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.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.