Following a successful exhibition at the Supply Side West trade show in Las Vegas, US, last week, Eevia Health (”Eevia” or ”the company”) received an order for the elderberry extract Feno-Sambucus™, corresponding to SEK 34.4 million in order value. The order is a new contractual volume section related to a five-year sales agreement with a US brand owner.
Eevia has received a call-off for quantities for November 2022 – December 2023 for Feno-Sambucus, an elderberry extract product. The value of the call-off equals a revenue of SEK 34.4 million. The customer uses the elderberry ingredients from Eevia in nutraceutical formulations for sales primarily in the US market. The new order makes it the largest order ever received since Eevia went public, succeeding the previous largest order of SEK 8m over three years that was communicated the 9th of March this year.
According to the global food and agriculture intelligence service Tridge1, the US is the number #1 importer of value-added elderberries, with a total import value of USD 1.7bn in 2021. Furthermore, the import value in the US has grown 59% over the last five years. Thus, this trend supports Analyst Group’s view that Eevia will continue to grow as the company’s target markets are growing rapidly. Additionally, Eevia’s end customer is an internationally recognized brand leader in the marketplace with a global footprint. The group had sales of USD 1.4bn in 2021. It offers over 500 premium dietary supplements, including single herbs, vitamins, minerals, and specialty formulas sold under the Company’s well-recognized brands in over 60 countries.
”This call-off secures an important part of our order book and sales revenues going into 2023. We have improved our yields and productivity and adjusted the margins so that we can expect acceptable profitability for this volume,” says CEO Stein Ulve.
Eevia initially entered the sales agreement on June 11th, 2021. The new volume sections of the sales agreement, which the parties refer to as “Programs,” are contracted at adjusted prices. The reason is that the new program will consume raw materials purchased at different prices than the earlier programs. All raw materials for this order have already been purchased and are in stock in Finland.
Value Added Elderberry Global Imports and Top Importers – Tridge