Ann: Entry into Manufacturing Agreement with Sprout Organic, page-5

Saw an announcement on AHF today - vegan infant formula! Really?

Don't get me wrong, they need the business and all, and there actually is a market for it. But has their facility ever manufactured plant-based products before?

I'm no expert but my understanding is that you don't simply manufacture plant-based powder and milk powders in the same equipment / facilities without requiring some investment to support this dual usage.

As a very relevant case in point, Synlait invested copious amounts of $$$ establishing plant-based manufacturing capacity at its Pokeno facility for a large multinational customer, only to find that the orders never eventuated at the scale to make it worthwhile. It's one of the factors that nearly sank them.

So how much will this cost AHF in terms of manufacturing ? And all for a non-exclusive manufacturing agreement with no material financial benefit in the near future..