Keytone Dairy launches new products for Chinese market, continues construction of second NZ factory

Keytone Dairy ASX KTD launches new products China diabetic powder junior formula
Keytone Dairy has launched two new premium powder products for diabetics and children aged three to seven years old.

Newly-listed manufacturer Keytone Dairy Corporation (ASX: KTD) has announced the introduction of two new products to its line-up of formulated dairy and nutritional powdered supplements.

The company will begin producing KeyDairy Diabetic Formula and KeyDairy Junior Formula from its New Zealand-based factory primarily for export to China, where it has established routes to market.

The move is in line with Keytone’s business strategy of expanding its product range and increasing its geographic spread.

Diabetes management

KeyDairy Diabetic Powder has been designed to assist sufferers of the world’s fastest-growing chronic medical condition with the day-to-day management of their blood sugar and insulin levels and as a supplement to their prescribed medications.

It is believed to provide a “good source” of essential daily vitamins and minerals to further support the specific daily needs of this consumer group.

According to International Diabetes Federation figures, the Western Pacific region – incorporating China, Japan, Indonesia, Australia and New Zealand – accounts for 33% of all adults living with diabetes globally.

In 2017, China alone had more than 114 million people with diabetes and spent US$110 billion on diabetes-related healthcare.

Targeting child development

KeyDairy Junior Formula is targeted at active and fast-growing children between three and seven years of age and has been developed to meet specific needs in the areas of immune system and brain development, metabolic functioning, red blood cell production and bone strength.

The formula is claimed to provide an “essential daily dose” of Vitamins A, B, C and D, in addition to calcium, iron, protein and other vitamins and minerals required for healthy child growth.

Certifications

Keytone holds a Certification and Accreditation Administration of the People’s Republic of China manufacturer registration, which allows it to export a range of dairy and dairy-based products to China, including the new diabetic and junior formulas.

Its factory also holds a Halal certification from the Federation of Islamic Associations of New Zealand, an accredited body recognised by Islamic countries worldwide.

The Halal certification enables Keytone to export its products to regions such as the Middle East and South East Asia.

New factory

In mid-2018, Keytone commenced construction of a second facility in New Zealand to increase its total powdered product manufacturing capacity to 5,000 tonnes per annum.

The building is adjacent to its current factory and will include an automated canning line, a blender, a sterilised packing room and a sachet packing line.

Keytone said the new facility will be able to manufacture significantly higher volumes of finished product more efficiently and allow the company to re-align its sales mix towards higher-value proprietary products, with a view to substantially growing its sales revenue.

The facility remains on-track for delivery by mid-year.

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