Nutritional Growth Solutions (ASX: NGS) is reaching new heights on their growth chart with expansion into global markets, confirming the launch of their proprietary Healthy Height® shake range in Chemist Warehouse in China.
Addressing an overlooked subset of the nutritional supplement market, NGS creates clinically proven supplements to support healthy growth and development in children aged 3-12 years. Their proprietary formulations are the result of decades of medical research into paediatric nutrition to create a product with a large market opportunity, highly differentiated from its competitors. So far, the Company has commercialised both a nutritional shake and a snack bar in various markets.
Chemist Warehouse is Australia’s largest pharmacy retailer with stores also operating in New Zealand, China and Ireland. The non-exclusive supply agreement with NGS will see their Healthy Height® shake range stocked both in-store and online on the Chemist Warehouse China T-Mall Global online store. T-Mall is the largest and most reputable eCommerce platform in China giving brands access to millions of shoppers. The platform is fast becoming an essential strategy for many retailers wanting to enter the market.
The supply agreement comes after the appointment of a Commercial Director for China earlier this year.
Nutritional Growth Solutions CEO and Managing Director, Liron Fendell said: “We are excited to embark on this new partnership with Chemist Warehouse China and launching the Healthy Height® shake range across its high performing physical and online stores in China, especially online through T-Mall global where it has broken numerous sales records since its launch in 2015.”
“Whilst the agreement does not contain minimum order sizes and the Company cannot provide a revenue projection at this stage, this agreement represents a significant achievement for the Company as an important distribution channel into China.
“This agreement places us ahead of schedule for our medium-term expansion plans, now with a physical presence through a big-name stockist, a secured trademark to protect our brand, a production partner in New Zealand to manufacture, license, package and assist commercialisation in the Asia Pacific, and a newly appointed Commercial Director who is already making headways in the region.”
The growing focus on health has contributed to the rush to food supplements in China with more and more international brands such as Amway and Blackmores infiltrating the Chinese market. According to market experts, the sale of vitamins and dietary supplements has multiplied by 5 since the beginning of the COVID-19 pandemic. Whilst NGS holds a unique position within a niche, there is still plenty of opportunity to tap into the USD $22.3 billion market.
NGS reported record quarterly revenue of over USD $1 million, up 90% on the prior corresponding period and a strong cash position of USD $2.7 million as at June 30, 2021
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