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Hemp food company ECS Botanics (ASX: ECS) has landed a distribution deal with Woolworths that will see a range of hemp-based soups stocked on the supermarket's shelves.
While the total revenue expected to be generated from the deal is still uncertain, the company will ramp up manufacturing runs to meet the anticipated first order from Woolworths.
Woolworths, via ECS' distribution partner Just Foods Australia, will stock ECS Botanics' Mexican Spiced Bean Soup with Hemp and its Indian Masala Lentil Soup with Hemp.
The agribusiness says both products are positioned for consumers looking for a healthy meal option; the soups are plant-based and developed by a team of chefs and nutritionists.
The addition of the soups to the Woolies shelves follows a similar deal between the two made last year regarding the introduction of ECS' Hemp Seed Oil to the supermarket's range.
"Our Fast Moving Consumer Goods soups are unique in the marketplace and this latest deal is testament to the products branding and positioning towards a growing retail segment," says ECS Botanics managing director Alex Keach.
"The deal also signifies the immense capability of Just Foods Australia, underpinned by the close working relationship we share."
"While the success we've achieved in the short term is pleasing, most importantly we are setting the foundation and capability to leverage the first mover opportunity in an exciting, high growth and evolving industry."
In December 2019 ECS Botanics announced it had been granted a medicinal cannabis cultivation licence from the Federal Government for its operations in Tasmania.
The licence authorises ECS to cultivate cannabis plants for medicinal purposes, produce cannabis and cannabis resin for medicinal purposes, obtain plants and distribute the drug.
The granting of the licence completes ECS' licencing strategy, enabling it to conduct separate activities across the industry.
Shares in ECS are up 1.92 per cent to $0.053 per share at 11.06am AEDT.
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Business News Australia
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