Health food and beverage business Forbidden Foods (ASX: FFF) has clinched its largest purchase order from major retailer Costco Australia for the company’s Blue Dinosaur snack products.
Valued at $133,000, the agreement marks the third order from Costco since early last year from an ongoing distribution partnership with the multinational retailer.
Strong product demand
Management noted that the purchase order brings to light the solid demand for the Blue Dinosaur ‘Bites’ range which previously sold out across Costco stores, whilst also showcasing the ongoing strength in the partnership between the pair.
Forbidden Foods will now supply Costco with its recently launched multi-pack edition of its Bites range, which include new flavour profiles and updated product packaging.
Costco operates across 16 locations throughout Australia and New Zealand which could open the door for Forbidden Foods to expand within this network. Management believes the multi-pack format of the Bites range aligns with Costco’s market position as a low-cost, bulk-buy retailer for quality brands.
Broader distribution network
It added that Costco’s new purchase highlights the ongoing execution of the group’s strategy to build an expanded distribution footprint for its multi-brand portfolio, following its acquisition of the Oat Milk Goodness (OMG) business last year.
In particular, Forbidden Foods recently announced key ranging agreements for its OMG products across Woolworths and Ampol outlets in Australia.
Here, the company expanded its presence at Woolworths with its OMG coffee protein product hitting the shelves at 456 Woolworths supermarkets and metro stores. It also secured ranging of its OMG protein goods at 130 Ampol outlets within our nation.
Forbidden Foods is now eyeing additional product distribution agreements in the coming months as it seeks to convert other commercialisation opportunities within its target markets.
Forbidden Foods chief executive officer, Alex Aleksic, commented:
“The latest purchase order from Costco is another positive step in our strategy to establish Forbidden Foods as a leading multi-brand FMCG business, with a diversified distribution footprint and strong partnerships with major Australian retailers.”
Sales momentum builds
Costco’s latest purchase order builds on the company’s sales momentum so far in 2025.
More specifically, net sales for the first two months of the year surpassed $570,000 after jumping by 147 per cent from the previous corresponding period. Online sales of Blue Dinosaur products also rocketed by 145 per cent to nearly $215,000.
Forbidden Foods attributed this healthy performance to its multi-brand approach characterised by a larger and complementary product range and broader distribution footprint.
Separately, the group also pocketed $1 million from a recent placement to sophisticated, professional, and institutional investors as it looks to give its sales trajectory a shot in the arm.