OMG Group to Distribute 350,000kg of Premium Matcha Annually Under New SANDAI Agreement
OMG Group has inked a five-year exclusive distribution agreement with SANDAI, a premium Japanese matcha producer, positioning itself to capture significant growth in Australia’s expanding matcha market.
- Exclusive five-year supply agreement with SANDAI for 350,000kg of ceremonial-grade matcha annually
- Multi-channel distribution strategy targeting grocery chains, cafes, and ecommerce
- Plans to integrate SANDAI matcha into OMG’s existing product portfolio
- Wholesale distribution channel to commercial customers expected to generate near-term revenues
- Global matcha market valued at US$4.3 billion in 2023, projected to reach US$7.43 billion by 2030
Strategic Partnership Unlocks Premium Matcha Market
OMG Group Limited (ASX – OMG) has announced a significant strategic move by entering into an exclusive five-year supply and distribution agreement with SANDAI Group, a premium ceremonial-grade matcha manufacturer based in Nagasaki, Japan. This agreement grants OMG exclusive rights to distribute 350,000 kilograms of SANDAI’s high-quality matcha annually within the Australian market.
The deal not only secures a steady supply of premium matcha but also positions OMG to leverage multiple sales channels, including major grocery chains, café networks, and direct-to-consumer ecommerce platforms. This multi-channel approach aims to maximise market penetration and capitalise on the growing consumer demand for health-oriented products.
Premium Product Meets Growing Consumer Demand
Matcha’s rising popularity is underpinned by its health benefits, including high antioxidant content and compounds that promote focus and calm. OMG’s CEO, Alex Aleksic, highlighted the quality of SANDAI’s matcha, noting the rigorous production standards maintained by the fourth-generation family-owned business. This partnership aligns well with OMG’s existing health and wellness product range, including its Blue Dinosaur and Oat Milk Goodness brands.
OMG plans to incorporate SANDAI matcha into new product launches, including matcha-infused flavours, thereby expanding its portfolio and appealing to health-conscious consumers. Additionally, the company intends to develop a wholesale distribution channel targeting commercial customers, which is expected to generate high-margin revenues in the near term.
Market Opportunity and Future Outlook
The global matcha market was valued at approximately US$4.3 billion in 2023 and is forecasted to grow to US$7.43 billion by 2030. OMG’s exclusive access to SANDAI’s premium matcha supply places it in a strong position to capture a meaningful share of this expanding market, especially given ongoing supply constraints that have limited availability.
While the announcement does not provide detailed financial forecasts, the company’s confidence is evident in its ongoing discussions with key counterparties and the anticipation of first sales commencing imminently. Investors will be watching closely to see how quickly OMG can translate this agreement into tangible revenue growth and product innovation.
Bottom Line?
OMG’s exclusive SANDAI matcha deal sets the stage for a potentially lucrative expansion in Australia’s premium health food sector.
Questions in the middle?
- How quickly will OMG convert the supply agreement into significant sales revenue?
- What new product innovations will emerge from incorporating SANDAI matcha?
- How will OMG’s wholesale distribution channel develop amid competitive pressures?
