Freedom Foods Group Completes Investment in JLL

Freedom Foods Group Limited (FNP, Freedom Foods or the Company or the Group) today announced that it has completed its investment into Shenzhen JiaLiLe Food Co. Ltd (JLL) to be operated as Australia’s Own Dairy Company China (AO China).

The Company has subscribed for an initial 10% investment in AO China for a consideration of RMB22 million (approximately AUD$4.5 million at current exchange rates). Freedom Foods retains an option to subscribe for up to 30% of AO China within 3 years from the date of the initial subscription

The new structure is the first major overseas investment for Freedom Foods into an existing company, providing a stronger strategic link between the existing local managed brand operations in China (sales, marketing, and distribution) and brand production in Australia (R&D, sourcing, processing, and manufacturing). The structure follows similar models established for successful cooperation between Chinese operations and Western companies.

The Company commenced production of “Australia’s Own” branded “Kid’s Milk” to support its launch in China in February 2015 under a long-term brand licensing arrangement with our Chinese partner JLL.

With significant ongoing marketing investment including point of sale promotion, sampling and sponsorship of leading national children’s TV programmes, the product has continued its strong growth trajectory, with the product now the largest imported kid’s milk brand in China where it is distributed.

The brand is well established in key cities and provinces in China including Hunan, Hubei, Zhejiang, Jiangsu and Guangdong. The business continues to build distribution and expand into provinces in Northern China.

The AO China business has continued to grow strongly since its inception, with sales in calendar 2018 estimated to be upwards of RMB300 million (AUD$60 million). The business has invested significantly in sales and marketing and is expected to be at a break-even profit at the end of calendar 2018.

AO China will continue to grow Australia’s Own branded Kid’s Milk products in China, as well launch other dairy products later in 2018, including a value-added milk product and ambient drinking yoghurt.

Freedom Foods and AO China will work together to utilise sales and merchandising resources to cross promote their product portfolios, including utilising common distributor relationships in key cities and provinces. The Companies will also jointly operate ecommerce cross border sales platforms to sell Australia’s Own branded dairy including A2 protein milk variants and infant formula branded products.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s