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AuMake International acquires stake in valerian root milk firm Herbsmart Pharmaceutical

The milk will be promoted on China’s JiaJia TV shopping channel which has 385 million viewers.
Valerian milk product
Valerian milk product combine the health benefits of natural supplements and milk

AuMake International Ltd (ASX:AU8) has acquired 50% of Herbsmart Pharmaceutical, a company supplying milk containing valerian root.

Herbsmart’s range consists of speciality milk products with planned product development, contemporary design and packaging to focus on the needs of China’s ageing population.

AuMake connects local suppliers in Australia with daigou - who buy products for customers in mainland China - and Chinese tourists.

The addition of Herbsmart further expands AuMake’s portfolio of owned brands and is the first owned brand dairy product.

READ: AuMake International snaps up Kiwi Buy to enhance Chinese targeted sales strategy

Stocked in AuMake since October 2017, the Herbsmart brand is growing in awareness among the daigou and Chinese tourist markets.

Herbsmart valerian milk uses valerian root and other natural supplements that are specially formulated to aid sleep.

AuMake’s purchase of the 50% stake is at nil cost, in recognition of its contribution to the development of the Herbsmart brand.

The deal also gives an option for AuMake to buy a further 40% in Herbsmart.

AuMake executive chairman Keong Chan said: “Our observation of current trends and market feedback from our customers in Australia and China indicates that a significant opportunity exists for AuMake to develop a range of products, starting with the Valerian milk product, which combine the health benefits of natural supplements and milk.

“Our initial joint ownership and opportunity to acquire more of Herbsmart provides a strategic opportunity for us to develop niche products to meet an identified need within the Chinese consumer market, with 241 million Chinese over the age of 60 and that number expected to rise to 487 million by 2050.”

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