Australian juice company Food Revolution (FRG) has signed a Memorandum of Understanding (MOU) with Sinopec for the distribution of canola oil products in China.
Sinopec (China Petroleum and Chemical Corporation) is considered to be the world’s leading oil refining, gas and petrochemical conglomerate with over 35,000 petrol and convenience stores in China, as well as has a large online presence.
The oil products will be sold under Food Revolution’s Australia’s Garden brand.
Food Revolution signed the MOU following its participation at the China International Import Expo earlier this month.
According to the canola oil producer, it received a lot of interest in its products at the expo and the MOU is the first of several it expects to sign with large Chinese firms.
Food Revolution Group chairman Norman Li was quoted by Businessinsider.com.au as saying: “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.
“A landmark deal such as this will put Food Revolution on the map in China, and position the Company to generate further distribution deals with large Chinese companies.”
The two companies will negotiate a distribution agreement under which Sinopec will sell Food Revolution’s canola oil products at its outlets in China.
Food Revolution will have to now complete China Import and Quarantine certification to export its canola oil products.
After finalising product range, volume and price expectations with Sinopec, the food company expects to commence supply to China in early 2019.
