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Shares in OMG Group (ASX: OMG) spiked sharply higher today after the company revealed that Woolworths Group (ASX: WOW) has nearly doubled the number of stores stocking its key Barista Oat Milk product.
The shares more than doubled to a high of 1.5c but eased back to be trading at 1.3c each, up 85 per cent, at 2.37pm (AEST).
OMG, which was formerly known as Forbidden Foods, says Woolworths will be stocking the one-litre Barista Oat Milk in 900 stores nationally, up from 544 stores previously.
The company says the move provides “unparalleled exposure” and highlights strong demand for the product among consumers.
The Barista blend is billed as Australia’s only barista oat milk with no seed oils and is part of a range of products produced under the Oat Milk Goodness brand by the company which includes the flavoured PrOATein oat milk containing 20g of protein per serve.
Woolworths currently stocks PrOATein milk products in 466 Woolworths stores nationally.
“We are very pleased to have received this notice from Woolworths, highlighting their confidence in the OMG range and demonstrating the considerable sales potential of our product suite,” says Alex Aleksic, the CEO of OMG.
“The increase in store count marks another pleasing development across our broader multi-channel sales strategy, with momentum through a number of outlets.
“We are in advanced discussions with a range of new and existing groups to further this in the coming months and I look forward to providing you with updates as developments materialise.”
The upgraded Woolworths deal follows news last week that OMG’s Blue Dinosaur protein bars will be stocked by 7-Eleven stores in 750 locations Australia wide.
The latest agreements also are expected to build on a strong performance by OMG over the past year as net sales increased by 63 per cent to $4.13 million in FY25 compared with a year earlier.
The company posted record cash receipts of $1.656 million in the fourth quarter of FY25, up 42 per cent from the March quarter.
OMG says this has been underpinned by expansion of its ecommerce business, which delivered record-high quarterly online sales for Blue Dinosaur products of $568,496, a gain of 75 per cent on the March quarter.
OMG has today reaffirmed the potential of its strategy to focus on both traditional retail and the petrol and convenience channel to deliver “considerable sales growth” for the group.
OMG changed its name from Forbidden Foods in May this year after acquiring plant-based non-dairy business Oat Milk Goodness last year in a $3.4 million scrip-based deal.
Oat Milk Goodness was co-founded in 2019 by cricketer Steve Smith and business partners Tony Adams and Daniel Rootes.
The company’s home-grown oat milk products, which are free of industrial seed oils such as canola, rapeseed or sunflower oil that can cause inflammation, was acquired with annualised revenue running at $1.2 million at the time.
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