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AAA - ArcAroma AB News Story

SEK24 -0.2  -0.8%

Last Trade - 16/04/21

Sector
Industrials
Size
Micro Cap
Market Cap £25.6m
Enterprise Value £23.0m
Revenue £232k
Position in Universe 1306th / 1831

ArcAroma AB: 210104 Breakthrough for ArcAroma in China, partner up with ZhongWu, market leader in China to explore the “Super Juice” market in China

Mon 4th January, 2021 7:30am
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Press release 2021-01-04

ArcAroma is pleased to announce that we have signed a strategic partnership
agreement with ZhongWu on the joint development of the “Super Juice”
market in China. Target to sell at least 40 CEPT® systems, with a Net Sales
value of 140 MSEK in the coming 3 years. At the signing of the agreement,
ZhongWu buys a juiceCEPT®plus for 3 MSEK.

ZhongWu is a Chinese company focused on the R&D and commercialization of
sterilization technology and related processing equipment in various
industries such as dairy, juice/beverages, food, drugs, etc. ZhongWu is an
affiliate company of ZhongYa Group, a Chinese publicly listed company and the
largest bottling & packaging solution provider in the dairy, beverage, juice,
food oil, household chemicals, and other liquid products in China. ZhongWu &
ZhongYa together provide turn-key solutions to over 300+ juice/beverage
clients in China including major tier-1 brands such as NongFu Spring, Wahaha,
Coca-Cola, Nestlé, COFCO, Danone, Yili, Cargill, Yihai Kerry, Arla, etc.

The partnership with ZhongWu targets the co-development of the significant
potential of the Premium juice market in China. The first step is to jointly
establish a “China Super Juice R&D Center”, which aims to validate various
types of Premium juices based on ArcAroma’s juiceCEPT®plus system to obtain
the local industry acceptance of the process and consumers qualifications.
ZhongWu will immediately buy a juiceCEPT®plus Odin system after signing the
partnership agreement. ArcAroma and ZhongWu target to sell at least 40
juiceCEPT®plus systems during next three years with a Net Sales value of 140
MSEK.  When ArcAroma Shanghai reach a sales volume of 100 CEPT® machines per
year local production will be considered.

There is significant growth potential in the Premium juice market in China. As
per the statistics by Frost & Sullivan, in 2019 the total juice market is 144
billion RMB in China, the Premium juice market is  around 7% share. However,
the Premium juice market grows at 13% per year in average while the
traditional juice at only 0.4%. As a reference the Premium juice market share
in Japan is now 30% and that indicates the level that China might reach.

“We are glad to enter the partnership with ZhongWu for the Chinese Premium
juice market, says Kevin Chen, Managing director of ArcAroma Shanghai. ZhongYa
& ZhongWu is the solution provider behind major juice/beverage brands in
China. Their strong local team with significant resources and connections with
major brands will be a perfect match for ArcAroma. The partnership will not
only provide ArcAroma an efficient marketentry to tier-1 juice brands in
China, but also to other key markets such as food oil, dairy, health and
household chemicals, etc.”

“The partnership with ArcAroma will be important for our clients to
accelerate the market launch of Premium juice products  for our clients, says
Tina Yang, CEO of ZhongWu. We have been requested to find new solutions  for
ESL(Extended shelf life) of Premium juices and we have identified the
juiceCEPT®plus from ArcAroma as a perfect choice in various aspects. We look
forward to jointly establish the “Super Juice” R&D center in China and
scale up the Chinese Premium market together with ArcAroma.”

“It is with great satisfaction that a collaboration with ZhongWu is now in
place. Wiser with Kevin Cheng as leader has done a fantastic job to make this
agreement. ZhongWu immediately shows that they believe in our concept by
ordering initially one juiceCEPT®plus ODIN with an order value of 3 MSEK for
immediate delivery. Now we have the best basis to establish juiceCEPT®plus &
juiceCEPT® for ESL and improved extraction in the Chinese beverage market.
ZhongWu with the parent company ZhongYa behind secure the conditions for
accelerated growth. ZhongYa is in China said to be the equivalent to Tetra
Pak. The goal is to sell around 100 juiceCEPT per year in China in 5 years. We
will also establish the “Super Juice” concept in Asia with China as a
platform” says Johan Möllerström, CEO of ArcAroma AB.

For more information, please contact:
Johan Möllerström, CEO
(+46) 768 – 86 81 78 
Johan.mollerstrom@arcaroma.com

This information is such information that ArcAroma AB (publ) is obliged to
make public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set above,
at January 4, 2021 at 08.30 CET.

About ArcAroma AB (publ)
ArcAroma has developed a patented technology that controls and applies
electrical pulses to optimize various biological processes. The CEPT®
platform, which is a high-voltage generator combined with a treatment chamber,
uses the technology within FoodTech for increased extraction from the raw
material and extended shelf-life and increased quality of the final product.
Within CleanTech, the CEPT® platform is used for sewage sludge treatment and
biogas production. The platform uses short-term high-voltage pulses (PEF) that
crush the cell membrane and eliminate unwanted microorganisms.
Our vision is to contribute to a sustainable world by offering efficient green
cutting-edge technology that is easy to use in the areas of FoodTech and
CleanTech.

ArcAroma's shares are listed on NASDAQ First North Premier Growth Market. Erik
Penser Bank is Certified Adviser and is available at 08-463 80 00 or
certifiedadviser@penser.se.  www.arcaroma.com
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