Meluka’s honey flying off the shelves in China
Health & Biotech
Health & Biotech
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Special Report: Meluka Australia has chalked up another major milestone by selling out its entire second shipment of honey to China before it could be delivered.
Australian owned and operated health and wellness company Meluka Australia, a division of EVE Investments (ASX:EVE), is staking its claim to be Australia’s next Capilano after gaining considerable traction in China with its latest sales update.
EVE, which sent its second batch of 21,120 units of native honey products during the June quarter, told the market on Thursday that the order had already sold out prior to its arrival in Shanghai. Following its partnership with Yandi Biotech in December last year, EVE has focused on expanding its distribution network and addressing what it sees as a formidable appetite for premium consumer goods in the Chinese market.
“The response to Meluka’s honey range in China and the additional re-order provides us with confidence about our strategy for the Chinese market and the Asian region,” EVE managing director Bill Fry said.
With a market cap of almost $30 million, EVE is focused on delivering growth and has employed a concerted expansion strategy over the last few months that has seen it increase its footprint in China. The Company delivered its first shipment to China in March this year, and was sold out within weeks, with the second order received soon after.
All were pre-sold by Meluka’s Chinese distributor, Yandi Biotech, a leading Chinese green life and health care distribution company with over one million members in its distribution network.
With the second order selling out rapidly, Yandi has already placed a third order for another 21,200 units of native honey
The successful shipments and growing traction provide validation for EVE’s strategy to expand its range of consumer honey products internationally, with China being a key strategic market for growth going forward, according to EVE managing director Bill Fry.
“Having only launched in China in mid-May this year, the response to Meluka’s honey range has been overwhelmingly positive and provides exceptional validation for our best-of-breed honey range at a time of increased macroeconomic uncertainty in global markets,” Fry told Stockhead.
“Now, with this additional re-order, EVE has the confidence to proceed with a targeted strategy for the Chinese market and the Asian region, both in terms of expanding our existing product range and tapping into the significant unmet demand we are seeing for premium honey products across Asia Pacific.
The momentum doesn’t look to be slowing any time soon. Meluka Australia is also expecting it will soon receive its first order for its Tea Tree Honey product in China. The company sent a test shipment for the Tea Tree product in June, and following strong preliminary interest, is engaged in commercial discussions to progress the shipment to China.
With global trade among the many functions impacted by COVID-19, EVE has positioned itself to ensure manufacturing continues to operate as normal.. Despite the operating climate, EVE says there’s been no issues with freight, shipping and logistics services thus far.
“We look forward to seeing continued growth in the orders by our distribution partner Yandi, and the expansion of these to include the Meluka Australia Tea Tree Honey in the near term,” EVE’s Bill Fry added.
Following the news, EVE’s shares were up by 37.5% on Thursday, reaching a total of $0.009 on the ASX.
This article was developed in collaboration with EVE Investments, 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.