MGC Pharma secures Chinese distribution agreement for CBD based products
17 April 2019, Written by Business News Australia
Chinese demand for Australian products like skincare, vitamins, and produce is no secret but it seems that Australian cannabis manufacturers are now looking to the Asian giant for distribution.
MGC Pharma has signed a distribution agreement with Chinese e-commerce import platform YuShop Global to sell the company's CBD and hemp-enhanced product range in China.
The agreement will see MGC's nutraceutical cannabis products targeted to YuShop's network of 1,500 retail partners and its online platform.
YuShop will provide a turn-key solution to MGC in that they will be responsible for all sales, marketing, logistics and customer service within China.
The line of nutraceutical medicinal cannabis products being distributed into China includes CBD Hemp Protein Powder, BCAA CBD capsules, CBD Water Soluble Solution and CBD Herbal V-Pen.
The two parties are currently conducting an eight-week test campaign, with a full scale marketing and sales campaign scheduled to be launched in June 2019.
According to the SEO Agency, the Chinese market is expected to purchase over US$20 billion worth of vitamins and supplements in 2020, so MGC wants to grab an early slice of the market with this partnership.
MGC co-founder and managing director Roby Zomer says the partnership is a major step forward for the company.
"The expanded sales distribution into China represents a significant step forward in the commercialisation strategy of MGC Pharma's nutraceutical range," says Zomer.
"We are focused on a growth strategy of becoming a leading global provider of phytocannabinoid health products, including our Nutraceutical range, on top of our leading medicinal products."
YuShop global CEO Nathan Halsey believes the introduction of MGC products will inspire massive demand for CBD products in China.
"MGC Pharma's current product offering, along with their product roadman, is going to lead a technology-baked CBD product demand surge in China," says Halsey.
"Where most CBD brands today are limited to CBD oil tinctures and gel capsules, MGC Pharma's expanded line of CBD-infused protein powders, multi-purpose vitamins, and nutraceuticals are not only advanced for the UK and North American markets, they are in a category of their own currently in China."
Business News Australia
Author: Business News Australia