Australian Dairy Nutritionals Limited has announced it has entered into a manufacturing agreement with children’s nutrition company Sprout Organic Pty Ltd to produce intermediate and fortified milk formula base powder.
The non-exclusive agreement has an initial term of one year, with an option to extend for an additional two years, the company said in a news release.
Under the agreement, AHF will supply plant-based powder to Sprout Organic for the manufacture of its infant formula products.
Sprout Organic, based in Australia, is known for its organic, plant-based infant formulas and healthy snacks for children.
In a statement attributed to Australian Dairy Nutritionals, CEO Mahi Sundaranathan said the partnership aligns with the company’s capabilities in small-batch drying.
“We are excited to have Sprout Organic on board sourcing their plant-based powder from us to manufacture their quality infant formula products,” Sundaranathan said. “ADNL has small batch drying capability which is well suited for the needs of Sprout Organic.”
Sprout Organic CEO Selasi Berdie said the company was pleased to partner with an Australian-owned and operated manufacturer.
“Working with a quality Australian owned and operated manufacturer such as ADNL is a great strategic alignment for Sprout Organic,” Berdie said.
“Their agility and innovative nature whilst maintaining stringent organic standards made them an optimal contract manufacturing partner.”
AHF stated that the agreement is not expected to have an immediate material financial impact, but highlighted the potential for growth.
The company noted that Sprout Organic is a leading brand in the global plant-based infant formula market, presenting an opportunity to expand its infant formula processing volumes through the partnership.
The company said there are no other material conditions or information that would affect the value of its securities, and the announcement was authorised by the AHF Board.
