RooLife Group surges ahead as RLG Coffee breaks A$1.0m in monthly sales

RooLife Group Ltd (ASX:RLG) has delivered a material step forward in its consumer brands strategy, reporting more than A$1.0m in November sales from its recently launched RLG Coffee line in China.

The achievement, which follows the brand’s introduction in late August, underscores the Company’s ability to rapidly scale proprietary products through a data driven, demand led and asset light operating model.

With distribution already spanning flagship online platforms, nationwide trade networks and expanding offline channels, the coffee vertical has advanced from initial entry to meaningful commercial traction within a condensed timeframe, reinforcing the depth of structural demand in one of the world’s fastest growing beverage markets.

Amid this acceleration, Managing Director and CEO Bryan Carr addresses several key questions regarding the commercial performance, operational drivers and longer term positioning of the coffee category within RLG’s broader growth agenda.

How should investors interpret the A$1.0m in November sales in the context of RLG Coffee’s overall growth trajectory?

The more than A$1.0m recorded in November represents a strong validation of the brand’s early traction across China’s major e commerce platforms and associated distribution channels.

Since the brand was introduced only in late August, the movement from initial product introduction to substantial monthly sales reflects both the strength of underlying demand and the effectiveness of our multi channel operating structure.

The Company has stated that, based on recent trading, this level of activity positions the vertical toward a double digit million dollar annualised sales run rate, providing a solid early foundation for further expansion and supporting the strategic approach of introducing proprietary branded products into high growth markets.

What are the primary drivers behind the rapid month to month scale of the RLG Coffee vertical?

The rapid escalation in sales has been driven by clearly defined operational factors.

The brand entered a structurally expanding market, with China’s coffee consumption rising at approximately 21% per annum since 2011, in contrast to the global average of around 1.8%.

Our distribution model spans JD.com, Tmall and Douyin, alongside nationwide general trade, supermarkets, convenience stores and specialty retail. Partner supported entry into offline café and foodservice channels provides additional reach.

The Company notes that expanded distribution, a growing SKU range and targeted marketing initiatives have collectively supported the scale achieved since launch.

“RLG Coffee is an example of our strategy in action – identifying demand, deploying data insights and rapidly introducing proprietary RLG-branded products into high-growth markets, indeed, one of the world’s most exciting consumer markets.”

How does the A$64m Supply and Procurement Agreement support the outlook for the coffee vertical?

The two year binding Supply and Procurement Agreement executed in September 2025, representing a minimum value of RMB 300m or approximately A$64m through to September 2027, provides a strong contracted demand base for the RLG Coffee business.

The update confirms that the strong November cash receipts reflect the early conversion of this contracted demand into monthly orders, which strengthens the forward visibility of volumes across the vertical.

This contracted demand sits alongside the organic performance achieved across online and offline channels and supports the Company’s focus on compounding volume and margin within the category.

“In November, sales from RLG Coffee exceeded A$1.0 million, only a few months after launch. Combined with the contracted demand under our A$64 million supply agreement, this provides growing confidence in the long-term value of this vertical to shareholders.”

How is RLG positioning the coffee category within its broader portfolio and long term strategic framework?

RLG Coffee is positioned as a core component of the Company’s strategy to build proprietary brands across high growth consumer markets, with the coffee vertical aligning directly with its model of data driven product identification and rapid deployment.

The category complements the Company’s broader focus across consumer goods, food and beverage and health and wellness.

With the early sales performance and contracted volumes contributing to a strengthening outlook, the vertical is expected to play an increasingly important role within RLG’s portfolio as execution continues across China and other fast growing markets.

“Coffee is becoming a core pillar of RLG’s growth targeting the food, beverage and health and wellness space.”

What operational factors give RLG confidence in the sustainability of growth in the coffee business?

Confidence in sustained growth is supported by the structural expansion of China’s coffee sector, which continues to develop rapidly and is forecast to generate more than US$20bn in revenues by 2025.

RLG has established a diversified distribution footprint across online storefronts, nationwide sub distribution networks and emerging offline channels, which together provide scalability and operational resilience.

The early conversion of the A$64m supply agreement into material monthly orders further reinforces the strength of forward demand. These combined factors provide the Company with a well defined basis for confidence in the continued growth of the vertical.

A strengthening platform for multi channel consumer expansion

RLG Coffee has transitioned rapidly from launch to scale, supported by structural market growth, strong consumer uptake and the early conversion of contracted demand under the A$64m supply agreement.

These elements contribute to a robust foundation for continued progression across the food and beverage category and further reinforce the Company’s broader strategy of deploying proprietary brands into high growth markets.

RooLife Group will continue leveraging its data driven approach, supplier relationships and multi channel infrastructure to advance its consumer portfolio across China and other growth regions.

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