THE Malaysia-based wholly owned subsidiary of ACE Market-listed Wellspire Holdings Bhd, a distributor of consumer-packaged foods and an online retailer of consumer-packaged foods in Thailand, has been appointed as an exclusive distributor of Cundo Food Co Ltd’s products in the high-growth, high-value territories of Malaysia, Singapore and Thailand.
Following the agreement inked with Wellspire Global Trading Sdn Bhd, Wellspire can continue to strengthen its regional market footprint by leveraging its wide portfolio of snack products and expanding its revenue streams.
Under this new deal, Wellspire will have the exclusive distributing rights to distribute Cundo chocolate-coated cake products in the designated regions.
As a start, the products distributed throughout the region include Cundo Cake (Milk Flavour); Cundo Cake (Strawberry Raspberry Flavour) and Cundo Cake (Chocolate Flavour). This agreement which marks Wellspire’s first distributorship rights beyond Thailand is valid for three years, from July 13, 2023 to July 12, 2026.
According to data published by Statista, a leading market and consumer data provider, the Confectionery & Snacks market in Southeast Asia is projected to grow by 18.47% (2023-2027) resulting in a market volume of more than US$3 bil by 2027.
Hebei-based Cundo Food is a well-established large-scale chocolate bakery products manufacturer with a registered capital of 67.47 million yuan (RM43.21 mil). It has a production base spread across 170 acres by housing two production workshops with a production building area of more than 90,000 sq meters.
With eight production lines, the company boasts an annual design capacity of 40,000 tonnes.
Cundo products are available in 31 provinces, municipalities and autonomous regions across China in addition to be made available at Wal-Mart, RT-Mart, Carrefour, China Resources Vanguard, Yonghui Supermarket, Auchan and other international and domestic key account stores.
“We are extremely excited to have secured our first exclusive distributorship for the region and we are truly appreciative of Cundo’s trust and confidence in our capabilities to expand the brand in Malaysia, Singapore and Thailand,” commented Wellspire’s CEO and executive director Mo Guopiao.
“This significant milestone will place us in a better position towards becoming one of the leading consumer-packaged foods companies in the ASEAN region.”
Citing Statista, Mo projected revenue in the snack food segment for Malaysia and Singapore to amount to approximately US$3.4 bil (RM15.86 bil) and US$336.9 mil (RM1.57 bil) respectively in 2023. The market is expected to grow annually by 7.9% and 5.41 (CAGR 2023-2028).
At the close of today’s market trading, Wellspire was up 1 sen or 1.25% to 81 sen with 3.02 million shares traded, thus valuing the company at RM577 mil. – July 13, 2023
