)
Chinese consumers will soon get a taste of Australian-made kombucha now that RooLife (ASX: RLG) has entered into an exclusive distribution agreement with popular brand Remedy.
Founded a decade ago by husband-and-wife duo Sarah and Emmet Condon, Melbourne-based Remedy has today tapped the listed e-commerce and digital marketing company to market and sell its wide range of drinks in the Chinese market.
It is a milestone for the Australian manufacturer which already sells its fermented, lightly effervescent drinks domestically and in New Zealand, the UK, USA, Canada and parts of Asia.
Under the agreement, RLG will market and build new channels online and for general trade sales in China and will launch Remedy on the popular Alibaba-owned e-commerce platforms Tmall and Alipay.
The contract, which is subject to sales and performance milestones, has a minimum revenue target for the RooLife group of $5 million over a three-year period if minimum sales targets, which will scale up each year, are met.
"We are excited to be working with Remedy Drinks and to be marketing and selling such a highly successful brand into China," says RLG managing director Bryan Carr.
"With strong growing demand for healthy foods in a market the size of China, we see great potential for Remedy Drinks and we are delighted to be partnering as their exclusive distributor."
Remedy executive director Garry Cobbledick says RooLife's expertise with the Chinese market demonstrated by RLG's existing clientele including Arnott's, Celebrity Slim and Meluka Honey will result in the brand's drinks being embraced by health-conscious consumers.
"The Remedy brand has been successful in Australia and a number of international markets due to its taste profile and health benefits, and we believe it will be embraced by Chinese consumers seeking premium "better for you" beverages, such as kombucha."
Shares in RLG are up 16 per cent to $0.03 per share at 12.48pm AEST.
)
