Capilano & Comvita set to form honey JV

Capilano Honey and New Zealand-based health products company Comvita are planning to form a new, jointly-owned honey making business.

The two companies have signed a Memorandum of Understanding to form a business which would operate a number of Leptospermum honey producing apiaries in Australia and deliver premium honey for a range of medical and natural health products. The incorporated joint venture to be formed will be owned 50:50 by Comvita and Capilano.

Within their respective countries, Comvita and Capilano each market honey and manage apiary operations that produce a wide range of honey, including Leptospermum honey.

Capilano wishes to expand its specialised Leptospermum apiary operation in Australia and secure greater honey supply. Comvita currently operates in Australia in a sales and marketing capacity and this joint venture will secure greater volumes of Leptospermum honey to be processed in Australia, to meet a growing global sales demand.

Capilano and Comvita have already been involved in a joint research initiative to investigate the medicinal properties of Australian Leptospermum honey. In order to best satisfy growing sales, both companies recognise the need to expand their operations and grow the supply base for premium quality honey, especially in Australia.

The formation of the joint venture is subject to the execution of appropriate transaction documentation that is to be expeditiously agreed by both parties.