Benchmark subsidiary renews Great Salk Lake agreement

Benchmark Holdings announced on Tuesday that its wholly owned subsidiary, INVE Aquaculture, had successfully renewed its sales and marketing agreement with the Great Salt Lake Brine Shrimp Cooperative.

The AIM-traded firm said that under the long-term agreement, the Benchmark group maintained its rights to distribute a substantial share of the GSL COOP's harvest of artemia from the Great Salt Lake, Utah.

It said that historically, artemia supplied under the sales and marketing agreement represented approximately 60% of INVE's total artemia sales, and generated revenues of over £30m in 2016.

The renewal of the sales and marketing agreement secured the company long-term access to the world's top quality artemia, the board said, which - as well as providing significant revenues from direct sales - created demand pull for INVE's portfolio of aquaculture hatchery feeds and health products.

Alongside continuation of the sales and marketing agreement, INVE entered into a similarly long-term distribution agreement with the GSL COOP for INVE's current and future artemia-related products and technologies.

INVE is developing a range of “breakthrough” artemia-related feed products, the board claimed, which were said to be on track to be launched in early 2020.

The distribution agreement with the GSL COOP provided Benchmark with access to additional distribution channels and customers for INVE's artemia-related products, and would contribute to growth in sales from 2020 onwards.

“We are extremely pleased to be continuing with and building on our important relationship with the GSL COOP,” said Benchmark CEO Malcolm Pye.

“The sales and marketing agreement secures long-term access to the best quality artemia available globally, from a responsibly and sustainably harvested source.

“Access to the GSL COOP's customer base will complement Benchmark's existing distribution networks for its developing artemia-related product portfolio, and is expected to create significant growth in sales across the Advanced Animal Nutrition division in the years to come.”

Both the sales and marketing agreement and the distribution agreement had an initial 10 year term.

Under the sales and marketing agreement, the board said GSL COOP had a five-year break clause in certain circumstances related to new product development.