Australia’s Jatenergy has secured its first distribution deal in China for plant-based ‘meat’ products under a newly-established joint venture with Oppenheimer Pty.
New South Wales-based Jatenergy, which until recently was purely focused on the export of infant-formula and dairy products via manufacturing agreements with other parties and through acquisitions, entered the 50-50 venture with Oppenheimer of Sydney in November.
Go deeper with GlobalData
Jatenergy will fund initial expenses such as samples, small-scale production, marketing and other start-up costs up to a maximum of AUD200,000 (US$136,537) for the first 12 months. Oppenheimer will fund innovation costs, science and human resources for product development.
The first three products to be produced under the VMeat label are plant-based versions of beef meatballs, pork meatballs and burger patties, with sales expected to commence in the first two months of the New Year. The target markets are in Asia, particularly China, where Jatenergy already has a strong presence with infant formula.
Jatenergy’s meat-free venture is called JAT Oppenheimer. Wilton Yao, Jatenergy’s managing director, will become chairman of the new entity, while Jignesh Shah of Oppenheimer will be the MD in charge of day-to-day operations.
See Also:
A distribution deal has been secured with Shanghai Gurun Wanfeng Catering Co., which will have the “non-exclusive right to distribute in China all of JAT’s plant-based meat products under the VMeat label, as well as any other products developed by JAT”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe agreement requires Shanghai Gurun, which specialises in catering and restaurants, to purchase a minimum of AUD2m of products in the first year of the two-year deal. The Chinese business will use the plant-based meat products in its own outlets and also distribute to other restaurants.
Yao said: “This is our first plant-based meat substitute order received by our new business. Shanghai Gurun will use a large proportion of the products purchased in its own operations, which are very significant in size and spread over various facilities such as in-house dining and public restaurants.
“The expected first year sales of AUD2m to a single food group in Shanghai indicates the potential revenue to be generated from our new business. We expect to ship our first products to Shanghai Gurun in January 2020.”
