Multi-million dollar Aus-China pharmacy deal
The pharmacy chains control more than 10,000 stores across China. More than 1,000 retail outlets promoting Australian manufactured health products, packaged food and wine in China is expected to open in the next two years.
“Chinese want Australian items because they are produced and manufactured under extremely strict health regulations,” said Sunny Sun chief executive of Australia New Zealand Health Products Limited.
“China is reducing the red tape on importing packaged food products and as a result registration and approval, which was difficult, is now quiet simple.”
It will raise $100 million in sales during the first year, which will lift to $800 million annually in five years. Total pharmacy sales across the Chinese market are currently in excess of $300 billion a year.
Chairman of the Australian China Business Council (Victoria), the hon. Ken Smith, who also attended the Expo as the head of delegation, said the Australian themed retail concept would “throw open’ the door to dozens of Australian producers and manufacturers.
Initially each themed outlet will be located within a pharmacy. The concept will then be rolled out through other retail chains. Each will vary in size between 100 and 300 square metres.
The Qingdao Expo highlighted 42 Australian suppliers including Blackmores, Sigma, Nature’s Way, Purafine Nature, Ferndale, Ageless Products, Herbal Fix, Optislim and Pure Aussie Made, honey producers Honeylife and Pure Peninsula Honey and Di Giorgio wines.