Wide Open Agriculture has landed its first major distribution deal, signing an initial one-year agreement with Woolworths to carry the company’s OatUP brand nationally.
The deal, held through the regenerative farming company’s Dirty Clean Food brand, is estimated to generate $750,000 in annual sales.
Approximately half of Woolworths stores will carry OatUP starting in March 2022.
Wide Open Agriculture’s OatUP product has been certified carbon neutral by the Australian government-backed Climate Action partnership, an attribute the company believes will mark a point of difference from competitors.
“Woolworths Group’s Sustainability Plan 2025 demonstrates their commitment to encouraging regenerative farming practices and to have net carbon positive emissions by 2050,” WOA managing director Ben Cole said.
“We were impressed by their knowledge of regenerative farming practices and their support of our initiative to produce carbon neutral oat milk made from regeneratively farmed oats, grown and rolled in Western Australia.”
The company will be locked in exclusively with Woolworths for 12 months from April 1 2022, excluding sales to Coles and Aldi during the period.
The parties anticipate that demand will be approximately 10 litres per store, per week, which will be revisited post-launch next year.
Wide Open Agriculture shares closed the day up 7.69 per cent to trade at 84 cents.
