Date
28 March 2017
Strong Chinese demand has helped Australian vitamin and dietary supplement makers such as Blackmores boost their sales in recent years. Photo: Blackmores
Strong Chinese demand has helped Australian vitamin and dietary supplement makers such as Blackmores boost their sales in recent years. Photo: Blackmores

Australia vitamin makers ride high on China demand

Australia’s vitamin and dietary supplement makers are benefiting from surging Chinese demand for their products, Bloomberg News reported.

“There has never been a better time to be an Australian health products company,” Christine Holgate, chief executive of Blackmores Ltd., was quoted as saying.

“The Chinese grew up in an environment where natural medicine was always part of their way of life, but they are also very savvy consumers and they want the best product, made to the highest quality standards,” she said.

Booming Chinese demand helped Blackmores triple its share price in the past year.

The report cited data from market researcher Euromonitor as showing that vitamin and dietary supplement sales almost doubled in the past five years in China, jumping 12 percent to 100.1 billion yuan (US$15.7 billion) in 2014.

Blackmores’ sales to Chinese and other Asian buyers accounted for A$150 million, or almost a third of annual revenue, in the year ended June, according to the report.

With the China prospects making the sector attractive for potential buyers, Melbourne-based Swisse Wellness Group, meanwhile, is scouting for a possible deal, the report said.

The company has hired Goldman Sachs examine a possible sale that may fetch as much as A$1 billion, the report said, citing people with knowledge of the matter.

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