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Forbidden Foods signs Chinese cross-border e-commerce distribution agreement

This exclusive agreement targets minimum sales of $3.215 million over an initial two-year term, with Winhealth Pharma purchasing, storing, distributing and marketing the FUNCH® range of products.

Forbidden Foods Ltd - Forbidden Foods signs Chinese cross-border e-commerce distribution agreement
There is growing consumer demand for nutritious and natural baby food in China.

Forbidden Foods Ltd (ASX:FFF) has entered an exclusive cross-border e-commerce distribution agreement with Hangzhou and Hong Kong-based Winhealth Pharma to distribute its infant and toddler, health and nutrition brand FUNCH® with leading Chinese e-commerce retailers including Koala and JD.com.

The company has received its first purchase order from Winhealth for more than $90,000 of FUNCH products that will be shipped to China, confirming the growing consumer demand for nutritious and natural baby food in the region.

This exclusive agreement targets minimum sales of $3.215 million over an initial two-year term, with Winhealth Pharma purchasing, storing, distributing and marketing the FUNCH range of products.

Following this agreement, the FUNCH range of baby foods will also be accessible on T-mall Global and Little Red Book platforms.

Consequently, Forbidden now has its presence on four e-commerce platforms that capture 62.2% of the cross-border e-commerce sales in China. 

“Great track record”

Forbidden Foods Co-founder and COO, Jarrod Milani said: “We are excited to announce a new strategic partnership with Winhealth Pharma for Kaola and JD.com.

“Winhealth has strong capabilities and working with a reputable list of health & pharmaceutical multinationals in Asian markets.

“They have mapped out a clear path for reaching the sales target in this exclusive distribution agreement which gives us confidence in their ability to exclusively represent FUNCH on these platforms.”

“Strong partnerships and networks”

Milani added: “Growth in China forms a key part of Forbidden Food’s overall strategy, and whilst there are some current macro challenges, the current and longer-term commercial opportunities for our business remain compelling.

“Setting ourselves up for a sustainable business in China starts with our strong partnerships and networks which we are developing and supporting.”

Presence on leading platforms

This exclusive agreement with Winhealth has facilitated Forbidden to have its presence in JD and Koala.com.

JD.com is China’s largest online retailer and its biggest overall retailer with net revenues of US$114.3 billion in 2020. JD.com boasts 471 million annual active customers being serviced from over 900 warehouses.

Kaola, acquired by Alibaba in 2019, is the second-largest cross-border e-commerce platform in China and provides a strong offering in beauty, personal care, and mothers and babies products.

Furthermore, Forbidden is planning an expansion into other platforms both online and offline.

Milani added: “Our marketing and sales efforts on our flagship FUNCH T-mall global store continues to serve us well with a large number of incoming inquiries from parties wanting to represent and distribute FUNCH online and offline.

“Expanding onto other leading platforms such as those announced today will only further enhance FUNCH’s credibility in Asia and allow us to grow our e-commerce revenue.”

- Ephrems Joseph

Quick facts: Forbidden Foods Ltd

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