Walmart China has placed its second order for Keytone Dairy’s (ASX: KTD) whole and skim milk powders which will be sold within Walmart’s Sam’s Club West Inc stores.
The second milk powder order is worth about NZ$870,000 (A$805,549) with the combined value of both orders totalling NZ$1 million.
According to Keytone, the value of both orders this month from Walmart China represent about 40% of the company’s prior full year revenue for the financial year ending 31 March 2019.
“We are extremely pleased with the level of demand from Walmart China in such a short time-frame,” Keytone chief executive officer Danny Rotman said.
“This second order highlights the size of the Walmart China operation, the vast volume of customers it serves in China and the significant opportunity it presents for Keytone.”
“Furthermore, it validates Keytone’s quality product and manufacturing credentials and we look forward to working closely with Walmart China to support future demand and growing volumes,” he added.
US-based Walmart Inc wholly-owns Sam’s Club, which is an American chain of membership-only retail warehouse clubs, with 597 warehouses in the US and a further 208 internationally including Mexico, Brazil and China.
Keytone will manufacture the milk powder under the Sam’s Club China brand.
The first Sam’s Club was established in China’s Shenzhen region in August 1996, with China now hosting 18 warehouses across multiple provinces.
Sam’s Club offers bulk groceries and general merchandise. Products are either the best quality in their category or the best-selling brand.
Tonik available at EzyMart
In addition to the Walmart China orders, Keytone revealed last week its wholly owned subsidiary OmniBlend Pty Ltd will distribute its functional lifestyle Tonik beverages across 200 EzyMart stores in New South Wales, Queensland, Victoria and South Australia.
Tonik will be stocked in EzyMart’s stores from next month.
The deal with EzyMart builds on OmniBlend’s existing national distribution agreement with Metro Petroleum, which has 225 sites around Australia.
In early morning trade, Keytone’s share price was up almost 9% to $0.485.