Pure Foods Tasmania has launched contract manufacturing with Brilliant Food Australia, marking a significant step in utilising its Woodbridge Smokehouse facility and expanding regional employment.
- Contract manufacturing agreement signed and production commenced
- Initial products dispatched interstate, utilising existing infrastructure
- Cost-plus pricing model to ensure margin discipline and cost recovery
- Expected meaningful revenue uplift relative to FY25
- Brilliant Food Australia to invest $100,000 via placement, pending approvals
Contract Manufacturing Kickoff
Pure Foods Tasmania (ASX – PFT) has officially commenced contract manufacturing operations with Sydney-based Brilliant Food Australia (BFA) at its Woodbridge Smokehouse facility in Tasmania. The initial production runs began in late November 2025, with finished products already dispatched interstate, signalling a smooth operational start to this new partnership.
This arrangement leverages the existing Woodbridge infrastructure and workforce, enabling Pure Foods Tasmania to improve economies of scale and increase utilisation of its manufacturing footprint. For Brilliant Food Australia, the move represents an opportunity to overcome previous production bottlenecks and expand its reach beyond Sydney’s hospitality and specialty retail markets.
Financial and Strategic Implications
The contract is structured on a cost-plus pricing basis, designed to ensure Pure Foods Tasmania recovers labour, overhead, and operating costs while maintaining margin discipline. This approach aims to mitigate risks associated with fluctuating input costs, a prudent move given the operational complexities inherent in early production phases such as raw material sourcing and quality assurance.
Importantly, the contract manufacturing deal is expected to deliver a meaningful uplift in revenue for the Woodbridge site compared to the previous financial year, reflecting the increased throughput and utilisation. To support working capital needs and the production ramp-up, Brilliant Food Australia has agreed to participate in a $100,000 placement at 3.5 cents per share, subject to shareholder and ASX approvals. The shares will be escrowed for 12 months, aligning BFA’s interests with those of Pure Foods Tasmania shareholders.
Regional Growth and Job Creation
This partnership also carries significant regional development benefits. By relocating production from Sydney to Tasmania, Brilliant Food Australia is investing in the local economy and creating at least four new skilled jobs in production, quality assurance, and logistics. This move supports Pure Foods Tasmania’s broader strategy of enhancing asset utilisation and building sustainable, profitable revenue streams while strengthening Tasmania’s reputation as a high-quality food production hub.
Executive Chair Malcolm McAully emphasised the strategic fit of the agreement, highlighting its role in improving operating efficiency and supporting long-term growth. As production scales up, Pure Foods Tasmania plans to provide further updates, keeping investors informed on progress and outcomes.
Bottom Line?
This contract manufacturing deal marks a pivotal growth phase for Pure Foods Tasmania, with revenue gains and regional job creation set to reshape its operational landscape.
Questions in the middle?
- How quickly can Pure Foods Tasmania scale production to meet Brilliant Food Australia's demand?
- What operational challenges might arise during the early ramp-up phase and how will they be managed?
- What impact will the $100,000 placement have on Pure Foods Tasmania’s capital structure and shareholder value?