Keytone Dairy increases proprietary product range and boosts distribution

Driven by the increased proprietary product range and sales distribution network, the company expects sales to continue to gather momentum and scale over the next 12-plus months.

Keytone Dairy Corporation Ltd (ASX:KTD) has added a number of new distribution channels in recent weeks and intends to roll-out a number of new proprietary products throughout Australia and in Malaysia, a new international market for the company.

The company has increased its proprietary product range in retail stores throughout Australia with new Tonik Pro and Plant ranging nationally at key petrol and convenience channels including Caltex/Ampol, United Petroleum and Freedom Fuels.

Tonik Plant and Pro are also now stocked in stores at Coles and Coles Local nationally and are also in select retailers in Malaysia.

Aggressive strategy

The company continues to aggressively build its higher value, higher-margin proprietary products further diversifying its revenue base and building brand awareness.

This strategy and growth will continue into 2021 and beyond with further range reviews scheduled and occurring monthly.

While initial purchase orders in new distribution channels are immaterial in value, follow-on orders across many channels have been received highlighting the growing demand for the company’s products.

Expanding distribution

The company has secured ranging in 250 Caltex/Ampol, 320 United Petroleum and 55 Freedom Fuels outlets for Tonik Pro across Australia, totalling an additional 625 outlets for Tonik Pro in the key petrol and convenience channel for protein shakes.

Over the last two weeks, Tonik Plant and Pro has been stocked and ranged in more than 400 Coles and Coles Local stores nationally.

Tonik Plant has been ranged in Malaysia at 20 Village Grocer outlets across Kuala Lumpur and the Klang Valley.

On The Run has also confirmed ranging of Super Cubes products and Gran’s Fudge across all of its 145 petrol and convenience stores in South Australia

Under Keytone’s previously announced licensing agreement, Baileys non-alcoholic coffee flavoured milk drinks are now stocked in 683 BWS stores nationally.

The company has also partnered with national distributors Brackenbury Nutrition and Nutrition Systems for Tonik Pro and Plant.

While initial orders have totalled an immaterial sales figure of about $100,000 for these key distributors, follow on-orders have been placed within a matter of weeks of the initial orders.

“Demand is growing”

Keytone’s CEO Danny Rotman said: “Keytone’s proprietary products are on trend, on point and the demand is growing across Australia and internationally.

“The cut through and critical mass across multiple distribution channels, including grocery, independent grocery, petrol and convenience and gym channels is being achieved and the company expects sales to continue to gather momentum and scale over the next 12 plus months.”

“A tremendous amount has been achieved in a small period of time for the proprietary product suite and the company will continue to build out our range of branded products, working with key retailers, distributors and growing our footprint both in local markets and internationally ”