Wellnex Life shares jump after the company secures distribution deal with supermarket giant Coles
Health & Biotech
Health & Biotech
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The deal is the latest in a string of market breakthroughs for WNX, which is now executing on a leading product distribution strategy.
Health and wellness company Wellnex Life (ASX:WNX) has had a steady run of positive news flow lately as the company builds out a market-leading distribution strategy.
And WNX management had another update for investors this morning, with confirmation that leading supermarket retailer Coles will stock two Wellnex-owned brands; Wakey Wakey and The Iron Company.
Wakey Wakey produces a new range of energy-booster gummy bears, while the Iron Company is the brand behind slow-release iron-booster and Vitamin C gummies – the first products of their kind in Australia.
Investors responded positively to the news, sending WNX shares ~10% higher in morning trade to 12c.
Wellnex described the deal with Coles as “significant”, bringing a national grocery chain into its distribution remit which already includes a number of leading pharmacy chains including Chemist Warehouse and Terry White Chemmart.
First manufacturing runs for the new products across both brands is now complete, with delivery expected in October.
And it also demonstrates the ability of the Wellnex Life management team to both manufacture new products and bring them to market through major retail channels.
“These national retailer commitments to range give Wellnex great confidence that we are producing and bringing to market health and wellness products that are in demand and address clear consumer needs,” CEO George Karafotias said.
The Coles distribution deal follows the successful recent launch of another Wellnex brand, Wagner Liquigesic — Australia’s first soft gel liquid paracetamol.
Last month, the company also signed a licensing deal with Performance Inspired – the US nutritional supplements brand which was co-founded by actor and entrepreneur Mark Wahlberg and health expert Tom Dowd.
The deal gives Wellnex exclusive distribution rights in Australia and New Zealand for Performance Inspired products, as well as first rights to expand distribution to Asia.
Taken in aggregate, each new update gives the business more operational momentum, as the company executes on its vision to become a leading seller of health and wellness products following its successful acquisition of Brand Solutions Australia (BSA).
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.