In April JAT announced an agreement with Shanghai Dragon Corporation (SDC) to bring Australian products to Chinese consumers, and to co-develop own-brands for the Chinese market.
JAT Directors met with SDC management again last week in Shanghai to take the first tangible steps in implementing this strategy and wish to update the market accordingly.
- SDC has made it first order – a shipping container of Australian oats for sale in its network of retail stores across China.
- Space will be set aside within approximately 4,000 of SDC’s retail stores for JAT speciality shops. These shops will be managed by SDC staff and sell a range of imported goods supplied by JAT.
- JAT and SDC will jointly develop JAT’s Cobbitty Country brand in Australia and China for the planned range of in-house products, which will include milk products, biscuits, toothpaste, soap, and other high volume FMCGs.
“This order represents the tangible commencement of Chinese retail sales for JAT,” Executive Chairman Tony Crimmins said. “JAT products will soon be sitting on the shelves of thousands of shops across China. A strong Chinese retail presence is the fourth pillar in our FMCG strategy, setting us apart from other Australian trading companies selling to Chinese consumers.”
“We are particularly fortunate to be working with Shanghai Dragon in this regard”, Mr Crimmins said. “They are a large, publicly listed Chinese company with strong state support, a rich 40-year history of international trading, sales in excess of AUD 1 billion per annum and extensive logistics and warehousing infrastructure.”