Dairy companies make inroads in China

Three Australian dairy infant and nutritional foods companies have announced links which deepen their access to the growing Chinese consumer market.

Wattle Health Australia (ASX: WHA), Bubs Australia (ASX: CUB), and Jatenergy (ASX: JAT) have found strategic partners to open new distribution channels in what is the world’s largest market for nutritional dairy products.

Wattle will form a 50:50 joint ventuire with Nouriz Fine Food Co for the sale of Australian organic nutritional products sourced from Corio Dairy Group.

It will also develop opportunities for a range of organic milk powders produced by Wattle, including the creation of a new joint brand.

Wattle chairman Lazarus said Nouriz had strong on the ground presence and deep experience in the market.

Lazarud said: “With the Corio Bay spray drying facility on track for completion in the first half of 2020, the new JV will have access to a range of high-quality organic powders for sale into the China market.”

Nouriz, part of a large state-owned enterprise, sells a range of New Zealand sourced milk powders in China.

Today, Jatenergy signed a distribution agreement with Kigobaby to be the exclusive distributor in China of NEUIRO formulated milk powder with Lactoferrin and Sialic Acid.

The new powder adds to the 12 products in the Neuiro range which are made at the company’s Melbourne plant.

Meanwhile Bubs inked a master distribution agreement with Alibaba CIP for the launch of a new adult goat dairy brand in China.

With 700 million active users for Alibaba’s centralised import procurement initiative, the agreement envisages sales in the first year of $10 million.

The established CapriLac range and a new brand, Deloraine will be produced at the Bubs Australia manufacturing hub, Australia Deloraine Dairy in Victoria.

Bubs CEO Kristy Carr said: “With the experience of marketing our current adult product, Caprilac, we are confident in launching an expanded Deloraine adult goat dairy range.

“(This will) cater to the premium end of the segment with science based functional benefits, including being a high source of calcium, naturally A2 goat protein, Epidermal Growth Factor, and Tryptophan – which aids sleep.”

Picture: Corio Bay Dairy Group

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