Wide Open Agriculture signs exclusive lupin protein distribution deal with Univar Solutions China

Wide Open Agriculture (ASX: WOA) has finalised an exclusive marketing and distribution deal with Univar Solutions China for the sale of its food-grade lupin-based proteins into the growing Chinese market.

The initial six-month agreement gives Univar the exclusive right to market, promote, distribute and sell Wide Open’s LP90 and BP80F proteins in China, with an extension of exclusivity up to 18 months subject to performance.

Univar is the world’s second-largest chemical and ingredient distributor, with $11.5 billion in sales in 2023 and deep expertise across key sectors.

Market strategy

Wide Open and Univar will work together to develop a market strategy targeting the premium ingredients sector and supporting sustainable, clean-label, high-functionality food innovation in China.

Univar will lead market testing, engagement and development efforts with customers, wholesalers and manufacturers in China to build commercial opportunities for the lupin protein range.

Univar Solutions China supports customers across mainland China and facilitates sourcing for Univar’s global operations, servicing a wide range of industries including food and nutrition, personal care, pharmaceuticals and advanced materials.

Terms of the deal

Univar must commit to a minimum purchase order volume of 50 tonnes of lupin protein isolate within the first 12 months of the deal and after the expiry of the six-month market preparation period.

The parties will agree on pricing after completing a sales review and other market development activities during the first six months.

As part of its market preparation, Univar must identify a minimum of three China-based food and beverage companies that have completed a sample production run of an item that uses Wide Open’s lupin protein as an ingredient.

Key step forward

Wide Open executive chair Yaxi Zhan said the Univar deal marked a key step forward in the company’s mission to become a leading sustainable protein supplier to high-demand markets.

“Univar Solutions China is a powerhouse in the global ingredient distribution landscape and partnering with them will give us a strong local presence and strategic capability to unlock real growth in one of the world’s most dynamic markets for plant-based protein,” she said.

Univar Solutions China general manager (Asia Pacific region) Will Wang said the company was keen to work with Wide Open on its unique plant proteins, sourced from sweet lupin grown in Western Australia.

“We believe this is a premium, high-potential product that represents a breakthrough opportunity for the Chinese market [and] we are keen to utilise our capability and know-how to provide an ingredient solution to our customers with the support of Wide Open,” he said.

Commercial applications

High-protein lupin isolate has proven commercial applications in protein powders, plant-based milk, yoghurt and ice creams.

Soy protein currently dominates the market due to its widespread use in food, drinks and dietary supplements.

However, there is growing demand for alternative, non-genetically modified and sustainable protein sources such as lupin.