While milk powder has long been classified in the realm of infant consumption, its value in fact extends to the opposite end of the age spectrum, a trend that plant-based biotech company BPH Global (ASX: BP8) is aiming to capitalise on through a new pilot study in China.
The study for adult milk formula will take place in China, in collaboration with Nutura Organic, an Australian-based firm renowned for its nutrition products derived from Australian sourced milk.
The term sheet, a legally binding agreement between BPH Global and Nutura, outlines the acquisition of Nutura’s flagship product, the “Adult 60+ Milk Formula,” for the pilot study. This product, compliant with Chinese standards, marks Nutura’s entry into the vast Chinese market.
Driven by a commitment to explore opportunities in food products that align with Traditional Chinese Medicine (TCM) principles, BPH Global aims to gauge the market potential for Nutura’s Adult Milk Formula amongst consumers in China.
The study plans to infuse the milk formula with TCM-based ingredients such as sialic acid, nutraceuticals extracted from raw birds’ nest, and seaweed.
The pilot program is strategically designed to assess various aspects, including logistics, cost-effectiveness, and consumer demand. BPH Global will evaluate the feasibility and commercial viability of importing the Adult Milk Formula, incorporating TCM-based elements, and distributing the product through retail channels in China.
Key terms of the term sheet reveal an initial purchase of 3,500 units of Adult Milk Formula at an aggregate price of approximately $35,000. Nutura has offered a rebate to support marketing and promotional activities associated with the pilot study. Additionally, Nutura is tasked with ensuring that the Adult Milk Formula complies with Chinese standards.
The term sheet remains valid until the completion of obligations regarding the purchase order, indicating a commitment to ongoing collaboration between Nutura and BPH Global. Both parties are poised to explore future opportunities for supplying Nutura’s products in the Chinese market, focusing on the Adult Milk Formula infused with TCM-based ingredients.
The launch of this pilot study underscores the growing demand for specialised nutrition products among Chinese consumers. With an aging population and increasing health awareness, there is a burgeoning market for functional foods that offer targeted health benefits.
Furthermore, the integration of TCM-based ingredients resonates with Chinese consumers who value holistic approaches to health and wellness.
As the pilot study unfolds, BPH Global and Nutura Organic Ltd anticipate valuable insights that will inform future strategies for penetrating the Chinese market. With a focus on quality, compliance, and consumer satisfaction, this collaboration signals a significant milestone in the global expansion efforts of both companies.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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