 50 different products falling into three brands – Forbidden, Sensory Mill and Funch.
The company operates through national and international sales channels through distribution partners and via e-commerce.
New range stocked
According to the release, Forbidden Foods has secured ranging with FoodWorks stores nationally.
The new agreement will see the company supply a number of its products to over 500 independent supermarkets across Australia. This includes Funch Baby Foods, Funch Health Snacks Mixes, Sensory Mill Plant-Based Flours and Sensory Mill Organic Apple Cider Vinegar.
The range is expected rollout out to all stores from January 2021.
Forbidden Foods estimates the initial revenue from the new deal to be around $1.8 million annually.
The company highlighted that FoodWorks is one of Australia’s largest independent retail supermarkets groups. The giant supermarket group produces approximately $2 billion in sales per year, and presents a growing opportunity.
Management commentary
Forbidden Foods co-founder and COO Jarrod Milani commented:
FoodWorks / AUR’s 500+ strong network of locally and community focused supermarkets gives us a significant opportunity with our FUNCH & Sensory Mill brand to engage shoppers and build trust, in particular in baby foods and plant-based foods where we have 100% Australian Made and can talk to the provenance of our ingredients.
AUR direct manager Nic Ciampa also spoke about the new partnership:
We think Forbidden Foods has a range of innovative and quality products our stores and customers will love. We also think the 100% Australian Made ingredients will resonate strongly with our customers. The support Forbidden Foods provide from their national sales force in the form of store education and engagement is key to a successful store ranging.
Despite the news, investors sent the Forbidden Foods share price tumbling to 32 cents per share at the closing bell.
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