Shares of The Food Revolution Group Limited [ASX:FOD] are up in value by 23.81% this morning, after revealing that it had received China Inspection and Quarantine Certification (CIQ) for its Fruit Farm Orange Juice.
Today’s spike along with the group’s increase in share value over the past few months, has seen FOD gain back some of the ground it lost after its peak in early April 2016.
At time of writing, its shares are trading at 13 cents — down 51% from its high on 1 April 2016.
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What does China’s CIQ Certificate mean for The Food Revolution Group?
Recently FOD shipped a pallet of its Fruit Farm Orange Juice to Shanghai for the China International Import Expo — where it will have a booth together with its distributer Careline — where the product gained CIQ approval in just 10 days.
This means that FOD’s orange juice is now approved to be sold via physical stores in China.
FOD have said that the focus now is to gain CIQ approval for the remainder of the brand’s products.
FOD is well-positioned for future growth
FOD highlighted in their recent update that the certification — along with the company’s recent cold fill technology, designed to increase the shelf life of ambient juice — places the company in a very strong position to launch products into the Chinese market.
This is the first product that FOD have collaborated with Careline to gain CIQ certification for, with many more in the pipeline.
FOD said that this initial product gaining certification so quickly is critical for the company’s vision of selling food and food supplements into China.
This is a huge milestone for FOD, and by the sounds of it not the last. It’d be worth keeping a close eye on their upcoming progress with certifying other products.
For Money Morning
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