Despite the COVID-19 global pandemic, Wide Open Agriculture (ASX: WOA) is experiencing continued sales growth due to supermarkets remaining open and soaring online orders via its Dirty Clean Food site.
According to the regenerative food and farming company, online sales volumes have rocketed more than 600% to 388 in March from 51 in February.
As a result, March revenue from online sales is predicted to be the highest in the company’s history.
Speaking with Small Caps, Wide Open Agriculture managing director Dr Ben Cole said official March quarterly figures are expected shortly, with the company anticipating its third quarter of growth to be underpinned by online sales.
Additionally, Wide Open Agriculture noted that its relationships with retailers remained solid, with more than 30 independent retailers experiencing “strong demand” for the company’s Dirty Clean Food products, which include regeneratively farmed 100% grass fed beef and lamb.
COVID-19 provides new growth opportunities
Although food service orders from restaurants and cafes have declined due to COVID-19 restrictions, this is expected to be more than offset by growth from retail and online channels.
The company’s supply chain remains open and unaffected by the global pandemic with farming partners continuing to meet demand for regenerative beef and lamb products.
These partners also anticipate being able to increase deliveries to match future growth. Additionally, Wide Open Agriculture noted it had experienced rising interest from other regenerative farmers seeking to supply to its brand.
As a result, the company is looking at diversifying its online product range.
“Our role in tackling the COVID-19 crisis is simple, we aim to offer people with continued access to safe, healthy food through supporting local farmers that are committed to regenerating their farmland,” Dr Cole said.
Dr Cole told Small Caps that Dirty Clean Food was the only regenerative farming brand in Australia, with the company’s goal to nurture the land used for farming by maintaining soil health and biodiversity.
He said there has been a shift in consumer sentiment to have a direct line of sight back to the farm through transparent supply chains and farming practices and this is what the company provides.
In addition to selling meat, Dirty Clean Food has an oat milk product in development and is also looking at creating a plant-based protein.
Poised to deliver once COVID-19 fades
Open Wide Agriculture’s traditional market to date has been supplying restaurant and food service sectors, including the Crown’s Rockpool Bar and Grill, Lalla Rookh and other niche bars and restaurants in Perth and regional Western Australia.
However, with the recent surge in online demand from both retailers and everyday consumers, Dr Cole said the company was poised to take advantage of all market segments once COVID-19 begins to fade and restaurants and cafes can host customers again.
Online orders continue to be delivered with appropriate physical distancing measures across Perth and its northern and southern suburbs.
Meanwhile, the company’s products can also be found at IGAs, Farmer Jacks, and other independent retailers in WA.