Roolife has expanded its deal with Shanghai No.1 Pharmaceuticals Pic: Getty Images.
Food & Agriculture
Special Report: Roolife Group has expanded its supply deal with Shanghai Stock Exchange-listed Shanghai No.1 Pharmaceuticals Company as it joined more than 250 Aussie companies at the China International Import Expo (CIIE) this week.
Roolife Group (ASX:RLG) subsidiary RLG Marketplace Pty Ltd and Shanghai No.1 Pharmacy signed a Memorandum of Understanding (MOU) witnessed by Australian Investment and Trade Commission, the Australian Consul General and Queensland Premier Annastacia Palaszczuk at the CIIE.
Under the MOU, RLG will provide the pharmacy several brands and products that it has the rights to market and distribute in China including Remedy Drinks, Fiji Kava, Hydralyte and RLG’s VORA health range.
RLG first announced in late August it had secured a $950k contract to source and supply products for Shanghai No.1 Pharmaceuticals.
The deal followed RLG’s partnership with China-focused e-commerce company AULife International announced in mid-August.
Under the MOU, the term of cooperation is for five years with sales order targets for the first year and aggregate five-year period. The products will be sold in China online and in physical stores of Shanghai No.1 Pharmacy.
RLG says transactions will be managed by individual purchase orders for products required, with the first new order being for RLG’s exclusive-in-China brand Remedy Drinks Kombucha.
The company says the first order is not yet material in revenue value but significant in providing a new channel and customer access for Remedy Drinks in China.
As a pharmaceutical wholesaler and retailer, Shanghai No.1 Pharmacy operates an extensive network of regular chain drug stores in China and an online marketplace
The company is part of the large state-owned Bailian Group and so presents a strong sales channel for marketing and distributing RLG’s international health, wellness, food and beverage products in China.
RLG says it has received media coverage in China, including coverage in the People’s Daily, highlighting its sales achievements and range of products, including its VORA health range and successful launch and positioning of Remedy Drinks Kombucha.
The CIIE is one of the world’s largest trade shows. Australian Prime Minister Anthony Albanese and Trade Minister Don Farrell were among Aussie dignitaries attending.
It is considered as a major initiative of the Chinese Government to open the China market to the world, with companies from more than 100 countries attending.
RLG CEO Bryan Carr says meeting directly at an event as significant as CIIE with its important sales partner Shanghai No.1 confirms the opportunity for international brands selling into China.
“It is fantastic to have the support of the Australian and Queensland governments recognising this business opportunity in China as we broaden the reach for our brand portfolio in the country,” Carr says.
He says Australia’s strong representation at CIIE acknowledges that China is one of Australia’s largest trading partners.
“The attendance of Australian Prime Minister Anthony Albanese emphasised the existing and still growing opportunities for trade between the two countries,” he says.
“Expanding and delivering these new distribution channels provides additional opportunities for growth for our partner health, food and beverage clients in China.
“This is confirmed and supported by receiving a first order for Remedy Drinks Kombucha and we look forward to continuing to expand on this first sales order.”
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.
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