Hemp foods company Australian Primary Hemp (ASX:APH) has announced a new distribution deal with Coles, just weeks after reaching a similar deal with Woolworths.
APH is a hemp food company based in Victoria. They are best known for their Mt. Elephant line of hemp seeds, flours and oils.
The company reached a retail distribution agreement with Coles this week. The agreement will see two Mt. Elephant products launched into East-Coast supermarkets, including a vegan chocolate-oat-hemp milk and a purely hemp-based milk called “mylk”.
Mylk is a plant-based milk alternative made with hemp. It is designed for the increasingly large group of Australians avoiding cows, soy and oat milks in their daily diets. The product is vegan, low in saturated fat and contains a complete amino acid profile.
APH’s retail distribution deal will see both hemp-milk products sold in 140 stores across New South Wales, Victoria, ACT and Queensland. They will be available from April this year.
According to APH’s managing director and CEO Neale Joseph, this new distribution deal is a “significant milestone” for the company.
This is just the beginning for our mylk products, and we are excited to see coles stock the line later this year. Our Mt. Elephant product range is building commercial momentum.
APH is expecting to generate around $200,000 annually from the agreement, and hopes it represents a “step on our path towards further commercialisation.” The company also reached two similar deals with Woolworths in late January, with expected sales revenue of $2.3 million. Mylk products are included in the second deal.
APH will continue to grow their Mt. Elephant line this year, as hemp foods grow in popularity around Australia.