Wattle Health Australia Signs Distribution Deal for China

Wattle Health Australia Limited announced it has signed a Term Sheet (Agreement) with International Supplies and Distribution Company Pty Ltd (ISDC) to supply WHA’s conventional cow infant formula for sale in traditional retail/ general trade in Mainland China.

ISDC under the Agreement to service the Mainland China market, has guaranteed volumes as follows:

  • For the first 18 months, commitment to purchasing a minimum of 1,500,000 units;
  • For the following 12 months thereafter, a further 1,500,000 units; and
  • For the following 12 months period thereafter, a further 2,200,000 units.

Following completion of the 3 periods above, WHA and ISDC, by mutual consent, will set new volumes for subsequent 12 month periods.

ISDC has agreed to provide to WHA a bank guarantee (BG) of an amount equivalent to 25% of the production cost, to facilitate the minimum supply arrangement for each period outlined above. The minimum volume targets established with ISDC are in addition to WHA’s arrangements with existing customers in Mainland China, being the Ayingdao mum and baby chain, Tesco Lotus and China Duty Free and other customers WHA are currently negotiating with. Finalisation of the arrangement is subject to WHA receiving formal accreditation from the China Food and Drug Administration (CFDA) for its conventional cow infant formula and the signing of the formal supply agreement.

Finalisation of the arrangement is subject to WHA receiving formal accreditation from the China Food and Drug Administration (CFDA) for its conventional cow infant formula and the signing of the formal supply agreement.

Mr Lazarus Karasavvidis, Executive Chairman said “This Agreement with ISDC is an important milestone for Wattle Health Australia which enables us to grow our footprint in Mainland China.

Further, this Agreement provides WHA minimum volume levels, which enable the Company to forward plan with confidence as we look to expand our product offerings not just in China but globally.

WHA welcomes ISDC to to the Wattle Health Family and we look forward to a long term mutually beneficial relationship.”

Mr Danny Segal, Director of ISDC said “ISDC is an Australian owned company with offices both in Melbourne and Guangzhou, China. ISDC’s owners have been dealing in China for over 25 years and have established strong business relationships. ISDC is currently selling products to over 2,000 Mother and Baby stores, and a growing wholesale network which includes Chemists, supermarkets and convenience stores throughout China.


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