Case Studies

Expansion of food and beverage company into China

Piper Alderman advised the Food Revolution Group (ASX:FOD) on a strategic distribution agreement and investment by Careline.

Team: James Macdonald

Service: Commercial Contracts | Corporate & Commercial | Foreign Investment & Trade
Sector: Agriculture & Food

The Food Revolution Group is an Australian-owned food and beverage manufacturing company, specializing in developing innovative health-focused products for retail in Australia and Asia. The Company aims to create health food that engages, excites, and inspires health-conscious consumers seeking better health alternatives. Aiming to be a leading provider of beverages, functional foods, and wellness supplements, FOD aims to improve consumer lives by using natural ingredients in manufacturing products.

Piper Alderman advised FOD on a strategic distribution agreement and investment by Careline. The proposed distribution agreement provides FOD access to Careline’s extensive product distribution network in China.

Through the issue and conversion of up to 280 million Performance Shares at staged hurdles, Careline is incentivized to lift FOD’s revenue from $35 million per annum to up to $500 million per annum, marking this as a significant deal in the history of the Company. In addition, a new investment by Careline in FOD will provide FOD with up to $20.25 million in working capital to fund the development of distribution networks for FOD products in mainland China.

The Piper Alderman team is experienced in commercial contracts and investment agreements, making them well-positioned to advise FOD on the issue.

What our client said

Bill Nikolovski, Executive Chairman of The Food Revolution Group Ltd, said:

“Working with Careline to move our existing and new products into China is a huge opportunity for our Company, as entry into the Chinese market has been a long-term goal for us. We have been achieving strong growth of our branded products in Australia and with the partnership with Careline it will give us a step change in sales with access to the Chinese market.”