TasFoods (ASX:TFL) has revealed revenues from sales of its Meander Valley Dairy products have grown 100% compared to the previous period for the first three months after acquisition based on strong demand from Coles and Woolworths.
The Launceston based premium cream and dairy products processing company was acquired by OnCard International which became TasFoods in 2015.
Revenues for the three months were $700,000 with demand for cream products showing strong growth and part of a growth spurt for Australian dairy producers.
While traditional lines of premium creams and butter remain robust, the product range could be expanded in coming months which would see a relocation of the dairy operations to gain greater efficiencies and cater for the growth.
The company said new opportunities continue to emerge. This would begin to overcome the trumping of TasFoods' takeover offer for The Van Diemens Land Company.
TasFoods agreed to settle the case for $1.25 million to avoid protracted legal proceedings.
Rob Woolley, chairman of the company said was committed to developing the Tasmanian branded food company, and that the results from Meander Valley show that demand for quality Tasmanian food products remains strong.
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