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Wellnex Life secures Chemist Warehouse shelf-space for new joint venture

February 16, 2022

Wellnex Life secures Chemist Warehouse shelf-space for new joint venture

Wellnex Life has formalised its organic A2 infant milk formula joint venture with Australian Dairy Nutritionals Group and inked a deal to sell through major chains such as Chemist Warehouse.

Wellnex Life has formalised its organic A2 infant milk formula joint venture with Australian Dairy Nutritionals Group and inked a deal to sell through major chains such as Chemist Warehouse.

The milk formula – sold under the joint venture name Ocean Road Dairies – will be Australia’s first organic infant milk formula made using A2 milk sourced from farms near the JV’s namesake.

A2 refers to the type of beta-casein proteins found in cows milk – depending on a cow’s genes, it can produce milk that only features the A1 beta-casein protein, a combination of A1 and A2, or in this case, only the A2 protein, which many consumers find easier to digest.

The farms supplying Ocean Road Dairies fall within 20 minutes travel distance of the company’s processing site, which Wellnex Life said will lead to a product “boasting superior freshness”.

The new range of products will be sold through leading pharmacy chain Chemist Warehouse, with Wellnex Life targeting the end of the 2022 financial year for their release to the market.

Wellnex Life CEO George Karafotias said the formalisation of the joint venture represented an “exciting development” for the business.

“Bringing a unique and high-value product to the infant formula market will give us the opportunity to grow our sales and provide premium nutrition to toddlers both domestically and internationally,” he said.

“We are excited to be working with a like-minded company in Australian Dairy Nutritionals.”

The two businesses also secured distribution deals for future Gradulac Gentle infant formula through both Chemist Warehouse and Symbion – a pharmacy wholesaler supplying roughly 3000 stores nationwide.

Australian Dairy Nutritionals Group CEO Peter Skene said these agreements are a “major distribution milestone” for both businesses.

“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,” Mr Skene said.

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

Ocean Road Dairies will eventually replace Wellnex Life’s other infant formula brand, Uganics, in the market.

To stay up to date with Wellnex Life news and announcements, please register your details on the Wellnex Life investor portal.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Wellnex and will receive fees for its services

Sources


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