Holista has entered an exclusive sales and marketing collaboration with Country Farms, a subsidiary of Malaysia-based Berjaya Group.
Berjaya owns franchises like Starbucks, 7-Eleven and Kenny Rogers Roasters in Malaysia.
The initial products covered under the term sheet include low-GI pre-mix, sugar reduction technology, plant-based meat products, and dietary supplements.
Holista has commenced the development of a range of low-GI bakery products, including ciabatta, white sandwich rolls, muffins, and croissants for Berjaya Starbucks.
An innovator in health and wellness solutions, Holista Colltech Limited (ASX:HCT) has announced an exclusive sales and marketing collaboration between its wholly owned subsidiary, Holista Biotech Sdn Bhd, and Country Farms Sdn Bhd.
Notably, the two companies have signed a non-binding collaboration term sheet for a range of Holista’s proprietary and all-natural healthy food ingredients and supplements.
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Country Farms, owned by Malaysian conglomerate Berjaya Corporation Berhad, is primarily engaged in producing, marketing, importing, and supplying organic and healthy foods to businesses and consumers.
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The term sheet is for the sales and marketing of Holista’s low glycaemic index (low-GI) pre-mix for flour products, plant-based meat products (vegetarian), sugar reduction technology and dietary supplements to the Berjaya Group.
GI (glycaemic index) indicates the ability of carbohydrate-containing foods to elevate blood glucose levels; hence, low-GI products are preferred as healthier choices.
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A snapshot of agreement with Country Farms
Holista has awarded exclusive sales and marketing rights to Country Farms for markets where Berjaya or its associates operate in. However, it will be at the discretion of Country Farms and Berjaya to decide which of its franchises or outlets will offer Holista’s products.
Notably, Berjaya Group operates franchises of several leading international food & beverage brands in Malaysia, including 7-Eleven (2,400 outlets), Starbucks (320 outlets) and Kenny Rogers Roasters (73 outlets). Moreover, Berjaya’s network marketing arm, Cosway operates 396 outlets in Malaysia and 559 outlets globally.
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Holista indicated that the exclusive rights are subject to both parties reaching a formal contractual agreement.
While Holista’s products are commercially available at present, the ingredients will have to be customised to meet the needs of Country Farms and Berjaya. The formalisation of the agreement will be contingent upon all parties reaching a consensus on a product portfolio, which can tick off various market-related criteria.
Holista Colltech, sales and marketing collaboration, Country Farms
Source: Copyright © 2021 Kalkine Media, Data Source: HCT update, dated 12 October 2021
Holista advancing well to finalise the agreement
Holista and Country Farms are working diligently to finalise the formal agreement, with the completion anticipated by the March quarter of 2022.
What’s more, Holista has kicked off work to develop a range of low-GI baked goods, including ciabatta, white sandwich rolls, and croissants for Berjaya Starbucks outlets in Malaysia.
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HCT shares traded at AU$0.059 on 12 October 2021.