Select Harvest Limited (ASX: SHV) and PepsiCo will be taking on China one almond at a time after signing a Trademark License & Distribution Agreement to distribute and market Lucky branded nuts, seeds and blends in China.
Select Harvest is one of Australia’s largest almond producers and owns the Lucky range of nut products.
Under the deal, announced today, PepsiCo China will be responsible for the marketing, sales and distribution whilst Select Harvest will grow and supply the products.
The agreement is for an initial five year term, with both companies committing to large advertising spending in the first year and a half.
Select Harvests General Manager Consumer Mark Eva said, “Entering the China market in partnership with PepsiCo is extremely exciting for Select Harvests and the Lucky brand.” He went on to say that Chinese consumers are becoming more affluent and knowledgeable about the nutritional benefits of nuts and seeds.
The Select Harvest share price is up nearly 5% in early trade, according to Commsec.
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