Health and nutrition investment company EVE Investments (ASX: EVE) has struck a timely deal with OpenDNA (ASX: OPN) in a bid to improve its marketing and sales support for its range of honey products into the Chinese market.
The deal was said to be a “win-win for both companies”, according to OpenDNA’s CEO Bryan Carr.
EVE Investments said that its wholly-owned subsidiary Meluka Honey had signed a binding agreement with the artificial intelligence and e-commerce marketing company for an initial 12-month period with an opportunity to extend the deal by a further 12 months if required.
The deal announced today hopes to integrate OpenDNA’s RooLife platform – with Meluka’s activities to continuously assess and refine the products offered to customers while gathering intelligence about its customers’ preferences and buying habits.
OpenDNA says this will, in turn, provide merchants such as Meluka Honey, with valuable insights into their end customers in China.
EVE Investments said that the two primary factors driving demand in the Chinese market are the strong belief in the natural medicinal properties of honey coupled with its trust in the quality and safety of Australian made products.
OpenDNA’s artificial intelligence technology provides real-time personalised market analysis and sales support which Meluka Honey wants to leverage in order to extend its marketability in the world’s fastest-growing consumer market.
More specifically, OpenDNA’s RooLife online platform will be implemented and will serve as a “significant step in establishing the Meluka brand in the Asian markets,” according to EVE Investments.
“The China market presents a huge opportunity for Meluka Honey and we are delighted to partner with OpenDNA to market and sell our high-quality and unique honey products in a market with strong demand for high-quality honey,” said Bill Fry, executive director of EVE Investments.
According to Mr Fry, Meluka Honey is produced from bees foraging from some of the most protected, cleanest and greenest native bush in the world, and is therefore considered a unique product that would appeal to health-conscious Chinese consumers.
“This incredible source allows us to produce honey that is superior in both taste and quality and we expect our honey to appeal strongly to Chinese consumers,” he said.
OpenDNA hopes this agreement will further advance its strategy to market and sell high quality and authentic Australian products and services into China with Meluka Honey seen as a superb way for the company to tap into one of the fastest-growing markets for natural honey in the world – a market where consumption of natural honey has grown by 112.5% since 2013.
According to industry analysis provided by US company Global Industry Analysts, worldwide consumption of honey is projected to exceed 2.8 million tonnes by 2024. Future growth will be driven by both food and non-food uses of honey which Meluka Honey wants to cater for with its unique brand.
The US company reported that volume gains in the market will come from growing consumer interest and knowledge of the medicinal use of honey and its value as a premium ingredient in the nutraceutical and functional food industry.
“High-quality Australian honey is in demand in China and with the unique properties of Meluka Honey we expect their honey to be able to be clearly differentiated in the market and to be attractive to consumers seeking honey that not only tastes great but also provides health benefits,” said Mr Carr.
He added that “its anti-oxidant and sustained anti-microbial qualities derived from the natural bio-active properties of the Melaleuca Alternifolia tea tree are unique and align well with the core elements of Traditional Chinese Medicine (TCM).”
This morning’s news had an immediate impact on the valuations of both companies. EVE Investments shares rose 20% up to $0.006 per share while OpenDNA’s shares rose almost 4% up to $0.054 per share.