Angel Seafood creates new revenue stream with launch of oyster delivery service

Angel Seafood ASX AS1 Hālo Club Zac Halman certified organic and sustainable oysters direct-to-consumer sales channel
Angel Seafood’s new Hālo Club will deliver fresh oysters, condiments and gifts to members on a monthly basis.

Organic and sustainable producer Angel Seafood (ASX: AS1) has launched a direct-to-consumer offering known as the Hālo Club giving members direct access to fresh produce while creating a recurring income stream.

The subscription-based initiative will deliver fresh oysters and complementary condiments and gifts on a monthly basis to Angel shareholders and a select group of customers across Melbourne, Sydney and Adelaide.

Three-month rollout

Angel founder and chief executive officer Zac Halman said the initial phase of the rollout will be over a three-month period starting this month.

“We are really excited to be launching Hālo Club, where customers will be able to get fresh Angel oysters delivered directly to their doorstep on a regular basis,” he said.

“Our membership model will create direct engagement with consumers and we aim to deliver a premier and authentic farm-to-table experience.”

The initiative will diversify existing sales channels and act as a brand-building platform.

“We are particularly pleased to be offering our shareholders an opportunity to be in the first cohort of members and their feedback will help to shape the future of the Hālo Club,” he said.

“After the initial trial, we look forward to making membership available to more customers in more cities.”

Growth strategy

Hālo Club is part of Angel’s three-pillar growth strategy aimed at boosting production to 20 million oysters per year and improving profitability through increased scale, productivity gains and improved prices.

Last month, Mr Halman told shareholders the company’s sales growth had continued strong despite economic uncertainties.

“[We have] truly proven the strength and agility of our business model over the past year by being able to quickly pivot sales towards the retail channel – a channel that has shown there is significant demand for our clean, green and sustainably sourced oysters,” he said.

“With the restaurant channel now showing good signs of recovery, and the continued success of our retail sales program, we are confident in our ability to execute on our next phase of growth.”

He said the company had already made good progress across all three pillars based on the acquisition of additional water leases in Coffin Bay and Cowell to build scale; the commencement of FlipFarm trials to increase productivity and lower operating costs; and the trial launch of summer oysters to boost annual sales by up to 15% and extend the traditional 10-month season across the entire calendar year.

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