AuMake has announced today that it is buying half of Herbsmart Pharmaceutical with an option to acquire a further 40%.
The addition of Herbsmart further expands the company’s portfolio of diversified owned brands and is the first to be included within its dairy category.
The Herbsmart brand is growing in popularity among the daigou and Chinese tourist market, and is best known for its Valerian Milk product which is specially formulated to aid sleep.
Through Herbsmart, AuMake will be developing innovative products for China’s ageing population which combine the health benefits of natural supplements and milk.
AuMake’s executive chairman Keong Chan said that current trends and market feedback from customers in Australia and China indicate an opportunity for AuMake.
“Our initial joint ownership and opportunity to acquire more of Herbsmart provides a strategic opportunity for us to develop niche products to meet an identified need within the Chinese consumer market, with 241 million Chinese over the age of 60 and that number expected to rise to 487 million by 2050,” Chan said.
By the end of this month, Herbsmart’s Valerian Milk product will be promoted on China’s JiaJia TV shopping channel which has a viewership of 385 million people, predominantly aged over 60 years.
