Distribution agreement with Cyclone E-Commerce Brings Over $7.5 million in single product revenue

The Directors are pleased to announce that JAT has entered into a distribution agreement with Cyclone E-Commerce Co., Ltd (Cyclone) under which Cyclone has agreed to purchase over $7.5 million of milk powder from JAT over the next 12 months.

Cyclone is a distributor based in Hangzhou City, Zhejiang which utilizes proprietary cross-border e-commerce platforms and bonded warehouses to deliver global products to Chinese consumers.

Cyclone also supplies global maternity and baby brands, health products, snacks, and skin care products through Hipac, Momtime and other maternal and baby platforms and to O2O experience stores and micro-marts. O2O refers to the business strategy of “online-to-offline”, which draws potential customers from online channels to make purchases in physical stores.

Cyclone has committed to purchase 300,000 tins of NEURIO – Lactoferrin Milk Powder from JAT over a 12-month period.

“This transaction brings in more than $7.5 million in revenue over the 12 months. That’s quite pleasing for a single product with a single customer. Just as important, it’s confirmation of our strategy of combining Sunnya’s products with JAT’s distribution capacity. NEURIO – Lactoferrin Milk Powder is an attractive product in China and the orders are starting to reflect that.”

For more information, references to Jat’s ASX announcement: Distribution agreement with Cyclone E-Commerce.