Abundant Produce teams up with China-focused Jatenergy
Two ASX-listed companies emerging on the back of an exclusive focus on China, have signed an international supply agreement to further their commercial interests.
Abundant Natural Health (ANH), currently owned by Abundant Produce (ASX: ABT) approved a deal with Jatenergy (ASX: JAT), a “China-Australia cross border specialist” to further its marketability and distribution capability in China.
Jatenergy is building a solid reputation as a leading end-to-end export service provider offering a fast and cost effective one-stop solution for Australian companies seeking to launch and build their brands in China.
As part of its emergence into the Chinese and Australian markets, Jatenergy’s shareholders approved the takeover of Golden Koala at its AGM, which the company says, “further strengthens its commitment to China”.
“On the back of our recent HealthOne agreement, this is an exciting expansion of the distribution channel into the Chinese consumer marketplace. Jatenergy has agreed to promote ANH’s natural health range of face treatments, body creams and sprays to its vast consumer network in China,” said CEO Mrs Shanan Birkin, CEO of Abundant Natural Health.
“We intend to start fulfilment of the JAT supply chain immediately,” she added.
Quality control
Given the strong growth of cross-border sales between Australia and China, quality control has become a topical issue with several incidences of poor quality products leading to shunning of domestically-produced goods in China and sparking panic buying of comparable Australian-made alternative products.
“As ANH’s exclusive Chinese marketplace partner, Jatenergy intends to create and facilitate strong relationships on behalf of ANH in this growing consumer market. Product quality and provenance are critical factors in supplying the Chinese market and ANH’s natural range meets these requirements 100%,” said Mr Wilton Yao, Executive Director of Jatenergy.
According to Mr Yao, Jatenergy can also play an instrumental role in boosting customer engagement and promoting ANH’s product range in China.
The “key to promoting ANH’s range in China is its focus on the scientific development of its products in collaboration with The University of Sydney and The University of NSW,” he said.
From China to Australia
With its Chinese sales operations being assisted by Jatenergy, ANH has setup a similar agreement with HealthOne, which as has agreed to represent ANH’s products in Australian pharmacies and specialist health focused outlets.
Mrs Birkin said that, “ANH and HealthOne are well advanced in securing leading chains in Australia to represent our product ranges,” and intends ANH (and parent company ABT) to capitalise on HealthOne’s and Jatenergy’s “deep operating understanding and knowledge of their respective marketplaces”, that will ultimately drive sales growth for ANH and ABT.
“We’re confident that HealthOne and Jatenergy can successfully promote and sell our unique science and research-backed natural actives in the Australian and Chinese markets,” said Mrs Birkin.