Infant formula exporter Jatenergy expands to veggie-based skincare
Health & Biotech
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China-focused exporter Jatenergy made a name for itself selling infant formula – but has today expanded its product mix to vegetable-based skincare from fellow small cap Abundant Produce.
The two signed a supply deal today to sell products from Abundant Natural Health (ANH) — a subsidiary of Abundant (ASX:ABT) — into China.
Jatenergy (ASX:JAT) chairman Anthony Crimmins is also the CEO of Abundant.
“This is an exciting expansion of the distribution channel into the Chinese consumer marketplace,” ANH chief Shanan Birkin said.
“JAT will promote ANH’s scientifically developed, natural health range of face treatments and body creams and sprays to its vast consumer network in China.
“We intend to start fulfilment of the JAT supply immediately.”
Shares in both companies were buoyed by the news.
Jatenergy surging 9 per cent to 23.5c while ABT jumped 5.4 per cent to 39c.
The deal follows a succession of positive movements for the exporter, which last week announced a new China distribution agreement for its formula and other products.
Its Golden Koala milk formula acquisition — in the works since December — was finalised on Tuesday after it was passed by a general meeting of shareholders.