Murray River Organics enters $1 billion breakfast cereal market

One of Australia’s biggest dried fruit processors has entered the highly competitive breakfast cereal market with eight new products.

Murray River Organics is rapidly expanding its range across Coles and Woolworths stores.

ONE of Victoria’s major dried fruit processors has entered the highly competitive muesli category with the launch of eight new organic products across Coles stores nationally.

Murray River Organics’ new product launch with the major supermarket marks its entry into the $1 billion breakfast cereal market.

The deal is estimated to be worth between $5-6 million annually, with the new product lines sold from today in 800 Coles stores.

Murray River Organics chief executive Valentina Tripp said the ASX-listed company had invested significantly in promoting its brand in Australia over the past nine months.

The product launches come less than four months after the company announced new multimillion-dollar deals with Coles and Woolworths.

The Sunraysia-based company is in the middle of an aggressive three-year restructure following years of losses tallying almost $72 million.

It has two properties on the market – Fifth Street at Merbin West and Nangiloc – worth a combined $20 million.

Sale proceeds are expected to reduce the company’s debt, which has been whittled back to $33 million from $53 million via a $25 million capital raising in February.

Murray River Organics chief marketing officer Tara Lordsmith said COVID-19 has spurred consumers to make healthier food purchases, making the company’s foray into breakfast cereals particularly timely.

“In addition to the organic muesli range, we will also soon be launching 11 new organic products in snacking and the pantry range to be available through Metcash for the IGA and other independent retailers,” Ms Lordsmith said.

“This builds on the March launch in Woolworths of Murray River Organic’s branded coconut and avocado oils.”

Murray River Organic shares were trading for 1.9 cents on Monday.

MORE:

MURRAY RIVER ORGANICS PINS HOPES ON LATEST CAPITAL SHARE RAISING

SUNBEAM DELAY PRICE INCREASES FOR GROWERS

MURRAY RIVER ORGANICS’ FIFTH STREET VINEYARD AT MERBEIN WEST ON THE MARKET