Wellnex Life launches Mark Wahlberg founded health and wellness brand to drive revenue growth

Wellnex Life (ASX: WNX) has officially launched the Performance Inspired and Ocean Road Dairies brands to complement its expanding portfolio of products in Australia’s health and wellness market.

National pharmacy retail chain Chemist Warehouse will take stock of both brands, which are expected to drive the company’s revenue growth in the new financial year.

Performance Inspired was co-founded by Hollywood celebrity and health and fitness ambassador Mark Wahlberg as a nutrition and supplements brand and has become one of the fastest-growing brands of its kind in the US.

The line houses more than 58 health and wellness nutritional products on the US market catering to consumers and professional athletes and is supported by investors including basketball star Draymond Green and golf professional Bryson DeChambeau.

In August last year, Wellnex signed a licencing agreement with Performance Inspired based on an exclusive distributorship into the Australian and New Zealand markets, with first rights to expand the licence into Asia.

Two months later, Wellnex announced it had secured distribution for the brand in Chemist Warehouse.

A substantial initial purchase order has been received and instore and online sales are expected to commence this week.

Ocean Road Dairies launch

In a joint venture with Australian Dairy Nutritionals Group (ASX: AHF) announced last December, Wellnex will also commercialise products under the Ocean Road Dairies brand, including Australia’s first organic A2 infant formula.

Under the terms of the agreement, Australian Dairy Nutritionals will manufacture the infant formula range at a plant being commissioned in Victoria, using organic A2 protein milk sourced from its farms nearby.

Wellnex has received initial orders from Chemist Warehouse which are being dispatched this week and will be stocked onto shelves shortly after.

It is anticipated that Ocean Road Dairies will fill a niche in the market for a premium infant formula as an alternative to regular cow’s milk.

Quarterly results

Wellnex has reported a record revenue of $6.88 million for the first quarter of the 2023 financial year.

The figures represent an increase of 81% compared to the previous corresponding period of $3.8 million, and features considerable sales growth in Wellnex’s wholly-owned brands as well as contract manufacturing.

Wellnex said the strong start to the new financial year coupled with upcoming product launches reaffirms its previous guidance of $29 million in revenue for 2023.

OTC medicinal cannabis

Wellnex is focused on becoming one of the first companies in Australia to launch an over-the-counter (OTC) medicinal cannabis product under new national regulations which will eliminate a prescription requirement.

The existing Special Access Scheme market — which is forecast to be worth $423 million in 2022 for Australia — has been limited by prescription requirements in the past.

Wellnex said its ability to meet the new regulations will be aided by a 50:50 joint venture launched in July with Australian producer OneLife Botanicals for the manufacture, distribution and sale of cannabis and hemp-based products.

“Our core competencies around regulatory approvals and distribution networks, together with this joint venture, will provide us with all the ingredients needed to be one of the first to dominate this emerging market which is expected to feature high regulatory hurdles for competitors and shelving priority for Australian pharmacies,” the company said.