Wattle Health is all-clear to make baby formula for China, but exports need a final nod
Food & Agriculture
Food & Agriculture
The company that makes Wattle Health’s baby formula has renewed its Chinese manufacturing accreditation but Wattle is still waiting for the final nod it needs to begin exporting its products into the country.
The health and wellness company needs State Administration of Market Regulation (SAMR) accreditation to be able to export its infant formula to China, and it has been waiting a long, long time.
This morning it told investors that its manufacturer Blend and Pack had renewed its Certification and Accreditation of the Peoples Republic of China (CNCA) for the manufacture of infant formula.
That sent the shares up nine per cent to as high as 99.5c.
For infant formula, there are 15 manufacturers in Australia with CNCA approval and 39 SAMR approval ‘slots’ available for Australian brands.
Wattle is a shareholder in Blend and Pack, and says it is the nominated brand for the first SAMR approval slot. It says this “allows [us] to move forward with [our] China plans with confidence”.
“Wattle Health has complied with all requirements to obtain SAMR accreditation and remains confident of obtaining the necessary accreditations,” the company told investors.
Wattle lodged its application in October 2017 but is still waiting.
It gained approval in August last year to sell baby food, but since the start of 2018, SAMR approval is needed to import milk powders into China.
Under those new rules, up to three infant formula brands can be made at any one facility.
“This further increases our brand awareness in the highly lucrative Chinese market and generate additional sales across WHA’s extensive distribution network in China,” the company said of its baby food approval at the time.
“This will also assist in sales of WHA’s infant formula range in China, once WHA obtains State Administration for Market Regulation (SAMR, formerly known as CFDA) accreditation.”