East Imperial shares soar on landmark contract with Chinese distributor
[source: East Imperial]
( ), a producer of ultra-premium beverages, announced this morning the signing of a long-term distribution deal with Wen Hua Hang Wine Spirits Company (WHI), one of the largest distributors in China. WHI will supply East Imperial's entire range across the Chinese Mainland and Macau. Shares in the company soared 40% on the news.
East Imperial already has an established presence in China, having worked locally with groups such as Ritz-Carlton, Bulgari, W Hotel, Rosewood, and Capella Hotels. The WHI partnership will enable East Imperial to continue building its presence at the luxury hotel end of the market, while also focusing on local premium customers, the company said.
East Imperial said the partnership with WHI is part of its tailored approach in China. The company said it has worked very closely with members of the WHI advisory board, to ensure it fully understands and can properly cater to the Chinese market.
Tony Burt, CEO & Founder of East Imperial, commented:
"The distribution deal with WHI offers us a fantastic opportunity to grow in the premium Chinese market and consolidate our market share in the valuable APAC region. We are a company born out of the East, and it remains the cornerstone of our identity and a market to which we are fully committed. I am incredibly excited to bring our products to the discerning Chinese consumer and look forward to working with WHI as we put into practice our strategy for growth."
Jason Ieong, CEO of WHI, said:
"As one of the leading distributors in China, we are pleased to work with premium brands like East Imperial, and we are delighted that the company recognises the value that WHI can bring to their brand, especially with our deep expertise in the premium segment. We are proud to offer East Imperial's products, which are steeped in tradition, authenticity and originality, to customers in China, and we look forward to a mutually rewarding partnership with them."
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Investors cheered the news, sending shares soaring 40% this morning. Shares are now up 100% in the last month.
APAC remains the most important region for East Imperial, contributing 60% of sales in 2022. Today's announcement reaffirmed the company's commitment to APAC and China, closely following its new distribution partnerships with SUTL Group for the Singapore and Indochina region, and Leung Yick for Hong Kong.
The choice of WHI demonstrates East Imperial's commitment to understanding and tailoring its products precisely for the Chinese market. WHI has deep knowledge of the market, with 20 years of experience in building relationships with local Chinese luxury markets, and having previously assisted brands such as Pernod Ricard.
The company has also maintained focus on the US market, having signed a major long-term distribution agreement in January, following a £3.4m placing.
East Imperial reported strong results in its last 2 trading updates. In July's H1 update, the company reported a 32% increase in revenues YoY, driven both by new customer acquisitions and strong demand from its existing base. In APAC, sales were ahead of management expectations as Covid restrictions continued to lift in key markets. New Zealand and Singapore were back to pre-Covid levels of demand, and in the US revenue was 37% higher than budget. June was the company's strongest month ever for sales.
Similarly, in May's FY21 results East Imperial reported a 62% increase in sales, with an operating profit increase of 121%. The company also branched into the growing cold brew coffee market with its new Coffee and Tonic product.
As global demand for premium beverages and mixers continues to increase, the company is well-positioned for future growth.
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