Sector News

Freedom Foods signs deal with Alibaba to sell cereal in China

November 9, 2018
Consumer Packaged Goods

Australian firm Freedom Foods will form a joint venture with Alibaba-owned Theland New Cloud Digimart to sell the Arnold’s Farm range of cereals and snacks in China.

After an initial set-up period, Theland and Freedom will establish a China-based company to develop and market the brand across a wider range of formats.

Theland is a China-based brand owner and distributor with “extensive sales capabilities across both online and offline channels in more than 25 provinces in China”, Freedom said. Its range includes meat, dairy, water, cereals and supplements.

Under the arrangements, Theland will become the exclusive distributor for the Arnold’s Farm brand in China, including online and offline channels.

Freedom Foods said that the Arnold’s Farm brand is “one of the top three oat cereals on Alibaba’s Tmall International” and following a “significant investment” it is now sold in more than 4,000 outlets across China.

After the creation of the joint venture, Freedom Foods will remain the exclusive long-term manufacturer of the Arnold’s Farm range and use its manufacturing and product development capabilities in Australia to drive new innovation.

Freedom Foods CEO Rory Macleod said: “We have a good footprint here in China and it is strategic long-term partnerships like this with Theland that will help us continue our strong trajectory for driving our brands and products into China, supported by our unique supply sources and scaled manufacturing capabilities in Australia.

“There remains significant growth opportunity into the cereal and snacks categories in China. What we’re seeing is changing preferences and tastes from Chinese consumers who are increasingly looking to healthy Western breakfast and snacks formats as provided through Freedom Foods’ Arnold’s Farm range.”

Source: FoodBev

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