Pure Foods Tasmania (ASX: PFT) has commenced contract manufacturing for Brilliant Food Australia (BFA), following the execution of a manufacturing agreement and the completion of initial production runs.
The agreement utilises the existing Woodbridge Smokehouse infrastructure and labour base in southern Tasmania to provide additional manufacturing throughput without requiring material new capital investment.
Production at Woodbridge began in the final week of November 2025, with finished product manufactured, packed and successfully dispatched interstate.
Pure Foods expects the arrangement to deliver a meaningful uplift in site revenue relative to the 2025 financial year, with increased volumes to improve economies of scale at the site and support more efficient use of existing capacity.
The shift to Woodbridge removes previous production bottlenecks for BFA, which produces premium smoked seafood products for hospitality, specialty retail, and gourmet food channels.
Cost-Plus Pricing Structure
Manufacturing under the contract is to be conducted on a cost-plus pricing basis designed to ensure recovery of labour, overhead, and operating costs while maintaining margin discipline.
Either party may terminate the agreement with 60 days’ written notice, reflecting standard commercial terms for arrangements of this nature.
As part of the agreement, BFA will participate in a $100,000 placement at $0.035 per share, subject to shareholder approval and other required approvals, with shares held in voluntary escrow for 12 months.
Funds raised will support working capital requirements and help with the production ramp up at the Woodbridge facility.
The placement aligns BFA’s long term interests with those of Pure Foods shareholders, and reflects a shared commitment to building a sustainable and profitable partnership.
Strategic and Regional Impact
The contract manufacturing agreement enhances the Pure Foods’ strategy to improve asset utilisation across its manufacturing footprint and selectively pursue complementary third-party production opportunities.
Pure Foods said the transition of production from Sydney to Woodbridge represents a meaningful investment in regional Tasmania.
The move will create a minimum of four new skilled roles across production, quality assurance, and logistics.
The company's board “remains focused on improving operating efficiency and building sustainable, profitable revenue streams,” with further updates to come as production progresses and the partnership continues to scale.
