JAT’s agreement with Woolworths well received

Published at Jul 18, 2018, in Small Caps

Consumer goods supplier, Jat Energy (ASX:JAT), has penetrated another major end market, announcing that Woolworths (ASX:WOW) has confirmed that it will offer NEURIO Formulated Milk Powder with Lactoferrin for sale to Chinese consumers via its flagship store on cross-border platform TMall Global from early August 2018.

This comes only a fortnight after the group announced that JD Global, China’s largest retailer by revenue, had approved the sale of Sunnya’s Neurio branded products.

The Neurio range will be sold to Chinese consumers on JD Global’s cross border and supermarket platforms: www.JD.com and www.JD.hk.

JD placed orders for Neurio – Lactoferrin milk powder and Neurio – DHA Algae oil softgel.

The news flow from JAT has been outstanding with the company only announcing last week that it had kicked off a high visibility campaign to launch NEURIO products on Alibaba backed Xiaohongshu, a social media e-commerce shopping app based in Shanghai which targets 18 to 35-year-old women.

This highlights the substantial benefits of JAT’s Chinese inspection and quarantining import licences, as well as the company’s distribution channels, including its online and off-line resources that are required to launch and grow Australian brands and products in the Chinese market.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

The following are just some of the brands that JAT provides services to.

The Woolworths deal is important as Woolworths’ TMall Global online store (woolworths.tmall.hk) is the only online store for Chinese consumers to purchase products direct from Woolworths.

Consequently, it wasn’t surprising to see the company’s shares soar more than 10 per cent to hit 10 cents in morning trading under higher than average volumes.

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Product display and artwork design is currently underway and management expects NEURIO Formulated Milk Powder with Lactoferrin to be available from sale on the platform in early August.

Executive director Wilton Yao said, “It represents a strong signal about the popularity of NEURIO Lactoferrin in the Chinese market and adds to the critical mass of brand exposure needed to drive sales. The board is very confident about the future for Neurio products.”

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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