Pure Foods Tasmania Expands Coles Distribution as Turnaround Strategy Gains Traction

Pure Foods Tasmania (ASX: PFT) has achieved a major milestone in its turnaround strategy, with its Tasmanian Pâté brand now ranged in approximately 700 Coles supermarkets nationwide.

The expanded distribution more than doubles the brand’s previous footprint of 300 stores, with initial September orders exceeding ten times the monthly volumes recorded between June and August.

Executive chair Malcolm McAully said the rollout represents a vote of confidence from one of Australia’s leading retailers and provides a strong foundation for the company’s next growth phase.

Strengthened Revenue Base

Pure Foods has already shipped orders under the new arrangement across Coles’ national network, and expects further stores to come online over the coming weeks.

Based on current demand, the company forecasts the expansion will contribute an additional $500,000–$600,000 in annualised sales, lifting Tasmanian Pâté’s revenue base by about 15% relative to FY25 levels.

Mr McAully said the performance reinforces consumer appetite for premium Tasmanian products and validates the company’s strategy of focusing on higher-margin categories rather than chasing low-value volume.

The Coles expansion adds a national growth driver to Pure Foods’ portfolio, complementing its established brands Woodbridge Smokehouse, Daly Potato Co and The Cashew Creamery.

“FY26 marks the beginning of a new chapter for Pure Foods Tasmania—one defined by growth, profitability and lasting shareholder value,” Mr McAully said, adding that the combination of a stronger balance sheet, renewed retailer partnerships, and early sales momentum places Pure Foods in its best financial position since listing.

Turnaround Momentum Builds

The strong retail performance follows a comprehensive financial reset completed last month that saw Pure Foods convert $1.2 million in debt into equity, raise $1.76m through a placement, and refinance borrowings to extend maturities.

The recapitalisation reduced liabilities and improved liquidity, while allowing the company to concentrate fully on profitable growth initiatives.

Pure Foods increased gross margins from 1% to about 16% in FY25, despite revenue declining to $5.2m as it exited unprofitable sales lines.

Mr McAully said the shift marks a deliberate move toward sustainable profitability, rather than chasing volume for its own sake.

“Our focus is on disciplined cost management and value creation for shareholders—the results so far show that strategy is working,” he added.