Keytone Dairy Launches Proprietary AMF Product & Secures First Order
- Keytone Dairy launches its first ‘wet product’ – Anhydrous Milk Fat (AMF)
- Launch signals entry into US$2.6 billion global AMF market
- Production is to be outsourced, with Keytone Dairy signing a production agreement with Bakels Edible Oils, New Zealand’s leading supplier of edible oils
- Capacity of up to 400 tonnes over 12 months available to Keytone Dairy, without a corresponding minimum order obligation
- First order for Keytone Dairy’s AMF product received from international food service supply company, Tehmag Foods Corporation, Taiwan
- Launch is representative of Keytone Dairy’s ‘four-pillar’ growth strategy, expanding across products and geographies and recalibrating production to proprietary products
Keytone Dairy Corporation Ltd (ASX: KTD) (“Keytone Dairy” or the “Company”) is pleased to announce it has launched its first ‘wet’ product, KeyDairy® Anhydrous Milk Fat (“AMF”) in 18kg tins for the food service channel. The Company has already received its first customer order for its AMF product totalling AU$245,315 (US$182,250) from Taiwan’s leading supplier of bakery ingredients, Tehmag Foods Corporation, Taiwan (“Tehmag”).
KeyDairy® Anhydrous Milk Fat is being produced for the food service channel, targeted at its core market of Greater China and South East Asia, following a comprehensive market assessment and in line with the Company’s ‘four-pillar’ growth strategy. During development of the product, the Company tested the market by sending customers samples and is launching the product in response to the positive reaction and demand from these customers.
The Company’s existing manufacturing facilities in New Zealand are geared for production of ‘dry’ products only. In line with the Company’s growth strategy Keytone Dairy is utilising its brand and marketing channels for other synergetic products and has entered into an outsourced manufacturing and packing contract for the AMF product range with Bakels Edible Oils (“Bakels”), New Zealand’s largest supplier of edible oils.
Under this agreement, Bakels will guarantee the Company a minimum supply of up to 400 tonnes of the product over the next 12 months. Keytone Dairy has not, however, committed to a minimum order level.
Keytone Dairy’s first customer order for its AMF product has been received from Tehmag with the full order is due for shipment in August 2018.
Tehmag is a Taiwan-based listed company principally engaged in sales of bakery ingredients. Tehmag has offices in Taiwan, China, Hong Kong, Thailand and Malaysia. The Company mainly distributes its products in the domestic market. It has 12 product verticals and works with more than 35 brand partners, now including Keytone Dairy.
AMF contains at least 99.9% milk fat and only requires ambient storage. This makes it more convenient and cost effective than equivalent butter products (which require cold storage) and makes it ideal for the logistics of food service users. Traditionally this product has been used for butter making or exporting to bulk industrial manufacturers. With the rapid growth of bakery and food & hotel services in Asia, the demand for smaller packs of AMF is expanding, as the product doesn’t require cold storage and is light enough for individual handling without the use of specialised equipment. Already well-known in India and the Middle East, AMF is meeting growing acceptance in the bakery industry in China, Hong Kong and Taiwan because of its flavour in pastry and cake making.
According to the IMARC’s 2018 study “Anhydrous Milk Fat (Butter Oil) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023” the global anhydrous milk fat market grew at a CAGR of 4.7% during 2010 – 2017, reaching US$2.6 billion in 2017. Some of the key factors driving this demand include ease of transportation and storage, flourishing food manufacturing industry, population growth, increasing disposable incomes, changing dietary habits and rising demand from developing markets. AMF is a truly global export, with the top global markets being China, South East Asia, Mexico, the Middle East, India and the United States respectively.
The successful launch of the KeyDairy AMF product is validation of Keytone’s four-pillar growth strategy as of the Company’s expands its product range, recalibrates its production mix to proprietary products and extends its distribution into new geographies and markets.
About Bakels Edible Oils
Bakels Edible Oils, a member of the International Bakels Group, is New-Zealand’s largest supplier of edible oils. Bakels is strategically located in Mount Maunganui, New Zealand’s major export port. Today Bakels Edible Oils is a 24/7 Oil Refining operation, employing in excess of 100 staff and manufactures a range of products for the Bakery, Foodservice, Industrial food processing, Dairy infant nutrition and Retail markets.
About Tehmag Foods Corporation, Taiwan
Tehmag Foods Corporation (TSX: 1260.TWO) is a Taiwan-based company listed on Taiwan’s emerging stock market and principally engaged in the sales of bakery ingredients. Tehmag has subsidiary companies in China, Hong Kong, and Malaysia. In China Tehmag runs and owns 50% of Zeelandia China. Zeelandia is a global bakery supplier with its HQ in the Netherlands. The Company’s main products include flour, pastry buns, chocolates, fillings, dried fruits and cereals, additives, dairy products, frozen foods and others. It has 12 product verticals and works with more than 35 brand partners, including Keytone Dairy.
About Keytone Dairy Corporation Limited
Based in Sydney, Australia and Christchurch, New Zealand, Keytone Dairy is an established manufacturer and exporter of formulated dairy products. In addition to Keytone Dairy’s own brands, the company is a trusted production partner, contract packing for well-known brands in New Zealand and internationally. Keytone’s purpose built dairy production facility offers a wide range of dairy and nutrition packing solutions, meeting the diverse needs of consumers from different markets and cultures.
Keytone Dairy’s facility is certified with the New Zealand Ministry of Primary Industries, and Keytone holds a Certification and Accreditation Administration (CNCA) of the People’s Republic of China manufacturer registration, thereby enabling export of Keytone’s products to China. In addition, the facility holds a Halal certification from the Federation of Islamic Associations of New Zealand (an accredited body recognised by Islamic countries worldwide). Please visit www.keytonedairy.com for further information.
For more information please visit: https://www.keytonedairy.com/
For further information please contact:
Rod North, Managing Director
Bourse Communications Pty Ltd
T: +613 9510 8309, M: +61 408 670 706