Baby food de­mand boosts Bel­lamy’s rev­enues

China Daily (USA) - - BUSINESS - ByWANG ZHUOQIONG wangzhuo­qiong@ chi­nadaily.com.cn

Strong de­mand from China for its or­ganic baby for­mula boosted sales in the main­land for food and bev­er­age com­pany Bel­lamy’s Aus­tralia Ltd, which soared in its full year to end June by 331 per­cent on the pre­vi­ous year, the group re­ported on Fri­day. Au­gust 19.

Rev­enue from China last year to­taled more than a quar­ter of global rev­enue, said the com­pany, formerly known as Tas­ma­nian Pure Foods Ltd.

The Aus­tralian baby for­mu­la­maker— which is also a pro­ducer, sup­plier and mar­keter of or­ganic baby food — saw rev­enue from China climb to $62 mil­lion last year, ac­cord­ing to its an­nual re­port for 2016, re­leased on Fri­day.Aug 19.

Sales in Aus­tralia, its big­gest sin­gle mar­ket, surged 67 per­cent year-on-year to $179 mil­lion. Its home mar­ket took up 79 per­cent of the com­pany’s to­tal rev­enue, but the com­pany said many prod­ucts sold in Aus­tralia made their way to China even­tu­ally.

To­tal group rev­enue for the year came in at $245 mil­lion, a 95 per­cent in­crease on the pre­vi­ous year.

The com­pany posted gross profit mar­gins of 45.7 per­cent, com­pared with 32.9 per­cent for the pre­vi­ous year, boosted by price rises in the do­mes­tic mar­ket and a pos­i­tive im­pact from its e-com­merce flag­ship store in China.

Bel­lamy’s said the growth of its Chi­nese busi­ness came from an on­go­ing shift toward on­line sales of im­ported in­fant for­mula prod­ucts from third-party web­site plat­forms such as Tmall, JD and VIP, with de­liv­ery to con­sumers through free trade zones in China and lo­cal Chi­nese providers.

In the bricks-and-mor­tar side of the busi­ness, the com­pany has more than 30 dis­trib­u­tors with its prod­ucts stocked in more than 2,000 stores across China.

The brand has less than 1 per­cent of the over­all China mar­ket but had about 3 per­cent of the on­line busi­ness at the end of June.

CEO Laura McBain said the group started a brand build­ing part­ner­ship with BabyTree, a lead­ing parenting web­site in China, to im­prove its brand aware­ness and pen­e­tra­tion. The plan is to in­crease mar­ket­ing in­vest­ments to fur­ther build its brand and dis­tri­bu­tion pres­ence in China.

McBain said the com­pany’s strong brand­ing re­lied on or­ganic milk, which has less than 1 per­cent of the global milk sup­ply mar­ket.

She said the com­pany will fur­ther ex­pand its or­ganic prod­uct of­fer­ings in China.

YAN XIAOQING / CHINA DAILY

A po­ten­tial buyer reads ad­ver­tise­ment for Bel­lamy’s or­ganic baby for­mula.

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