The Food Revolution Group has signed a Memorandum of Understanding (MOU) with China Petroleum and Chemical Corporation – Sinopec – a large oil refining, gas and petrochemical conglomerate.
Under the MOU, the two companies will negotiate a distribution agreement whereby Sinopec will sell Food Revolution’s Australian canola oil products, produced across its network of more than 35,000 petrol and convenience outlets in China.
Food Revolution will produce the canola oil products under its Australia’s Garden brand.
The MOU with Sinopec follows the company’s participation at the China International Import Expo in early-November where it shared a booth with its strategic investor and distributor Careline.
Some of the key visitors, in addition to Sinopec, were JD.com, Bailain Group and Costco China.
Food Revolution Group chairman, Norman Li, said the company received significant interest in its products at the expo and the MOU with Sinopec was the first of an expected series of distribution deals with large Chinese corporations.
“This is very exciting development. Sinopec is one of the largest companies in China, and the world, with more than 35,000 petrol and convenience stores in China plus a large online platform,” he said.
“This is a great relationship for [Food Revolution] to build on, not only for distribution of canola oil, but also for our functional food and beverage range over the longer term,” said Li.
Food Revolution will be required to complete China Import and Quarantine certification for the canola oil products, a process archived for its Fruit Farm juice range in just 10 days.
It will finalise a product range with Sinopec as well as volume and price expectations and anticipates supplying products in China in early 2019.