Beston Global Food Company Limited announced that it has signed a Memorandum of Understanding (MOU) with KCG Corporation (KCG) in Thailand via which KCG will become a strategic investor in BFC and enter
into a long term supply agreement for the supply of its dairy, meat and alternative meat products into Thailand. The MOU is subject to mutual due diligence investigations which will be undertaken by both BFC and KCG over the next two months. The MOU which has been entered into by BFC and KCG recognises that a strategic partnership between the two companies can unlock further value for both BFC and KCG. Under the arrangements, KCG will become the official representative of and exclusive distributor of Beston products in Thailand and enable BFC to increase its penetration into ASEAN markets with its products. Thailand imports more than 10,000MT of manufactured dairy products each year from all over the world and has also been increasing its imports of dairy nutraceuticals in recent years (including Lactoferrin). KCG has identified the opportunity to take the meat and plant protein products produced by the Provincial Food Group (PFG), a wholly owned subsidiary of BFC, and distribute these products into Thailand and other ASEAN countries. KCG will also untap the potential of other BFC retail brands, in particular, Eigh+alkaline water and Immune+ Lactoferrin drinks, as well as exploring the opportunities for co-packing partnerships in Australia using BFC produced ingredients. The arrangement will help to provide supply security for KCG for Australian dairy
products.