The joint venture has formally secured countrywide distribution through Australia’s largest pharmacy giant, Chemist Warehouse.

But we’ll get to that in a jiffy.

It’s already been a busy year for the diversified health and wellness company, and the massive distribution agreement is just one part of an increasingly exciting narrative.

Wellnex Life (ASX:WNX) delivered its first headline coup of February, with this morning’s launch of the latest brand in its market-leading product suite.

WNX is going live in-market with Ocean Road Dairies, the first organic A2 infant formula range using home-grown Australian milk.

The company’s latest product is the result of its joint venture with ASX-listed Australian Dairy Nutritionals Group (ASX:AHF), first announced in December last year.

The agreement leans right into the clear and respective strengths of both companies.

The new, highly-targeted infant formula range is manufactured out at AHF’s state-of-the-art facilities in Victoria – giving WNX the ball on sales & marketing through its established and, yes, market-leading distribution network.

Wellnex Life shares responded strongly to the news, up 18% in morning trade.

Ocean Road Dairies

The brand name is tied directly to the production process, where the organic A2 milk they’re so crazy for in China, is sourced from AHF’s pristine farms surrounding the world famous Great Ocean Road.

The infant formula will be processed at the company’s new facility in Camperdown, just 20 minutes from its farming properties.

The result is a leading product in the lucrative infant formula market, with the added advantage that it represents a premium-quality product both sourced and produced locally in Australia.

National distribution

Just as importantly, the JV will leverage the strength of Wellnex’s distribution network and give Ocean Road Dairies shelf space at Chemist Warehouse – Australia’s largest pharmacy chain.

Distribution is expected to commence before the end of this financial year (June 30), with national distribution across Chemist Warehouse’s 500+ strong store network.

The two companies have also secured distribution for another new product, the Gradulac Gentle infant formula, in both Chemist Warehouse and pharmacy wholesaler Symbion, who supply around 3,000 pharmacies in Australia.

Australian Dairy Nutritionals CEO Peter Skene said the company was thrilled to have secured such a strong distribution agreement, after a multi-year period of product development and investment in its production facilities.

“This joint venture with Wellnex will see both future Gradulac Gentle and Ocean Road Dairies infant formula being retailed by two of Australia’s largest retailers of infant formula,” Skene said.

“We are very proud of these products and look forward to a long and successful partnership with Wellnex Life.”

This article was developed in collaboration with Wellnex Life, 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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