Health and wellness products company EZZ Life Science (ASX: EZZ) is set to see its products sold throughout South East Asia having secured a major distribution deal for its human health products from Pinehills.
The five-year agreement, which commenced this month, is valued at a minimum of $15 million for the first 12 months, with an annual growth escalator.
Under the terms of the agreement, Pinehills will distribute EZZ-branded products, including maternal and infant health items, skincare, and cosmetics, across key markets in China, Vietnam, and other parts of Southeast Asia. This partnership is expected to significantly broaden EZZ’s market reach and customer base in these high-demand regions.
EZZ Life Sciences, known for its innovative genomic products, aims to leverage Pinehills’ established distribution network and expertise in cross-border international trade. The collaboration underscores EZZ’s commitment to growth and its strategic focus on expanding its footprint in Asia.
“We are delighted to announce this significant sales agreement with Pinehills,” said Glenn Cross, Chairman of EZZ Life Sciences.
“Pinehills has established a strong distribution platform into key markets where we see growing demand for EZZ’s expanding range of products. This agreement is a testament to our commitment to growth and innovation, and we are confident that it will enhance our market reach and customer base as we collaborate further with Pinehills over the coming years.”
After the first $15 million of products are delivered to Pinehills in the initial 12 months starting May 2024, the annual purchase amount from Pinehills must increase by at least 10% each subsequent year until the agreement’s conclusion in April 2029.
Should Pinehills fail to meet the annual purchase growth requirements, EZZ retains the right to claim all costs and losses incurred.
Founded in 2022 and headquartered in Hong Kong, Pinehills excels in the distribution of maternal and infant health products, skincare, and cosmetics with a sales distribution network across China and Southeast Asia and is well-positioned on major online marketplaces and online-to-offline (O2O) distribution channels.
This landmark deal marks a significant milestone for EZZ Life Sciences, reflecting its strategic expansion efforts and the growing demand for its products in Asia. The collaboration with Pinehills is expected to not only boost sales but also enhance EZZ’s brand recognition and consumer reach in the region.
Mitch Korver is a Business Writer focused on high-growth companies listed on the ASX in the small and medium cap space.
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