Wide Open Agriculture's oat milk spills into Hong Kong, Macau

Regenerative food and farming company Wide Open Agriculture (ASX: WOA) has secured a three-year distribution deal with Metro Alliance to have its carbon neutral OatUP milk products sold in Hong Kong and Macau.

A subsidiary of Bright Food Global Distribution Company, Metro Alliance will give WOA’s oat milk access to more than 1,600 locations in the region.

The agreement expands on OatUP’s presence in Asia, with the product already stocked in Singapore though it’s partnership with GrowHub International.

Under the exclusive agreement, first year retail sales are expected to reach $1.7 million and yield $700,000 in revenue for WOA subsidiary and OatUP manufacturer Dirty Clean Food.  

“We view Hong Kong and Macau as strategically important markets as we further the expansion of our brand into plant-based products in Asia,” Dirty Clean Food CEO Jay Albany said.

The initial shipment is planned to arrive by March, with an expected demand of roughly 25,000 units each month.

The company will also begin making deliveries to the United Arab Emirates, Saudi Arabia and Kuwait next month after securing a distribution deal with food supplier MKMI General Trading in December.

“We see the time as now for oat milk,” said Albany.

“Over the last year we have invested in expanding our portfolio of regenerative and plant-based products, while building the distribution required to accelerate growth.

“It is clear that our value proposition is resonating globally as we plan for robust sales growth in oat milk during 2022.”

In addition to distributing OatUP’s original flavour, Metro Alliance will also carry one litre versions of Dirty Clean Food’s Barista Oat Milk, Chocolate Oat Milk and Coffee Oat Milk.

While the brand is covering new ground overseas, it’s also no stranger to making deals back home.

In November, the Perth-based company chalked up an agreement with Woolworths - who will stock OatUP in half of its stores starting March.

The contract marks the largest distribution agreement for the company, with expected sales to generate more than $750,000 per annum.

Shortly after securing the deal, WOA unveiled plans to raise $22 million to support its transition into plant-based food manufacturing.

It received binding agreements from institutional and sophisticated investors to raise $20 million at $0.75 per share.

The company expects to add new regions with Oat Milk distribution in the coming months as it progresses on the construction of a commercial scale plant-based milk factory in Australia.