KEY POINTS:
Charlie's Group has sealed a deal to buy Gallard & Mirage Group - a juicing and bottling factory near Adelaide - giving the company a stronger foothold in the Australian market.
Gallard family interests will continue to supply fruit to the company.
Chairman Ted van Arkel said another announcement was likely this week, indicating it had signed a deal with a distributor that will see Charlie's juice sold in Japan.
Charlie's bought the Australian firm for A$681,230 ($781,000) and further investment will takes the deal to A$2 million - so in financial terms it is tiny.
But the deal is strategically important for the small, publicly listed firm.
Charlie's says it secures a source of fruit for the company as it increases sales in New Zealand and allows it to expand into Australia.
Chief executive Stefan Lepionka declined to discuss the scale of the increased marketing effort across the Tasman.
But van Arkel confirmed that the Gallard & Mirage deal marked a significant step forward. The deal finalised yesterday will allow Charlie's to drop bottling contracts with Australian beverage giants Berri and Golden Circle.
Lepionka confirmed those contracts with the two big Australian firms included a "gentleman's agreement" that limited his company's ability to expand into the Australian market.
The assets acquired allow juicing, processing, and bottling of fruit juices and smoothies at the Renmark site, near Adelaide.
Lepionka said that margins would improve with Charlie's changing into a fully integrated beverage company with control of fruit from orchard to bottle.
Van Arkel said expansion of the plant would allow it to manufacture the Charlie's bottled Not from Concentrate (NFC) range close to the fresh fruit source more cost-effectively.
"In turn, further investment will go into the Henderson site to make it a dedicated glass-filling production facility only for the current Phoenix Organics range and the upcoming Charlie's glass range."
Charlie's closed up 0.9c to 18.5c.
