Benchmark secures renewal of key strategic sales and marketing agreement with Great Salt Lake artemia cooperative
Benchmark announces that its wholly owned subsidiary, INVE Aquaculture Holding BV (INVE), has successfully renewed its sales and marketing agreement with the Great Salt Lake Brine Shrimp Cooperative, Inc (GSL COOP).
Under this long-term agreement, the Benchmark group maintains its rights to distribute a substantial share of the GSL COOP’s harvest of artemia from the Great Salt Lake, Utah, the world’s greatest source of brine shrimp, a natural live food widely used by the aquaculture industry in early stage nutrition.
Historically, artemia supplied under the sales and marketing agreement has 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 secures the Company long-term access to the world’s top quality artemia, which, as well as providing significant revenues from direct sales, creates demand pull for INVE’s portfolio of aquaculture hatchery feeds and health products.
Alongside continuation of the sales and marketing agreement, INVE has 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, which are on track to be launched in early 2020. The distribution agreement with the GSL COOP provides Benchmark with access to additional distribution channels and customers for INVE’s artemia-related products, and will contribute to growth in sales from 2020 onwards.
Both the sales and marketing agreement and the distribution agreement have an initial 10 year term. Under the sales and marketing agreement GSL COOP has a 5 year break clause in certain circumstances related to new product development.
The sales and marketing agreement secures long-term access to the best quality artemia available globally, from a responsibly and sustainably harvested source.
“We are extremely pleased to be continuing with and building on our important relationship with the GSL COOP. Access to the GSL COOP’s customer base will compliment 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.”