OMG Group has entered into a five-year exclusive seller and distribution agreement with Japanese matcha producer Sandai.
The agreement will see Sandai supply OMG with 350 tonnes of premium ceremonial-grade matcha each year.
The deal will give Sandai, headquartered in Nagasaki, access to multiple channels for high-margin sales growth and will enable the company to capitalise on supply constraints in the matcha market.
“This is a significant strategic transaction for OMG Group, which positions us as a leading distributor of premium matcha products in the Australian market,” said group CEO Alex Aleksic.
“As part of our due diligence process in connection with the agreement, management has identified numerous high-margin sales opportunities through our multi-channel distribution platform, which are expected to contribute materially to group profits.”
Product development to incorporate Sandai’s matcha into OMG’s product line-up is underway, with the brand formulating OMG drink products and new matcha-infused flavours for the Blue Dinosaur healthy snack range.
As the exclusive supplier of Sandai in Australia, ASX-listed OMG will also seek to expand its presence in the wholesale distribution of raw matcha to commercial counterparties.
The wholesale channel is expected to contribute to near-term, high-margin revenues.
“The raw matcha manufactured by Sandai is a premium-grade product sourced from established tea farms in Nagasaki,” said Aleksic.
“On a recent site visit to meet the Sandai team – fourth-generation proprietors of a long-running family-owned business – I saw firsthand how their production processes are implemented with the highest standards of quality control.”
