Nature One Dairy has signed a deal to manufacture baby formula, specialised milk powder products and other health-related products for Chinese pharmacy group Sinopharm.
The deal would involve export of the products to China.
China’s new policy on infant formula, which takes effect on the January 1 2018, limits the number of brands that manufacturers can register in China. This is part of the Chinese government’s move to improve food safety in the world’s most populous country.
Nick Dimopoulos, CEO of Nature One Dairy said the strategic partnership will the company to tap into Sinopharm’s core business which covers distribution, retail, research, development and manufacture of prevention, treatment, diagnosis, care, and other health-related products across China.
“Our aim is to be able to produce a wide range of formulated products to meet the demands of different consumer groups. We are excited to be able to work with Sinopharm on their infant formula brand Happy Veve, as well as to co-develop new products for the China market with Sinopharm who is the largest retailer of medicines and healthcare products,” he said.
He said Sinopharm decided to partner with Nature One Dairy because of its pharmaceutical-grade manufacturing facility and stringent food safety and quality management program.