‘Perfect Platform’: Roolife inks deal to sell Hydralyte into lucrative Chinese market
Food & Agriculture
Food & Agriculture
Roolife Group has sealed a deal to market, sell, and distribute the popular Hydralyte range of electrolyte-rich tablets, liquids, and powders in China.
Roolife Group (ASX:RLG) – a cross-border platform matching Chinese consumers with international brands and products — has inked a deal with The Hydration Pharmaceuticals Company Limited (ASX:HPC) to sell its products in China.
RLG is contracted to provide digital marketing, social media operations and e-commerce store operations with exclusive distribution rights for all online and physical store sales, including cross border e-commerce and general trade in China.
Under the terms of the initial 2 years 5 months deal, RLG will generate fees for the provision of digital marketing, social media and e-commerce store operation and receive a margin on all products it sells.
RLG says there will be periodic marketing investment reviews at which marketing spend, which is funded by HPC, may be increased or the parties may elect to cease activities.
The addition of the Hydralyte range further expands RLG’s offering in the lucrative online sports nutrition channel in China, where more than 80% of sales taking place via e-commerce.
RLG says the global health and wellness market was worth over USD$5.2 trillion in 2022 and projected to reach US$8.9 trillion by 2032.
And while the US is currently the largest sports nutrition market, China is catching up with rising health awareness among its population.
Implementation of China’s National Nutrition Plan (2017-2030) and the Healthy China 2030 campaign are forecast to drive the growth of sports and fitness activities and in turn sports nutrition products.
HPC is a well-known brand developed in Australia in 2001 to produce a range of electrolyte-rich tablets, liquids, and powders.
It has been growing its footprint in new international markets with an experienced management team and board.
HPC has exclusive rights to the Hydralyte brand in North and South America, Europe(excluding Turkey), China (excluding Taiwan) and Hong Kong.
RLG says it is not yet able to accurately forecast the quantum of expected Hydralyte products sales in China.
However, the company says the high profile and brand awareness of the Hydralyte range in Australia, the US and Canada is expected to drive awareness and sales in China and progressively contribute towards RLG’s annual revenue.
HPC CEO Oliver Baker said RLG has a highly capable sales and marketing offering and understanding of how to sell and promote a product to Chinese consumers, presenting the company with a unique opportunity to establish its Hydralyte brand in China.
“RLG’s well-established online sales channels and access to growing physical store network is the perfect platform to expand our presence in the China market,” he says.
RLG CEO Bryan Carr says the company was excited to add such a high-profile and proven brand as Hydralyte to its healthy, functional food and beverage portfolio in China.
Carr says RLG is continuing to grow out its online and physical store channels, servicing the high consumer demand for quality international products with China’s large, emerging middle class.
“We look forward to working with Hydralyte’s very dynamic team, extending their global sales footprint considerably by leveraging the growing awareness of health and wellness generally in China and the established trust and awareness for Australian wellness brands, making Hydralyte a great match for RLG and our capabilities in China,” he says.
While some of the economic news coming out of China recently may be sombre, Carr says China represents a great opportunity for high quality brands seeking growth and expansion.
“China’s GDP has just grown by 5.5% in the first half of the year and is still expected to deliver higher growth than most countries in the world for the balance of the year, so we actively encourage businesses interested in accessing this high growth market to connect with us and our new RLG Marketplace platform,” he says.
Along with expanding its product offering, RLG are continuing to build out more channels to market, having added distribution through ALDI, Ole and Alibaba’s HEMA supermarkets in addition to a new partnership with AULife for RLG Marketplace in China.
“We are putting together a matrix of food and health and wellbeing products with an expanding range of distribution channels which we expect will deliver solid growth for RLG and our client base and will continue to update the market accordingly on this progress,” Carr says.
This article was developed in collaboration with Roolife Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.