Bod Australia signs agreement to develop a line of hemp-based Manuka honey
19 January 2018, Written by David Simmons
COSMETICS, natural medicines, and major hemp player, Bod Australia (ASX: BDA), is set to launch a new line of hemp infused Manuka honey.
The ASX listed group has signed an agreement with New Zealand Manuka honey producer Manuka Pharma to develop and manufacture the hemp honey product line.
Under the agreement, Manuka Pharma will source, develop, and manufacture the product, while Bod will import the complete product into Australia.
The new line will be sold through Bod's established sales channels, meaning the product will be able to make its way into the Chinese market.
According to Bod, New Zealand's biggest honey markets are Australia, the UK, China and Hong Kong with global import demand estimated to be around $2.6 billion.
The prices markets pay for Manuka by the kilogram vary from place to place, but medical grade Manuka can fetch up to $1,000 per kilogram.
Initial sales for the hemp-infused Manuka will take place in Australian pharmacies, independent stores, and health and supplement store. Bod will eventually leverage its strategic partnerships in Asia, most notably in China, through its key daigou relationships.
Bod plans to take the product to North America and Europe in the near future too.
According to Bod, the cannabis-infused Manuka honey will be able to treat a range of ailments.
"The initial finished product will provide consumers with a source of high quality protein and essential fatty acids from the addition of hemp seeds, as well as the added health benefits of a high-grade, high MGS (methylglyoxal) Manuka Honey," says the company in an announcement to the ASX.
"These benefits are well documented and include a reduction in stomach acids and acid reflux, combatting staph infections, improving sleep quality and the prevention of tooth decay and gingivitis; it may help treat cane and eczema."
Bod Australia CEO Jo Patterson says the partnership with Manuka Pharma was an ideal match.
"This is a highly complementary partnership for the business as it will not only enhance our nutritional product portfolio, but it will also provide an additional revenue stream for the Company in the near-term," says Patterson.
"Bod Australia is continually pursuing a number of opportunities to further build its distribution footprint and grow its product portfolio and we look forward to updating shareholders around any potential developments in the near term."
At the end of 2017, Bod announced it has become one of the first companies on the ASX to receive its medicinal cannabis import license.
The license will allow Bod to import phyto-complex cannabis for use commercially as well as for use in its clinical trials and research.
Off the back of its license through the NSW Department of Health, Bod will now seek approval from the Federal Office of Drug Control to import a range of cannabis products from overseas including oils and raw materials from its Swiss partner Linnea.
Business News Australia
Author: David Simmons