New Zealand’s Oceania Natural gets $2.5m for HK base

AVCJ understands backers of the new Asia-focused joint venture primarily comprise private investors in the fast-moving consumer goods sector who are personally known to the company's board. The privately funded nature of the JV - known as Oceania Natural - is planned to be replicated as the company moves into other regional territories in China and other countries. The company recently applied for approval to operate in Wuxi in Jiangsu province.

According to a statement, the new investors will take a 49% stake in the company. This investment is expected to provide benefits related to extensive distribution networks, with one backer offering access to more than 2,000 pharmacies across three cities in China. Other participants in the JV are expected to provide resources that will help develop new sales channels, including retail outlets.

"It is encouraging to have reached an arrangement enabling us to fast-track our distribution networks without needing to ask our shareholders for funding," said Walker Zhong, Oceania's CEO. "This will allow us to expand more quickly and build our distribution and supplier networks to ensure we are in a strong position for the latter half of the financial year, when our sales are traditionally stronger."

Oceania's current focus is on products derived from Manuka honey and noni fruit which are marketed under its Rich Garden brand, primarily in China. Revenue improved 122% during the 2016 financial year to NZ$3.3 million while net profit jumped to NZ$182,600 from NZ$1,200 the previous year.

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• Topics
• Australasia
• Greater China
• Consumer
• Expansion
• PIPEs
• New Zealand
• China
• Hong Kong (China)
• Growth capital